Identify and discuss the key reasons why performance management can fail to deliver for both individual and organization.
It is crucial to understand what the concept of performance management means before looking in-depth to why it fails. In this case, performance management is a concept referring to a continuous process of information sharing between a manager and a member of staff. Unlike the other processes, performance management is carried out all the time in the course of project implementation. Performance management puts the focus in providing support for the achievement of both the organizational goals and objectives. Performance management majorly relies on communication systems in exercising its duty through the presentation of clear expectations from each employee, identification of project goals and objectives, provision of feedback and finally the review of results from an activity. The process of performance management is a very crucial system in an organization, and it is carried out by the human resource manager in an institution. There are, however, common mistakes that are made in the course of planning and implementation of a performance management system that can lead to its failure. Therefore organizations’ planning to improve the system as well those wishing to adopt it for the first time should be avid the factors discussed below since they are attributed as the causes of failure in the system.
Poor structuring of the performance management system is the key cause of failure of the efforts. Sometimes people plan and perceive it as a one-time event; therefore; little emphasis is placed on developing sustainable structures. The process occurs recurrently, therefore, well-made performance management. The performance management process if well-designed is in a position to facilitate the achievement of its goals which is to create improvement in the general employees’ performance in an organization. With a well-planned performance management system, the members of staff are in a position to gain a better understanding of the organizational strategies and put more efforts towards achievement of the goals and with a higher level of motivation.
Secondly, poorly set goals as well contribute to the failure of performance management. In these cases, performance management does not put into consideration the individual employee goals and only focus on those optimizing employee performance. The employee goals mainly act as their source of motivation, and therefore they drive them to perform better in the task assigned.
The poor communication system of what the managers expect from employees is also attributed to a failure in performance management. It is crucial to have the managers inform the staff members of the impact of their performance on organizational and personal goals. Employers should encourage employees to engage in a continuous learning process as it impacts performance management. In addition to this, the necessary resources required for employees to improve their skills and knowledge should be availed as well.
Performance management failure is as well attributed to biases that develop as a result of putting excess emphasis, especially on one single recent occurrence. Commonly, this is the mistake made by most managers. Recency bias is termed as a risk bias and which can completely destroy or enhance the success of a performance review. Recency bias should, therefore, be avoided as it can cause complete performance management system failure.
Focusing on a yearly evaluation of performance is attributed to be another cause of failure of performance management. The overall productivity of the organization is always a threat under annual evaluation since managers are only in a position to give correction in the form of feedback only once a year.
Lastly, performance management fails in an organization that does not provide motivation to employees either through recognition or even giving of awards. Recognition and awards act as a source of inspiration to perform better; therefore, productivity increases. It is crucial to have employees work appreciated.
Discuss why an organization should provide opportunities for employees’ advancement and growth at both individual and organizational levels?
Human resource is the most important asset owned by each company. Rapid and sustainable business growth is realized when a company’s invest in the talents of its employees. Corporations are always majorly focused on hiring members of staff with the most suitable qualities to take the assigned roles, but they care about staff welfare seems to stop there. It’s however, essential for companies to provide opportunities for employees’ advancement and growth at both individual and organizational levels. Employee development results in to increase in profit margins and number of sales though many organizations avoid it basing their argument on its costly nature. With well-dedicated training as well as development, employee engagement is fostered and translates into a better performance financially in the organization. Employee development translates later into the overall development of the business.
Opportunities for employees’ advancement and growth at both individual and organizational levels enables employers to reap from both employee job satisfaction and commitment. Negative feelings that majorly arises in case employees are idle are done way with such opportunities that require an employee to extra task apart from the only job-related ones. With such opportunities being provided, individuals are always willing to make any form of sacrifice for the betterment of the organization. The end result is increased in productivity as people work with lots of enthusiasm and are propelled by intrinsic motivation. Work efficiency also increases, saving the organization some of the resources. For cases of company’s dealing with sales, customer satisfaction also increases as empowered become experts in their field.
It is providing opportunities for employee professional development to increase the rate of employee retention. Statistics indicate that 94 per cent of workers would provide services to an organization for long periods of time if it provided them with an opportunity to develop their careers. Replacing a talented member of staff is more expensive and challenging the making effort to retain those that an organization currently owns. Replacement of an employee estimates that it can cost an organization 150% of the employee’s annual salary, and sometimes even more. As a result of failure to engage employees in the United States of America economy, turn over cost stands at $30.5 billion annually. Such cost poses a major threat to the internal financial state of the organization and can, however, be avoided with little efforts.
Employee’s advancement and growth bring out the capacity of employees as future leaders. Leadership skills are not only helpful to the employee but the company at large. Individuals with leadership talents in future can get an appointment as the company managers. Leadership talents to invest in manifests themselves in the course of duty.
Empowered managers are always in a better position and effective in convincing other members of staff as well as winning their trust. Ultimately, the employees develop a sense of independence, worth and finally become confident in performing the assigned duty. There exist a huge gap in performance rating between empowered and underpowered employees Empowered staff are rated high while the underpowered ones are rated low.