February 28, 2024

Performance, Performance appraisal and Performance Management

What is Performance?

According to Merriam Webster dictionary performance is defined as:

1a : the execution of an action. b : something accomplished : deed, feat.

2 : the fulfillment of a claim, promise, or request : implementation.

3a : the action of representing a character in a play. b : a public presentation or exhibition a benefit performance.

The performance of a task is the act or action of doing it.

The accomplishment of a given task measured against preset known standards of accuracy, completeness, cost, and speed. In a contract, performance is deemed to be the fulfillment of an obligation, in a manner that releases the performer from all liabilities under the contract.

In work place, performance or job performance means good ranking with the hypothesized conception of requirements of a role.

There are two types of job performances:

  1. task  and
  2. contextual

Task performance is related to cognitive ability while contextual performance is dependent upon personality.

Task performance are behavioral roles that are recognized in job descriptions and by remuneration systems, they are directly related to organizational performance,

Contextual performance is value based and additional behavioral roles that are not recognized in job descriptions and covered by compensation; they are extra roles that are indirectly related to organizational performance.

Contextual performance means a set of individual activity/contribution (prosaically organizational behavior) that supports the organizational culture.

Definition of performance appraisal and performance Management,

Performance appraisal

Performance appraisal system has been defined in many ways. The easiest way to understand the meaning of performance appraisal is as follows:

It is the systematic assessment of an individual with respect to his or her performance on the job and his or her potential for development in that job.

Thus, performance appraisal is a systematic and objective way of evaluating the relative worth or ability of an employee in performing his job. The two aspects of performance appraisal considered to be important are: systematic and objective. The appraisal is said to be systematic when it evaluates all performances in the same manner, by applying the same approach, so that appraisal of different persons are comparable. Such an appraisal is taken from time to time according to plan; it is not left to probability. Thus, both raters’ and ratees know the system of perfor­mance appraisal and its timing. Appraisal has objectivity also. It’s important aspect is that it attempts at precise measurement by trying to remove human biases and prejudices.

 According to Flippo, a prominent personality in the field of Human resources, “performance appraisal is the systematic, periodic and an impartial rating of an employee’s excellence in the matters pertaining to his present job and his potential for a better job.”

In the words of Yoder, “Performance appraisal refers to all formal procedures used in working organizations to evaluate personalities and contributions and potential of group members.” Thus performance appraisal is a formal programme in an organization which is concerned with not only the contributions of the members who form part of the organization, but also aims at spotting the potential of the people.”

It is a systematic way of judging the relative worth of an employee while carrying out his work in an organization. It also helps recognize those employees who are performing their tasks well and also- who are not performing their tasks properly and the reasons for such (poor) performance.

According to International Labor Organization, “A regular and continuous evaluation of the quality, quantity and style of the performance along with the assessment of the factors influencing the performance and behavior of an individual is called as performance appraisal.”

Performance management:

Performance management is a much broader and a complicated function of HR, as it encompasses activities such as joint goal setting, continuous progress review and frequent communication, feedback and coaching for improved performance, implementation of employee development programmes and rewarding achievements.

The process of performance management starts with the joining of a new incumbent in a system and ends when an employee quits the organization.

Performance management can be regarded as a systematic process by which the overall performance of an organization can be improved by improving the performance of individuals within a team framework. It is a means for promoting superior performance by communicating expectations, defining roles within a required competence framework and establishing achievable benchmarks.

According to Armstrong and Baron (1998), Performance Management is both a strategic and an integrated approach to delivering successful results in organizations by improving the performance and developing the capabilities of teams and individuals.

Performance management is concerned with assumptions, mutual obligations, expectations and promises (Guest, D E et al, 1996). The views of some of the leading organizations of performance management approach are given below:

According to Eli Lilly and Co., performance management focuses on aligning the individual goals with the goals of the organization and ensures that the employees work on the right tasks and do the right things.

According to Standard Chartered Bank, performance management is concerned with those processes and behaviors by way of which the managers manage the performance of the employees for developing high achieving organizations.

Difference between performance appraisal and performance management

Difference between performance appraisal and performance management can be understood as follow

Performance appraisalPerformance management
It is operational in natureIt is Strategic in nature
Follow the of Top-down assessmentFollow More likely to involve dialog to improve performance
 It is Retrospective for correctionsIt focuses on future-oriented for growth
It is done Typically once or twice per yearIt is Ongoing or continuous review, interspersed with formal reviews
it Often uses ratings or rankingsIt is less likely to involve ratings
It is rigid structure/systemIt  is flexible process
Not linked to business needsLinked to business needs
It usually takes a quantitative approachIt combines quantitative and qualitative approaches
 It is IndividualIt is Collective
Often linked to compensationNot usually linked to compensation
It is often very bureaucratic with a focus on paperwork/documentsIt is less concerned with documentation
It is usually housed in HR departmentIt is conducted by managers and supervisors

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