The employees in the company have different competence, motivation, and satisfaction with their work, so they work differently (and not the same) and reach different results.
Justice requires everyone to receive as much as their fulfillment. How this process can be managed to generate “value” for employees, customers, managers, and investors remain to be seen. Reference: https://phron.org/for-hr-managers-buying-and-retaining-talented-employees/
Performance, Performance Management, Standard, Setting Standards, Setting Remuneration, Giving and Receiving Feedback
What is “performance” and what is the “value” of its management? Setting standards. Determination of remuneration. Giving and receiving feedback
What should you be able to do after learning this topic?
To be able to define the key concepts on the topic;
Be able to describe the performance management process and the three sets of performance management practices;
Be able to distinguish between forms of financial and non-financial remuneration;
Be able to explain the “value” of performance-oriented management practices;
To be able to use your knowledge of management practices aimed at implementation in practical situations.
What is “performance” and what is the value of its management
“Implementation” is a specific concept in management. Refers to the extent to which specific tasks, work, or predetermined goals are accomplished. It can be considered at three levels: at the employee level; at the department level; at the organization level.
Another specific concept in the dictionary of human resource management is “performance management”. It refers to the process of management steps, which creates an appropriate work environment to achieve the desired results – by each employee, department, and the work of the organization.
When the company has performance management, employees feel confident in their capabilities and use them purposefully to achieve results. When there is a lack of performance management, the more competent work harder, but receive remuneration that is the same as that of the less competent. This creates tension in the relationship between employees and becomes an occasion for “bad” conflict (destructive conflict).
So far, researchers do not have much difference in what exactly the performance management process should look like. Unlike the traditional understanding of “performance appraisal” which is characteristic of personnel management and older concepts of human resource management, performance management is larger and more useful in terms of the organization’s sustainable success.
It is connected with the business strategy of the organization, the development of the competence of the employees, with the management of the product quality.
Since performance is the link between people and their jobs, the main groups of human resource management practices that drive performance are three: (1) setting standards;
(2) the determination of remuneration; (3) giving and receiving feedback.
When a company uses the three management practices, it adds value to employees, managers, consumers, and business investors. More on the topic: https://wikipedia-lab.org/value-added-human-resources-management/
The “standard” is a “state”, a “condition” that must happen in the course of working on a certain task. The role of the standard is to guide people to adhere to “useful” behavior – something that will ensure them achieve the results that the company expects. The more routine the tasks, the higher the standards of behavior. For example, “This task is considered well-performed if the employee is kind to the client. “Kindness” means … ”
In addition to standards of conduct, there are standards of expected results. Some call them “performance indicators”. For example, “The employee to sell services worth BGN 2,000.”
There are also standards for quantitative results. For example, “many documents to be processed”, “strict adherence to a standard of conduct”, “competence change”, “time to perform the service”, etc.
Setting standards means making the following three consecutive decisions: (1) what behavior (competence) and what results from we expect to get from the employee who works in a particular position; (2) who will measure the performance of the results; (3) how the results achieved will be measured.