Performance Review and Reward7/24/2018
The State of Kansas (2008) defines the Performance Review process as an overall assessment of an employee's annual performance.[1]
During this process, managers and employees would discuss employees’ ratings, as well as managers’ rationale for their evaluations. In some organizations, managers may also discuss administrative affairs, such as salary allocation and/or promotion decisions, with their employees. Addressing Developmental Needs
Once managers have identified employees’ developmental needs, the SHRM Foundation (2004) suggests the creation of “Developmental Handbooks”. These handbooks may include training resources that would allow employees to develop their specific competencies (e.g., books and websites).
The SHRM Foundation also suggests that managers may plan training initiatives for their employees during these performance review sessions. These activities would allow both managers and employees to specify and address performance standards that are not currently addressed. In addition, managers may prepare their employees for career advancement by referring to the performance standards for subsequent occupations in their organisation’s hierarchy.[2] Steps in Performance Review Process
A study by the State of Kansas (2008) outlines the following steps in the performance review process: [3]
1. Organising Performance Reviews
2. External Input
3. Conducting Annual Performance Review Discussions
Rewarding Performance
The State of Kansas (2008) encourages managers to establish a reward system for their employees. These incentives communicate that managers value their employees’ contributions, as they may be connected to exceptional performance.[4]
A reward system may be defined as a set of mechanisms for distributing tangible and intangible returns to employees. Organisations may offer employees angible rewards, such as cash compensation (e.g., base pay, cost of living and merit pay, etc.) and benefits (e.g. income protection, training reimbursement and allowances). Alternatively, employees may receive intangible returns, such as recognition and status within an organisation.[5] Managers must also consider the following criteria when distributing performance rewards:
Successful Implementation of Performance Management Systems
At its core, an effective performance management system is a mechanism that would enable organisations to manage their talent. They would allow managers to evaluate their current workforce, and would predict future requirements across individual and organisational levels. [7]
An effective performance management system would influence HR functions; such as training, workforce planning, recruitment and selection. In addition, the success of a performance management system would depend upon its managers and employees, who may use its guidelines to exchange feedback that improves corporate performance.[8]
references
[1] State of Kansas. (2008). Performance Management Process: A Resource Guide for Managers. KS, USA: State of Kansas. pp.17
[2] Pulakos, E.D. (2004). Performance Management. VA, USA: SHRM Foundation. pp.19-21 [3] State of Kansas. (2008). Performance Management Process: A Resource Guide for Managers. KS, USA: State of Kansas. pp.17 [4] State of Kansas. (2008). Performance Management Process: A Resource Guide for Managers. KS, USA: State of Kansas. pp.17 [5] Aguinis, H. (2005). Performance Management. Edinburgh, Great Britain: Edinburgh Business School, Heriot-Watt University. pp.9 [6] State of Kansas. (2008). Performance Management Process: A Resource Guide for Managers. KS, USA: State of Kansas. pp.17 [7] Aguinis, H. (2005). Performance Management. Edinburgh, Great Britain: Edinburgh Business School, Heriot-Watt University. pp.19 [8] Pulakos, E.D. (2004). Performance Management. VA, USA: SHRM Foundation. pp. 21
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