These appraisal systems still exist and are being updated, nevertheless performance management systems become increasingly more popular to manage employees (Torrington, Hall & Taylor 2005). Therefore, before a firm is capable to plan and manage individual performance, it should have identified the performance it requires for the firm (Torrington, Hall & Taylor 2005). This may involve a mission statement in order to see the background of a principal theme (Torrington, Hall & Taylor 2005).According to Torrington, Hall and Taylor (2005, p. 263) the stages of a performance management system comprise of the definition of the business role, including a job description and the setting of objectives. This consequently leads to the planning of performance by setting objectives and planning for individuals. The next stage is delivery and monitoring, it comprises of ongoing managerial support and review. As a final step, a formal assessment and rewarding of the employee is being carried out. Performance is usually reviewed annually before new objectives are being set and the process spins around (Torrington, Hall & Taylor 2005). It is important to note that set objectives are SMART (Specific, Measurable, Attainable, Relevant and in a Time frame); as it otherwise is impossible to measure fair and effectively (Belch & Belch 2007).
The usage of 360 – degree feedback refers to multi – rater feedback and is increasingly popular to manage performance (Torrington, Hall & Taylor 2005). It collects a wide range of sources about individuals to assess their performance (Torrington, Hall & Taylor 2005). These sources include immediate line managers, peers, subordinates, more senior managers, internal customers, external customers and individuals themselves (Torrington, Hall & Taylor 2005). It is suggested that 360 – degree feedbacks capture the complexities of performance evaluation better (Torrington, Hall & Taylor 2005). 70 per cent of United Parcels Service employees stated that feedback from multiple sources was more helpful to them for development than feedback from an only basis (Torrington, Hall & Taylor 2005). It was furthermore found that staff considers feedback from peers and subordinates convincing and more valid (Torrington, Hall & Taylor 2005). As a result, a all – around feedback helps individuals to comprehend in which way they may be seen differently (or similar) by various groups in the organisation and in what contrast this might be with the individual’s own opinion of strengths and weaknesses (Torrington, Hall & Taylor 2005). It is therefore a powerful tool to gather information for development and self – awareness (Torrington, Hall & Taylor 2005). 360 – degree feedbacks may be used by collecting and analysing very precise information in an informal way, informal approaches of this method to using a survey questionnaire and statistical analysis might be a successful alternative (Torrington, Hall & Taylor 2005).
The 360 – degree feedback is sometimes being criticised as confidentiality of raters may not always be guaranteed, although it is important with most cases when it is used (Torrington, Hall & Taylor 2005). Therefore, raters eventually do not feel comfortable about being honest and open (Torrington, Hall & Taylor 2005).
However, performance management should be line driven instead of HR driven; ways to make this take place need to be set up (Torrington, Hall & Taylor 2005). Line managers along HR managers are supportive links to ensure higher standards of training, monitoring and appraisal of employees (Torrington, Hall & Taylor 2005). Nevertheless, every system is only as good as the people who work with it (Torrington, Hall & Taylor 2005).
Telecommuting is defined as working from home with a computer which is linked to an organisation (Pratt 2000). It has several advantages and disadvantages for employees and employers (Harpaz 2002). Advantages of telecommuting for employees include autonomy/independence as the absence of direct monitoring is expected to increase an individual’s level of responsibility (Harpaz 2002). In addition to that, telecommuters enjoy flexible working hours as they are empowered to work at any desired time of the day (Harpaz 2002; Derven 2007). Furthermore, as telecommuters possibly work with less exposure to distraction, time management improves (Harpaz 2002; Derven 2007). Other advantages for the individual are savings in travel time and expenses, flexibility in caring for the family and professional flexibility which allows an employee to work in their profession with more freedom of choice; and the possibility of working for a number of employers at the same time which might opens promotion opportunities (Harpaz 2002).
However, there are also disadvantages associated with telecommuting for individuals; they can include an impaired feeling of belonging, feelings of isolation, no separation between spheres of work and home, self – discipline, eventually a lack of professional support, career advancement as it is difficult for employees to develop their career when they are out of sight and an over – availability syndrome (Harpaz 2002).
Advantages associated with telecommuting for organisations may be an increased productivity since e – workers do not have to solve interpersonal problems that are likely to occur due to routine friction and conflicts between employees sharing an office (Harpaz 2002; Ramsey 1997). In addition, an organisation has access to a larger range of employees since they are able to work from literally anywhere (Harpaz 2002; Ramsey 1997). Studies furthermore found that telecommuters have significantly decreased absence levels and are more motivated than their colleges in offices (Harpaz 2002). Lastly, firms engaged in employing telecommuters save in direct expenses as they require less real estate, thus pay less rent, less on maintenance, reduce spending on parking, transportation, travel expenses as well as a great reduction in payments for overtime (Harpaz 2002; Ramsey 1997).
There are still some disadvantages along telecommuting for organisations (Harpaz 2002). Telecommuting is responsible to hold back managers who tend to centralize, and therefore require their employees to be present to supervise their work closely (Harpaz 2002). Investments in training and supervision methods are high, an organisation may be harmed in terms of commitment and identification of employees and legal issues such as employee insurance, decisions on work hours and overtime, establishing holidays, sick leaves and confidentiality may arise (Harpaz 2002).
The supervision of telecommuters may appear complex; however, there are techniques for supervising home workers (Ramey 1997). It is suggested that supervisors check with other supervisors to find out how they set up telecommuting engagements and that a supervisor visits the home site early on in order to get a visual impression about the employee’s work environment (Ramsey 2007). In addition to that, technical assistance should be provided and directions and instructions should be clear (Ramsey 2007). Furthermore, Ramsey (1997, p. 11) suggests that a supervision should be willing to evaluate performance on the basis of results, without relying on a time card. However, Wiese, Price & Buckley (1998, p. 11) state that telecommuting and any work performed outside of the observation of supervision give managers a limited opportunity to observe the worker’s performance, making it unlikely that performance evaluations will be valuable sources of information regarding the quality of performance or the steps that workers should take to improve work quality. It is thus recommended that work evaluation should shift away from behaviours to results (Wiese, Price & Buckley 1998). In addition to that, Thomas, (1999, p 91) states that up to date, there have no studies about telecommuter’s performance been made and furthermore argues that satisfaction with the performance appraisal system decreases as distance between rater and the ratee increases. Other research found that disagreement with Thomas’s hypothesis by stating that distance does not increase a worker’s dissatisfaction with the appraisal system, it is rather relevant to establish appropriate, ‘virtual’ contacts with the telecommuter, either by phone, e-mail or other technology tools (Bogdanski & Setliff 2000). They furthermore ask how often a supervisor should have face-to-face meetings with a telecommuter (Bogdanski & Setliff 2000). Bogdanski and Setliff (2000, p. 4) also suggest that in order to improve a telecommuter’s performance and productivity; and to ensure a telecommuter’s motivation and satisfaction, performance may be evaluated based on set objectives rather than behaviours.
Further research also found that objectives should be established and goals clearly set to evaluate telecommuters performance; they ought to have a clear understanding of exactly what managements expects from a telecommuter thus a supervisor should sit down with the employee and clearly define goals, challenges, strengths, expectations and areas that require improvement (On Manager 1997). Furthermore, rules should be ‘thrown out’, in other words, employees should not be judged by traditional standards like hours clocked each day (On Manager 1997). Telecommuters should instead be evaluated by results and performance, including how accessible a telecommuter is to co-workers and clients (On Manager 1997). A key rule may be adhered, which is that a telecommuter should call supervisors and associates at least twice a day and they should available to customers during business hours (On Manager 1997). Managers must also establish a monitoring system, for example meeting a telecommuter at his/her home office, however, these visits should not be unannounced (On Manager 1997). Consequently, home visits should also be for a specific reason (On Manager 1997). It is furthermore important that supervisors demand monthly or twice-monthly reports of work status, either by e-mail or fax (On Manager 1997). Lastly, trust is the kit that makes a telecommuting relationship working (On Manager 1997). In a trusting relationship, managers naturally suppose that an employee is committed, working at optimal effort, meeting agreed goals and is focused on the general performance and productivity of the team and department (On Manager 1997).
Businesses like IBM in Australia have developed their own methods to evaluate their employees who work outside the office (Ilozor & Ilozor 2002). IBM began to introduce telecommuting in 1997 and is now the leading organisation in Australia in adopting this form of employment (Ilozor & Ilozor 2002). A survey among IBM Australia’s telecommuters revealed that 80 percent see free and regular communication with their managers as the key to work successful and productive from home (Ilozor & Ilozor 2002). Ilozor and Ilozor (2002, p. 80) found that these factors are perhaps the most important in creating high levels of job satisfaction. Among telecommuting IBM employees it was additionally found that the clarity of manager’s communication appeared to be just as significant to contribute to job satisfaction (Ilozor & Ilozor 2002). IBM sets specific goals and deadlines to execute job duties, rather than setting specific weekly working hours (Ilozor & Ilozor 2002). Consequently, its employees are being assessed by the quality of work, whether they meet the set deadlines and if objectives and goals have been achieved (Ilozor & Ilozor 2002). More than 90 percent of IBM’s telecommuters found that its managers communicate objectives and deadlines clearly (Ilozor & Ilozor 2002).
In addition to that, the majority of respondents found that their managers support career development and nearly 75 percent found that ongoing training takes place regularly (Ilozor & Ilozor 2002). Nevertheless, 70 percent of IBM’s telecommuters also stated that they were given too little training in solving problems involved with this new style of work (Ilozor & Ilozor 2002).
IBM Australia equips all its telecommuters with the required supplies for successful telecommuting; this includes maintenance of equipment, a complaints centre and an Internet connection (Ilozor & Ilozor 2002). By doing that, IBM ensures that their telecommuter’s work can be reviewed regularly; and 70 percent of IBM’s telecommuters agree strongly that their work is being reviewed regularly (Ilozor & Ilozor 2002). Despite 67 percent of IBM’s telecommuters agree that their salary is being reviewed when their work is being evaluated, 23 percent however, disagree with it (Ilozor & Ilozor 2002). The survey additionally asked IBM’s remote workers about personal interaction, it found that 60 percent of the respondents communicate with their office more than ten times per week and 81 percent visit the office more than five times every two weeks (Ilozor & Ilozor 2002).
It can be concluded that it is important for a manager that their staffs perform well to work efficient and to achieve the firm’s strategic goals. To achieve efficiency, they have to give regular feedback to their employees. Performance appraisal and performance management are two different forms of performance evaluation, while performance appraisals focus on the behavioural aspects of the employee, performance management includes an organisations strategic objective in an employee’s evaluation. It is therefore a broader concept than performance appraisal.
Performance is measurable either quantitative or qualitative, it can include an employee’s personality, behaviour or job performance. A qualitative method is usually a written, unstructured narrative while a quantitative evaluation links ratings to performance and behaviour on the job. Popular methods are the BARS and BOS scales. However, when evaluating an employee’s performance it is important that a firm has identified the performance it requires. A method that is becoming increasingly popular is the 360 – degree feedback. It rates an employee’s feedback from several sources within the firm, including the appraised her/himself.
Telecommuting is defined as working from home with a computer, linked to an organisation. Advantages and disadvantages for employees and employers exist. Advantages of telecommuting for employees include autonomy, flexible working hours, less distraction, savings in travel time and expenses, flexibility in caring for the family and professional flexibility. Disadvantages associated with telecommuting for individuals may include an impaired feeling of belonging, feelings of isolation, no separation between spheres of work and home, self – discipline, a lack of professional support and career advancement.
Organisations enjoy the following advantages, increased productivity, access to a larger range of employees, decreased absence levels, highly motivated employees and save in direct expenses. Disadvantages for organisations include the holding back of managers who tend to centralize, investments in training and supervision methods are high, an organisation may be harmed in terms of commitment and identification of employees and legal issues may arise.
Suggested techniques to supervise telecommuters are to refer to managers who have experience in telecommuting, regular but announced home visits and clear directions including technical support should be provided. In addition to that, an employee should be evaluated based on the comparison between objectives and goals with results rather than relying on a time card. It is therefore important to clearly discuss and state goals and objectives with the employee in order to evaluate her/his performance.
IBM Australia began to introduce telecommuting in 1997 and has developed its own methods to evaluate telecommuter’s performances. 80 percent of IBM Australia’s telecommuters see free and regular communication with their managers as the key to work successful and productive from home. IBM sets specific goals and deadlines to execute job duties, its employees are therefore evaluated based on the quality of their work, whether they meet set deadlines and if objectives and goals have been achieved. Furthermore, IBM equips all its telecommuters with the required supplies for successful telecommuting to ensure that their telecommuter’s work can be reviewed regularly. Furthermore, 70 percent of IBM’s telecommuters agree strongly that their work is being reviewed regularly. Finally, it was found that 60 percent of the respondents communicate with their office more than ten times per week and 81 percent visit the office more than five times every two weeks.
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