Characteristics of Effective Performance Management Systems7/14/2018
An organisation's performance management system should be aligned with its fundamental objectives, as well as its culture and values. [1] In this article, we'll discuss the key characteristics of effective performance management systems.
Continuous
Effective performance management systems allow managers and employees to regularly review their division’s continuous development, as well as their organisation’s evolving objectives. [2] They would also allow managers to continuously identify, monitor and maximise employee performance. Managers may maximise corporate productivity by establishing specific goals, monitoring employee performance, and delivering coaching and feedback. [3]
Furthermore, employees must be assessed according to job functions that they may fully control. These evaluations must take place at regular intervals and at appropriate moments. Aguinis’s study (2005) encourages organisations to conduct informal quarterly reviews organisations, as well as one formal evaluation per year. [4] Practical
Aguinis warns against ineffective performance systems that have irrelevant information, are expensive to operate, and are operated over lengthy periods of time. Instead, he recommends performance systems that are:
Relevant
A relevant performance management system should generate results that may guide personnel administration. An organisation’s performance management system should allow evaluators to continue developing their competencies, and managers must establish relevant standards and assessments for their division's job functions.
Performance evaluations should be regularly conducted, and performance feedback must be continuously provided. Furthermore, employees should be regularly updated about occupational requirements and expectations. Performance management systems should include a two-way communication process, in which information is exchanged between both supervisors and employees. Effective performance management systems allow managers to inform employees about their requirements and expectations, and employees may also deliver feedback about their targets and achievements. [6] The results from effective performance management systems should be available to all individuals within an organisation, and these systems should foster honest communication between employees and supervisors. [7] Accurate
Effective performance management systems should include performance metrics that are consistent and accurate. For instance, an accurate performance management system would allow multiple supervisors to generate the same results for an employee’s performance evaluation. [8]
Accurate performance management systems should also allow managers to identify individuals who consistently meet their targets, as well as underperforming employees. [9] In order to ensure that their performance management systems generate fair results, managers should compare the following metrics:
In a fair performance management system, there would not be discrepancies between these metrics. Aguinis also encourages managers to construct a performance management system that would promptly address errors that employees may identify. In addition, Aguinis states that fair performance management systems adhere to ethical guidelines. Supervisors should not be allowed to manipulate these systems to generate biased results, and should only collect information that protects employees’ privacy. He claims that a fair performance management system would also lead to strong relationships between employees and their supervisors, and increased commitment towards the organisation’s objectives. [10]
references
[1] Pulakos, E.D. (2004). Performance Management. VA, USA: SHRM Foundation. pp.2-3
[2] Manchester Metropolitan University Department of Human Resources. (n.d.) Performance Management: An introduction. Manchester, England: Manchester Metropolitan University. pp.3 [3] Aguinis, H. (2005). Performance Management. Edinburgh, Great Britain: Edinburgh Business School, Heriot-Watt University. pp.2 [4] Aguinis, H. (2005). Performance Management. Edinburgh, Great Britain: Edinburgh Business School, Heriot-Watt University. pp.16-18 [5] Aguinis, H. (2005). Performance Management. Edinburgh, Great Britain: Edinburgh Business School, Heriot-Watt University. pp.16-18 [6] Manchester Metropolitan University Department of Human Resources. (n.d.) Performance Management: An introduction. Manchester, England: Manchester Metropolitan University. pp.3 [7] Pulakos, E.D. (2004). Performance Management. VA, USA: SHRM Foundation. pp.3 [8] Aguinis, H. (2005). Performance Management. Edinburgh, Great Britain: Edinburgh Business School, Heriot-Watt University. pp.16-18 [9] Aguinis, H. (2005). Performance Management. Edinburgh, Great Britain: Edinburgh Business School, Heriot-Watt University. pp.16-18 [10] Aguinis, H. (2005). Performance Management. Edinburgh, Great Britain: Edinburgh Business School, Heriot-Watt University. pp.16-18
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