Performance Management Process
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Performance Management Process
In this modern organization that is constantly changing due to the changing technology, organizations need to manage their employees’ performance and development. The process of performance management involves setting the performance standards, the building of strong succession plans, and at the same time monitoring the progress (MOUNT, 2017). This paper will be analyzing the performance management process, relation to HRM, the types of appraisal systems, and their suitability for customer care firms.
The role of HRM in Performance Management Processes
A human resource manager plays a major role in the designing and implementing of the performance management process. It is the human resource office’s role to ensure that the performance system put in place is fair (MOUNT, 2017). The HRM will also be responsible for managing employee relations and conducting managerial training on performance systems, and recording performance reviews. There are various ways HRMs can ensure that performance management is in line with the organization’s strategic plan. First, HRMs are required to set business targets for each department aligned with the overall business plan (MOUNT, 2017). Secondly, the HRM should ensure that the set goals are passed down to each department’s employees and managers.
Appraisal Systems
There is a distinct difference between various performance appraisal systems. Trait appraisal systems are highly objective, simple to develop, and easy to score. These kinds of appraisal systems will reward more outgoing employees because they mostly deal with people skills (Griffin, 2019). On the other hand, behavioral appraisals are more useful when assessing quantitative tasks. Behavioral appraisals offer straightforward, more objective results in regards to performance evaluations. Therefore, these appraisals are useful in employee promotions and counseling. However, the one disadvantage with behavioral appraisal is that they are time-consuming and costly to make a standard appraisal. On the other hand, results-based performance appraisal concentrates on task evaluation and performance results (Sardi et al., 2020). Using this appraisal system requires that each individual be evaluated according to quantifiable outcomes from their performance. Unlike the other two systems, the result will eliminate objectivity, focusing on employee performance, such as customer, financial, and employee growth.
Suitable Appraisal System for Maersk
Being that Maersk is a customer care service business, the trait is the best appraisal system to be used. This is because trait deals with employees traits such as punctuality, helpfulness, and dependability. In this business, an employee is required to be responsible for all customer contact and be accountable at the same time (Griffin, 2019). Therefore, this system’s use will ensure that all unit areas are in cohesion while there is a great work relationship building in the organization. Customer needs will also be a priority to employees.
Performance Rating Scales
Rating scales are used in performance management systems, indicating an employee’s level of achievement or performance. The rating scales can be alphabetic or numeric, with the alphabets or numbers corresponding to a given adjective (PerformYard, 2020). For instance, (1) may mean not meeting expectations, while (a) might be excellent. There is a five-level performance management scale and the BARS (Behaviorally Anchored Rating Scale). BARS are used by HR to rate employee behaviors in different dimensions. On the other hand, the Five-level performance management scales offer employees two levels two superior performance levels.
Conclusion
HRMs are important in the performance management process in that they are responsible for major roles in that sector. One of the HRM’s roles is to ensure a fair performance appraisal system, whether it is the trait, behavioral, and result based on a performance appraisal system that works for the organization.
References
Griffin, D. (2019, February). Types of employee appraisal systems. Small Business – Chron.com. https://smallbusiness.chron.com/types-employee-appraisal-systems-1908.html
MOUNT, M. K. (2017). Comparisons of managerial and employee satisfaction with a performance appraisal system. Personnel Psychology, 36(1), 99-110. https://doi.org/10.1111/j.1744-6570.1983.tb00506.x
PerformYard. (2020, September 18). Rating scales for employee performance reviews. Employee Performance Management Software | PerformYard. https://www.performyard.com/articles/performance-review-ratings-scales-examples
Sardi, A., Sorano, E., Garengo, P., & Ferraris, A. (2020). The role of HRM in the innovation of performance measurement and management systems: A multiple case study in SMEs. Employee Relations: The International Journal, ahead-of-print(ahead-of-print). https://doi.org/10.1108/er-03-2020-0101