Performance management is the setting of standards, monitoring and coming up with guidelines on what is expected of an employee. In many companies, the standards are in line with the strategic plan in order to ensure that it is met. In order for performance management to take place, the human resource management is involved. There are roles that they play in the process which include: compensation and benefits, talent management and training and development. Talent management is one of the roles of human resource management that deals with hiring the right people for the job and ensuring that they possess a specific talent that aligns itself with his or her responsibilities. It is important that each task is assigned an employee that is equipped with the skills to perform it (Paauwe, 2009).
Once the tasks are well done the strategic plan is well implemented and positive change is seen. Training and development are another roles that involves teaching employees on how to perform the certain task effectively. It is important because, in order to implement a strategic plan, employees need to understand how to perform tasks uniformly. Uniformity leads to consistency which leads to the efficient implementation of a strategic plan. Compensation and benefits act as a motivating factor to employees to improve how they execute tasks and therefore when they execute them well the strategic plan is well implemented (Paauwe, 2009).
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There are types of performance appraisal that include: trait, behavior based and results based. The trait is the characteristics that someone possesses. It includes ethical behaviors, leadership, and objectivity. It is mainly subjective in nature. An example where it can be applicable is a pharmacy where one is expected to look the part by being well groomed. A well-groomed pharmacist attracts customers and therefore it can be used to appraise as a determinant of appraisal. Behavior refers to actions that one is involved in. Time conscious is an action whereby someone is keen with time to perform tasks and therefore performs duties in time. A manufacturing company is an example of where time can be a determinant in the appraisal. Results based are where one is appraised according to the results seen after performing tasks. An example of the sales department where each sales person has a target and when the target is achieved they have appraised accordingly (Murphy & Cleveland, 1995).
Maersk customer service is a shipping company that deals with transportation of goods from different continents in the world. The best appraisal they can use is trait based appraisal mainly because they deal with services. In their services, there are ethical traits that they require to have such as honesty in that they ensure safe shipping of goods without causing any damages. The honesty trait will attract more customers and therefore lead to the implementation of the strategic plan (Kartona & Sarvary, 2014).
There are scales that are used to determine the performance appraisal which includes graphical scales, numerical scales, and letters scales. The scales are used to give a quantitative assessment of the process. A scale makes it easy to differentiate employee performance and therefore making it possible to identify the level of performance for each. It is then used to determine the appraisal that is to be given for a certain level. The graphical scales involve the use of a graph to determine the rate of performance with X axis representing the time and Y axis determining the performance. A numerical scale involves the use of number such as 5 represents excellent while 0 represents poor. A letter scale involves the use of letters to represent a level of performance example is C represents Excellent while A represents poor (Murphy & Cleveland, 1995).
References
Katona, Z., and Sarvary, M. (2014). Maersk Line. California management review , 56 (3), 142-156.
Murphy, K. R., and Cleveland, J. (1995). Understanding performance appraisal: Social, organizational, and goal-based perspectives . Sage.
Paauwe, J. (2009). HRM and performance: Achievements, methodological issues and prospects. Journal of Management studies , 46 (1), 129-142.
