Assignment task: Prior to beginning work on this discussion forum,
- Review Chapters 4 and 5 from your textbook, Applied Psychology in Talent Management.
- Review the article Tear Off the Rearview Mirror
Address the following:
1. Define the purpose of a performance management system.
2. What are some of the benefits and challenges of a performance management system?
3. Discuss how you have seen a performance management system working at a current or former employer or research a company online, noting the impact on employee behavior.
Guided Response: Your initial response should be a minimum of 200 words. Respond to at least two of your fellow students' or instructor posts in a substantive manner and provide information or concepts that they may not have considered. Each response should have a minimum of 100 words. Support your position by using information from the week's resources.
Response 1
Reply from Katrina Medlen
The purpose of a performance management system is to systematically improve organizational performance by aligning individual performance with the company's strategic goals. This involves setting clear expectations, providing ongoing feedback, and supporting employee development to drive productivity and enhance overall effectiveness. A well-designed performance management system aims to encourage a culture of continuous improvement, ensuring that employees are not only meeting their objectives but also contributing to the broader mission of the organization.
One of the primary benefits of a performance management system is the clarity it provides regarding performance expectations and career development opportunities. Employees benefit from having well-defined goals and regular feedback, which can enhance their motivation and job satisfaction. Additionally, it helps identify high performers and areas where further development is needed. However, challenges include the potential for performance reviews to become stressful events rather than constructive experiences. The process can be time-consuming for managers, and there is the risk of bias affecting evaluations. Also, if feedback is not delivered effectively, it can lead to disengagement or resentment among employees.
At Vituity, I've seen firsthand how our performance management system plays out in practice. We use a structured approach with quarterly performance conversations, which has made a significant difference in how we handle feedback and development. Employees, including myself, appreciate the regular check-ins because they allow us to discuss our progress in real time and adjust our goals as needed. This ongoing dialogue has fostered a more supportive and less stressful environment compared to traditional annual reviews. I've noticed that this approach helps build stronger relationships between managers and team members, enhancing trust and motivation. Employees feel more engaged and invested in their work, knowing their performance is regularly reviewed and aligned with the company's goals. While there are still some challenges, such as ensuring consistent evaluations across the board, the overall impact of our performance management system at Vituity has been positive, contributing to a more dynamic and responsive workplace.
Response 2:
Keira Radin
The purpose of a performance management system is to identify, measure and develop an employee's performance. The company can then use this data to align the employee's performance with the company's goals. Employers and/or managers use the data they have collected on an employee's performance to conduct reviews and give feedback to each employee.
One of the major benefits of a performance management system is the communication that it opens between employees and employers. Employees receive direct feedback from their employers and use their review time as an opportunity to discuss workplace feedback. Additionally, this type of management system allows employers to weed out the employees that aren't up to their standards. A challenge of a performance management system is the amount of time the performance reviews and appraisals take up. Additionally, if an employee were to receive a disappointing review, they could become unmotivated.
At the investment firm I work for I have an annual review with my boss to go over my performance. Her determination of my performance has a direct impact on my yearly bonus. During this review, we go over our successes over the past year and use this time to develop a business plan for the upcoming year. When developing the business plan, we can see what we did well and should stick to, and where we faltered and need to improve, while also setting our goals for the upcoming year. This annual review of my performance allows me to know where I need to progress, so that we can reach branch goals. Overall, I think this type of performance management has a positive impact on my behavior because it has always been a positive experience and has served as a motivator.