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Concepts of performance management in organizations

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Anonim

The improvement of the management of the labor performance of the members and in particular of the managers in the current organizations constitutes a challenge, since it not only constitutes one of the ways to achieve progress towards their excellence, but also the economy and society in general.

In correspondence with the above, the present work deals with the management of work performance, for which its main characteristics, proposed models, as well as the description of the content of the phases that compose it are exposed.

Introduction

A distinctive feature of today's society is the accelerated rate of change, which produces the maladjustment of knowledge, skills, and attitudes, which requires members of institutions not only the corresponding adaptation, of them, but also the anticipation of these to the referred changes (Cerejido, 1999; Utsumi, 2003; ITU, 2004; Beceiro García, 2004; Gólcher, 2006, among others), in short, when this rate exceeds the speed with which organizations face new circumstances, the established management systems become obsolete and can become a barrier that threatens the survival and development of the organization itself. Avoiding this constitutes an essential task for their management team.

In this context, the staff has to be oriented in such a way that they can assimilate the new demands with a future projection, quality and customer orientation. For this, it is necessary to develop the human factor with the competencies demanded by the level of performance demanded by the organizational expectations expressed in the objectives and also satisfy the requirements of the processes that are developed in the entity. In correspondence with the above, this work addresses the management of job performance, for which its main characteristics, proposed models, as well as the description of the content of the phases that compose it are exposed.

Development

The performance of the members of the organizations constitutes one of the cornerstones to achieve their effectiveness and achieve their success, which is why there is a constant interest from the entities to improve the management systems on which it is based.

Performance is defined according to García (2001), as those actions or behaviors observed in employees that are relevant to the objectives of the organization, and that can be measured in terms of the competences of each individual and their level of contribution to the company..

The Cuban Standard 3000: 2007, for its part, defines work performance from two angles: adequate work and superior work, conceptualizing the latter as: work performance and superior performance of the worker, with a high economic and social impact, present and future identified with the job skills required for his position. This performance corresponds to the strategic behaviors, that is, the competencies to achieve the entity's strategy.

On the other hand, regarding the term management, there is currently a certain lack of definition between the terms management, direction and administration, which has been largely determined by problems in translations and the practical application that they are given. Gestión, comes from the Latin meaning gesti-onis, action of the generic verb that means or means action and effect of managing, that is, doing errands that lead to the achievement of any business or wish, in this same context it is increasingly frequently find also the word management and derivatives of this: manager and managerial (CETDIR, 2003). The NC ISO 9000: 2001: for its part, defines management as: the coordinated activities to direct and control an organization.

Performance management and evaluation has been around for a long time, so it is not a new phenomenon. Several authorities on the subject affirm that the earliest knowledge of this system dates from the Wei Dynasty of China during the 3rd century BC. Later this concept arrived in the United States of America during the Industrial Revolution in the 18th century. However, performance management is not officially used in organizations until the years 1940-1950. (Ruiz, 2004).

In recent times, the term management has been frequently used when dealing with performance, which will be used for the purposes of this research, under the assumptions that the organization performs in a dynamic environment and as a conceptual definition it is accepted, that set forth in the Cuban standard 3000: 2007, such as: coordinated activities to direct and control an organization. Performance management in recent years has been displacing the traditional conception of performance evaluation as terminology renewal also involves a change of focus: the emphasis shifts from performance measurement to performance management (see table 1), which is a broader concept, Osorio and Espinosa (1995).

Table 1: Differences between performance management and performance evaluation. Source: Human Capital, No. 81, Page 36. September, 1995.

Cravino (2006) defines performance management, as a process that allows to guide, follow, review and improve the management of people so that they achieve better results and develop continuously.

The fundamental objective of performance management is to increase the effectiveness of the organization through the knowledge and use of resources, the improvement of personal performance and the coordinated orientation of these towards general objectives.

Several are the authors who refer to performance management, importance and need, however, in the literature consulted, the proposal of ways of proceeding for its implementation in organizations was not abundant, being able to refer to those indicated below:

Performance Management is an integrated and continuous process that has three phases: planning, coaching and review. (Figure 1)

Figure 1: Performance management: phases and relationship with other elements of HR management. Source: self made.

Characteristics of the phases of the Performance Management cycle:

  1. Planning: Critical objectives (those that are of the utmost importance to achieve the results of the position).

    Critical competencies, which are the behaviors that need to be demonstrated in daily work in order to achieve the established objectives. Coaching: Performance is monitored in order to provide feedback, and support and reinforce current performance to achieve performance expectations..Revision: Evaluates current versus expected performance at the end of the cycle to analyze performance trends, identifying areas of opportunity and strengths that allow planning to achieve the expected level of performance for the following year.

Ruiz (2004) conceives a performance management system as a dynamic cycle, which evolves towards the improvement of the company as an integrated entity. Like any cycle, it consists of stages, which can be seen in figure 2.

Figure 2: Dynamic performance management cycle. Source: Ruiz (2004).

Contents of the phases of Performance Management:

Conceptualization: The best performance you want to target is identified.

Development: It is examined where the current performance is varying depending on the desired levels, which can be done through an Integrated Performance Support System (IPSS).

Implementation: In the traditional way, it was carried out through informal mechanisms for monitoring current performance, followed by training sessions, periodic performance reviews, among others; without allowing the employee to take control of their own performance development.

However, an IPSS gives the direct employee control over the planning of the development of their performance, since they are the most interested in developing their skills to achieve a promotion.

Feedback: It is done throughout the process and after the evaluation so that the employee knows how I can improve their performance.

Assessment: Performance measures are used to monitor specific performance indicators across all competencies and determine how they are responding to objectives. The final results are compared with the concepts established in phase I.

A very important factor for performance management according to Ruiz (2004), is the continuous evaluation of the employee, since this system cannot be for any static reason, it must constantly evolve and be carefully monitored for continuous improvement.

In this sense, some of the benefits of the Performance Management System according to the author are:

Feedback:

  • After the 360-degree evaluation is incorporated, messages are heard more frequently and in a timely manner. Giving the employee the feedback they need is the first step in improving. By providing concrete feedback, employees know what to focus on to improve.

Goals:

  • Provide a rational framework for setting goals, objectives and performance measures as a basis for making promotional decisions. However, some companies associate performance evaluation with salary rewards, although this is not the end of the evaluation. If it is correctly administered, the employee will never be surprised at the expectations they have of him. He is effective in establishing a dialogue between the boss and the employee regarding goals.

Communication:

  • Encourages communication between employee and supervisors.

Documentation:

  • A good Performance Management System (SAD) provides solidity, clear documentation of an employee's skill level and motivation level, and allows the Human Resources unit to better establish its strengths and weaknesses in relation to successive plans. a quick performance profile of the employee for human resources and the employee's boss.

Osorio and Espinosa (1995) define a performance management system as a process that adopts an annual cyclical sequence of planning, monitoring and evaluation, which can be observed in Figure 3.

Figure 3: Performance Management Process. Source: Osorio and Espinosa (1995).

Contents of the phases of the annual sequence of the process:

  • Starting situation: You must have information about the basic Mission and functions of each position, skills and knowledge required for effective performance of work, skills and basic knowledge of the individual. The people involved must know the Performance Management System and its principles.

1-Planning: The command establishes with the collaborator the "business objectives". For each objective, a form is completed detailing the objective's parameters: actions to be carried out, expected results, calendar, conditions and limitations. From an interview, the aspects of the competences that present deficiencies for the current job and the fulfillment of the objectives are discussed between the manager and the collaborator. Training or other actions are proposed to correct them and “objectives for personal improvement or development” are established for the next year.

In case of transfer or promotion to another position, the appropriate actions are agreed to prepare the interested party for the assimilation of future roles and responsibilities.

2-Follow-up: The command “observes, records and documents” critical facts, events and incidents in order to accumulate elements of judgment about the evaluated and have information and arguments for the subsequent evaluation.

Hold formal meetings or take advantage of informal conversations with the collaborator to periodically inform them of the process carried out, and eventually offer support or advice when necessary.

3-Evaluation: The manager interviews the collaborator to examine the degree of achievement of the objectives and the reasons that have favorably or unfavorably influenced the results.

The corresponding grade is assigned in the appreciation of competences.

Holds a meeting with the evaluated to inform them of the results of the competency evaluation, discuss them and collect their opinion on it.

Prepare, together with the evaluated one, the action plan for the following year starting the new annual cycle.

From the analyzed procedures, it can be generally concluded that although they conceive a set of common elements, there is no unity of criteria regarding:

  • The structuring in phases or stages The objectives of the organization and the position according to the term The participation of the workers in the process is limited The support in the competences The integration of variables such as the objectives, the competences and the training.The orientation based on performance improvement.

It was also evident in the analysis of the procedures and models limitations regarding:

  • Focus performance management from a holistic perspective. Articulate the organization with the position in the performance management process. Introduce improvement actions during the process. Lack of indicators to monitor progress in management of job performance.

Taking into account the definitions, general characteristics, essential features, positions of the consulted authors, current trends, the fundamental normative base and the particularities of the organization under study, performance management is defined as:

The management process, structured dynamic, continuous and strategic that from the integral approach, contributes to the improvement of the performance and the performance of the worker, and with it to the economic and social impact of the latter on the organizational performance.

Conclusions

Regarding the approaches and theoretical bases to manage work performance, which as a trend are developed today in the world, it could be concluded that despite the importance of this area of ​​knowledge for organizational success, there are still insufficiencies at the conceptual level that need to be investigated, especially with regard to the integration of management philosophies such as strategy, competencies, learning, self-management and continuous improvement when managing performance.

Bibliography

1. Cerejido, I. (1999): The keys to training and knowledge management. Human Capital Magazine. No. 119, year XII, Madrid, pp. 40-44.

2. Utsumi, Y. (2003): They celebrate the first Phase of the World Summit on the Information Society Available at: http://www.itu.int/wsis/geneva/ / coverage / statements / closing / utsumi- en.doc

3. ITU (2003): World Telecommunication Development Report 2003. Available at: / WTDR 03Sums.pdf

4. Gólcher, I. (2006): The 10 sins of training. Available in: 12/11/06.

5. García, María (2001): The importance of performance evaluation. Projections magazine. Year 2 Number 9 February-March 2001. Available at.

6. Cuban Standard: 3000,2007. SGIRH - Vocabulary.

7. Ruiz, Karla A. (2004) The importance of Performance Management in Organizations. Available at / performance-management / performance-management. shtml? mono search

8. Osorio and Espinosa (1995) Performance management: Integration of competencies and objectives. Human Capital Magazine, 1995 SEP; Year VIII (81) pp. 36-42.

Concepts of performance management in organizations