People and Organisation - MN7181 (Blog 08)

Source: Global partners Corporation, (2017), Reinventing Performance Management, Harvard Business Review

Performance Management and Appraisal

As per Armstrong (2009) performance management defined as a systematic way of improving the performance of individuals and teams in the Company to improve overall performance of the Company. Here they define: what is to be achieved and process will be developed to increase probability that it will be achieved in the short term or long term.

Performance appraisal means evaluating an employee’s current and/or past performance based on a performance standard of an employee. Followings are the three steps; (Dessler, 2013).

1.      Setting work standards

2.      Assessing the actual and mapping with standards

3.      Update feedback (to improve the performance level or continue with developments)

 Gap between Performance appraisal and performance management

Table 1: Source – Armstrong, 2009, A hand book of Human Resource Management practice

According to Cappelli and Tavis (2016), 70% of multinational Companies have been rejected traditional appraisal methods such as annual reviews in this global context. The annual appraisals were very time consuming and lots of paper working involve on it. In 2002 Colorcon wasn’t bothering with annual reviews anymore and had found more effective way of improving their performance by using very short-term goals and instant feedback through supervisors and pay out of weekly small bonuses. Main reason to adopt this annual review is to accountable their people until end of respective year and to map their financial rewards and punishments and their financial year.

Deliotte, Accenture and PwC already been provided their professional services to redesign this performance management process but, technology Companies such as Adobe, Juniper system, Dell, Microsoft and IBM are yet to joined as service providers on this (Cappelli and Tavis, 2016).

Example: Even in the General Electric is using Traditional appraisal method for their performance evaluation (Cappelli and Tavis, 2016).

Deliotte sector is redesigning and introduce modern technologies for performance management in world wide. This system identifies our existing process for evaluating, train people accordingly, promoting them and allocating rewards automatically as per organisation objective. This kind of technologies support to real-time, more individualized, very secured and future oriented rather than current and/or past performance management (Buckingham and Goodall, 2015).

According to Youtube video, 58% of Executives say that expected output not delivered by this traditional appraisal. Here it recommended to; shift in approach like annual feedback and ongoing conversations (Global partners Corporation, 2017).

References:

Armstrong M., (2009), A hand book of Human Resource Management practice, 10th Ed., Kogan page, London.

Buckingham M., and Goodall A., (2015), Reinventing Performance Management, Harvard Business Review, https://hbr.org/2015/04/reinventing-performance-management, Accessed 28 June 2018 at 2.30 pm.

Cappelli P., and Tavis A., (2016), The performance Management Revaluation, Harvard Business Review, https://hbr.org/2016/10/the-performance-management-revolution, Accessed 28 June 2018 at 12.30 pm.

Dessler P., (2013), Human Resource Management, 13th Ed., Pearson Education, New Jersey.

Global partners Corporation, (2017), Reinventing Performance Management, Harvard Business Review, https://www.youtube.com/watch?v=h703GLseRlE, Accessed 28 June 2018 at 4.55 pm.