PERFORMANCE MANAGEMENT AND PERFORMANCE APPRAISAL

SUBMITTED BY: SUBMITTED TO:

BILLANTE, JOHN MARCO D. REYNALDO,DE VERA MBA

CANALES, JOHN PATRICK F.
 Company deals in any entity that engages in business it’s structured in different
ways. It can be a sole proprietorship, a partnership, or a corporation. Depending on
which different type of company you're dealing with. Companies encompass many
factors to reach their goal not just to earn money, give services or product, paying their
employee’s. Employees has a big contribution to uplift the organization but the owner
should consider the performance of their workers. Monitoring if they are doing their job
and responsibilities is called Performance Management. It is a goal oriented process it
maximize the productivity of employees and workforce. Company owner and
stakeholders should encourage, measure, evaluate, improve and reward employee
performance. Once the performance of all employees had been monitored there would
be an outcome to evaluate. Evaluating how well employees performed their jobs is
called Performance Appraisal. Giving performance feedback to employees and
knowing their own strength and weaknesses. It is very essential because it will help
employees to improve themselves and to perform well in company where they belong.
In every company there will be a problem there is no absolute organization and no errors
performed. First when employees had doubt between the supervisors credibility. They
will also distrust the results of any performance management metrics those supervisors
produce. The lack of incredibility may come from inexperienced management, poor
communication skills. Once the employees do not trust the supervisor it will lead to poor
performance and organization will be affected. If every employees has trust issues the
uplifting of company will not be possible and if they didn’t follow the process of the
implemented regulations employees will not be effective. Supervisors should have an
orientation in implementing the Performance Management and Performance Appraisal.
Proper communication in every employees to create a positive environment which
results that can perform well without doubts. In Performance manage and Performance
appraisal, participation of both HR leaders, manager and employees is important
because investing the right amount of time and effort can yield result. Performance
management specially the performance appraisal is very important because this is the
process of evaluating the performance of each employee were the productivity comes
from them. But why most of the company specially here in Philippines does not use
Performance management and appraisal it is simply because those Resource manager
and managers didn’t know much about the process of performance management and
performance appraisal. But in this kind of method there is a company who use this and
they become successful. Such as “General Electric” and “Adobe”. Generic Electric use
performance management and appraisal to know their weaknesses such as lack of
motivation, lack of communication, so they improved it and they become successful
through giving guidance and coaching them on the path to meet their goals. While
General Electric (GE) use performance management and appraisal to know the likes
and wants of their employee without increasing salary. They didn’t pressured their
instead they tolerate them to make them stay and they maintained their retention rate
high.
 Performance management is the continuing process of communication between
managers and employees, with the mutual goal of accomplishing the strategic goals of
the company. It is the foundation for employee performance and engagement in any
organization that wants its employees to reach their maximum potential and boost their
productivity and success. Performance Appraisal is the process of evaluating an
employee based on their performance. Performance management and Appraisal helps
the company to know their weaknesses specially for those employee and through it
they can improve what they need to improve and focus on what they need to focus.
While other company focus on what employees wants needs even it can cause
boredom and lack of capability of employee like Adobe Company.

How come the employee retention rate at Adobe is so high even though it pays
less in comparison to competitors such as Amazon?

- The job was very stagnating and slow, so it tend to make the employees very
lazy and comfortable.

- Since the job was very undemanding, people got used to not using their mental
capabilities making them unemployable at more demanding jobs.

- Most talented folks hired by this company would leave within the 1st year, and
the ones left behind would be the unambitious people who were just looking for a
regular 9-5.

- Since the culture was so bad, the people who would to stay in the company
were ones who would fit into this culture and others who would be converts to this way
of thinking.

- The company had a several job perks like free lunches, shuttle service, gym etc.
which was all the more motivation for lazy employees to stay.

- Most importantly, the company had really poor standards when it came to hiring
(not surprising, due the quality of the average employee there) so they would let more
people like them into the company.

This is perhaps the case with Adobe as well. At a company like Amazon, where
the hiring standards are quite high, the average employee is likely to be much more
technically capable and likely to find employment wherever he pleases. Also, the job at
Amazon is much more demanding and stressful compared to Adobe which is more laid
back and ergo, it is highly unlikely someone would end up being comfortable and
stagnant working at Amazon.
 So therefore Adobe Company use performance management and appraisal to
know the weaknesses of employee but they also knew the employees likes and wants.
If other companies focus on their weaknesses to improve, Adobe focus on the lies and
wants of employee, so they tolerate it to make the employee stay. They did not increase
the salary of employee but they can make the employee to stay. That’s why retention
rate at Adobe is still high even though it pay less.
Assumption

Performance Management

Leaders and managers in both private and public organizations regard such
systems as a key means to communicate and implement strategies, support decision
making, align behaviors and, ultimately, improve performance. While measurement and
management systems can help organizations achieve these fundamental aims, current
practices show that managers are consistently making mistakes that prevent them from
reaping the full benefits of their investments in time, money and effort or those of their
company, department or organization. While intentions are usually positive, research
shows that managers and supervisors often encourage the exact behaviors their
organizations or companies neither need nor want.

1. The objective nature of data

A performance measurement system enables you to gather, analyze and

communicate data on both macro and micro performance levels. This way, we can see
how each individual contributes to the entire operation to best utilize workers’ abilities.
Although we want such data to be objective, that is not necessarily the case in every
event. Research shows that performance data is ambiguous and open to interpretation;
its use and impact on performance depends on a commonality of interpretations.
Therefore, while it is important to have data that is robust and relevant, your efforts
should be devoted to fostering similar interpretations through leadership and
communication rather than trying to remove individual views

2. Aligning objectives makes little difference

Your goals and those of your employees should be aligned. But, the ways in
which managers attempt to align with subordinates usually ends up generating
bureaucracy and negatively affects morale. Recent studies show that, while
organizations are making considerable efforts to align behaviors and actions, results are
often dismal. Instead, while designing and implementing performance measurement
systems, sufficient discretion should be left at every level to make decisions about which
indicators to use and for which targets to aim that mutually benefit everyone.
 3. Measuring performance will facilitate change

When it comes to organizational change, however, measurement

systems have often acted as obstacles rather than enablers. Particularly, when a
system is pervasive and consists of a large number of indicators, organizational
inertia may arise. This may not be a major problem for organizations operating in
relatively stable markets, but it could become a serious issue for firms competing
in dynamic These organizations should adopt an empowering and flexible
approach to the design and use of measurement systems. While alignment
processes are needed to ensure that performance indicators and behaviors are in
line with the organization’s strategic priorities, empowerment at the managerial
level is needed to build sufficient dynamism into the system.

4. Improvement is a guarantee

The ultimate goal of introducing a performance measurement system is to

improve organizational performance.
The main role of a performance measurement system is to monitor and report data to
satisfy requirements, both internal or external.
Performance Appraisal

Performance Appraisal

1. Evaluation will improve an employee’s performance If this were not true, why
would we take the time and go through the stress associated with doing an appraisal?
But what is the evidence that doing a performance evaluation does indeed improve
performance.

2. The standards of evaluation are related to factors demonstrably important to

the organization and its customers. Just what criteria are we using to evaluate the
employee? Are they corporate goals, Department goals, Personal goals, Extra things
that need to be done

3. The standards are reasonable and achievable. If the standards/goals that

have been set are the “stretch” goals we hear so much about, do they come with a
method and support for achieving them? Or might we turn the employee into a loser.

4. The employee being evaluated has control over the results. Things change.
What if one of the goals you were being evaluated on had to do with contracts to design
new highways and bridges, and suddenly the government had no money for new
highways or bridges.

5. The employee’s individual contribution can be discerned from the

contributions of the system and other managers and workers in the system. Can we
really determine the true contribution of a single person? There are so many interactions
between people, departments, policies, and machines.

6. The evaluation covers performance over the entire cycle of evaluation, not
just the period recallable by accurate memory. Can we really remember how an
employee was performing several months ago? Unless the goals involve a numerical
measurement it is nearly impossible to be fair and correct.

7. The processes with seemingly identical equipment, materials, training, job

description, etc., are, in fact, identical. Is one machine a little older, faster or easier to
operate? Have each of the individuals being evaluated been trained exactly the same
way? Is the lighting the same.

Conclusion

The purpose of this report is to understand the implications and importance of

performance management and appraisal in an organization how it can be effective in
negative and in a positive ways. It can be helpful in different way, most companies who
used it is to change their negativity and to strengthen their weaknesses while the others
used it to maintain what the negative is. Their strategies is to make the negatives to be
their advantage. Performance management and appraisal is directly focus on the
performance on each employee and what is the impact of it in micro and in macro. It
should be helpful and effective simply because it can help to monitor employees job, if it
is effective or not. Through Performance management and Appraisal they can
manipulate each individual, they can be prepared on what the company’s result. They
can improve their self, improve their productivity, sales, manpower and specially human
capital. We hope that this kind of methods or system apply the company on their own
organization to be more powerful and competitive in king of business industry.

Recommendation

Nokia- It is the one of the famous company before that failed to innovation,
Performance management and appraisal can be effective to Nokia company because
they can monitor those employee work and manpower specially they can monitor the
employee’s mental capacity. In this case mental capacity is important to think new and
advance in terms of technology. In performance management and appraisal they can
filtered their employees who had a mental capacity that can help and contribute more in
company.

Jollibee- they used Performance management and appraisal though auditors,

they Audit the performance of each employee even managers. but they need to
strengthen it. Until now there is more problem and complain in Jollibee about the
performance and attitude of employee. They used performance management and
appraisal but they can use it effectively because they can’t control and manipulate the
employees in different branch so I recommend to strengthen their Performance
management snf appraisal to valued more their employee.

Columbia- Since until now Columbia is in demand because of their product such
as beverages and snacks (candy, junk food and biscuit) they need to use a performance
management and appraisal they can secure, maintain the performance of employee and
entire company to improve more their productivity. In performance management and
appraisal they can manipulate their manpower so they can satisfy the unlimited needs
and wants of consumer.

Bibliography

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