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Performance Management/ Motivational Theory Performance Management

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Performance Management/ Motivational Theory Performance Management The main purpose of performance management is to help businesses, such as IKEA to remain competitive. To do this, the organisation needs to measure the performance of its employees. There are number of ways, in which IKEA can measure the performance of its employees. However, the most common method that the organisation often uses is called the appraisal system. Appraisals- performance reviews One of the ways in which employers can get feedback on employee performance is through appraisal. Appraisal can be open or closed. If the appraisal is open, the appraisee can actively take part in the review process and discuss the results. If the appraisal is closed, the report remains confidential. The appraisal looks at what an employee's job is, how well it is being performed and at what action should be taken into account for the future. The appraisal is made up of several stages. Setting up the appraisal system Businesses, such as IKEA need to decide the purpose of the appraisal system and must ask themselves, 'What are we trying to achieve by appraising staff?' The organisation needs to aim to identify areas where the employee can become more effective and to set new targets both for performance and for personal development. The organisation should set up an appropriate scheme which will achieve the targets. This may include observation, discussion, checking performance figures, etc. The organisation needs to decide who the appraisors will be. For example, is the appraisal to be by peers assessing one another (this is known as peer evaluation)? Carrying out the appraisal In order to achieve an effective appraisal system, the organisation needs to carry out the following stages: 1) Identify criteria- this must be clear what is being assessed and what creates satisfactory performance 2) The appraisal itself- this may involve observing co-worker's work, reviewing performance figures against targets and an interview to discuss about performance 3) Follow-up- this need to be agreed by the appraiser and the appraisee. ...read more.


Unfortunately, it became unpopular to the union and the workforce because, employees were treated as 'inefficient' machine, and production on-line approach makes the make more monotonous and repetitive. Another most obvious weakness in employees, it isn't for everybody. This was because; Taylor discovered that employees work for other reasons rather than financial reward. Abraham Maslow- Hierarchy of Needs In 1943, Abraham Maslow was the founder of the 'Hierarchy of Needs' He ranked each level of human needs in order of importance, starting with the most basic at the bottom, and more advanced at the top of the pyramid: The hierarchy (pyramid) works by two ways: 1. an employee starts at the bottom of the hierarchy and needs to satisfy a lower level of need (e.g. basic needs) before moving onto a higher need (e.g. self-actualisation) 2. more employees complete that level as it goes downwards Physiological Needs Physiological needs are the basic human needs. Every employee must have the following basic needs, to survive and maintain in life: * * Food * Clothing * Shelter * Heating essentials This basic level of need can be net by the following business implications: * * Pay levels, such as wages and salaries * Working conditions Without these needs, individuals will become seriously ill and eventually die; and would not be able to meet other higher desires such as, social needs and self-esteem needs Safety Needs Once physiological needs are met, employees will then want safety and security so, they can be protected from danger, such as threats of physical and emotional harm. This safety level of needs can be met by the following business implications: * * Living in a secure area * Medical insurance * Job security * Financial reserves * Private pensions Social Needs Social needs involve communicating with other people in groups, e.g.: * Need for friends such as gangs and colleagues at work * Need for belonging such as religious community and family * Need to give and receive such as husbands, wives, boyfriends and girlfriends Social needs are important because, we want to feel a sense of "belonging". ...read more.


motivate employees to work harder is by money, and they should be paid on a piecework system * Employees will work without question if motivated by good pay. Abraham Maslow- Hierarchy of Needs Abraham Maslow states that, "what motivates employees to work harder once satisfied by a lower need is the need for the new highest level". From a performance management point of view, Maslow's theory claims that: * Employees need to be paid adequately so they can provide themselves with their physiological and safety needs. For example, IKEA's co-workers earn between eleven thousand and twenty-one thousand per annum, providing enough money for co-workers to live on * Employees need social contact through friendships with colleagues. For example, teamwork training and development programmes assist in employees relationships * Self-esteem is provided through prospects of promotion and offering higher managers a better overall deal. For example, development programmes provide employees prospect of promotion. Performance appraisals provide employees the chance to demonstrate that they have potential for promotion It is very important that IKEA monitors the training and development function and the recruitment and selection function, at all times. The organisation needs to make that all co-workers are trained to the highest possible standard. IKEA need to be aware that an effective training can improve customer service and therefore increase customer satisfaction. When customers receive high quality service from IKEA, they will likely to return back. (In fact 3.9 visits a year are made by the average European customer to an IKEA store). This will maximise Ikea's sales and add the future success of the organisation. Evidence shows that IKEA is constantly making more sales each year. In 2005, the IKEA Group have made a total of 14.8 billion euros which is two billion euros more than the previous year (12.8 billion euros). This tells me that, IKEA already have an effective training and development function and performance management function. ?? ?? ?? ?? Unit 4: Human Resources E6/C3 Created by Baljinder Duhra - 77 - ...read more.

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