Quote: In the New Economy, winning will spring from a organizational capabilities such as speed, responsiveness, agility, learning capacity, and employee competence. Successful organizations will be those that are able to quickly turn strategy into action, to manage processes intelligently and efficiently, to maximize employees contribution and commitment, and to create the conditions for seamless change- David Ulrich.
The following are outcomes from a consulting firms ongoing study of more than 500 managers since 1993 led to this recent conclusion:
Only one out of 100 managers provides every direct report with there five basics every day:
Performance requirement and standard operating procedure related to tasks and responsibilities.
Defined parameters measurable goals and concrete deadlines for all work assignment for which the direct report will be held accountable.
Accurate monitoring, evaluation, and documentation of workplace performance. Specific feedback on work performance with guidance for improvement.Fairly distributed rewards and detriments.
The above indices are telling us about performance management. The researchers call this situation Under-management. But the popular term those days for doing things the right way is performance management.
According to CIPD (Chartered Institute of Personnel Development) traced the evolution of performance management to early 1990s from a heavy bureaucratized procedures focused on objective-setting or merit rating to a more reaching and inclusive, integrated with other related practices such as career management.
Performance management in an organization wide system whereby managers integrate the activities of goal setting, monitoring and evaluating, providing feedback and coaching, and rewarding employees on a continuous basis.
According to HRM philosophy, employees are an important business resource that must be managed carefully on order to maximize return on investment and achieve business objectives.
In recent years, performance management and performance appraisal have become key features of an organization’s drive towards achieving high performance and thus competitive advantage.
Andre A. De Waal kn his book, Power of Performance Management: How Leading Companies creates Sustained Value defined Performance management as the process that enable an organization to deliver a predictable contribution to sustained value creation.
According to Armstrong and Baron defined Performance Management: as a strategic and integrated approach of delivering sustained success to organizations by improving the performance of the people who work in them and by developing the capabilities of team and individual contributions.
Performance management is said to be integrative because it align corporate, team, and individual’s objective ( vertical integration) and links various human resource management activities, such as organization development, people skills/ competence development and rewards management ( horizontal integration). The process also align with the functional strategies of the various parts of the organization.
To Micheal Armstrong, performance management strategy is based on the resource-based voew that it is the strategic of the organization’s rare, hard to imitate and hard to substitute human resource that produces its unique character and create competitive advantage. The strategic goal will be to create firms which are more intelligent and flexible than their competitors’ by developing more talented staff and extending their skill base, this is exactly what performance management aims to do.
The following are 10 principles of performance management as stated by practitioners after the extensive research conducted by the CIPD ( Armstrong and Baron,) viz:
1) ‘ A management tool which helps managers to manage’
2) ‘ Driven by corporate purpose and value’
3) ‘ To obtain solution that works’
4) ‘ Only interested in things you can do something about and get a visible improvement’
5) ‘ Focus on changing behaviour rather than paperwork’
6) ‘ Its about how we manage people- it’s not a system.’
7) ‘ Performance management is what managers do: a natural process of management’
8) ‘ Based on accepted principle but operate flexibility’
9) ‘ Focus on development not pay’
10) ‘ Success depends on what the organization is and need to be its performance culture.
Akeem Gbadamosi, M.Sc Industrial Relations and Human Resource Management.