Performance Management System for Employee Performance through Engagement

Performance management system effectiveness (PMSE) is the measure of alignment between employee and organizational objectives (Armstrong, 2015). Researchers (e.g., Kennerley & Neely, 2003; Kolich, 2009; Tan & Smyrnios, 2006) have substantiated that a careful implementation of an effective PMS ensures this consistency. A powerful PMS implementation manner necessitates that personnel eagerly accept and effectively participate in the goal-placing manner. Some recent literature has attempted to address this aspect and recommended exploring PMSE from employees’ perspectives. More specifically, studies recommended the exploration of PMSE in terms of its impact on employees’ motivation, work engagement, performance, and retention (Audenaert et al., 2019; Mishra, 2014; Sharma et al., 2016). The current study examines the missing link between PMSE and employees’ work engagement and performance.

Powerful overall performance control complements personnel paintings engagement in individuals who locate themselves snug at paintings and extra willing in the direction of higher overall performance. They additionally encompass engagement as a mediator among PMSE and overall performance; however, they do now no longer undertake the empirical methodology, which they've proposed in destiny studies. Although they look at is extra applied to the contemporary studies, nevertheless they left gaps in locating the empirical relationship. They additionally counseled replicating their studies framework in the developing, growing economies through adopting extra strong study strategies like survey strategies to enhance the generalizability.

The Impact of Performance Management on Employee Engagement

Navigating overall performance control isn’t usually easy. It’s a dynamic method that’s motivated with the aid of using, converting traits and developments in the field. When executed poorly, overall performance control can significantly affect the productivity, motivation and engagement of employees while causing potential disruptions and problems for managers. Unfortunately, many corporations don’t prioritize worker overall performance control and therefore, aren’t experiencing the wealthy advantages and nice effect they've on the organization as a whole. In an attempt to boom attention of those advantages, here’s an outline of ways overall performance control affects worker engagement.

Employee overall performance control consists of 3 simple principles: making plans and aim setting, overall performance review, and improvement planning and goal setting, performance review, and improvement. Each principle requires a strategic approach from leadership teams based on the unique characteristics of employees. They must be devised primarily based totally on individual strengths geared closer to a not unusual place imaginative and prescient that enables to enhance inner-organizational teamwork and success.

Planning and Goal Setting

The first detail in overall performance control is intention setting. This is the standards that an employee will work in the direction of and is important for baseline evaluation. To assist propel an enterprise forward; individual dreams ought to be aligned with organizational dreams. During every year or quarterly reviews, dreams ought to be genuinely recognized throughout extraordinary categories. Goals should be attainable, but challenging. They should be specific and understandable, but flexible in nature and this is especially true in regard to ongoing reviews and adjustments. Communication among employees and bosses all through purpose putting and evaluation allows forging a more potent expertise of expectations.

Performance Review

The subsequent detail includes accomplishing an overall performance review, that's an evaluation of an employee’s works overall performance that pinpoints strengths and weaknesses, affords comments and establishes desires for destiny overall performance. This facilitates to get employees in the direction of their goals. The overall performance control system needs to move past the real overall performance evaluation to encompass real-time remarks and ongoing communication. This facilitates result in elevated expertise in overall performance and development of the employee and the manager.

Improvement Plans

The maximum crucial a part of employee overall performance control is the communication that happens approximately improvement possibilities. Development possibilities offer an outlet for managers to work with their employees and devise methods to conquer the boundaries even as capitalizing on individual strengths and creativity.

The Relationship between Performance Management and Employee Engagement is an essential component in basic enterprise success. Disassociation from the employer results in excessive turnover rates, reduced productivity, hampered worker, pleasure and, therefore, decreases profits. In turn, personnel who sense strongly related to an employer via ongoing overall performance control have a tendency to be extra completely engaged.

Some benefits of employee engagement include:     

• 1.       Stronger Communication
• 2.       More Growth and Development
• 3.       Better Recognition and Employee Appreciation
• 4.       Improved Employee Trust

Rather than counting on critiques that arise a few times a year, powerful overall performance control needs to be a persistent process. This is the high-quality manner to enhance worker engagement, encourage creativity, offer practical remarks on development and create plans for development alongside the manner.

According to Harvard Business Review many leading organizations like Microsoft, Adobe, IBM, General Electric, Accenture and others utilize the practice of continuous performance management and have seen tremendous improvements in employee productivity and retention. With this type of performance management approach, employees are more likely to feel valued and therefore, engagement levels can increase substantially.

Reference:

Armstrong, M. (2015). Armstrong’s handbook of performance management: An evidence-based guide to delivering high performance (5th ed.). Kogan Page.

Audenaert, M., Decramer, A., George, B., Verschuere, B., Van Waeyenberg, T. (2019). When employee performance management affects individual innovation in public organizations: The role of consistency and LMX. The International Journal of Human Resource Management, 30(5), 815–834

Kennerley, M., Neely, A. (2003). Measuring performance in a changing business environment. International Journal of Operations and Production Management, 23(2), 213–229.

Kolich, M. (2009). Solutions and recommendations to address issues with company XYZ’s performance management system. Performance Improvement, 48(1), 12–24.

Mishra, G. (2014). A comparative study of perceived satisfaction of employees regarding performance management system in context of IT organizations. Asia-Pacific Journal of Management Research and Innovation, 10(3), 225–237.

Sharma, N. P., Sharma, T., Agarwal, M. N. (2016). Measuring employee perception of performance management system effectiveness. Employee Relations, 38(2), 224–247.

Tan, C. S. L., Smyrnios, K. X. (2006). How do fast-growth firms compete. International Council for Small Business.