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Discuss some of the main problems with performance management

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Introduction

2. Discuss some of the main problems with performance management Performance management is a much written about and spoken of topic. Many different definitions and descriptions have been created to help us to reach a better understanding of the term. In this essay I have decided to focus on managing the individual. However it is important to remember that "organisational effectiveness isn't determined solely by individual performance in every instance." 1Below I have given two definitions which were beneficial to me: "Performance management is a joint process that involves both the supervisor and the employee, who identify common goals, which correlate to the higher goals of the institution. This process results in the establishment of written performance expectations later used as measures for feedback and performance evaluation." "Choosing Performance Management: a Holistic Approach" Roger Davis, CUPA Journal, p. 13-18, 1995 "Performance management is defined as the policies, procedures and practices that focus on employee performance as a means of fulfilling organisational goals and objectives." "Human Resources in Organisations", John Leopold, p.129, 2002 Performance management refers to all of the ways in which management can control, guide and improve the performance of employees, because their performance has a fundamentally important effect on organisational performance. ...read more.

Middle

Not all jobs have easily assessable outputs. Objectives which may be effortlessly realised by one employee may not be quite so attainable to another and an individual "may accept difficult targets for a quiet life [...] or to save face in a meeting." 5It is difficult to set objectives which take into account smaller, seemingly less important elements of the job, which are however still critical to the organisation. Qualities such as innovation or intuition, which an individual can bring to a job, may be overlooked in favour of short-term success even though they could greatly benefit the firm in the long term. This is another issue: short-term success in favour of long-term success. In a firm where there is a hierarchy and individuals must report to their superiors, facts, figures and short-term success may be much more important than long-term success. The biggest problem with managing individuals is that every human being is unique. It is difficult - in some cases impossible - to find a motivating factor which is pleasing to everyone concerned. Of course, "the relationship between performance and award is self-evident." 6If used appropriately and in relation to performance rather than output it can be a strong incentive. ...read more.

Conclusion

We are prone to bias. An employee with a fantastic sense of humour may receive a better evaluation than his quieter, perhaps harder-working colleague, simply because they are in our favour. We live in an increasingly competitive world. The media promotes wealth, and everybody wants a slice. In the United Kingdom borrowing has increased dramatically in recent years. We are no longer afraid to accumulate massive debts; loans, credit-card bills and overdrafts. People want a lavish lifestyle with large houses, flashy cars, the latest fashions, and the most up-to-date gadgets. Firms want us to spend our money in their stores; therefore they must provide something extra. If performance management can give them a little 'extra' then of course it should be followed. As I have already said, I believe that performance management is still a new concept; much work still must be done to increase its effectiveness. In the future when this is accomplished the potential benefits for improving employee ability and motivation are too great to avoid. 1 http://www.q4solutions.com/articles/article43.html 2 "Personnel Management - The Utilisation of Human Resources" Chruden and Sherman JR, P. 174 3 "Employment Resourcing" Corbridge and Pilbean, p. 203 4 "Employment Resourcing" Corbridge and Pilbean, p. 203-4 5 "Supervisory Management - Principles and Practices" David Evans, p. 297 6 "Employment Resourcing" Corbridge and Pilbean, p.208 7 "Readings in Personnel Management" Chruden and Sherman, p.164 8 "Readings in Personnel Management" Chruden and Sherman, p.163 ...read more.

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