Performance Management and Employee Productivity
Performance
Management
Performance appraisal utilizes to
track individual contribution and performance against organizational goals and
to identify individual strengths and opportunities for future improvements and
assessed whether organizational goals are achieved or serves as basis for the
company’s future planning and development
Performance management practices that
involves recruitment of employees, training and developing them, employee’s
appraisal and developing a feedback system can increase the knowledge, skills
and the capability of a firm’s employee meanwhile enhancing their motivation,
cutting down malingering and improving maintenance of top performing employees
and their productivity
Performance management focuses on
future performance planning and improvement and personal development rather
than on retrospective performance appraisal and functions as a continuous and
evolutionary process, in which performance improves over time
The emphasis is on development,
although performance management is an important part of the reward system
through the provision of feedback and recognition and the identification of
opportunities for growth.
Figure 1:The
Performance Management Sequence
Source: Employee
Productivity
Gummesson (1998) defines employee
productivity as the ability of a worker to produce quality output with limited
inputs (Sells et al.,2006).
One of the major components that
affects the profitability of an organization is employee productivity
Employees who are deemed productive
are able to transform limited inputs to high quality output that generates
revenue for the organization (Sells et al.,2006). This therefore warrants
organization to be tasked with the responsibility of motivating the workforce
to achieve desired goals (Stark, 2018).
Relationship
Between Performance Management and Employee Productivity
According to
Cook, (2014), performance appraisal refers to the process of identifying,
examining, measuring and growing performance of employee in the firm. Not only
financial rewards are deemed the best motivator towards enhanced employee
productivity but also nun financial incentives
The study
found that there was a strong positive correlation of both employee appraisal
and employee’s performance feedback on employee productivity. The study
therefore recommended that organizations to undertake both appraisal for their
employees as well as offer feedback on their performance as it increased the
productivity of the employees
The performance
of an individual need to be aligned to his/her personal goals by the firm in
order to enhance success for the organization (Salamanet al. 2005).
A study
presented by Owili and Isaac (2018) on organizational justice in performance
appraisal system and work performance among listed financial institutions came
into conclusion that there is a great importance in the productivity of
employee in a good way influenced by performance appraisal criteria.
Good performance
should be rewarded and poor performance should be discouraged. It should be
realized that the main aim of any performance appraisal system is to improve
staff performance and increase service quality
Example
According to the
(Carol,
2019)
,the study assessed the effect of performance management practices on employee
productivity at the State department of Labour. A population of 278 respondents
was identified and random stratified sampling was undertaken to come up with a
sample size of 68 respondents. 46 questionnaires were answered and returned,
which comprised of 67.6% response rate. Data analysis was done by the use of
mean, percentages, standard deviation and regression analysis where the effect
of independent variables; employee appraisal, and employee performance feedback
was determined on employee productivity.
Figure 2:Performance appraisals and employee productivity
Source:
It was evidenced that performance appraisal makes employee
work well that expected as it had a mean of 4.41 and standard deviation of
0.652.
References
Armstrong, M., 2009. Armsrong's Handbook of
Performance Management. 47 ed. s.l.:Kongan page Limited .
Carol, O., 2019.
Performance Management Practices and Employee Productivity at State
Department of. International Journal of Business, Humanities and
Technology , ix(4), pp. 20-30.
Daoanis, L. E., 2012.
PERFORMANCE APPRAISAL SYSTEM: It’s Implication To Employee Performance. International
Journal of Economics and Management Sciences , 02(03), pp. 55-62.
Owili, A. &
Isaac, O., 2018. Organizational justice in performance Appraisal Systrms and
work performance: Evidence from an Emerging Market. Human Resourse
Management , Volume 12, pp. 1-18.
Hi Thenuja, Agreed with you. Implement best-in-class performance management systems Performance Management for Dummies is the definitive guide to infusing performance management with your organization's strategic goals and priorities. It provides the nuts and bolts of how to define and measure performance in terms of what employees do (ie, behaviors) and the outcome of what they do (ie, results) both for individual employees as well as teams. Inside, you’ll find a new multi-step, cyclical process to help you keep track of your employees' work, identify where they need to improve and how, and ensure they're growing with the organization and helping the organization succeed (Aguinis, 209)
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