Managing Employee Performance

ManagingEmployee Performance

ManagingEmployee Performance

Components of a Performance Organization System

Constituents of a performance manasgement system include performanceplanning, performance assessment and swotting, performance pointer,rewarding, performance enhancement planning and probable appraisal(Mondy &amp Noe, 2012). Performance planning is the importantinitial part of the performance management system given that iscreates the platform for appraisals. At this stage, employees choosetheir targets according to key performance area and the annual budget(Stack, 2013). During the appraisal and reviewing, the employees’present filled forms detailing ratings of self-appraisal anddescription of their achievements over respective company duration.The appraiser provides the final ratings, analyses the causes ofunaccomplished areas and generates ways of solving the problems. Forexample, if a sales executive failed to meet a certain sales leveldue to lack of effective advertisement in a new market, the appraisermight consider a campaign strategy for the resolution (Mondy &ampNoe, 2012).

The feedback stage is the most sensitive part of the managementsystem. The employees acquire the awareness of their real status onareas of improvement, expectation levels and performance results.Employees also receive open and transparent feedbacks regardingdevelopment needs and training. It also involves effective personalcounselling and guidance to developing competencies and enhancingoverall productivity (Stack, 2013). The rewarding part entailsrecognising good performance in public and is handled with utmostcare to direct and influence motivation without lowering theself-esteem or moral of the other employees (Mondy &amp Noe, 2012).For example, the organisation can reward the best employee with agift-shopping voucher for a family. In the improvement planningstage, the manager sets new goals, deadlines and clearly communicateson improvement areas in agreement with both the appraisee and theappraiser (Stack, 2013).

How Employee Evaluation Supports the Organisation’s Position

Employee evaluation easily and clearly identifies both favourable andunfavourable behaviours that either bring or hinder successfulperformance. Evaluation results in the identification of areas thatneed improvement. Identification directs the organisation to makecorrect decisions in regards to promotions, rewards, pay rise,discharges and training among others. It also feeds the organisationwith necessary information pertaining loopholes that hinder successand highlights elements of improvement performance. Employeeevaluation then measures by selecting the appropriate instrument forassessing and appraising performance. Measuring generates consistencyin organisation strategies and behaviours (Noe, 2013).

In its last stage, employee evaluation reinforces good behavioursand performance that spearhead the organisation. In addition, itcorrects and monitors poor behaviours by aligning them to theorganisational goals therefore creating an optimum performance withguaranteed continual success results that keep them at a competitiveedge. For example, through a well-captured evaluation report, amanager can include positive attitude such as using the words “howcan we prevent errors from appearing in the reports” to approach anemployee who has been making errors in reporting. All in all employeeevaluation identifies the strengths and weakness of the company thususing them to track and improve their performance to stay top of themarket (Noe, 2013).

Examples of Different Compensation Strategies that Maximize EmployeeContributions

Insurance benefits forms prominent examples of compensationstrategies that motivate employees at the same time maximising ontheir contribution to the organisation (Mondy &amp Noe, 2012). Theinsurance strategy collectively includes dental, medical, life andworkers compensation. Other compensation strategies that highlymotivate employees to maximise on accomplishing the company’s goalscomprise of holiday pays, vacation pays, retirement contribution,stock options, profit sharing and bonuses (Stack, 2013). Someemployees value more of the intangible compensation strategies suchdirect appreciation from the boss, allocation to a new office orpromotion at a senior level (Noe, 2013).


Mondy, R., &amp Noe, R. (2012). Humanresource management (9th Ed.). UpperSaddle River, N.J.: Pearson Prentice Hall.

Noe, R. (2013). Humanresource management: Gaining a competitive advantage(8th Ed.). New York: McGraw-Hill/Irwin.

Stack, L. (2013). Managingemployee performance motivation, ability, and obstacles.Highlands Ranch, CO: Productivity Pro.