Performance management is one of the important tools that the managers of any organization should have. It helps in evaluating the work the employees are doing and monitoring them (Schleicher at al., 2018). The major purpose of conducting performance management is to ensure that the workplace has an environment where the employees can work to the best of their potentials and abilities, translating to higher production of quality work, which in return increases the company’s competitive advantage. The following are some major reasons organizations need to manage their employees’ performances.
Provides the company with a look into the future
Consistent monitoring and management of the performances conducted in a workplace, the leaders can see and analyze potential future problems and opportunities (Helmold & Samara, 2019). Irrespective of the type of issue that may arise in the company, the issue can be caught early enough through monitored performances. When a case is detected early enough, there is a possibility that it will have fewer effects on the organization compared to how it would have been if it went unnoticed. In addition, noticing it early enough gives a chance to the organization’s management to come up with the various measures that could be used to deal with it, hence neutralizing the effects. A good example is when an institution’s management notices that one of their employees does not have the needed characteristics to be a team player. If the employee is retained in the same position, there will be challenges in the department where they are instituted in the long run since they will not be working together with the other employees (Helmold & Samara, 2019). However, the importance of noticing the problem is that the management can transfer the to a position that does not require much teamwork, or subject employee to a training program which will help teach the employee about teamwork, its advantages, and how to develop the characters or let the employee go before they become to a problem for the organization based on the docket they are holding. Therefore, through the performance management programs, the management of any organization can see a potential problem before it converts to an actual issue, thus preventing unnecessary troubles.
Helps in creating development and training strategies
As stated previously, any organization needs to identify a potential problem before it becomes an actual problem. One of these problems could be that a particular employee cannot undertake various company processes as expected (Schleicher at al., 2018). If the problem persists, the company could incur some losses due to the lower productivity of the docket such an employee is posted at. Through performance management, the management could identify some of the employees who have potential problems and plan to resolve them by subjecting them to various training programs. Based on the extensiveness of the challenge, the management could define how well they can train the employee and the strategies they can use to ensure that the training is effective.
Clarity of the organization
There are many instances in a given workplace where the employee is not aware of the roles they are expected to play in the organization (Helmold & Samara, 2019). Through performance management, the manager will notify the employees who are not acting as expected and thus redefine their roles in the company to avoid future issues. This helps ensure that all the employees are aware of their positions in the organizations, hence working towards settling the company’s objectives.
Helps in carrying out performance appraisals
Performance management is also important in an organization as it helps carry out performance appraisals, which boosts the employees’ performance levels (Schleicher at al., 2018). Performance appraisals are a regular review of the job performance of all the employees in the organization concerning how well they have contributed positively to the company’s processes. It is majorly measured based on the performance expectations set by the organization’s management. In most cases, performance appraisals are done yearly, where the top performers are awarded. Performance appraisals have the following advantages in an organization.
Improves employee motivation
Through performance appraisals, the hardworking and effective employees in the organization’s operations are formally recognized by the managers and supervisors of the company (Franco & Otley, 2018). This is one step of pride for the employees, as they all want their efforts to be noticed and congratulated. The recognition and prizes they are issued with also form a part of the motivation, as they drive them to work towards achieving g the goals of the organization. The process of performance appraisals includes salary increments, promotions, rewards, employee development programs, and others. All the employees will work towards achieving these favors based on recognition and thus improving their productivity.
Boosts the accountability of the employees
Whenever the performance of the employees is being reviewed, their accomplishments and challenges are discussed together with their supervisors and managers (Franco & Otley, 2018). Holding such conversations with the employees issues the employees with the areas they are supposed to work on after identifying their strengths. This increases the self-awareness of the employees, thus increasing their accountability. However, various challenges could make the performance appraisals not seem positive as expected. Some of these challenges are explained below.
Psychologically, it has been explained that some people hate being corrected. In a similar case, there could be a possibility that some of the employees in an organization do not take advice. This could be a challenge since mentioning to them about some cases in their performance could result in a negative aspect, contrary to whatever is expected.
Lowering the self-esteem of employees
Some employees may have issues with their esteem. When conducting performance appraisals, their management points out their strengths and weaknesses to the employees. Some employees cannot stand being told about their failures as it will affect their self-esteem. This could be a challenge as such employees deteriorate after appraisals instead of improving their performances.
When consulting performance appraisals with the management of any workplace, the managers are expected to use polite language even when addressing the employees’ failures (Islami et al., 2018). If the managers use harsh language when mentioning their failures, it could affect the employees psychologically, reducing their performances instead of improving after the appraisals.
In conclusion, line managers in any organization are the key players in the employees’ performance appraisals in any organization. Line managers are the best for the activity as they are always in the front line when dealing with the employees. Their major responsibility is to oversee employees and their activities, as they evaluate the contribution of these employees to the organization, development, and performance (Islami et al., 2018). Therefore, they are the best shot for carrying out the appraisals as they are well aware of the employees, hence can ensure their performances, work on employee development, identify the potential employees in various sectors, manage to shift of roles since they are well aware of the performance of their employees and boost the performance of the employees.
Franco‐Santos, M., & Otley, D. (2018). Reviewing and theorizing the unintended consequences of performance management systems. International Journal of Management Reviews, 20(3), 696-730.
Helmold, M., & Samara, W. (2019). Progress in performance management: Industry insights and case studies on principles, application tools, and practice. Springer.
Islami, X., Mulolli, E., & Mustafa, N. (2018). Using Management by Objectives as a performance appraisal tool for employee satisfaction. Future Business Journal, 4(1), 94-108.
Schleicher, D. J., Baumann, H. M., Sullivan, D. W., Levy, P. E., Hargrove, D. C., & Barros-Rivera, B. A. (2018). Putting the system into performance management systems: A review and agenda for performance management research. Journal of management, 44(6), 2209-2245.