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Performance Management.

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Introduction

Performance Management Performance management is a process a business uses to achieve its targets and objectives effectively. It includes such processes as planning and targeting, strategy development, performance appraisals, etc. Performance management is important for a business because it helps the business to remain competitive, it helps to expand and help the business grow, it involves self-evaluation and other staff evaluation which helps improve the communication between staff and makes staff more aware of how well they are performing, training and development takes a significant role in performance management it has a major influence in promotions of employees and the future of every employee. Managers exercise their control by planning with objectives and targets, establishing the performance standards, monitoring the actual business' performance, comparing performance with targets and correcting mistakes and taking action. MBO has an important role in performance management, MBO is a process in which individual performance and organisational performance is being consistently measured against objectives and targets that have been mutually agreed between managers and employees. MBO can be determined through regular meetings between managers and employees. This involves a top-down and bottom-up approach. The processes of MBO are more likely to be successful if they meet the SMART criteria: S - Specific - Specific means that an observable action, behaviour or achievement is described and is also linked to a rate, number, percentage or frequency. ...read more.

Middle

- When employees are motivated by good pay they would work hard without questioning what they are required to do. Many businesses still use Taylorism, even in rich countries, but over the years businesses have come to realise that employees want more from their jobs than job security and good pay. Abraham Maslow's Theory Abraham Maslow believed that all motivation comes from meeting unsatisfied needs. He stated that there was a series of needs that need to be met in the correct order; Maslow arranged these needs into the form of a pyramid, the needs at the bottom being the most basic working up to the most self important need. Once an employee has been motivated to one level the next level then needs to be motivated. Maslow ideas were: - Employees need to be paid adequately so they can pay their basic physiological and social needs. - Employees must have social contact with colleagues, most people who work alone in private offices are unhappy. - Esteem can be promoted if a business offers the chance of promotion, or by offering better fringe benefits to employees in higher positions (e.g. managers are offered better cars, better pensions, etc). - Self actualisation is the most hardest to achieve, it really means that an employee has the chance to become everything they ever wanted to become. ...read more.

Conclusion

Theory Y employees save the business a lot of money on supervision and inspections. The main problem with McGregor's theories is that no business is completely full of theory X or theory Y people. Another problem is that employees might not fit in or like the theory they are judged on, for example a good employee may leave a theory X business because they feel not trusted and may question why they are under constant supervision. Frederick Herzberg's two factor theory Herzberg motivational theory consisted of two factors. He said that certain elements in a job motivate employees to work harder; he called these 'satisfiers'. Herzberg also said that there are elements that do not motivate employees to work harder; he labelled these 'hygiene factors'. Satisfiers consist of: Recognition, responsibility, achievement, advancement and personal growth and the actual work itself. Hygiene factors include: Status in the business, job security, pay and conditions, benefits (fringe benefits), relationships with other employees and the quality of the business' manager. Herzberg's main point was that hygiene factors do not motivate but if they are not very good then the satisfiers will not motivate either. A business needs to take into account these two factors and make improvements where necessary in order to offer more satisfiers. Page 1 of 3 Jake Gibson J3 - Ms Khan ...read more.

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