| Components of Performance Management and how | | | | can be rewarded, from suggestions to group |
| they enhance an effective work environment. | | | | accomplishments. |
| | | | | According to Klaus performance management is |
| By Agaba About performance Management | | | | comprised of four major sets of activities including: |
| According to the US office of Personnel Management, | | | | defining objectives and standards; allocating resources |
| personnel management is the systematic process by | | | | and taking actions to achieve the objectives; analyzing |
| which an agency involves its employees, as individuals | | | | and reporting on results; taking necessary collective |
| and members of a group in improving organizational | | | | actions to mitigate risk and ensure success. Klaus |
| effectiveness in the accomplishment of agency | | | | further says that organizations typically manage their |
| mission and goals. Employee performance includes: | | | | long-term strategic performance independently from |
| planning work and setting expectations, continually | | | | their short-term operational performance. |
| monitoring performance, developing the capacity to | | | | This means that with effective planning, monitoring, |
| perform, periodically rating performance in a summary | | | | developing, rating, rewarding, an organization can fully |
| fashion, and rewarding good performance. | | | | enhance an effective work environment. An effective |
| | | | | work environment presupposes that the relationship |
| Planning: In an effective organization, work is planned | | | | between employees and is enhanced and hence a |
| out in advance. Planning means setting | | | | better working culture is promoted. Employees and |
| performance expectations and goals for groups and | | | | employers, stakeholders, all become an important |
| individuals to channel their efforts toward achieving | | | | component in the organizational framework. |
| organizational objectives. Getting employees involved in | | | | Communication channels are clear; it is advisable to |
| the planning process will help them understand the | | | | adopt a two pronged approach to communication-a |
| goals of the organization, what needs to be done, why | | | | mix between top-bottom and bottom-up strategy for |
| it needs to be done, and how well it should be done. | | | | better communication, effective handling of grievances |
| The regulatory requirements for planning employees' | | | | if any, better work procedures and improved |
| performance include establishing the elements and | | | | relationship with customers, among others. Peponis |
| standards of their performance appraisal plans. | | | | (1985) in Fischer (1997) emphasized a specific aspect |
| Performance elements and standards should be | | | | of the symbolic dimension which he called the spatial |
| measurable, understandable, verifiable, equitable, and | | | | culture of a company. He showed that work |
| achievable. Through critical elements, employees are | | | | organizations fulfills social roles that transcends purely |
| held accountable as individuals for work assignments | | | | technical roles and that these social roles can be |
| or responsibilities. Employee performance plans should | | | | described unequivocally. He establishes a correlation |
| be flexible so that they can be adjusted for changing | | | | between an organization's design choices and spatial |
| program objectives and work requirements. When | | | | needs and thinks that any interior arrangement design |
| used effectively, these plans can be beneficial working | | | | in particular, has strategic effects on the workspace |
| documents that are discussed often, and not merely | | | | culture. The term work environment refers to |
| paperwork that is filed in a drawer and seen only | | | | working conditions. It refers to all of the conditions and |
| when ratings of record are required. The US office of | | | | factors that influence work. In general, these include |
| personnel management further gives details of the | | | | physical, social, psychological, and environmental |
| elements in performance management as follows: | | | | conditions and factors. Work environment includes |
| Monitoring: In an effective organization, assignments | | | | lighting, temperature, and noise factors, as well as the |
| and projects are monitored continually. Monitoring well | | | | whole range of economic influences. It also includes |
| means consistently measuring performance and | | | | things like supervisory practices as well as reward and |
| providing ongoing feedback to employees and work | | | | recognition programs. All of these things influence |
| groups on their progress toward reaching their goals. | | | | work. (ISO 9000, 9001, and 9004 quality management |
| Regulatory requirements for monitoring performance | | | | definitions) |
| include conducting progress reviews with employees | | | | The Balanced Scorecard as a Performance |
| where their performance is compared against their | | | | Management Tool |
| elements and standards. Ongoing monitoring provides | | | | According to Kaplan (2010) David Norton and I |
| the opportunity to check how well employees are | | | | introduced the balanced scorecard in 1992 Harvard |
| meeting predetermined standards and to make | | | | Business Review article (Kaplan and Norton, 1992). The |
| changes to unrealistic or problematic standards. And | | | | article was based on a multi-company research |
| by monitoring continually, unacceptable performance | | | | project to study performance measurement in |
| can be identified at any time during the appraisal period | | | | companies whose intangible assets played a central |
| and assistance provided to address such performance | | | | role in value creation. Norton and I believed that if |
| rather than wait until the end of the period when | | | | companies were to improve the management of their |
| summary rating levels are assigned. | | | | intangible assets they had to integrate the |
| Developing: In an effective organization, employee | | | | measurement of intangible assets into their |
| developmental needs are evaluated and addressed. | | | | management systems. After publication of the 1992 |
| Developing in this instance means increasing the | | | | HBR article, several companies quickly adopted the |
| capacity to perform through training, giving assignments | | | | balanced scorecard giving us deeper and broader |
| that introduce new skills or higher levels of | | | | insights into its power and potential. When |
| responsibility, improving work processes, or other | | | | performance measures are added to the financial |
| methods. Providing employees with training and | | | | metrics, the result is not only a broader perspective on |
| developmental opportunities encourages good | | | | the company's health and activities, it is also a powerful |
| performance, strengthens job-related skills and | | | | organizing framework. New learning about key internal |
| competencies, and helps employees keep up with | | | | processes, technological discoveries. All this information |
| changes in the workplace, such as the introduction of | | | | can be fed into the scorecard enabling strategic |
| new technology. Carrying out the processes of | | | | reinforcements to be made continually. Kaplan and |
| performance management provides an excellent | | | | Norton, (Harvard Business Review Article.) |
| opportunity to identify developmental needs. During | | | | |
| planning and monitoring of work, deficiencies in | | | | How effective work environment is enhanced |
| performance become evident and can be addressed. | | | | In case there are good and effective planning system |
| Areas for improving good performance also stand out, | | | | in place then the work force is prepared in time to |
| and action can be taken to help successful employees | | | | perform their duties. This means that all the |
| improve even further. | | | | departments are coordinated towards a systemic |
| Rating: From time to time, organizations find it useful to | | | | program. This does not only promote effectiveness |
| summarize employee performance. This can be helpful | | | | since everything goes according to the schedule but it |
| for looking at and comparing performance over time | | | | also promotes efficiency where the organization can |
| or among various employees. Organizations need to | | | | use little resources to achieve much. |
| know who their best performers are. Within the | | | | Since planning also involves predicting the future; it |
| context of formal performance appraisal requirements, | | | | means that the planners are focused towards |
| rating means evaluating employee or group | | | | achieving success at every level and have got |
| performance against the elements and standards in an | | | | measures in place to take care of unfortunate |
| employee's performance plan and assigning a | | | | occurrences in the implementation process. As the |
| summary rating of record. The rating of record is | | | | plans are being implemented then effective monitoring |
| assigned according to procedures included in the | | | | procedures are taking place as different departments |
| organization's appraisal program. It is based on work | | | | are coordinating and planning together in order to bring |
| performed during an entire appraisal period. The rating | | | | out a final product that is acceptable to both internal |
| of record has a bearing on various other personnel | | | | customers; external customers, all the stakeholders |
| actions, such as granting within-grade pay increases | | | | and stock holders. If this is done it means that all the |
| and determining additional retention service credit in a | | | | beneficiaries of the organizational workings enhance |
| reduction in force. | | | | an effective corporate governance strategy. |
| Note: Although group performance may have an | | | | In conclusion performance management and work |
| impact on an employee's summary rating, a rating of | | | | environment are interrelated in every aspect of work |
| record is assigned only to an individual, not to a group. | | | | life and so they should be taken seriously if innovations |
| Rewarding: In an effective organization, rewards are | | | | and technological changes at the work place are to |
| used well. Rewarding means recognizing employees, | | | | have meaning for all the stakeholders. |
| individually and as members of groups, for their | | | | |
| performance and acknowledging their contributions to | | | | References |
| the agency's mission. A basic principle of effective | | | | U.S. Office of Personnel Management: - |
| management is that all behavior is controlled by its | | | | Recruiting... |
| consequences. Those consequences can and should | | | | Fischer, Gustave-Nicolas (1997) Individuals and |
| be both formal and informal and both positive and | | | | environment: a psychosocial approach to workspace. |
| negative. | | | | Walter de Gruyter |
| Good performance is recognized without waiting for | | | | |
| nominations for formal awards to be solicited. | | | | Kaplan, Robert S (2010) Conceptual Foundations of |
| Recognition is an ongoing, natural part of day-to-day | | | | the Balanced Scorecard. As a Working Paper. |
| experience. A lot of the actions that reward good | | | | |
| performance — like saying "Thank you" — don't | | | | Kaplan and Norton (1992) Using the Balanced |
| require a specific regulatory authority. Nonetheless, | | | | Scorecard as a Strategic Management System. |
| awards regulations provide a broad range of forms | | | | Harvard Business Review on Point. |
| that more formal rewards can take, such as cash, | | | | Maurice Klaus: "A Performance Management |
| time off, and many non monetary items. The | | | | Framework." Retrieved on 17-08-2010. |
| regulations also cover a variety of contributions that | | | | Retrieved on 17-08-2010. |