Free Essay Sample «Assessment: Performance Management»

«Assessment: Performance Management»

Activity A

Question 1

Performance management has a number of purposes, which are aimed at the attainment of business objectives set by a particular trade. The purposes of performance management include enabling employees to concentrate and move towards the accomplishment of superior ideals of work performance. Performance management helps in keeping the stuff focused and hardworking in order to boost their effectiveness. Another purpose of performance management is to assist workers in identifying knowledge and abilities needed for the efficient performance of their jobs. The focus of employees is driven towards the execution of the appropriate tasks correctly (Demartini, 2013). In this way, the development of a defined means of conducting affairs in business is made even easier.

Performance management is crucial to the promotion of a two-way structure of communication between supervisors, managers, and workers. With its help, the clarification of expectations regarding functions and responsibilities of both managers and employees is achieved. This also helps in communication of functional and institutional objectives while offering a steady and transparent response for improvement of employees' productivity and constant training (Griffin & Moorhead, 2011). Performance management also boosts efficiency of workers through promotion of their empowerment, implementation of an effective reward mechanism, and motivating.

Performance management is vital for the attainment of business aims since it is concerned with productivity, results, actions needed for the achievement of the results, and the input, such as approaches, knowledge, and abilities. Often, through performance management workers get to comprehend the importance of their individual and group productivity. They are, therefore, able to work together for the best of the business. The result of this understanding is achievement of business goals, among which the primary objective is to make profits.

Question 2

Quality performance management systems should bear certain components, which form a cycle that keeps building on itself. They include employees' objectives and development, self-appraisal, and performance feedback (Sahu, 2009).

The initial step is employee's objectives and development. It concentrates on setting of goals for performance and personal improvement. These objectives should be made for professional and individual reasons and should be set with particular timelines. Managers are required to offer essential resources and support for the accomplishing of these tasks (Demartini, 2013).

Self-appraisal provides every worker with a chance to evaluate themselves and boast about their previous achievements. The problem with this component is that the means of identifying accomplishments and failures differ between employees and their managers.

Performance feedback is a stage that entails the provision of assessment by managers to employees regarding their general performances. It is critical that the performance feedback is given to employees individually rather than collectively or in public. If given in public, an employee may be demoralized rather than encouraged to work harder due to personal embarrassment if they have performed poorly (Sahu, 2009). This level requires from managers to be honest while providing feedback to their employees. Seniors should also make sure they dedicate enough time for giving their opinion (Sahu, 2009).

Question 3

Motivation is strengthening or encouragement of internal activities that, thereby, boost or drive performance of employees in a business. There is a direct connection between management of performance and motivation. For instance, if particular managers of an institution supervise performance of their employees and decide that they should be motivated, the expectation of the managers is that the employees ought to perform even better in their job. This means that the higher the employee is motivated, the better they are anticipated to perform (Demartini, 2013). There are various theories that explain the relation between performance management and motivation.

The Hierarchy of Needs established by Maslow is among the theories that seek to explain the relationship between motivation and performance management. He held the belief that motivation changes over circumstances and time. For Maslow, upon meeting a particular need, one is motivated to move on to fulfill higher requirements, which, in every case, then turn into factors that motivate the person. This means that in the even of lacking a certain need, an individual will become driven to fulfill it (Griffin & Moorhead, 2011).

Maslow’s Hierarchy of Needs is classified into a five-tier system that is traditionally presented as a pyramid. These are physiological, security, social, esteem, and self-actualization needs shoved in an ascending manner. The fundamental requirements include such things as food and water, whereas self-actualization needs entail self-awareness and personal development (Griffin & Moorhead, 2011).

In a business, the team that manages the performance of employees chooses a systematic way of motivating them. Employees experience a form of motivation that is always aimed at the tip of the pyramid. At the lowest level, an employee seeks basic needs that entail psychological requirements. Upon the attainment of their psychological needs, employees then work towards the safety level and work their way up the pyramid. Every level in this structure is provided for by the opportunities offered by the management team. As a result, workers have to work hard in order to meet their set goals and move upwards this hierarchy (Griffin & Moorhead, 2011).

The Herzberg 2-factor theory also seeks to explain the correlation between motivation and performance management. This theory explains two divisions of factors and the way they relate to workers' motivation to perform. Among these factors are those that inspire the stuff and those that result in job dissatisfaction. According to Herzberg, the factors that encourage workers include recognition, variety, and responsibility (Griffin & Moorhead, 2011). These aspects are critical to the encouragement of higher performance. Hygiene factors, on the other hand, are those that are inherent to the job and their lack result in frustration with work. These include pay and benefits, job security, and corporation guidelines that do not lead to heightening of long term performance (Griffin & Moorhead, 2011). They only serve to appease employees.

Question 4

Reward systems have various purposes in an organization. An efficient reward system assists an organization in being more competitive, retaining its employees, and in reducing turnover. Reward systems may also increase employees' motivation and reinforce the image of the firm in the eyes of main stakeholders or potential workforce. People are the main resource for the firm’s effectiveness and maintaining them on the job is a core requirement for any manager. Competition for attracting and keeping the best workers is extreme. For persons seeking a career opportunity, this is excellent news, but for it may be challenging for the firm’s manager. It may be even more difficult when there is need for profit and public divisions since flexibility in the provision of financial rewards may be more restricted than in a commercial setting. Additionally, proper reward systems could lead to the reduction of absences, which are a great problem for managers. Absences affect managers and fellow workmates, who are required to fill in for them, and customers, who experience the effect of few workers in a workplace (Griffin & Moorhead, 2011).

Efficient use of rewards may be an encouragement to employees to develop the skills that are required to assist them and business. Bonuses may also contribute to their desire for continuing being part of thefirm. The organization needs employees who come to work and show excitement of being there and doing their jobs. This passion is known as affective commitment. Rewards thus strengthen and enhance workers' performance by giving support and showing that they control their jobs (Griffin & Moorhead, 2011).

Question 5

Monetary rewards are most regularly awarded in the form of pay increment, increment of bonuses, such as health care premium and bonuses. Rewards like those may be put in two classes, direct compensation and indirect recompense. The two types of rewards are a great contribution to the betterment of workers. Direct compensation is mainly straightforward and comprises increment of hourly pay. They also include increment of hours for those workers who do not receive salaries, merit pay on the basis of performance, and rank pay on the basis of time within the firm. Monetary rewards also comprise bonuses on the basis of achievement of personal, group, or objectives of the firm. Indirect monetary compensation may consist of increment in benefits or addition of benefits like a dental plan. It may also include paid leave in the form of off days for training, a sabbatical, sick leave, family leave to take care of a child or an old relative (Armstrong & Murlis, 2007).

Non-financial rewwards cost the firm but are not a direct improvement of the financial situation of an employee. Such kind of compensation means that employees receive the best resources and, consequently, are able to perform better in their jobs. This may include the provision of high-end computers or offering good training facilities. Non-financial rewards are mainly visible and may evoke unintended inequality feelings. That reaction may have a positive impact on the firm, if its workers strive to improve performance or it may lead to turnover and reduction in effectiveness (Armstrong & Murlis, 2007).

Performance based compensations are linked to the ability of a person, group, team or firm to accomplish a previously decided task according to the standard of performance. They are founded on an evaluation of contribution and awarded on the basis of that assessment (Armstrong & Murlis, 2007).

Question 6

In tackling good or bad performance, a manager needs to take various measures. To begin with, he/she needs to be specific. This means that the manager must address the employee whose performance does not meet the required standard (Griffin & Moorhead, 2011). They should not generalize about poor performance on all the employees, but the specific one. Also, they should specify to that person what exactly they do not well.

Another way of tackling bad performance is gathering evidence. Before confronting the employee whose work is not up to the firm's standard, the manager or the person in charge should ensure that they have all the necessary facts in order to avoid confrontation of the wrong employee. Evidence will make the target person know where to improve or change their work (Demartini, 2013).

The manager should explain the consequences of poor performance to the stuff. As it costs the business a lot of money and should not be taken lightly. Consequences such as warnings, suspension, or dismissal, may be given to that particular person. The manager should be ready to hear excuses that may be given by the responsible side, such as they are sick or have issues at home or at work. Anticipating these excuses, the person in charge will be in a position to respond effectively.

The manager or the person in charge should focus on future improvements and not concentrate on the past problems. In such a way, the employee with poor performance will get the feeling of having a second chance to improve their performance instead of being criticized. In addition, he/she will be more ready to accept directions on how to be better in their job (Demartini, 2013). This plan should be accompanied by following future conduct of that employee in order to gauge their performance and advise them accordingly.

Question 7

Feedback regarding products or services offered by a firm may be received from different sources, both internal and external. This research forms items of data for a business. Internal sources of such information include among others employees' personal files, trade secrets, and meeting notes. It is considered risky to depend exclusively on internal data items since a business may be left uninformed on essential trends in the existing market. Employees may also skew data in a way that may not be in the business’ best interest. Due to this possibility, external sources, such as customers, are involved in acquiring information. Customers mainly provide information in the form of feedback. Their assessment helps the business in understanding their market and making appropriate improvements.

Question 8

Performance reviews are evaluations of achievements of employees that gauge whether they meet the required standards or the standards expected from them. Generally, performance reviews are done on an annual basis. The main reason for performance review is to record individual accomplishment. After recording how an individual performs, possible areas that need improvements are identified and the employee is advised accordingly (Griffin & Moorhead, 2011).

Performance reviews also allow the manager or the person conducting reviews to set out goals and targets what should be met in the following performance review. It is mainly done through interviewing the employees. A standard interview question list may be prepared and then altered to suit the specific employee. When the interview is oral the manger is required to show confidence and possess interpersonal skills such as patience. He/she should be objective and not avoid asking questions that they feel are hard for the employee under review. In other cases, annual assessments may be conducted in written form.


Our Customers' Testimonials

Current status


Preparing Orders


Active Writers


Support Agents

Order your 1st paper and get discount Use code first15
We are online - chat with us!