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Role of Psychology in Building Effective Approach to Performance Management

In the contemporary world, having a clear understanding of how psychology crafts a practical approach to performance has been applied in most organizations. The knowledge of psychology has been used in most organizations to optimize the workforce’s productivity, create satisfaction, and generate overall success. Performance management mainly involves the various processes and strategies to ensure that employees’ work aligns with the set goals. Therefore, the knowledge of psychology points out valuable insights into human behaviour, cognition and motivation that, in the end, enhance increased work performance. This essay comprehensively explores the role of psychology in understanding the building of a practical approach towards performance management while paying particular attention to the tools within its framework.

Understanding psychology builds a practical approach to performance management as it aids in understanding human behaviours. Understanding human behaviour is crucial in designing performance management systems that help make employee motivation. According to Ahmad (2021), psychology theories, such as Maslow’s hierarchy of needs and self-determination theories, play a significant role in identifying numerous underlying factors that drive the performance of employees. For example, when management recognizes intrinsic motivation’s benefits, it can significantly boost performance. It also leads to building behaviours such as autonomy, mastery, and increased engagement, often associated with increased employee performance. Besides, when the manager in a particular workplace is well-versed in the behaviour of their employees, they will tend to encourage team spirit, which will often lead to increased performance. Performance Appraisal system tools can assess employee performance using various rating scales.

Understanding psychology builds a practical approach to performance management as it aids in motivating employees and setting valid goals. The psychological theories of motivation highlight all the factors contributing to an increase and a decrease in motivational levels in employees. They also encourage an organization’s employee feedback mechanism system that creates chances for development. Demirkol (2021)., narrates that the Goal-setting theory that Edwin Locke coined pays special attention to the advantages aligned with an organization’s clear, challenging, and achievable goals. By developing objectives aligned with the organizational mission, the performance management system can use the various theories of motivation to enhance intrinsic and extrinsic motivation (Berdicchia et al., 2022). When the two motivations are applied in an organization, there is a high likelihood of results. Tools such as 360-degree feedback and employee surveys can be used to measure motivation.

Understanding psychology builds a practical approach to performance management as it aids in providing feedback and coaching in an organization. Feedback and coaching are essential facets of an organization as they ensure the set goals and objectives are achieved. Effective feedback has always been a cornerstone of performance management as it plays a noble role in providing various employees with valuable insights. According to Schunk et al. (2021), paying particular attention to the constructs of social cognitive theory and behaviourism yields excellent opportunities that will aid the attainment of set goals. Additionally, the varied consequences of coaching and feedback can be enhanced through the use of positive reinforcement, learning through observation, and modelling among other strategies. Feedback and coaching are two methods that greatly contribute to the development of employee’s skills and the promotion of continuous improvement. To determine the feedback that was gathered, the procedures of the 360-degree feedback system can be utilised. In addition, help for the development of the employees’ abilities can be provided through the use of coaching and development plans.

Lastly, Psychology understanding builds a practical approach to performance management as it aids employee engagement and well-being. Notably, psychology emphasizes the critical importance of employee engagement and well-being. This is because it is their well-being and engagement that helps them in becoming better all through. As Mazzetti et al. (2023) indicated, specific models such as Job Demands-Resources mainly provide great insights into how employees’ well-being can be looked into by creating a supportive working environment. Integrating particular elements, such as the design of the job and psychological support performance management, can lead to the attainment of goals. Coaching and development plans primarily focus on reviewing feedback and utilising it to guide employees, which ultimately increases both their level of engagement and their overall well-being. In general, the incorporation of psychological principles into performance management is beneficial because it enables various supervisors to better comprehend their staff members. In an organisation, the level of employee engagement and the employee’s perceptions of their well-being can be determined through the use of employee surveys.

When it comes to the design and implementation of organisational performance management systems, psychology plays a crucial role in defining the design and execution of these systems. Organisations can work on the areas that require improvement to achieve the goals that have been set by utilising the appropriate inclination from the numerous psychological theories that have been discussed in this research. There are a variety of tools and methods that have been utilised in performance management to evaluate and keep track of the performance of employees. In addition to this, they play a significant role in addressing the many areas that require enhancement. One example of a strategy that may be utilised to support the advancement of employees’ skills is the implementation of coaching and development programmes. They can make use of particular processes that will guarantee the presence of both internal and extrinsic methods of motivation. Increasing performance can be accomplished to a great degree when management acknowledges the advantages of intrinsic motivation. Additionally, it results in the development of behaviours such as autonomy, mastery, and higher engagement, behaviours that are frequently connected with improved employee performance.

References

Ahmad, S. (2021). Motivation and Performance: A Psychological Process. International Journal of Business and Management Research9(2), 104-112.https://ijbmr.forexjournal.co.in/archive/volume-9/ijbmr-090201.html

Berdicchia, D., Bracci, E., & Masino, G. (2022). Performance management systems promote job crafting: the role of employees’ motivation. Personnel Review51(3), 861-875.

Demirkol, I. C. (2021). Predictors of job satisfaction among police officers: a test of goal-setting theory. Police Practice and Research22(1), 324-336.https://doi.org/10.1080/15614263.2020.1749618

Mazzetti, G., Robledo, E., Vignoli, M., Topa, G., Guglielmi, D., & Schaufeli, W. B. (2023). Work engagement: A meta-analysis using the job demands-resources model. Psychological reports126(3), 1069-1107.https://doi.org/10.1177/00332941211051988

Schunk, D. H., & DiBenedetto, M. K. (2021). Self-efficacy and human motivation. In Advances in motivation science (Vol. 8, pp. 153-179). Elsevier. https://doi.org/10.1016/bs.adms.2020.10.001

 

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