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Table of Contents
Analysis of The Issue………………………………….
Performance Management Definition………………………..
Role Profile Definition………………………………..
Developments in Performance Management
Understanding the Performance Management
Setting Objectives and Reviewing Performance Management…………
The Performance Review Meeting
Performance Review Difficulties
Why Should Performance Be Reviewed?
Goals and Skills of Performance Reviews
Reviews as a Communication Channel
Evaluating Performance Reviews
Performance Management Appraisal
Performance Management and The Psychological Contract
The Appraisal Process of Performance Management
Performance Management Appraisal in Action
This business report presents and discusses a Unicall case study providing an evidence-based research on the core aspects and issues of performance management system: defining the importance of performance management, setting objectives and making a review as well as performance appraisal.
In the report, there was found no established performance management system, as well as no appraisal idea has been created in the call center, which was the main reason for the several interconnected problems found below:
- The existing number of employees in comparison with growing demand for the telephone banking, which affects customer service.
- Lack of knowledge or information about the use of computer system, which provides inaccurate information about simple enquires using 50% more time than they should.
- Bad feedback from customers based on the rudeness of employees as well as inflexibility with complex problems providing different answers to the same questions.
- Limited chance to recover from one call before getting the other one.
- Some groups of employees think that they work better than others and start to think that standardized pay structure doesn’t recognize or reward their individual skills and efficiency.
The importance of the performance management implementation is the necessity to enhance the business productivity. Thus, the report presents all the main processes of performance management to ensure Unicall links the mission with the efforts of employees. The structure and the content of this report is an evidence of a profound literature review, which aimed to cover the found issues at the company with recommendations and proposals. The recommendations and conclusion will be presented in the last section.
The purpose of this report is to identify the context of the company to find out the problems in the performance management system as well as to provide functional solutions depend on the relevant literature review for boosting the productivity of the company and high reputation among competitors.
Research Approach is based on reviewing the best scientific literature to find out how setting objectives, making reviews and appraisals contribute to the performance of the company.
The Structure of this report is as follows: First, we discuss performance management definition to figure out the role of it, specific key result areas, enhancements and understanding (section 1). Second, we concentrate on setting objectives and reviewing performance in order to understand the theories that define the way they supposed to work (Section 2). Setting objectives is one of the most effective ways, which has an influence on performance improvement. It allows managers to outline targets and focus employee participation on how they go about their job. It has got a lot of advantages for developing performance management, for example; it encourages employees to form “implementation objectives”, mentioning how, where and when they will perform to enhance strategies in order to deal with potential difficulties. The final part is performance management appraisal, which helps to evaluate the whole process and to provide monitoring progress (Section 3). Objective setting is essentially connected to appraisals in order to enhance performance on reviewing progress and providing feedback. This means that performance management should be accepted as a continuous chain of chained activities, not as a separate process that is periodically revisited. Also, the report the implementation plan for recommended alterations.
Unfortunately, there is no clear and conclusive definition of performance management and all the existing definitions usually are the understanding and settlement of defined tools and activities (Armstrong, 2015). Generally, performance management is described as an activity that:
- Creates goals for which employees and group of members can have a vision of the company’s mission and strategy.
- Develop performance among employees, group members and ultimately companies.
- Holds employees to “judge” for their performance by connecting it to reward, career development as well as termination of contracts (Mullins, 2016).
On the other hand, performance management is a wide range of activities, which supposed to enhance employee performance (DeNisi and Pritchard, 2006). Moreover, performance management is a systematic action for enhancing organizational performance by developing the performance of individuals and groups (Armstrong, 2015). It means to get better outcomes by having insight and leading performance within an agreed concept of objectives, norms and competency requirements. Performance management refers to the process to ensure the organization connects mission with the work of employees. It is a strategic and integrated process in which individuals and groups take responsibility for continuous improvement of the business process. Operations exist for creating shared insights about what is to be gained, and for leading and enhancing people in a way that develops the possibility that it will be achieved for the short and long period (Armstrong, 2015). Managing performance can be a natural function, which includes the operations of planning, acting, monitoring and evaluating (see Figure 1). It is, therefore, permissible to note the process of performance management where “process” is recognized as a way of implementing things to get a purpose. Most of all, the management performance is generally refers to the process- how it is done (Mullins, 2016).
Figure 1: Performance Management Process
Role profiles explain a role in regard to the key outcomes expected, what role keepers are supposed to know and can do as well as how they could anticipate in regard to behavioural capabilities and sustaining the company’s key values. Role profiles require being renewed every time a ritual performance agreement is enhanced and to give headings under which objectives can be situated (DeNisi, 2006). To enhance a role profile it is important for the line manager and the personal to meet and agree on core result subjects, to understand what the role holders require to know and be able to implement.
Based on Armstrong theory related to the performance management, there is found a new perspective, which appeared with the following features (Armstrong, 2002):
- Make accent on front-end designing rather than back-end revision (However, Unicall should make accent on both front-end designing and back-end revision. As solving some back-end problems will have effect also on front-end performance. For example, implementing trainings will enhance the performance of customer service providing precise answers);
- To give an extensive definition of performance that concentrates on more than specifically characterized job responsibilities;
- To understand a large number of components contributing to performance results (Armstrong, 2002).
The performance management is an on-going self-renewing cycle as it is presented in Figure 2.
Figure 2: The performance management cycle
There are primary five aspects that required to be considered to get a full understanding of performance management (Cokins, 2013). They are as followings:
- the idea and content of performance;
- the importance of values;
- the concept of alignment;
- managing expectations;
- the importance of discretionary performance.
- The idea and concept of performance
Most of all the performance is usually recognized simply as a result of an achievement of quantified goals. However, the performance is a matter not just what people get but also how they get it (For instance, the number of calls and the quality of responses at Unicall). Sometimes, we can meet in different dictionaries that performance as a definition of ‘carrying out’ (Dresner, 2008). As a result of high performance are an appropriate behaviour, particularly unrestricted behaviour, and the efficient use of the required knowledge, techniques and capabilities (The employees of Unicall also need to get traininsgs in order to be able to use computers and be more knowledgable to provide correct answers to customers).
Performance management must research the way how outcomes are attained as it gives an opportunity to get required information in order to do right things to improve those outcomes (Shields, 2007). Moreover, the results sphere may be considered as providing six important outcome factors”
- product and service quantity;
- product and service quality;
- financial outcomes;
- stakeholder expectations.
On the other words, we can say that performance defines both behaviours and outcomes. Also, this explanation of performance brings to the conclusion that during performance management both behaviour and results should be considered (Smither and London, 2009). This is not a question for just to be considered for achieving targets as it happens in management-by-goals schemes. This is so-called ‘blended-model’ of management performance, which relies on the achievement of predicted levels of competency and goals settings and review (Shields, 2007).
2. The importance of values
Performance is about protecting the values of the company- ‘keeping the values’. This is a behavioural factor, which focuses on what managers do to realize main values such as concerns for quality, concern for staff, concern for equivalent chances and managing ethically. Accordingly, it means changing adopted values into values in use, which ensure that the rhetoric becomes reality (Armstrong, 2002).
3. The concept of alignment
The concept of alignment is a significant part to determine as the range to which employees are correspondingly related to or have a steady line of observation to the vision and orientation of the organization and its consumers, sometimes enclosed within its ongoing strategy. Based on Unicall, alignment will be effective method to understand the vision of each employees’ behaviours in the whole of the company’s objectives, the line of vision to consumers’ requirements and expectations as well as behaviours, which are synchronized with the company’s reputation. This mostly refers extent to which job components are efficiently related to each other to provide high-value products or services to consumer (Smither and London, 2009). The figure 3 presents alignment’s main lines:
Figure 3: Alignment
4. Managing expectations
Performance management systems based on management of expectations. It establishes a common understanding of what is needed to enhance performance and how that will be gained by simplifying and agreeing what people are predicted to do and how they should behave and undertake these agreements as the basis for calculation, evaluation and the preparation of the proposals for performance enhancement and development. On the other hand, it is accepted to say that the structure of the performance management expectation is the following: Analyze->Plan->Design->Build->Test->Rollout->Review->Make Changes (Cadwell, 2000).
5. The importance of discretionary performance
Performance management is related to the supportiveness of productive discretionary performance. In other words, discretionary performance or behaviour is related to the selections that people make about the way how they carry out or perform their job and how much effort, care and creativeness as well as profitable performance they display (Torrington, 2017). It is the differentiation between people just doing a job and people doing a great job. It is very important makes perform the business strategy as everyone’s number-one-job, which makes employees act like they are the business owners. It is the combination of the methodologies flavoured with analytics that is the core to finishing the whole version of the performance management framework (Cokins, 2010).
The primary goal of performance management is to generate and enhance the performance of individuals and groups as well as companies. It is an instrument that may be used to achieve culture alteration in terms of building of a high-standard culture (Roberge, 2009). It is supposed to enhance the capability of people to meet and surpass expectations and to gain their full capacity to benefit of themselves and the companies.
In the framework of management, objectives can be clarified as observational or quantifiable organizational results to be gained within a particular time limit (Mullins, 2016). Accordingly, setting objectives is the action of responsively deciding objectives the company wants to achieve at the specified time. The objective-setting theory was jointly created by Edwin Locke and Gary Lathan, which has an influence on performance through four causal mechanisms (Robson, 2009):
- Objectives have a directive role, which guides an employee’s attention and strive through objective-relevant functions and far from objective-irrelevant ones.
- Objectives energize, with enthusiastic objectives directing to greater strives than low objectives.
- Objectives enhance persistence: relevantly, when employees are permitted to control the time spending on a duty, challenging objectives assist us to provide more prolonged strive.
- Objectives lead to the understanding and use of task-relevant knowledge and procedures, accidentally presenting to performance.
All the above-mentioned mechanisms give an explanation of how objectives can shape an employee’s performance. However, they do not give an explanation how to motivate the nature of objective settings. Also, a challenging objective will not motivate an employee either. Thus, an important condition appears to be that an employee is dedicated to the particular target, meaning that they have appropriate intention to be determined in order to achieve it (Thornhill et al., 2004). Accordingly, the objectives perceived significance or attractiveness as well as the level to which every employee think that they have enough skills to get the objective, effect a manager’s commitment to that objective (Thornhill et al., 2004).
The real objectives of any performance management system are to correct poor performance, to encourage good performance and to develop the performance. All performance management systems should be built to create information and data exchange so that the individuals can thoroughly cut up and analyze the performance, discuss it, have insight and agree on the points and quality (Cokins, 2010).
The next stage is to be focused on the function of evaluation processes defining why objective setting could enhance performance: employees should be aware of their output (need to get feedback). The idea of monitoring objective progress comes from Harkin, which is a significant step from setting to attaining an objective. This aims to motivate employees through particular attainment (Griffin, 2014).
The idea behind objective setting leads employee’s attention, making them more motivated and persistent in their doings and assists them to find the most effective strategies to overcome challenges. The ability to see the direction from the objective is not an easy task, thus monitoring objective progress is important for it to work.
Figure 4: Links between the performance and appraisal chain
Based on the above-presented Figure 4, we can see that in reality performance appraisal usually comes as a component of an annual cycle, but employees can and should be apprised of their performance at any time. Generally, a formal appraisal of an employee’s job performance is done in order to understand the level and stage where the employee is performing productively (Thornhill et al., 2004). While the others mention that evaluation is a general function in which quantitative figures based on predetermined measures are allocated and divided with the employee being assessed (DeNisi and Pritchard, 2006). Figure 2 presents all the figures and elements, which are deeply examined in the relevant literature. Precisely, as an operation that follows on from objective setting, performance appraisal usually have three primary elements:
- Stating performance ranks or evaluation criteria that will be undertaken to employees
- Judging employees against the performance ranks
- Providing employees feedbacks based on judgments.
Generally, performance appraisal usually happens as a fragment of a yearly cycle, but employees can be evaluated for their performance at any time of the years. Furthermore, there are two potential reasons for doing appraisals (Mullins, 2011). First of all, it can be enhancement reason to assist employees and groups develop their performance making the better focus on effort on personal development. Secondly, it can be used as an administrative function, providing a basis for decisions on gratuity and recompenses or other career enhancement opportunities.
All in all, there are different connections in the chain of performance appraisal and feedback outcomes to workers. They can be assisted for two reasons: to bring enhancement and develop performance, to evaluate, keep employees to account for, and reward for the previous performance. Based on the past year’s experience, which proved that high-quality meta-analyses in a huge range of spheres and populations have presented the positive effect of goals setting involvement on performance consequences and results (Beer, 2008). As an outcome, it is currently accepted that objective setting is productive and valuable for directing and enhancing performance
The performance management review meeting is the way where all the five main performance management components of the agreement, assessment, feedback, positive strengthening and dialogue are getting together to good use (Armstrong and Brown, 2009). The review should be based on the real performance of people, which is formal and allows managers and employees to take a positive step together and to have a look on performance and abilities for making it even better for coming future. Employees should be supported to evaluate their own performance in order to become an active member for making improvement in their own outcomes. On the other hand, managers should be supported to endure their proper enabling position: coaching and training employees and giving encouragement and guidance. The true functionality of performance management is to look forward to see what is required to be done by employees to get the purpose of the job, to meet new obstacles, to make even better use of their understanding, skills and abilities, to improve their abilities by creating a self-managed studying agenda and to get agreement on any spheres where performance required to be developed and how that development should be organized (Shields, 2007).
Douglas McGregor presents performance appraisal commented that managers had bad experience providing feedback as they don’t like to be in the position of judge and playing a role of God (Robson, 2009). While Normal Maier mentioned that managers are eager to give negative feedback as it develops their performance. Also, Michael Beer and Robert Ruh specified three primary roots of difficulties in conducting performance review (Taylor, 2007):
- The quality of the relationship between the managers and employees
- The approaches and the capabilities in which interviews are conducted
- The review process on the part of the reason, methodology and paperwork.
So, it is very important making performance review to undertake all the necessary and vital issues as well as to give precise answers to the all questions in the case to skip any problems and issues. The main scopes, which are necessary to consider are:
- The necessities and objectives of performance review
- The main criteria and skills, which are important for performance review
- The way of review result should be handled
- The way of review’s effectiveness evaluation etc ( Armstrong and Brown, 2009).
However, the main issues that happen in conducting performance reviews are:
- clarifying performance measures and factors for assessing performance,
- gathering facts for evidence about performance,
- the existence of unfairness on the part of managers,
- fixing conflicts between reviewers and the employees they review
- self-protecting behaviour exhibited by employees in response to criticism.
There are no direct and easy responses to the issues, but it is worth never to underestimate how difficult and comprehensive it is for even experienced and productive managers to operate effective performance review meetings (Falcone, 2005).
The answer to this question could be that managers have no alternative choice, as it is an inherent part of making progress in performance management. Moreover, it is important and necessary as a performance management process of monitoring performance process. As an argument for a standard review is that it gives a focal point for the consideration of core performance, motivational and enhancement issues. It is a way of evaluation and considering future based on having insight about past (Cokins, 2013). It is very important to understand into the current situation and the further position where we want to get to. However, it gives an opportunity for manager and employees to stop afterwards and reflect on key problems of personal development.
The goals of reviewing performance are followings (Falcone, 2005):
- Organizing: to bring the basis for reformulating the performance agreement and the enhancement actions included in it.
- Motivation: to bring positive feedback, appreciation, opportunities for career growth, to specify and support employees to take control over their own performance, studying and enahancment.
- Learning, Enhancement and Success: to give a basis for self-managed learning and enhancement through training and other studying ways of the capabilities relevant to both the current position and any upcoming role that employee made have the ability to carry out. It is worth to take into consideration that learning and enhancement processes envolves concentration on the real role, making possible employees to broaden and develop the range of their responsibilities and the techniques they need and be promoted correspondingly (Grundy, 2000). This part of role enhancement is much more important in flatter companies where career ladders reduced and where sideways development is likely to be the premier route-forward.
- Communication: to work as a two-sedes channel for communication about a position, assumption (goals and accomplished requirements), beliefes, relationships, work issues as motivations.
Reviews can also give the basic information for evaluation performance, particularly if ratings are needed for performance. Conducting a productive performance review, particularly the one in which issues of underperformance have to be highlighted, requires considerable skills for the reviewer in such spheres as providing feedback, agreeing on goals, evaluating performance and enhancing needs, organizing for performance development and carrying on a dialogue (Morden, 2007). However, it is necessary to have the skill to carry out both formal and informal reviews and highlights the importance of the manager as a coach. Some of managers have these skills naturally, but those who have not should benefit from guidance and training in these core factors of their managerial roles.
A well-conducted review gathering gives an opportunity for “quality time”, where employees and their managers can appraise any issues, which affect work and future developments (DeNisi and Pritchard, 2006). Deeply organized review meetings will be very essentials for Unicall center in order to provide much more time and space for effective conversation and transmissions than is usually available for busy managers, which is one of their the most significant reasons. Also, reviews will be neccesary for Unicall to evaluate the current performance in order to make modification in the managament process and systems. From practically point of view, it is very important part for boosting Unicall’s objectives, as it gives an opportunity to discuss company’s and department’s goals and the way how employees fit into the picture as well as the contribution they are expected to make. Personal discussions also motivate employees and one more time highlights the importance of them in achieving company’s success. The review meetings also is a way to understand how employees feel about their positions and jobs, their motivation and their connections with their colics and managers (Roberge, 2009). Finally, review meetings provide to employees to make back step from everydays’ pressure and to have a look at matters that relate them through perspective and important benefits.
The more effective approach is to operate an attitude survey following performance reviews asking employees personally in confidence to give a response to their review meeting such as:
- The quality of the performance review that manager conducted
- The particular factors of review that could be better conducted
- The personal feelings after performance review
- The way employee feels about the job and further challenges after performance review
- The way managers help the employee to develop personal skills and abilities.
The outcomes of such a survey, a form of evaluation can be feedback anonymously to personal managers and to the top senior in order to give future guidance, training and formal coaching (Griffin et al., 2014).
Feedback is an essential part of performance management, which is required to have time by time in order to evaluate the existing situation in the organizations. Precisely, feedback should be supported by the facts and job-related examples and focus on behaviours, not judgments. On the other hand, it transfers information on performance from one sector of a system to a previous sectors of the system in order to develop corrective action or to bring new action (Fletcher, 2013). So, performance management has some of the features of a system in that it gives for knowledge to be presented as a feedback to employees in their performance, which assist them to have insight the way the have done their job and how productive their behaviour was towards the job. The purpose of the feedback is to promote this understanding in order to undertake an appropriate operation (Armstrong, 2007). Performance management feedback is effective in the sense of its goals for further improvements and enhancements, not just telling employees what wrong they did. Moreover, feedback must report on failers as well as on success. On the other hand, failers should not be got as a reason to blame but as an opportunity to become stronger and wiser than before. Also, feedback in performance management is always based on facts, evidence, outcomes, important behaviour that have influenced performance in particular way (Armstrong, 2015). To conclude, it is necessary to mention that feedback should be described and not judge, which will refer to specific behaviour.
The performance management tools include appraisal forms oftentimes referred to as performance reviews or other terms, which must be relevant to organizational outcomes that aim to achieve. Appraisal forms and process documents must tailor to an organizations mission, vision and value (Torrington, 2017). There are standard elements of performance tools that would be beneficial for Unicall to consider: 1. Demographic information, which identifies employees, 2.Standardized-rating scales selected to reflect the goals of the organization, 3.Job-related assessment of performance-based in specific job-related criteria and concrete examples of performance issues, 4. Self-evaluation encourages active participation of employees engaging them in their part in the process, 5. Smart goals providing for a clear definition follow-through desired outcome, 6. Employee development ensures the interactive process regarding training and employee growth (Sparrow, 2012). Performance appraisal can be clarified as the traditional evaluation and rating of employees by their managers at, often, a yearly review conference. Striking contrast to performance management is a permanent and much broader, more complex and more natural procedure of management that defies common expectations, highlights the encouragement role of managers who are supposed to be as coaches rather than judges and concentrates on the future (Grundy, 2000).
Performance assessment has been discredited because too often it has been performed as a top-down bureaucratic system maintained by HR department rather than by the managers (Armstrong, 2002). It has the tendency of backward looking, focusing on what had gone wrong, rather than looking ahead to future upcoming enhancement needs. Performance assessment strategy existed separated. Usually, line managers have rejected to evaluate and assess performance process as considering it as time-consuming and irrelevant (Armstrong, 2007). On the other hand, employees have disliked the superficial nature of appraisals conducted by managers who required more relevant skills. In addition, as Armstrong and Baron summed up the difference between performance appraisal and performance management, which is presented below in Table 1 (Richardson, 2010).
Table 1. Performance evaluation compared with performance management
|Perf Performance Appraisal||Perf Performance Management|
|Top Down evaluation||Joint Procedure through dialogue|
|Early appraisal meeting|| Permanent reviews based on one or more
|Use of ratings||Less ratings|
|Monolithic mechanism||F Flexible system|
|Concentration on quantified goals||Con Concentration on values and behaviour and goals|
Furthermore, one of the most frequently quoted aims of appraisal is to make possible of some kinds of the evaluation to do through appraisal. According to Fletcher (2013), the appraisal provides a basis for different core objectives, particularly:
–Making reward determination. It is important for all companies including Unicall to make rewards as extra payment, bonuses, promotions for employees who work more effectively than others (Locke and Latham, 2002). Also, it will help to skip the problem that standardised pay structure does not appreciate their personal skills and productivity. As it was mentioned in the case study, new recruits and particularly in the younger age representatives believe they do better jobs and more effectively in comparison with others, but they receive standardized payment without any recognition and rewards for their efforts and skills. Thus, this could be a real problem for losing loyal and professional staff members, who can easily find a similar job and positions in the other local similar call centres, where they can found even better career opportunities (Smither and London, 2009).
–Enhancing performance through assisting learning. One of the quite important and necessary principles of human learning is that to enhance performance, employees need to have basic knowledge of the work they deal with and to provide clear and satisfying answers to the customers in order to ensure high-quality service (Falcone, 2005). For example, there was a problem in the case study where different operators provided different answers to the same questions. These kinds of problems could occur in regards to the lack information and fewer training organized by the company. However, to skip these sorts of problems, it is very important to assist employees learning and to help them to enhance the job performance.
–Motivating employees. There are just three ways that evaluation seeks to motivate staff members to be better: 1. One of them is to give feedback (this one has already been mentioned above). Moreover, in very different organizations employees express a desire to get as much feedbacks as possible. This kind of appraisal brings motivation for employees (DeNisi and Pritchard, 2006). 2. Flowingly, it refers to the fair distribution of rewards. The significance of received fairness is how employees respond to the evaluations, which can be hardly overstated. The idea is that fair hearing has an impact on the attitude of employees. 3. The last one relates to the targets that enhance the previous performance making it even further stimulating tool.
–Succession organizing and finding out potential. The way of clarifying good and poor performers through evaluation and appraisal assessments could assist the company to concentrate succession organizing and to find resources among employees who bring the most advantage to the organization (Falcone, 2005).
–Endorsing manager-subordinate dialogue. This is one the way of evaluation and endorsement for better performance. However, it aims to have a formal occasion for employees and managers to discuss current issues and problems, which encourages more contact between manager and subordinate part (DeNisi and Pritchard, 2006).
-Formal evaluation of unsatisfactory accomplishments. This was of appraisal could be the most negative one, as unsatisfactory and poor performance aims to documented and used as an evidence of disciplinary or dismissal purposes (The Performance Management Revolution: Business Results Through Insight and Action 2007).
All in all, these are some of the ways that can be used during appraisal process or making assessments. Therefore, ideal performance management by processes and factors is when a company performs efficiently, all the inter-related processes are interpreted, systematically organized and decisions are made on current operations as well as enhancements are made using reliable data, which includes stakeholders appreciation (Mullins and Christy, 2016).
A psychological contract is a structure of beliefs that employees believe what actions or response to expect from their managers and employers. It is enclosed with the assumptions, responses and mutual commitments noted that psychological contracts are promissory and corresponding, providing responsibility for some behaviour on the interests of the employee, in the back for some action on the interests of employer (Armstrong, 2007). Moreover, a positive psychological contract is worth to undertake seriously as it is strongly connected to higher responsibility to the company, higher staff members satisfaction and more effective employment relations. Performance management has a significant role to play in enhancement a positive psychological contract. On the other hand, performance management can assist to simplify the psychological contract and make it more productive by:
- Presenting a basis for the mutual agreement and definition of roles;
- Sharing common assumptions and beliefes in form of targets, levels, degrees, standards of performance, behaviour requirements and endorsing key values;
- Keeping agreements on the basis of contribution for both parties (the manager and the employee) in order to achieve expected outcomes;
- Clarifying the stage of support to be exercised by the managers;
- Supplying rewards that strengthen the message about desired expectations;
- Providing staff members chances to clarify their work performance during special discussions.
The factors of psychological contract have been the main centre and point of attention in recent years is the traditional employee recognition that the company promises a “work for life” in order to get employee’s loyalty and responsibilities (Richardson, 2010).
Performance management should be appraised as a flexible process, instead of a ‘system’. The usage of term ‘system’ considered to be not flexible, very standardized, complicated and rigid approach, which is contradictory with the concept of performance management as a flexible and transformative, complicated process that is undertaken by managers working with their team members in order to operate the situation they deal with (Armstrong and Brown, 2009). The process of performance management was also was missing from Unicall’s operational process, so it is highly recommended to implement in order to become success-oriented. Here are suggested steps:
- Planning: agreeing goals and plans as well as needed requirements and producing performance correspondence and performance development and personal improvement strategies. Realize what to do and how to do it.
- Acting: undertaking those kinds of activities, which are required to gain goals and objectives. Undertake the work required to implement the plan.
- Monitoring: keeping control on the process in achieving objectives. Undertake ongoing checks on what has been done and evaluate the results in order to assess the enhancement in realizing the plan.
- Reviewing: fascinating the progress and accomplishments so that action goals can be prepared and sympathized. Understand what has been achieved and to consider that build and establish what more required to be done and any corrections are needed if the performance is not in the way as it supposed to be.
Performance management appraisal should not be served as a formal system of evaluation or in detail presented documentation. However, it should be logical and consistent in terms of contributing to an overall systematic approach where all the factors of the performance management operation are sympathized (The Performance Management Revolution: Business Results Through Insight and Action 2007). Accordingly, there should be a declaration of purpose, which presents why performance management is significant, how it operates and how employees will be affected by it. The declaration should have the clear and ongoing encouragement of top management and should highlight that the purpose is to enhance a high-performance nature of the business and integrate companies and individual objectives (Mitchell, 2007). The same approach should be done for Unicall call center in order to enhance and develop the management performance to escape from the continuously problems. When developing performance measurement metrics, it is always better to be concentrated on quality and service and then in financial metrics. However, a standard high-profit companies are concentrated first on financial metrics as a first priority. Most of the managers believe that if the quality and service are successful, high financial health will be followed (Farnham, 2010). On the other hand, performance management give a framework not only for information gathering but also for business development (or optimization) (Mitchell, 2007). However, from the practical point of view, one of the operational productive and effective appraisal forms is an evaluation of calls through recording and reviewing. There is needed to have 1 or 2 employees who will work checking the quality of answers that call center employee gives to each customer. Accordingly, during weekly conducted meetings, the best employee will be anounced who will get fanincial bonuses. This form of appraisal has been conducted for Armenian Telecommunication Company: Vivacell-MTS (https://www.mts.am/)., which has got the best customer satisfaction index among the competitors.
In essence, this business report set out to give a greater insight into the importance of implementing performance management system in order to enhance business productivity. On the other hand, performance management is a wide range of activities, which aim to develop employee performance, accordingly the performance of the company. Based on the existed problems in Unicall center arose from the lack of performance management, it was worth to make a deep literature review in order to find the core result areas as a best solutions for performance management, as setting objectives and reviewing performance as well as making performance management appraisal to be able to provide recommendations and justifications for the company to become success-oriented and in high ranking position among the competitors.
Based on the literature review, it became evidence that objective setting is the effective approach for performance development.
Problem: The lack of knowledge or information about the use of computer system is a cause for providing inaccurate information about simple enquires using 50% more time than they should.
Recommendation: The formal appraisal of an employee’s job performance is done in order to understand the level and stage where employee is performing productively. It is strongly recommended to enhance human learning process and training with employees in order to give quick and clear answers to customers.
Problem: The existing number of employees in comparison with growing demand for the telephone banking, which affects customer service.
Recommendation: The objectives are always strong motivators, but it is required to focus and navigate employee’s attention on specific tasks and assist them all the time to get the desired result. In other words, objectives have a directive role, which guides an employee’s attention and strive through objective-relevant functions and far from objective-irrelevant ones, which also improves persistence. For example when employees are permitted to control the time spending on a duty, challenging objectives help to give more prolonged strive.
Problem: Bad feedbacks from customers are based on rudeness of employees as well as inflexibility with complex problems providing different answers to the same questions. Recommendation: One of the quite important and necessary principles of human learning is that to enhance performance, so employees need to have basic knowledge of the work they deal with and to provide clear and satisfying answers to the customers in order to ensure the high quality of service.
Problem: Some groups of employees think that they work better than others and start to think that standardized pay structure doesn’t recognize or reward their individual skills and efficiency.
Recommendation:It is important to make any possible equitable rewards, for example extra payment, bonuses, promotions etc. Some methods of comparing people are really significant. For instance, if the appraisal of performance is done per years, then it can be used to give rewards to those employees who deserve it most of all. Moreover, these are the most important and necessary methods to keep the employees and staff members. Otherwise, as it was mentioned in the case study, where new recruits and particularly in the younger age representatives believe they do better jobs and more effectively in comparison with others, but they receive standardized payment without any recognition and rewards for their efforts and skills. Thus, this could be a real problem for losing loyal and professional staff members, who can easily find a similar job and positions in the other local similar call centres, where they can found even better career opportunities. The way of clarifying good and poor performers through evaluation and appraisal assessments could assist company to concentrate succession organizing and to find resources among employees who bring the most advantage to the organization.
Problem: Limited chance to recover from one call before getting the other one.
Recommendation: Evaluation and endorsement for a better performance. To have more formal occasion for employees and managers to discuss current issues and problems, which encourages more contact between manager and subordinate part as well as give solutions for any problems, which can affect performance management.
For examples, from the section of “The idea and Concept of Performance”, there was presented the theory of Dresner (2008) indicating that performance is a matter not just what people get but also how they get it, which refers to the number of calls and the quality of responses at Unicall. However, the recommendations and con
There are standard elements of performance tools that would be beneficial for Unicall to consider: 1. Demographic information, which identifies employees, 2. Standardized rating scales selected to reflect the goals of the organization, 3. Job-related assessment of performance-based in specific job-related criteria and concrete examples of performance issues, 4. Self-evaluation encourages active participation of employees engaging them in their part in the process, 5. Smart goals providing for a clear definition follow-through desired outcome, 6. Employee development ensures the interactive process regarding training and employee growth.
Based on the case of Unicall call center, the business consultant’s report had a mission to recommend performance management system establishment in order to enhance business productivity. Moreover, it aims to bring a value to the company having insight about performance management, emphasizing key result areas and required development in performance management. The report found out the importance of setting goals and correspondingly making reviews. Particularly, there was defined the significance of setting goals in order to understand the company’s strategy, departments’ objectives, understand how employee’s job performance supports strategy, low and high-value activities, clear priorities, aligned performance metrics etc. On the other hand, it gave a clear picture about management expectations and common understanding of what is required to develop performance and how it will be gained. However, the real objective of any performance management is to correct poor performance to support good performance and to develop it. The next step is to focus on reviewing process in order to understand how goal setting improves performance. Besides, employees should be aware of their output (need to get feedback based on done reviews). The idea reviewing objective progress is an important step to get an objective, which really motivates employee through special attainment. It makes employees more motivated and persistent in their doings and helped them to get the most productive strategies to overcome challenges.
The chain is as following: Past Performance->Objectives->Appraisal-> Review->Feedback->Future Performance. So, this chain of activities should be done regularly to keep the effectiveness of business performance. Consequently, we can see that the performance appraisal usually comes as a component of an annual cycle. However, employees can and should be appraised of their performance at any time. A formal appraisal of an employee’s job performance is done in order to have insight about the level and the stage where employee is performing productively (Farnham, 2010). For performance management review, we can say that it is a way where all the five main performance management components of agreement, assessment, feedback, a positive strengthening and dialogue are getting together to good use (Armstrong, 2007). It is based on real employee’s performance of people, which is formal and gives an opportunity for managers and employees to take positive step together and to have a look on performance and capabilities for making it even better for future. Moreover, employees should be encouraged to assess their own performance in order to become active member for making enhancement in their own results. One of the important parts of the performance management is appraisal process. Performance appraisal can be clarified as the traditional evaluation and rating of employees by their managers in the annual review conference. The appraisal process is necessary to do in order to make reward and to promote employees if it is needed. Also, appraisals are very important to understand the knowledge of employees and to organise training in case its needed. Performance appraisal can be productive for both administrative and enhancement purposes and it’s a part of a wider chain of actions, which begins with setting objectives and take in reviewing progress, learning and getting success, appraising performance and giving feedback. This is importantly worthwhile process.
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