Performance Management blog-5
Performance Management
Dr Elaine Pulakos of executive vice president and
director of the Washington, D.C. of the office of Personnel Decisions Research
Institute (PDRI) says in her research on Performance management systems , which typically include performance
appraisal and employee development, are the “Achilles’ heel” of human resources
management. They suffer flaws in many organizations, with employees and
managers regularly bemoaning their ineffectiveness.
Further A recent survey by Watson Wyatt of Personnel
Decisions Research Institute (PDRI) shows
that only three out of 10 workers agree
that their company’s performance management system helps improve performance.
Less than 40 percent of employees said their systems established clear
performance goals, generated honest feedback or used technology to streamline
the process.
The book titled “Performance Management “ by Herman
Aguinis of Kelley School of Business Indiana University says that many organizations have what is labeled a
“performance management” system. However, we must distinguish between
performance management and performance appraisal. This is just a part of a
bigger whole because performance management is much more than just performance
measurement.
As an example, Merrill Lynch is one of the world’s
leading financial management and advisory companies, with offices in 37
countries and private client assets of approximately US$ 1.6 trillion
(http://ml.com/). Recently, Merrill Lynch started the transition from giving
employees one performance appraisal per year to focusing on one of the
important principles of sperformance management:
The conversation between managers and employees in
which feedback is exchanged and coaching is given if needed. In January,
employees and managers set employee objectives. Mid-year reviews assess what
progress has been made toward the goals and how personal development plans are
faring. Finally, the end-of-the-year review incorporates feedback from several
sources, evaluates progress toward objectives, and identifies areas that need improvement.
There is a Web site that managers can access with
information on all aspects of the performance management system. In sharp
contrast to its old performance appraisal system, Merrill Lynch’s goal for its
newly implemented performance management program is worded as follows: “This is
what is expected of you, this is how we’re going to help you in your
development, and this is how you’ll be judged relative to compensation.”
Arvey, R. D., & Murphy, K. R. (1998). Performance
evaluation in work settings. Annual Review of Psychology, 49, 141-168.
Beatty, R. W., Baird, L. S., Schneier, E. C., &
Shaw, D. G. (Eds.). (1995). Performance, Measurement, Management, and Appraisal
Sourcebook. Amherst, MA: Human Resource Development Press
Cardy, R. L. (2003). Performance management: Concepts,
skills, and exercises. Armonk, NY: M. E. Sharpe, Inc.s
https://www.reuters.com/article/us-merrill/timeline-history-of-merrill-lynch-idUSN1546989520080915
@ 19.07.2018 @ 22.00
well-organized
ReplyDeleteFlow is good. But you have not intex cited the references.
ReplyDeleteGood flow of ideas. Nice essay.
ReplyDeletewell findings and organized ..overall good job
ReplyDeleteExcellent content and well structured. as subash has mentioned please put intext citation
ReplyDelete