Performance Management in Human Resources

By

Thomas Cris Sarasam
Student
Department of Business Administration
College of Engineering
Trivandrum
E-mail: thomas.sarasam@gmail.com
 

Introduction

The history of management in India can be traced to the English East India Company, (1600–1874) chartered by Queen Elizabeth I for trade with Asia.  After independence in 1947, India subscribed to a model which placed a strong emphasis on central planning and a big role for government owned Public Sector Enterprises (PSEs) who were established to control the "commanding heights" of the economy.  After the economic reforms of 1991 the country's economy became much more integrated to the world economy, which were the effects of liberalization in our country and globalization worldwide. The concept of human resources has undergone drastic changes as far as the Indian Industry is concerned. The age-old concept of Human Resource Management has changed to Human Resource Development. This change has come as a result of the change in industry from manufacturing in the public sector to information technology in the private sector.

Performance Management in Human Resources.

The evolution of the concept of performance management as a new Human Resource Management model reflects a change of emphasis in organizations away from command-and-control toward a facilitation model of leadership. This change has been accompanied by recognition of the importance to the employee and the institution of relating work performance to the strategic or long-term and overarching mission of the organization as a whole. The performance management process provides an opportunity for the employee and performance manager to discuss development goals and jointly create a plan for achieving those goals. Development plans should contribute to organizational goals and the professional growth of the employee. Critical to the success of this new model, a flexible attitude in the face of constant change is most essential. For performance managers, this changing environment offers many new challenges and opportunities. Performance managers and their employees are increasingly being asked to become generalists who step outside of traditional narrowly-defined job descriptions in support of team objectives and goals. These changes are resulting in the development of new approaches to human resource management.

Writing a job description is a process of systematically collecting, analyzing, and documenting the important facts about a job. A strategic plan is composed of a mission statement, identified goals related to the organization's mission, as well as strategic initiatives necessary to accomplish each goal. Assignment of responsibility for the accomplishment of goals and strategic initiatives is related to the essential functions of the job description. Before a job vacancy is advertised, a job description is completed. After the employee is hired, this job description becomes the job assignment and forms the basis of the job function description on the Performance Evaluation Form. Writing a job description is a process of systematically collecting, analyzing, and documenting the important facts about a job. This process is called job analysis. The job description provides a basis for job-related selection procedures and performance standards.

The job description specifies:

• the specific job functions and tasks
• the functions and tasks which are essential
• the percentage of time typically spent performing each function
• the skills, knowledge and abilities required to perform the job successfully
• the physical and mental requirements of the position
• special conditions of employment
• the level of supervision received and exercised.

The most modern and the widely used is the 360-degree approach.

Superiors:

Evaluations by superiors are the most traditional source of employee feedback. This form of evaluation includes both the ratings of individuals by supervisors on elements in an employee's performance plan and the evaluation of programs and teams by senior managers.

Self-Assessment:

This form of performance information is actually quite common but usually used only as an informal part of the supervisor-employee appraisal feedback session. Supervisors frequently open the discussion with: "How do you feel you have performed?" In a somewhat more formal approach, supervisors ask employees to identify the key accomplishments they feel best represent their performance in critical and non-critical performance elements.  In a 360-degree approach, if self-ratings are going to be included, structured forms and formal procedures are recommended.

Peers:

With downsizing and reduced hierarchies in organizations, as well as the increasing use of teams and group accountability, peers are often the most relevant evaluators of their colleagues' performance. Peers have a unique perspective on a co-worker's job performance and employees are generally very receptive to the concept of rating each other. Peer ratings can be used when the employee's expertise is known or the performance and results can be observed. There are both significant contributions and serious pitfalls that must be carefully considered before including this type of feedback in a multifaceted appraisal program.

Subordinates:

An upward-appraisal process or feedback survey (sometimes referred to as a SAM, for "Subordinates Appraising Managers") is among the most significant and yet controversial features of a "full circle" performance evaluation program. Both managers being appraised and their own superiors agree that subordinates have a unique, often essential, perspective. The subordinate ratings provide particularly valuable data on performance elements concerning managerial and supervisory behaviors. However, there is usually great reluctance, even fear, concerning implementation of this rating dimension.

Performance Development Plan

Developing employee performance furthers the mission of the organization and enhances the overall quality of the workforce within the Organisation by promoting a climate of continuous learning and professional growth; helping to sustain employee performance at a level which meets or exceeds expectations; enhancing job- or career-related skills, knowledge and experience; enabling employees to keep abreast of changes in their fields; promoting affirmative action objectives; and motivating employees. Performance development plans may be considered at each stage of the performance management process.

An important component of the performance management process is development of employees' work-related skills, knowledge and experience. The development process offers another opportunity for you and your employee to work collaboratively to improve or build on his or her performance and to contribute to organizational effectiveness.

Continuous Learning

Development of employee skills, knowledge and experience is essential in today's rapidly changing workplace. In order for the organization to remain competitive and to retain its reputation for excellence, employees should have up-to-the-minute information and the ability to use new technologies, adapt to organizational change, work in flatter organizations in which cross-functional skills and knowledge are required, and work effectively in teams and other collaborative situations. Employees, too, recognize that it is essential for them to continue to learn so that they will be effective in their current jobs and able to move into other positions or accept new responsibilities as circumstances demand.

Preparing the Plan

There are four principal occasions when preparation of a performance development plan might be considered: 1) after definition or review of performance standards, 2) as a part of the ongoing process of observation and feedback, 3) as the final element of the performance appraisal process, 4) when an employee initiates a request for education or development opportunities. At any of these points in the performance management process, you may discuss training, education or development opportunities with your employee. Identify the specific steps to be taken and document a strategy for accomplishing these objectives. That documentation should include:

• A description of the specific steps to be taken
• The names of those who will assist the employee
• End dates for the completion of the plan's objectives
• A statement of how successful completion of the plan's objectives will be appraised.

Performance appraisals have become a tool of much importance in today's management scenario. This could be used best only with the help of objective and fair HR practices. The outputs of which could be used for Organisation development rather than for mere employee efficiency improvement. Casual and subjective appraisals will not be able to stand the test of fairness and legality if challenged. Firms are thus being forced to emphasize a participative but joint management by objectives followed by a participative, joint-periodic appraisal, to bring more clarity into the system.

References:

1. Personal Management, Edwin B Filippo, Fifth Edition ; Mc Graw Hill Publications
2. Organisational Behaviour ;Fred Luthans ; Ninth Edition ; Mc Graw Hill
3. http://www-hr.ucsd.edu/~staffeducation/guide/
4. Performance Management Practitioner Series ; United States Office of Personal management
5. http://www.opm.gov/
 

Thomas Cris Sarasam
Student
Department of Business Administration
College of Engineering
Trivandrum
E-mail: thomas.sarasam@gmail.com
 

Source : E-mail January 27, 2005

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