CONSTRUCTING A HIGH-PERFORMANCE CULTURE: A FRESH LOOK AT PERFORMANCE MANAGEMENT

In general, Performance Management (PM) can be identified as a significant process of Human Resource Management (HRM), as it involves with the assessment of current and previous results or performance of an employee, a specific team or within the whole organization. While a wide literature sources emphasized that PM is a complex process, it is a base for many business practices related to HRM such as the need for staff training, new recruitment, career development, rewarding, etc.(Slavić, et al., 2013).

According to CIPD view point, PM is an activity engages with set of processes which aims to maintain and improve employee performance in line with organizational objectives. It’s strategic as well as operational, aiming to ensure that employees are contributing positively towards business objectives (CIPD, 2017).

As described by Stangl-Susnjar & Zimanji (2005), Performance evaluation approach can be identified in two ways - individual level and on evaluation on exact data. First approach contains the contact by the way of “face to face”; which is a difficult way for assessors since it activates emotions easily lead to conflict. The other approach focuses on the working process which is based on the exact data results of the quantification and assessment with the standards.

According to a survey conducted by Watson Wyatt, founded that only three out of 10 workers agree that their company’s PM system as a tool that helps in improving performance. Also less than 40% of employees believed that their systems help to form clear performance goals, produce honest feedback or use technology to streamline the process (SHRM, 2015).

Cappelli &Tavis (2016), argues that current changes to PM are an outcome of changing strategic concerns where there is a less need for individual responsibility and more need for development, as well as and more requirement for teamwork rather than individual performance, which is published in the Harvard Business Review.

Google revealed that bosses have a great influence on employees’ performance and job attitudes which reflect the old HR saying that “people don’t quit their jobs, they quit their managers.” Also Cargill is another firm that has initiated in converting their performance management into a continuous feedback process. In order to reduce difficulty and streamline processes at Cargill, they implemented a new process called everyday performance management which is a new process designed to focus direct driving on key behaviors of their employees (Dewettinck, 2014).

References

Cappelli, P. and Tavis, A. (2016).The Performance Management Revolution. Harvard Business Review, 10, 58-67.

CIPD (2017). Performance management: an introduction. [Online]
Available at: https://www.cipd.co.uk/knowledge/fundamentals/people/performance/factsheet
[Accessed 02nd July 2018].

Dewettinck, K. (2014). Trends in Performance Management, Europe: Hudson.

SHRM.(2015). SHRM Foundation Executive Briefing - Four Questions the CEO Should Ask About Performance Management, Alexandria, Virginia : SHRM foundation.

Slavić, A., Berber, N. & Leković, B.(2013). Pderfomance Management In International Human Resource Management. Serbian Journal of Management 9 (1) (2014) 45 - 58 , Issue 2014 January.

Stangl-Susnjar, G. & Zimanji, V. (2005). Human Resource Management: The International Journal of Human Resource Management, 24(4): 704-720.