Performance management strategies Flashcards
Management by objectives
Involves participative goalsetting whereby the appraiser (manager) and the appraise (employee) jointly determine a set of employee objectives/goals at the beginning of the review period.
• As employees actively involved in the goalsetting activity, they are more likely to understand their responsibilities and the result expected of them
• Manages will also regularly provide feedback to employees regarding their progress towards achieving their individual objectives.
SMART when using management by objectives
SMART should be used when setting the objectives of the employee:
• Specific – the objective must be well defined to inform employees exactly what is expected
• Measurable – provide milestones to track process and motivate employees towards achievement
• Achievable – success needs to be attainable
• Relevant – the goal should focus on how they will be the greatest impact to the overall corporate strategy
• Timely – any goal should be grounded with in a time frame
Advantages and disadvantages of management by objectives
Advantages:
• Alani employees and business objectives contribute to the achievement of wider business objectives, improving business performance
• Employees may gain a sense of achievement if they reach the individual goals which can improve motivation
• Reviewing the performance of employees may be done quickly as success is measured against the achievement of objectives
• Collaboration between managers and employees when setting objectives can improve workplace relationships
Disadvantages:
• Employees may take harmful shortcuts in their working order to achieve objectives
• Failure to achieve personal objectives maybe demoralising
• Developing objectives that benefit both the business and employees can take time
• Employees that achieve object is made as I compensation or promotions, increasing cost
• Employees may become demotivated if they did not receive compensation or praise after achieving objectives
Performance appraisal
Performance appraisal is a manager assessing the performance of an employee against a range of criteria, providing feedback and establishing plans for improvement in the future.
Performance appraisal allows a manager to
o Have a constant approach to evaluating the performance of employees within the business
o Determines how well employees have performed over a period of time
o Identify any problems amongst employees performance and make decisions about training, promotions and dismissals
Advantages and disadvantages of performance appraisal
Advantages:
• Communication between managers and employees during one-on-one reviews can improve workplace relationships
• Increase communication between employees and managers can provide employees with clear direction on how to improve
• The results from this process can outline areas where employees are struggling and training can be implemented to resolve issues
• Can provide information for managers to determine if any staff require a dismissal
Disadvantages:
• Employees may lose motivation if they receive multiple poor performance appraisals
• This process can be time-consuming as a priceless review employee performance individually
• Staff who perform well may desire promotion or financial reward, increasing expenses
• Training courses provided to address employees weaknesses will increase business expenses
Self evaluation
Self-evaluation is an employee assessing their individual performance against a sec criteria. The employee is asked to self assess both a performance related to their predetermined objectives and their contribution to their business team.
Self evaluation allows a manager to
o Gain insight into employees perception of their own ability
o Create a discussion between managers and employees regarding the employees perspective on their performance
o Identify what an employee believes their weaknesses are and put in place strategies to improve these areas
Advantages and disadvantages of self evaluation
Advantages:
• The employer can gain insight into employees understanding of their own strengths and weaknesses
• Employees can increase their employability as they highlight their own weaknesses to managers which can lead to relevant training opportunities
• Can save managers time as employees evaluate their own performance
Disadvantages:
• If an employee is biased or dishonest in assessing their performance, a manager will not gain reliable information
• The development of criteria to be used in a self-evaluation can be time-consuming
• Training courses provided to address employee weaknesses will increase business expenses
Employee observation
Employee observation is a range of employees from different levels of authority assessing another employees performance against a set criteria. Their performance is evaluated by watching them in action, the employee could be observed and recorded either with their knowledge, or without their knowledge such as a mystery shopper or a survey.
By conducting an employee observation, a manager can gain:
o A broad insight into an employee performance
o Provide a comprehensive picture of employee’s strengths, weaknesses and manner within the workplace
Advantages and disadvantages of employee observation
Advantages:
• Involves a variety of employees, improving the interconnectedness of the business and corporate culture
• The manager can gain multiple different perspectives about employees that they may not had previously
• Employees that are observing others may identify strengths of other employees and then mimic this behaviour
• Employees may be responsive to feedback provided by peers as they value their opinion
Disadvantages:
• Results may be misleading if employees are aware they are being evaluated, as they may Only work harder under the presence of an observer
• Employees may feel stressed if they are made aware but they are being observed
• The development of a criteria to be used in a self-evaluation can be time-consuming
• Making other staff assess and employees performance can disrupt their normal workflow
