Purpose of Performance Management

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Human Resources Unit 4

E6: Purpose of Performance Management:

Many people believe that earning money motivates them, but this is not entirely true, because other factors like variety of workplace and the need to be appreciated for the work they do like Next do.

The need to be appreciated for the work they do may be reflected in the prestige attached to their job, and while the need for a variety in the workplace may be satisfied by an interesting job.

A factor, which effects motivation, is that every individual has different needs. For example an employee may prefer to work on his or her own than in a friendly team. In order to have good motivation employees needs have to be found. This is shown in how lack of motivation equals reduced effort and lack of commitment.

•What is the purpose of performance management?

Next itself needs to manage the performance of its employees effectively if it is to remain competitive. This means that they must be using effective management control exercised at both individual and organisational level.

A range of processes and techniques need to be in place, which allow individual employees to know how well they are doing, and for managers to be able to monitor how well their subordinates are performing.

Performance monitoring provides information, which is of value for identifying future training or promotion opportunities and areas where insufficient skills or knowledge could be deemed a threat to an employee’s efficiency insufficient skills or knowledge could be deemed a threat to an employee’s efficiency.

Managers exercise control at an individual and organisational level through:

  • Planning by setting objectives and targets
  • Establishing performance standards
  • Monitoring actual performance
  • Comparing performance against targets
  • Rectifying mistakes and taking action.

•Douglas McGregor:

McGregor's X-Y theory is a salutary and simple reminder of the natural rules for managing people, which under the pressure of day-to-day business are all too easily forgotten.

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McGregor maintained that there are two fundamental approaches to managing people. Many managers tend towards theory x, and generally get poor results.

Enlightened managers use theory y, which produces better performance and results, and allows people to grow and develop.

•Theory X Propositions:

A manager from the Directory holding to these would be inclined to believe and state that: On average the Next staffs want to work.

Tasks need to be well specified. Even then many need pushing and more direction and control so that they apply adequate effort towards what has to be achieved.

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