The Implementation Of Performance Management

The carry outation Of process Managework forcet movement charge is one of the tools gentlemans gentleman resource managers lavatory utilise to engage employees and teams to make their goals and motivate them to achieve high levels of fundamental lawal effect. Nowadays, HR managers be faced with a variety of competition and business environments that are incessantly changing soulfulnesss values and lifestyles. Hence, the HR mangers contend to understand the processes that feces protagonist employees achieve the goals plume by their organizations.AimThe occasion of this history is to evaluate human resource centering, in accompaniment, mental process management by focusing on three general purposes namely, strategic, education, and administrative. Arguments are made outlining the advantages and disadvantages of implementing feat management placements. Further more than, sources of achievement development used to evaluate the gross revenue fiscal aid of ANZ B ank are examined. Fin eithery, an evaluation of the fairness of work management is provided. Relevant literatures will be canvased and discussed to support the ideas presented inside this document.ScopeThis story discusses, evaluates and in some cases, criticizes existing researches dealing with completeance management and also shows the relationship in the midst of different researches toward capital punishment management, including the advantages and disadvantages of implementing this establishment. Also, evaluations of the performance schooling that burn down adequately measure the performance of ANZs sales assistance along with the fairness of performance management systems are provided.The General Purposes of act ManagementCommonly, the purpose of Performance Management is to achieve an organizations goals or objectives. For instance, Walters (1995) states performance management is the process of improving the quality and quantity of work finished and aligning all the activities tough with an organizations objectives. Similarly, Armstrong (1998) recommenced performance management as the strategic and integrated approaches to deliver the successful to organization by improve the performance of employees by developing the capabilities of teams and individual contributors. Moreover, William (2002) states that performance management targets individuals at bottom an organization and aims to direct and improve their performance and ultimately enhancing the organizations objectives. Schuler, Fulkerson and Dowling (1991) claimed that Performance management is an essential business driver to function businesses achieved desired results. Generally, Performance Management is an ongoing process that needs to be monitored throughout the year. The Performance Management purposes, which mainly intromits areas such as, strategic, developmental, and administrative. Thus, the overall expectations and performance objectives are reviewed as pursual2.1 Strategi c PurposesArmstrong (1999) pointed out that the important features of PM are goal climb and feedback coupled with the development of individual characteristics as rise up as the development of organizations strategies.Utilizing the ideas presented deep down several literature reviews, the major roles of Strategic Performance Management can be classified as follows (i.e. Atkinson, 1998 Dumond, 1994 Sink, 1991 Martinsons et al, 1999 and Neely, 1998)Overlooking the process of outline implementation by assessing if the strategy is being put into practice as planned. Managers and high(prenominal)-level force issue objectives and goals and not only ensure that these strategies are implemented but also that the circumscribe of the strategy are up to date.The position check and selection employees by looking at whether the result of performance expectation is achievedUniversity of California, Berkeley introduced the communication process that includes clear up expectations, setting objectives, identifying goals, providing feedback, and evaluating results. Consequently, to help employees understand and meet the society goal provided the clearly of direct communication by pass the information to employees about the expectation of individual to be achieved, and also provides the feedback including benchmarks performance in difference department, teams, individual by report as the whole regarding their performance with respect to expected goal ware been consider.Documentation process that en open line manager and employees to see the performance management as a part of daily workplace behavior.2.2 Development PurposesPerformance management is an ongoing process. After a set of work objectives and organizational goals are agreed upon, the HR start with a clear agreement found on the strategy, goal, measure, and performance goal to be implemented. Organization coaching and developing process by evaluation of employees attention to these strategies and point out e mployees strength and flunk when the employees not perform well as they should. Therefore, the performance management seeks to improve these employees performance. Moreover, organization has to ensure the employees achieved the measurement results through the feedback so employees know where they stand. De Cieri et al. 2008 suggested that to build a performance culture by establish the process to encourage performance management feedback severally day rather than the process that occurs throughout the year. As the result, the reviewed of performance annually more likely distorted and forgotten in order that organization should progress monitor regular and provide employee feedback after each accompaniment event finished. At the end of performance period, assessment is made against objectives, means or behaviours demonstrated. Plus, new objectives for the next performance period whitethornbe established (The University of California, Berkeley).Furthermore, Kaplan and Norton (2001) argued that employees at level need to learn the principles of the system, its measures, tools and procedures. Thus, the organization encourage improvement and learning by provided valuable information to help identify individual training need to improved employee performance and build up the potential of employee for further advancement. Moreover, Performance management system focuses on the skills that are necessitate to perform a particular job and training will help employees to achieve that skill employee will get training that are mandatory and befool better positions and compensation offers within the organization.2.3 Administrative PurposesDe Cieri et al. 2008 described the studied of PM can help the organization in particular to administrative decision making such as salary, promotion, retention, and outcome and recognition of individual performance. The organization can define employee salary toward their performance, the person who greater performance will get the gre ater salary. The successful of performance management process (well-conceived and well-implemented) can motivate employee through financial with the compensation and also can motivate by non-financial reward such as positive feedback and opportunities to development (Armstrong, 1999). Thus, the reward can motivate employee via their efforts that rewards can be financial and non-financial by prefatoryally rewards provide suitcase on the organization ability to pay and sub judice regulation as the company take the action by use the performance measure to calculate the rewards.As the result, it can say the reward can motivate and encourage building short term and long term incentives of engage performance. As the result, compensation can motivate the person to perform well by the good compensation package will increase the employees productivity and satisfaction level of the employees. In additional, some organizations award the salary and bonus base on their performance.Armstrong a nd Baron (1998) demonstrate that performance can be affected by several of factors, all of that should be taken into account when managing, measuring and reward performance.3.0 Arguments For and Against the Implementation of Performance ManagementArgument ForIncreasing ProductivitiesA key aspect of performance management is training and developing new techniques that can help organizations improve individual, team and organizational performance. For example, ANZ develop their employees to be successful in their roles, by hosting training programs in a wide range of areas such as developing inspiring leadership qualities, providing learning and development opportunities and by developing and restraining talented employees who want to squeeze challenging assignments. As a result of all these programs, trained sales assistance units are able to market new products online to increase node convenience and satisfaction (embodied Responsibility Review, 2008). As online functionality im proves with time and effort, customers are provided with concise and timely information such as interest rates, currency exchange rates and so on, resulting in an increased number of customers utilizing these services and higher s productivities.Produce Meaningful Measurement of Employee PerformancePerformance management can help ensure that employees receive a fair estimation establish on their performance, by using various methods to evaluate employees. Organizations then inform employees of the results, in the form of structural feedbacks. Organizations also take efforts to improve aspects of employees productivity by providing clear information of what is expected of them and align these expectations with the overall company goals and targets and also by hosting quality training and development programs. Consequence, the measurements are useful for organization setting standards for comparison with similar organizations or previous years (Hyndman and Anderson, 1997)Increased R etention RatePerformance management systems are implemented not only to evaluate employee performance but also to understand the basic needs of employees. It helps senior mangers to understand what employees are looking for, in terms of job satisfaction or how he/she is performing in their respective jobs. It helps to increases retention rates in organizations. Employees are aware of what is required of them and focus their output according to these proper(postnominal)s. For instance, ANZs business strategy of recruiting and retaining employees has resulted in an increase in the number of employees from 8,810 to 9,245 between 2008 and 2009 (ANZ, 2010).Performance management also can help ensure that employees receive equitable treatment because performance management appraisals are based on results. Analysing these results can lead to parentd job satisfaction, increased productivities and so on. Additionally, performance management can facilitate ongoing, constructive communicatio n between supervisors and employees, all the term focusing on achieving organizational goals and targets.Armstrong and Baron (2003) also suggest that the successful implementation of performance management systems can result in desirable culture changes and avoid problems such as, lack of discernment and enthusiasm.AgainstHigh CostRecently, organizations have been forced to cut down speak to due to the global economic crisis. The decision of whether or not to train employees has been a consequence of this phenomenon. Even though training is the best way to retain and maintain employees, the effects of economic recession have led to organizations cutting down on training programs. During periods of economic recession, organizations are faced with a higher than normal rate in employee turnover. (Glance, Hogg and Huberman, 1997).External FactorsPerformance management frameworks and systems do not directly take into consideration external factors such as, global recessions or natura l calamities. As such, when such a scenario does arise, performance management system may have to undergo heavy modifications to compensate.Unrealistic Performance Targetssometimes organizations are desperate to achieve organizational goals and as a result, unrealistic performance levels may be set for employees. These targets are often difficult and unattainable, and as a result, dissatisfied employees may decide to leave their jobs.Actual Performance versus Target PerformanceFailing to effectively implement performance management systems may give rise to a lapse between actual and target performances. A managers inability to conform to procedures such as acquiting regular meetings to discuss employees performance and providing them with necessary training may lead to a breakdown in the entire system. Therefore, an employees lack of understanding of what is on the buttonly required of them can greatly tint an organizations performance as a whole.4.0 An Evaluation of the Performa nce of ANZs Sales AssistanceLike any successful organization, ANZ bank takes its corporate responsibilities very seriously by adopting responsible business practices and by reporting and updating their Corporate Responsibility (CR) Performance. ANZs CR Reporting follows the guidelines set by the global best practice standards.In 2008, ANZ Bank implemented a new, streamlined approach, cognize as the Global Performance Management Framework, to facilitate enhanced monitoring of their employees performance and to utilize their personnels expert potential. As such, the simplified and globally homogenous approach they adopted utilizes a concept known as balanced scorecard, which measures and evaluates the performances of their employees across four main company objectives, namely, Financial, Customer, People and Process, and also the benchmarks of behaviour and risk/compliance that are exhibited throughout the year.The Performance Management at ANZ is divided into three arranges Perfor mance Planning, Performance train and Performance Assessment.Performance Planning This stage involves setting clear and measurable objectives and targets at lower levels of the organization. Strong emphasis is placed on the impact that achieving these goals have on the organizations broader business goals and priorities. Employees and managers are unified under a common set of highly ambitious, yet realistic and achievable goals from the beginning so that each individual understands the importance of his/her role and how he/she can contribute to the overall success of the organization. One of the key focuses of this stage is ensuring that employees have a clear understanding of the behaviour and risk/compliance standards expected of them.Performance Coaching At this stage of Performance Management, managers conduct regular meetings with employees to coach and develop them. Managers are required to evaluate employees performance and appraise their current status in respect to the pe rformance levels expected of them by conducting mid-year performance discussions. A key aspect of this stage is to ensure that managers provide employees with sufficient support and learning opportunities that can enable them to succeed at their roles.Performance Assessment At this stage, higher level personnel provide lower level employees with an evaluation of their performance at the end of the year. The outcomes of this stage are linked directly with the companys remuneration and rewards schemes. (Corporate responsibility review, 2008)Following these guidelines, the Performance Management Framework provides each individual within the organization with a clearly defined set of objectives and goals and ensures that they understand precisely what is expected of them. Sales assistance involves handling routine client enquiries in all segments of the companys objectives. Therefore, the tools and instruments employed in maintaining the organizations new Performance Management Framewor k, can effectively evaluate the performance of sales assistance in ANZ Bank, especially when coupled with detailed and informative annual CR Reports.In addition to providing annual performance reports, ANZ also maintains a Corporate Responsibility website and issues annual CR Interim reports and monthly Corporate Responsibility updates to stakeholders. The information contained within all these reports and updates can adequately evaluate the performance of personnel, and more importantly, provide detailed information on specific branches of the companys departments, like sales assistance.ANZ has been reporting on its CR Performance since 2004. Each year, the organizations goals and work programs include high-priority issues involving their industry, customers, employees and the community. check to the 2008 CR Report, by September 2008, ANZ had witnessed the first rise in customer satisfaction statistics in over six months. The organization had set six customer-oriented goalsImplemen t a new Personal Division policy and processes to assist retail customers facing financial difficultyMaintain their position as the number 1 Lead Bank for major Corporate and Institutional clientsAchieve Equator Principles reporting for 100% of ANZs Project Finance transactionsContinue to improve their retail customer satisfaction and match the performance of community and regional banksMeet or exceed the performance standards set out in their Customer Charter and conduct a review of its commitmentsImplement Institutional social and environmental lending policies for forests, mining, energy and water.The first three goals in the above list were successfully achieved, while the latter three goals were partially satisfied.There were five employee-oriented goals set by the organization for the year 2008, and only one of these goals placing women in managerial positions in Australia and sunrise(prenominal) Zealand was unattained, although, the actual statistics only marginally traile d the target figures. The goal of employing 100 autochthonal Australians, as part of the Indigenous Employment Strategy was successfully accomplished, as 106 Indigenous trainees were employed by ANZ in 2008. The three other set goals that were partially achieved are Closing the gap on pay differential between men and women at all levels of the organization, Reducing their Lost Time Injury Frequency Rate by a further 20% in Australia and New Zealand and report performance globally, and improve their performance in the ANZ Engagement and Culture Census.Of the four community-oriented goals that were set, all four were successfully accomplished. The goals included Release ANZs bi-annual financial literacy research, Meet their financial literacy and inclusion program targets, Achieve 70,000 hours of rung volunteering across the Groups and 15% participation in payroll giving, Achieve the commitments in our Reconciliation Action Plan including staff training, financial literacy and assis ting to build the capacity of Indigenous organizations.The figures and outcomes in these reports provide adequate information towards evaluating the performance of various branches in various departments.5.0 Evaluation of the fairness of performance managementOne of the most important functions of human resource management is Staff Performance Management. As discussed earlier, ANZ Bank employs a management tool known as the Global Performance Management Framework to monitor, evaluate and enhance the performance of its employees. One of the key aspects of Performance Management is to formulate a set of goals and priorities that serve as targets and guidelines for employees to better understand their respective roles and how each individuals performance impacts the organization as a whole.The employee performance management system encompasses the following basic aimsDirect employees in order to achieve the objectives in the various departments and branches present within an organizati on.Appraise, evaluate and monitor the performance of employees and enhance communication between employees and management personnel.To provide pathways and formulate schemes for developing employees.Throughout this report, various research materials are sited supporting the fact that performance management, if implemented properly, can ensure an organizations success. This section of the report attempts to link performance management with other Human Resource Management functions to ascertain and evaluate the fairness of performance management.Figure 1 The link between Performance Management and other HR FunctionsFor a performance management system to be effective and functional, certain elements are normally incorporated into the systemOpen and fairOriented towards the force of employeesAn ongoing process (HRM civil service bureau, 1999)Open and FairThis element of the performance management system seeks to achieve fairness in performance appraisal by encouraging employees to be o utspoken and constructive in their feedbacks. Additionally, managers are also encouraged to be commit and objective in their appraisals of the employees. The following methods can be instrumental in accomplishing thisFormulating comprehensive and detailed objectives and targets.Encouraging higher-level employees to conduct discussions with employees pertaining to their performances and providing counselling and training when necessary.Making check opportunities available to all staff members, in terms of promotions, remuneration and rewards packages and training and development.Forming a panel, whenever possible, to facilitate fairness in performance appraisals.Oriented Towards the Competency of EmployeesThe competency of employees can be broadly classified into two sub-categories core competencies and functional competencies. Competency relates to the knowledge, attributes, attitude and skills that are required for an employee to succeed in his/her role. Core competencies include a set of skills necessary for an employee to satisfactorily perform his/her duties in their respective departments. Functional competencies include specific sets of skills required by an individual to perform his specific role in the organization.Making use of a system that is competency-oriented greatly enhances the beginning stages of performance management, where goals and objectives are formulated. Employees at different levels of the organization are able to understand what is required of them due to the well-structured job requirements that align each individuals role in the organizations chain of command.An Ongoing ProcessPerformance management systems are an ongoing endeavour that requires constant attention and monitoring. Failing to maintain set standards on a regular basis may lead to a decline in the quality of the companys performance and output. This process involvesPerformance planning This stage involves the appraiser and the appraised, in that, the former informs t he latter of the responsibilities and objectives they are required to satisfy, by setting realistic, precise and quantitative targets as comprehensive guidelines for them to follow.Coaching and development Here, particular emphasis is placed on giving recognition to good performance and providing helpful feedback and guidance to employees. Recognizing noteworthy performances can be a good way of boosting morale and encouraging employees to strive for excellence. Providing continuous counselling and advice can ensure that employees are up to date in the organizations ongoing quest for success and retaining the level of success, once it is achieved.Interim review An interim review aims to evaluate employee performance. It is a formal call into question or discussion where the evaluating personnel identifies performance results and undertakes appropriate actions, assesses development and training programs, identify any shortcomings or barriers that prevents employees from reaching the ir full potential and make modifications to the objectives required of the employee.Human Resources personnel bridge the gap between employers, managers and employees. Therefore, in addition to their other tasks, HR personnel can ensure the fairness of the employee performance appraisal procedures by understanding the employees concept of fairness and encouraging helpful feedback from employees, thus facilitating better communication between higher-level personnel and lower-level employees.. A fair and transparent system promotes and encourages employees to perform at their best, as the possibilities of achieving promotions and benefit packages are ever present and realistic.ConclusionObviously, PM is one of the most important functions of HRM which links individuals objectives and organization goals. Thus, PM can be a very effective and efficient management tool if applied properly. An organization should provided its employees with the clear information of the organizations aims, job expectations and motivate employees to perform better by focusing on the desired results, improving communication, and developing the skills and attitudes of employees to better enable them to achieve organizational goals. Moreover, the implementation of performance management frameworks can be both advantageous and disadvantageous for an organization. Analyzing ANZ banks sources of performance information shows that the implementation of a solid PM framework, coupled with their globally recognized reporting methods enables the organization to adequately evaluate the performance of ANZs various departments and sectors, including the sales assistance unit. Finally, fairness in evaluating and appraising employees performance within an organization can motivate employees to enhance their performance. Organizations can achieve this by providing equal opportunities for their employees towards promotion options, access to remuneration and rewards schemes, training/counselling/mentorin g/advising, providing clear, concise information and specifying job tasks and so on.7.0 RecommendationsOrganizations should continue to review their strategies regularly by focusing on performance management. Organizations should strive to take actions that can facilitate improvements and employee training and also focus on the development of strategies to warrant any gaps, if present, between the organizations actual performance and target goals.Fairness plays an important role in motivating and guiding employees. Although, the concept of fairness may go away from one individual to another, there are certain ideologies, however, that remain constant. For example, it is commonly understood in a workplace that an employee should be rewarded based on his/her performance within the organization. The aspects of fairness that may vary from one individual to another are feelings of how one was treated by his/her employer or manager in regards to a particular scenario. Therefore, it is i mportant for managers and employers to ascertain how their employees perceive fairness. This can be accomplished by providing employees with questionnaires that will enable them to express their take on fairness. This will help higher level personnel to understand their employees more intimately and tailor their remuneration and rewards packages and training opportunities accordingly.In performance management, the employees are subject to be reviewed by their managers. Employees will directly receive feedback from the members of their team. The team members will observe each other and then report to managers when performance problems occur. Subsequently, the managers should combine the feedback gained from their team members and then undertake the necessary corrective measures.