Q1.State the components of a performance management system.
Answer : Performance management is a continuous process in this unit we will discuss the cycle of
performance management. A system is basically a set of interacting components. The components or parts of effective performance management system are:
Performance planning: This is the process of identifying employee objectives and setting job expectations and goals for each position in the company. Each department in the company usually has different expectations for its employees based on the requirements of the positions in the department. Clearly defined expectations and goals give employees the greatest opportunity for advancing in the company. During this process managers also discuss the review and feedback process of the performance management system.
Ongoing performance communication: A company is benefited by the performance management system only when there is a timely employee review and feedback system implemented in the program. Timely employee reviews and feedback sessions are dependent on the company’s business operations and human resource guidelines. These review sessions will inform employees how well they are performing in their positions and what areas need to be corrected or improved. Most companies have an annual review process, although six-month reviews are often used. Performance appraisal meetings: The supervisor and the employee meet to discuss the employees performance during the appraisal period and to discuss potential goals for the upcoming appraisal period.
Performance rewards: This is an important part of the performance management system. The thought of earning rewards for their actions, whether financial rewards or another form of benefit motivates employees. Usually an employee’s performance review is linked with the financial bonus or pay raise, which ensures that the company gets the best performance out of each employee. Other non-financial rewards such as extra time off, special company-paid vacations, gift certificates, gifts for years of service or recognition banquets may also be offered.
Performance diagnosis and coaching: Employees who do not meet the criteria standards to be eligible for performance rewards may need additional training or coaching by their superiors to improve their job skills. Performance reviews is the starting point for the additional training; subsequent performance reviews may be scheduled to check if the employee has improved from the time of the initial review. Performance management systems are ineffective if they only reward employees for good performance. The system also needs to include training or coaching processes to ensure that all company employees are able to improve their performance.
Q2.What are the major errors that may occur during performance evaluation?
Q3.Explain the traditional methods of performance appraisal in detail.
Q4.Explain career planning in detail.
Q5.Explain the ‘Plan-Do-Review-Revise’ cycle of performance management.
Q6.Mr.Samuel D’Costa is the HR executive at Evergreen Solutions Pvt.Ltd. He found that the performance of the marketing team has been decreasing over the past four months. Suggest measures that he can take up to improve the team performance of the marketing team.
