Effective Employee Performance: The Common Challenges and Problems

Performance Management and Performance Appraisal
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Introduction
Effective human resource management requires two important systems that are performance management and performance appraisal. This essay analyzes performance management describing the difference between performance management and performance appraisal. The second section of the essay examines some of the drivers of performance management and performance appraisal. Section three of the essay is about the claims made for performance management. The following sections examine some of the employer expectation in relation to performance management. In section five, the essay describes the stages and important elements of performance management and performance appraisal.
The essay also highlights the principle approaches to individual performance focusing on the three different approaches including behavioural approach, the output/results-based approaches and the 360-degree appraisal approach. The following sections involves important characteristics of an effective appraisal system and the challenges that organizations encounter when delivering employee performance appraisal. In conclusion, the essay will present how HR functions assist in effective performance appraisal.
Performance Management and Performance Appraisal
Performance management is defined as an integrated strategic approach to delivering sustainable success to the organization by improving individual performance. Performance management is a system that helps in identifying ways to achieve the set organizational goals by constantly assessing and providing feedback that results in improved employee performance. Unlike performance appraisal, performance management is an ongoing assessment of employee aimed at matching their goals to the organization's goals Armstrong (2009, p 618).
Performance appraisal is commonly referred to as performance evaluation and entails tools used by the management to measure the effectiveness of its employee’s performance. Armstrong & Baron (2005, p.621) state that performance appraisal is assumed to be an annual activity, however to effectively monitor individual performance many organizations prefer engaging employees in regular feedback compared to holding annual meetings to assess performance.
Unlike performance management, which is a dynamic system that uses performance evaluation tools and incorporates other elements to form part of performance management cycle, performance appraisal main focus is to measure and improve employee work. Performance appraisal reviews and assesses an employee systemically to help an organization identify employee achievements and further evaluate their contribution towards the overall organizational goals. The aim of performance management is to enhance performance whereby employees from all the departments work together to achieve a common goal set by the organization. Performance Management and performance appraisal aims at measuring and improving workforce value Armstrong (2009, p. 620).
Drivers of Performance Management/Appraisal
Performance management is not about the organization achievement but also an important process for employees. The most important part of performance management is to enhance performance. Therefore, effective performance management is about identifying requirements, providing feedback to assist in career development. Managers use performance management assuming that its benefits include improving the performance and productivity Armstrong & Murlis (1998) identify one of the benefits of performance appraisal is to provide the opportunity for formal communication between management and employee in regards to employee's performance. The two-way conversation between the managers and employees minimizes performance problems; this also enables employees to understand what is required and when it is required (Armstrong & Murlis, 1998).
Farndale & Kelliher (2013, p. 876) state some of the benefits of performance management including open communication with the managers; this process enhances communication between managers and employees providing employees with information about how they can accomplish their duties within the set organization boundaries. This process is more beneficial to both employees and managers because employees get an opportunity to openly discuss factors that inhibit their ability to perform hence their grievances are addressed. This process enables employees to focus their efforts towards the organization set priorities. Employees can benefit from performance appraisal by being made aware of their areas of weakness and adjust where necessary. Performance appraisal is a valuable tool that set goals for employees that can results to future promotions and career development (Farndale & Kelliher 2013, p. 876).
Performance management is a beneficial process for managers because it helps identify poor performers who are provided with appropriate training and timely feedback. Employees are motivated due to appropriate reward strategies or intrinsic benefits that acknowledge their work. Employees offer their intelligence; experience and their problem-solving ability, offering intrinsic rewards are much stronger than financial rewards because these rewards are likely to increase employee motivation. A motivated workforce is a significant factor towards organization success; motivated employee increases the levels of productivity (Farndale & Kelliher, 2013, p 879).
Claims Made For Performance Management
Performance management contributes to the set objectives of the organization. Good performance management system enables organizations to understand how employees are performing. By using the process outcome, the organization can undertake assessments for training needs of its employees. Performance management also helps organizations develop plans using performance management process to influence individual remuneration. From the employee perspective, performance management encourages transparency at work and can also be used to assess future career development needs (Brown, Hyatt & Benson, 2010, p 375).
Employer Expectations of Performance Management
The employer expects improved employee morale; employee morale affects organization productivity. Therefore, recognizing the value of an employee is the key to success. Employers expect increased profitability; loyal employees deliver quality service resulting in customer loyalty. Managers use performance management process to create an effective team that would result in efficiency. Using performance management process, employers can tap individual natural ability and preference that can result to innovative practices within the organization (CIPD, 2005).
Stages and Elements of the Performance Management Process
Armstrong (2009, p 622) in his handbook on human resource management, describes steps involving performance management as a process that involves not just measurement but also includes positive reinforcement, dialogue and feedback. These elements are important in realizing positive changes hence spurring employee improvement. The steps involved in performance management involve emphasizing on the organization mission and values; this can be achieved by reflection and HR strategies that will lay down the organization culture and expectation to its employees. During performance management process, employer's offers continuous appraisal through feedback processes as a strategy to realigning their goals about performance (Marchington & Wilkinson, 2005). Compared to the annual appraisal process, performance management systems are designed to change the dynamic needs of the employer and the employee. Performance assessment involves holding a discussion with employees to assess their performance and identifying any gaps in performance to achieve the set standards. Performance management is about agreeing to changes and coming up with work plans in relation to changes (Marchington & Wilkinson, 2005).
According to Armstrong (2009, p 620), the effective objective setting is about agreement on what the role of employee and the expectation. An effective and smart objective is based on job description, target to be achieved, the tasks involved these are specific results and behaviour expectations. This process involves the outlined organizational values and the areas of improvement. Smart objective should be specific, measurable, agreed upon, realistic, and time-bound.
Performance management requires an agreement between employee and employer; it also involves training and development, which is meant to align employees towards organizational performance objectives. Performance appraisal is one of the key elements in performance management because it assesses individual against objectives. Feedback needs to be constructive, specific and well-explained. Rewards are the important processes of personal development (Pilbeam & Corbridge, 2010).
Some of the Key Elements of Performance Appraisal
Performance appraisal involves measurement, which involves assessing performance against the agreed target and the objective; this also involves assessing behaviour and individual attitudes versus the organization values. Feedback is an important process in performance appraisal; feedback offers valuable information to employee’s progress and guideline on future performance especially in regards to the changes and the expected roles (Redman, Snape, Thompson & Kaching, 2000, p 48).
During the performance appraisal process, positive reinforcement is a strategy to emphasize on what is to be done which is more of constructive criticism on areas of improvement. This is a critical strategy of directing efforts in value adding activities. Performance appraisal is about exchanging honest views to improve performance .Having a joint agreement is important during this process because all parties have a clear understanding of issues raised in the discussions (Redman et al., 2000, p 49).
Principal Approa...