Modern Methods of Performance Appraisal

The Performance Appraisal is the assessment of the employee’s job performance against the benchmark previously set for the categories such as output, leadership, teamwork, versatility, supervision, etc.

Modern Methods of Performance Appraisal

1. Management by Objectives: This concept was given by Peter.F.Drucker. According to this concept performance of an employee is assessed considering the targets achieved by him which was set by the management of an organization at the beginning of the assessment period.Briefly it is done as follows
   
   * Goals and objectives are set by the Management and communicate the same to       the    employees,
   
   * Performance of an employee is compared against these set goals and is evaluated       after the pre sanctioned assessment period. 
   In case the employee is not capable in achieving the pre-established goals, then management decides to switch to new strategy or policy that should be undertaken for the accomplishment of unattainable goals.
2. Psychological Appraisals: This is very popular method in modern culture for performance appraisals. Under this method, psychologist assesses the employee’s potential for the future performance rather than the past one. In this process psychologist conducts the in-depth interviews, psychological tests, discussions with the supervisors and the reviews of other evaluations.
   Through this assessment system,the intellectual, emotional, motivational and other related characteristics of an employee can be determined with which it necessary to predict his potential for the future performance.
3. Assessment Centres: The assessment center is a common location where the managers come and perform the job exercises. Here the assessee is requested to participate in in-basket exercises, role playing, discussions, computer simulations, etc. Where they are evaluated in term of their persuasive ability, communication skills, confidence, sensitivity to the feelings of others, mental alertness, administrative ability, etc.
   This entire exercise is done under the trainer who observes the employee behavior and then discusses it with the rater who finally evaluates the employee’s performance.
4. 360-Degree Feedback: It is a feedback method wherein the details of an employee’s performance is gathered from several stakeholders such as superiors, peers, team members and self.  It is worth while to mention that empoyee is asked about himself to get own idea of his work performance accordingly he can realize his strengths and weaknesses.
   Also, the peers or team members are asked about assessee’s performance through which the employee knows about what others feel about him and can overcome his disbeliefs if any. Thus, this method is used to have a detailed evaluation of an employee from all the perspectives.
5. 720-Degree Feedback: This is a advance version of above discussed 360- Degree Feed back. This assessment is done not only by the feed back of stakeholders within the company but also from the groups outside the organization. These external groups who assesses the employee’s performance are customers, investors, suppliers and other financial institutions.
   It is one of the most crucial modern methods of performance appraisal because this is the only group that determines the success of the organization as a whole.

Though some companies of the world still practicing old method for employee appraisals it is advisable to use above discussed modern methods to identify the most accurate performance of the employees.

Reference 

https://businessjargons.com/modern-methods-of-performance-appraisal.html (Online)

Performance Management

A large part of working in Human Resources (HR) is regulating performance management. Creating a space where you and your employees can produce excellent work and perform to the best of your abilities is no easy task, but with the right strategies, you can make it work.

Performance Management is the process creating a work environment or conditions in which employees enable to work , perform to their maximum. According to Armstrong , (2014) ' Performance Management is a systematic process fro improving individual,team and organizational performance.

 Of course, effective performance management is more than just creating a work environment that works: Effective performance management is about leadership, interpersonal relationships, constructive feedback, and teamwork. Even when it comes to the difficult HR tasks of managing a process your employees don’t care for or find value in, managing a paper process, aggregating data, and keeping other managers motivated to provide employees with useful feedback, there are strategies available that make these tasks more doable.

Main components of Performance Management

• Planning Career Development
• Setting Performance goals
• Delegating responsibilities
• Coaching for commitment
• Motivating and Recognizing
• Evaluating Performance

Performance management practices can have a positive influence on the job satisfaction and employee loyalty by:

• Regularly providing open and transparent job feedbacks to the employees.
• Establishing a clear linkage between performance and compensation
• Providing ample learning and development opportunities by representing the employees in leadership development programmes, etc.
• Evaluating performance and distributing incentives and rewards on a fair and equated basis.
• Establishing clear performance objectives by facilitating an open communication and a joint dialogue.
• Recognizing and rewarding good performance in an organization.
• Providing maximum opportunities for career growth.

An effectively implemented performance management system can benefit the organization, managers and employees in several ways as depicted in the table given below:

Organization’s Benefits	Improved organizational performance, employee retention and loyalty, improved productivity, overcoming the barriers to communication, clear accountability, and cost advantages.
Manager’s Benefits	Saves time and reduces conflicts, ensures efficiency and consistency in performance.
Employee’s Benefits	Clarifies expectations of the employees, self assessment opportunities clarifies the job accountabilities and contributes to improved performance, clearly defines career paths and promotes job satisfaction.

Conclusion

Considering the present competitive environment and complex tasks performed by the employees, it is really important to have a modern and comprehensive performance management system which should be re visited in frequent intervals in line with global changes.

Employees need to have a self assessment to identify their performance and employers need to identify the performance gaps of the each and every employee and identify the impact of the same to the organization.

Hence performance management can be considered as a vital process in HR .




References

• Amstrong, M., 2017. Amstrong Hand Book of human resource management practice.
• https://www.managementstudyguide.com/benefits-of-performance-management-system.htm [online]
• Henderson, l., 2011. Human resouce management for MBA students. 2nd ed.Wimbledon: Charted institute of Personnel & Development. 

HR Learning and Development

Learning and development, a subset of HR, which has been structured to improve organization and person performance by using growing capabilities and knowledge. Lerning and development generally known as L & D is often known as training and development, forms a part of an enterprise’s talent management strategy and is designed to align institution and individual goals and overall performance with the agency’s vision, mission and goals.

Learning is the method through which a person acquires and develops new expertise, skills, competencies, behaviours and attitudes. .Learning is a continuous process that not only enhance current competencies but also develop the skills, knowledge and attitudes that prepare people for enlarged or higher-degree of responsibility in the future

Development is involved with ensuring that someone’s capacity and potential are grown and realized thru the contribute of learning or thru self-directed  learning. It's far an unfolding procedure that allows humans to development from a present state of understanding and capability to a future state wherein better-degree talents, knowledge and abilities are required.

Learning and development may be formal or informal and can use computer, networked and internet-based technology (e-studying). Its effectiveness can be enhanced by adding up different strategies of learning and development (blended learning) and by means of encouraging self-directed learning

Informal learning is experiential way of gaining knowledge of. It takes place during employees are learning on-the-job as they move along. Most training does not comes in form of training programmes. Human beings can learn 70% of what they know about their job informally. 

A study by Williams & Davies (2012) confirmed that in establishments adopting a learner-concentrated perspective, formal education and training provided a small part of what practically learnt at work.

Effective learning depends on the employees’ confidence, motivation and capability. Some formal training to develop skills (especially induction training) was usually provided, but learning from experience and other people at work predominated.

Formal learning is planned and systematic. It makes use of structured training programmes consisting of instruction and practice that may be conducted on- or off-the-job. Experience may be planned to provide opportunities for continuous learning and development. Formal learning and developmental activities may be used such as action learning, coaching, mentoring and outdoor learning, as described earlier. The organization may have its own training centre. 

Development takes the form of learning activities that prepare people to exercise wider or increased responsibilities. In development programmes there is an emphasis on self-directed learning as described above, personal development planning (together with learning contracts) and planned learning from experience.

On a practical level, individuals responsible for learning and development must identify skills gaps among groups and teams and then finding suitable training to fill these gaps.

Procurement is an important part of the training and development process because training providers must be cost-effective and appropriate for the organisation’s needs. Good training provides individuals with tools and skills and shows them how to apply these new tools and skills within their own organisation and role.

Watch below a short video on Learning and development which will give you a interesting summarized idea on Learning and Development.

References

Williams, G. & Davies, F., 2012. Using social exchange theory to predict the effects of hrm practice on employee outcomes. PhD Thesis.

Abraham, K., 2009. Managing Human Resource. 4th ed. New York: Prentice Hall.

Nzuve, M. & Singh, R., 1992. Introduction to Manpower Management. New Delhi: Algraphic Advertising.

Yazinski, S.K., 2009. Library: HR.BLR.com. [Online] Available at: https://hr.blr.com/whitepapers/Staffing-Training/Employee-Turnover/Strategies-for-Retaining-Employees-and-Minimizing

Employee Relations

“Employee relations” can be defined as organisations efforts to manage and control relationships among employers and employees. Employees will definitely be devoted to do their jobs and dedicated to the employer if good employee relationship is maintained by the employer with fair and constant treatment is given to all employees. This will eliminate or minimize work palace matters save the valuable time and money of the organization. Organizations wishes humans who work collectively and perform to reap the desires and objectives of the organization.

Employee relationship management is a process that businesses use to efficaciously manage all interactions with employees, in view to acquire the goals of the employer. The human resources department have to play an essential function on this system, each in phrases of training and coaching managers and executives on how to correctly set up and nurture relationships with employees and in measuring and monitoring those relationships to decide whether or not targets are being met.

Ongoing concentration is  a must for Effective employee relationship.Which means that managers and their HR departments have to be alert at all times for signs and symptoms of discontent, which can be subjective, as well as cautiously monitoring the effects of more formal assessments. Those outcomes ought to additionally to be shared with staff. Most of time employees are requested to complete surveys and are not informed of the results or what is going to be accomplished with the outcomes.

One of the best approaches for an organisation to make sure good employee relationship is to adopt a human resource strategy that places a excessive value on employees as stakeholders in the business. Stakeholders are people who are devoted, financially or in any other case, to a company and are benefitted by its achievement. When employees are treated more than just paid labourers, as real stakeholders with the power to affect outcomes, they experience greater valued for the job they do.

It is not enough to assume that a company or even its HR professionals know what is important to employees. Needs are vary depending on employee characteristics such as age, gender, as well as the type of job being performed. It is a good idea to find out directly from employees what their needs are. You can do this in one-on-one conversations that take place informally throughout the year, during formal employee evaluation meetings and through surveys and polls that can provide a quantitative indication of employee needs.

Communication is critical to establishing strong employee relationships. Managers ought to be committed to communicating frequently and truly with employees with regard to their issues that affect their work. The greater open organisations may be, the more likely they may be to establish powerful relationships that lead to expanded loyalty and productivity among employees and reduced turnover and dissatisfaction.

In the long run, employee relationship requires the same talents and techniques required to manage any relationship. A clean understanding of workers' needs and a choice to meet those needs is foundational. Then steps ought to be taken to have interaction effectively with employees via a selection of conversation channels, interpersonal and formal (intranet web page, newsletters, and many others.). Ultimately, measurement of the effectiveness of these efforts must be frequent and ongoing, with improvements and modifications made while results aren't showing continual improvement or satisfactory degrees of performance.

Here are some advantages of employee relationships are managed well:

• Sound employee relationship management maintains a harmonious atmosphere at the workplace: one that is healthy among and between all levels of employees.

• Happy employees are more confident and productive. They take on increased responsibilities more efficiently.

• A stronger employee relationship leads to better employee morale and job satisfaction. This creates lower stress levels and increased enthusiasm, in turn, enhances their abilities to better meet the company’s goals and objectives. This fosters a building of trust and loyalty towards the company.

• Improved communication channels lead to conflict reduction, reduced staff turnover rates, and absenteeism levels. This reduces unnecessary costs associated with re-hiring and re-training new employees. It allows misunderstood situations to be clarified and put in place quick solutions to rectify the issue effectively.

• Companies that nurture employee relations enhance an employee’s motivation to be creative. This encourages a culture of innovative thinkers and cultivates a teamwork type ambiance.

A workplace that promotes great employee relationship management usually demonstrates:

·         Equality

• Equality prohibits favoritism and promotes a fair and uniform working environment. It creates an atmosphere in which employees feel relaxed and comfortable, knowing that they are commended and promoted based on their contributed efforts and goal achievements. When employees feel a genuine sense of equality they are more likely to be more productive and work harder.

• Make certain that your employees are knowledgeable of policies and recognize their limits and boundaries among their co-workers and management personnel.

·         Effective and open communication

• Given that your employees are the assets and backbone of your company’s operational success, improved communication is essential.

• Encompassing a work environment with an effective communication approach starts with keeping your door open to all employees and management personnel. An open door policy reinforces that you are always there to listen and take on concerns and questions. This leads to a workplace that is able to empathize with grievances, resolve misunderstandings and reduce internal conflict in an effective and quick manner.

• A secretive business owner can lead employees to mistrust their leadership and reduce employee morale, thereby damaging communication channels. Successful business owners effectively communicate and engage their employees in the businesses operation. This entails a positive interaction of management’s developments and plans as well as employee’s communicating their own feedback and judgments.

·         Effective employee relationship management requires a Shared vision

• Policies, goals, and objectives of a company should be clearly articulated and uninformed with all employees. This allows employees to work towards the same vision and drive the company forward.

• Sharing the company’s vision also means that employee’s opinions are taken on board. A collaborated vision instills an employee’s desire to improve the company’s image, brand, and position in the industry. A good employee relation culture encourages employees to share their ideas and input. When an employee feels their input is highly regarded, this enhances an employee’s determination to further excel in attaining a company’s set goals and objectives. Consider conducting monthly update meetings of the businesses short-term and future aspirations and goals.

·         Motivate employees

• Motivating employees is fundamental to enhancing overall productivity and attaining set goals. However, for this to be effective you must ensure that expectations are clearly defined and feedback is understood. The absence of this can produce major conflict and be detrimental to your company’s operation. Therefore, ensure that you are proficient in creating an environment where positive employee relations are present.

• Implement programs that encourage health and wellness. Managing your employees’ stress and improving their sense of well-being allows them to feel appreciated and cared about. When your employees are happy and well, their motivation to do well takes over.
• Respect and value your employees. Provide incentives and rewards, such as Employee of the Month programs, flextime and movie vouchers. Also, consider career development opportunities where warranted.
• Employee relations help you to understand what motivates and drives your employees to be more productive.

·         Inspirational leadership is essential for effective employee relationship management

Being the boss doesn’t entail telling people what to do and how to do it. Conversely, a successful employer is one that drives their employees to achieve results, reach targets and demands excellence.

They are not forceful in their demands; however, they are effective in how they communicate and motivate employee achievement. Being likable, yet a respected leader should be a must skill to achieve. This talent facilitates the ability to cooperate, instill trust and effectively coach and mentor your employees. A positive connection energizes your employees to excel. You don’t want your employees to feel scared or nervous in their own shoes; productivity decreases and so does your relationship.

References

·         Armstrong, M., 2010. A Handbook of Performance Management. New Delhi: Kogan Page Limited.

·         Hymowitz, C., 2000. How can a manager encourage employees to take bold risks? New York: Human Resource Planning Society.

·         Oluchi, O., 2013. Co-operation Between Employee and Management to In-crease Productivity :A Case Study of Mobil Producing Nigeria Unlimited. International Business Management.

·         Saarbruecken, V.D. & Ivancevich, J.M., 2001. International Human Resource Management. New York: McGraw-Hill.

·         Shapiro, G., 2000. Employee Involvement: Opening the Diversity Pandora's Box. Personnel Review, Vol 29, pp.304-23.

·         https://www.potential.com/articles/5-ways-manage-employee-relations/

·         https://www.youtube.com/watch?v=j2WsfhSIEHI

Talent Management

Talent Management is a unified strategy designed to help organizations make the best possible use of their capital now and in the future, to use their human capital to help meet the organization’s vision and to ensure the maximum return from their talent by creating an attractive organizational culture that encourages happiness and commitment.  

Talent management is the key to business success.  It’s a strong statement that is beyond contestation.

Why?  Numerous studies show companies offering top talent a chance to grow and develop professionally translates to high success in recruitment and retention.  Talent management itself is a commitment from an organization to recruit, hire, retain, and develop employees.

Talent Management Strategy

Talent management as a strategy is not wholly owned by the HR department.  In fact, it requires HR professionals to work with managers/supervisors within the company’s ranks to put the strategy into action.

That’s a bit different when contrasted with a human capital management or performance management strategy.  Under those strategies, there is more reliance on HR than the managers.

Talent management as a strategy, on the other hand, gives managers significant roles and responsibilities in the recruitment process and in the development and retention of employees.

Talent Management Process / Stages

The various stages of Talent Management are as follows −

• Identifying the goals − This is the cardinal stage and pivotal to the success of the entire talent management process. The first step is to identify what the organization aims to achieve and what characteristic qualifications and skills the recruits should possess to realize the goals.
• Attracting the talent − The main aim of talent management process is to hire the best talent for an organization. Organizations at this stage make effort to attract the best talented people from the job market.
• Sourcing the talent − In this stage, the talent management personnel looks for appropriate sources in the job market or industries where the targeted people can be hired or recruited.
• Recruitment − This is the first stage of hiring the best talented people for the organization. Skilled and qualified people are invited to join the organization.

• Selection − This is the stage where the objective of talent management becomes a reality. It is when truly talented people are recruited or hired in various roles.
• Training and development − At this stage, the selected recruits are provided with necessary training to make them productive and efficient to work towards the goals of the organization.
• Retention − The notable objective of talent management is not only hiring talent but also ensuring their retention in the organization. Factors upon which the retention rate depends are attractive pay package, job specification, safety and security of the employees, personal development of an employee, recognition and culture of the organization, and the fit between the job and talent.
• Assessment − Periodical assessment of employees’ skills, abilities, improvements and competencies enable the organization to know if they are fit for continuation and promotion.
• Performance appraisal − It is a measurement of the actual performance of the employees in the job. It enables the organization to ascertain if the person can be loaded with extra responsibilities.
• Promotion − It refers to job enrichment. It keeps the energy level high of the employees and they are inspired to continue to work for the organization.
• Career planning − If an employee is found befitting to handle work pressure and extra responsibilities well, the management needs to plan his/her career so that he or she feels elevated and rewarded. Such recognition and rewards inspire the employees to remain with the organization for a long time.
• Succession planning − This deals with the replacement of people within the organization. Employees who have given their best to the organization and have been serving for long deserve to hold higher positions.
• Exit stage − This is the final stage of talent management process that ends in the retirement of the employees and they are no more a part of the organization.

Many of these processes are the responsibilities of the employee’s manager.   There are opportunities where HR can and should take the lead.  Examples include recruiting, employee hiring, and termination.  Even with HR in the driver’s seat, managers have a significant role to play.

Those, of course, aren’t the only examples.

HR would have healthy involvement in any type of performance management or career pathing.  Managers are, in this instance, the ones responsible for carrying out the procedures and reporting outcomes back to HR

Talent Management Effectiveness

It is the responsibility of all HR professionals and managers involved with a company’s talent management strategy to integrate it into the company’s collective consciousness and apply it appropriately. 

In addition to this ‘buy-in’, an effective strategy involves the sharing of information about employees and their potential career paths across the organization.  This allows various departments to pull on the talent pool when looking at potential job openings.  This is commonly referred to as succession planning.

Talent Management equals Business Strategy

Now that the basics of talent management have been explained, how can HR make sure it is the business strategy?

1. Know the organizational goals - This information helps in understanding what’s important to the company and how it fits into the overall strategy.
2. Goals informs human assets - Simply, what quality and skillset do current and new employees need to support a successful talent management strategy?
3. Avoiding future problems - This allows HR to address potential issues that could derail a talent management strategy.
4. Job descriptions - Job descriptions go along way to recruiting top talent. These will attract high potential talent that aligns with the company’s culture and can also add to it.
5. Importance of culture - Make sure hires fit the company culture and will help sustain it.
6. Employee investment and internal hires - Hiring on the basis of a talent management strategy can be tricky. Some of the best candidates may be internal candidates.  Remember, employees are a long-term investment.
7. Measure success - Talent management strategies require close and careful monitoring. Some times, more often than not, tweaks are required.

Conclusion

Move the company forward.  That’s the mission of every talent management strategy when it also serves as the next big business strategy.  HR and managers place a premium on talent who add to the business and who support and reinforce the company.  That, in turn, becomes a vital part of what a business stands for.

And there is plenty of success to be found.  Google, for instance.  The company allows employees to spend 20% of their working time on personal projects or experiments.   It’s not just attracted better candidates, but completely transformed the company as well as what it means to be at work.

Lets see  a small video on Talent Management to prove the content discussed above.

Reference List

• ·         Michaels , Ed., Handfield, Jones. and Axelrod, Beth. (2001). The War for Talent. USA: Mc Kinsey & Company, Inc.

·       Berger, A., and Berger, Dorothy. (2011). The Talent     
     Management Handbook. 2nd ed. USA: McGraw-Hill  
     Companies, Inc Publications, pp.145-151.