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Anne Morris. Focus on the purpose of performance management The purpose of performance management is to help individual employees perform to the required level, to achieve work satisfaction and to contribute to the overall success of the organisation. Employee-led objective setting Studies have demonstrated that employees are far more likely to achieve personal targets, when they have an active role in the objective setting process and can see how their responsibilities align with the overall goals of the company.
There will be overarching corporate goals, but people at each level should be given the opportunity to indicate how they believe they can contribute to the attainment of team and departmental objectives. The views of employees towards organization about what they believe they can achieve and they should also take account of them.
There will be times when the overriding challenge has to be accepted, but there will also be many occasions when the opinions of those who have to do the work will be well worth listening to. Integration of objectives is achieved by ensuring that everyone is aware of corporate, functional and team goals and that the objectives they agree for themselves are consistent with those goals and will contribute in specified ways to their achievement.
This process is illustrated in the following figure. Objective Setting Advertisements. Previous Page. Next Page. Striving for continuous improvement and continuous development by creating a learning culture and an open system. Concerned with establishing a culture of trust and mutual understanding that fosters free flow of communication at all levels in matters such as clarification of expectations and sharing of information on the core values of an organization which binds the team together.
Concerned with the provision of procedural fairness and transparency in the process of decision making. The performance management approach has become an indispensable tool in the hands of the corporates as it ensures that the people uphold the corporate values and tread in the path of accomplishment of the ultimate corporate vision and mission.
It is a forward looking process as it involves both the supervisor and also the employee in a process of joint planning and goal setting in the beginning of the year. View All Articles. They become angry with themselves and the company. They feel that they might just as well be working for someplace else that admittedly does a sloppy job of quality control and could hardly care less about service. The same problem exists with respect to the development of personnel, which is another vague goal that is hard to measure in comparison with subgoals that are measurable.
If asked, each manager can name a younger employee as a potential successor, particularly if a promotion depends on doing so; but no one has the time, or indeed is being paid, to thoroughly train the younger person. Nor can one have the time or be paid, for there is no way in that organization to measure how well a manager does in developing another.
All of the problems with objectives and appraisals outlined in the example discussed in the foregoing section indicate that MBO is not working well despite what some companies think about their programs. The underlying reason it is not working well is that it misses the whole human point. To see how the point is being missed, let us follow the typical MBO process. Characteristically, top management sets its corporate goal for the coming year. This may be in terms of return on investment, sales, production, growth, or other measurable factors.
Within this frame of reference, reporting managers may then be asked how much their units intend to contribute toward meeting that goal, or they may be asked to set their own goals relatively independent of the corporate goal. If they are left free to set their own goals, these in any case are expected to be higher than those they had the previous year.
In some cases, it may also include obtaining specific training or skills. Presumably, he has committed himself to what he wants to do. He has said it and he is responsible for it. He is thereafter subject to being hoisted with his own petard. Now, let us reexamine this process closely: The whole method is based on a short-term, egocentrically oriented perspective and an underlying reward-punishment psychology. The typical MBO process puts the reporting manager in much the same position as a rat in a maze, which has choices between only two alternatives.
The experimenter who puts the rat in the maze assumes that the rat will choose the food reward. If that cannot be presumed, the rat is starved to make sure it wants the food. Management by objectives differs only in that it permits the manager to determine his or her own bait from a limited range of choices. Having done so, the MBO process assumes that the manager will a work hard to get it, b be pushed internally by reason of this commitment, and c be responsible to the organization for doing so.
In fairness to most managers, they certainly try, but not without increasing resentment and complaint for feeling like rats in a maze, guilt for not paying attention to those parts of the job not in their objectives, and passive resistance to the mounting pressure for ever-higher goals.
What do they need and want out of their work? How do their needs and wants change from year to year? What relevance do organizational objectives and their part in them have to such needs and wants? For example: If a salesperson relishes the pleasure of his relationships with his hard-earned but low-volume customers, this is a powerful need for him.
Suppose his boss, who is concerned about increasing the volume of sales, urges him to concentrate on the larger-quantity customers rather than the smaller ones, which will provide the necessary increase in volume, and then asks him how much of an increase he can achieve. To work with the larger-quantity customers means that he will be less likely to sell to the individuals with whom he has well-established relationships and be more likely to deal with purchasing agents, technical people, and staff specialists who will demand of him knowledge and information he may not have in sophisticated detail.
Moreover, as a single salesperson, his organization may fail to support him with technical help to meet these demands. When this happens, not only may he lose his favorite way of operating, which has well served his own needs, but he may have demands put on him that cause him to feel inadequate. No one has recognized the psychological realities he faces, let alone helped him to work with them. It is simply assumed that because his sales goal is a rational one, he will see its rationality and pursue it.
The problem may be further compounded if, as is not unusual, formal changes are made in the organizational structure. Nevertheless, even with certain allowances, he is still held responsible for meeting his sales goal. Lest the reader think that the example we have just seen is overdrawn or irrelevant, I know of a young sales manager who is about to resign his job, despite success in it, because he chooses not to be expendable in an organization that he feels regards him only as an instrument for reaching a goal.
Many young people are refusing to enter large organizations for just this reason. Some may argue that my criticism is unfair, that many organizations start their planning and setting of objectives from below.
Therefore, the company cannot be accused of putting a person in a maze. But it does so. In almost all cases, the only legitimate objectives to be set are those having to do with measurable increases in performance. What does she want to do with her life? Where does she want to go? What will make her feel good about herself? What does she want to be able to look back on when she has expended her unrecoverable years?
At this point, some may say that those are her business. That kind of differentiation is impossible. Everyone is always working toward meeting his or her psychological needs. Anyone who thinks otherwise, and who believes such powerful internal forces can be successfully disregarded or bought off for long, is deluded.
The requirements of both mesh, interrelate, and become synergistic. The energies of employee and organization are pooled for mutual advantage. If the two sets of needs do not mesh, then a person has to fight him- or herself and the organization, in addition to the work that must be done and the targets that have been defined.
In such a case, this requires the subordinate and the boss to evaluate together where the employee wants to go, where the organization is going, and how significant the discrepancy is. The issue of meshed interests is particularly relevant for middle-aged, senior-level managers.
When such wishes begin to stir, they begin to experience severe conflict. Up to this point, they have committed themselves to the organization and have done sufficiently well in it to attain high rank. Usually, they are slated for even higher levels of responsibility. The organization has been good to them, and their superiors are depending on them to provide its leadership. They have been models for the younger employees, whom they have urged to aspire to organizational heights.
To think of leaving is to desert both their superiors and their subordinates. Because there are few avenues within the organization to talk about such conflict, these managers try to suppress their wishes. The internal pressure continues to mount until they finally make an impulsive break, surprising and dismaying both themselves and their colleagues. I can think of three vice presidents who have done just that. The issue is not so much that they decide to leave, but the cost of the way they depart.
Early discussion with superiors of their personal goals would have enabled both to examine possible relocation alternatives within the organization.
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