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The Influence of Employee Management on Organizational Objectives

The Influence of Employee Management on Organizational Objectives



The Employees Performance Management system is a comprehensive procedure based on the performance of the workforce and the achievement of organizational goals at all levels. In addition to emphasizing the development and improvement of the system as a whole, the fundamental principle underlying the performance management system is to develop the alignment between corporate objectives and personnel skills and talents. People frequently conflate performance management and performance appraisal; however, performance appraisal evaluates previous performance, whereas performance management is a continuous process for assessing the achievement of objectives. While conducting study in an Australian institute, Alan Nankervis (2004) discovered that very few organizations discussed their organizational goals with their personnel. The majority of organizations use performance appraisal as opposed to performance management, where the emphasis is placed on the comparison between the organization’s performance standards and the actual performance of the employees, but no one compares the performance against the organizational goals. While working in an organization for quality control, performance management is the primary focus. In a quality-based company, the performance objective is based on the achievement or fulfillment of goals rather than predetermined norms.

Employees play a significant role in determining the survival of every organization. In accordance with this, an employee is viewed as a significant or valuable asset to a company and is the key or precondition for the organization or factory to operate as planned. Employees form the organization’s beating heart and are crucial to determining the wants and expectations of the client or customer. This is consistent with the aim of performance evaluation in the modern approach, which stresses employees with untapped potentials. Employees can be utilized effectively to maintain the service or product quality of a firm. This is related to the employees’ tasks and responsibilities to perform at the maximum degree of their work competencies. The advancement of employees is enhanced as a result of a more positive performance evaluation system. With the accomplishment of the organization’s vision and goal, employees can collaborate with the organization itself on a foundation of mutual benefit. In this context, performance evaluation can be a useful tool for planning a better career path for employees. Performance assessment is often referred to as performance review, employee appraisal, performance evaluation, employee evaluation, employee rating, merit evaluation, and personnel rating. Performance assessment is a method that measures, evaluates, and influences the qualities, behavior, and performance of employees in respect to a predetermined standard or aim. Using software tools, employee performance can be evaluated in this era of information technology. This will facilitate the evaluation and storage of employee performance data in a database for future retrieval. Employee performance management is the methodical description of an individual’s job-related strengths and weaknesses for the goal of making a hiring choice. In another sense, performance assessment is the process of evaluating the behavior of employees in the workplace, or the act of providing feedback on employee performance. It includes a very sophisticated procedure, which can be affected by numerous variables. Therefore, the process of evaluating employee conduct should be viewed as a reciprocal process or from a matrix perspective, as opposed to a clear approach.



While research and experienced practitioners have identified some qualities that are necessary for effective performance management systems, numerous decisions must be taken to create a system that is optimally matched to the demands of a particular business. One such decision is the system’s intended function(s). For instance, performance management systems can facilitate compensation decisions, promotion decisions, employee growth, and layoffs. A performance management system that strives to attain an excessive number of goals is likely to fail due to its lack of focus and weight. There is no single system or set of goals that is optimal for all enterprises. Consideration of business requirements, organizational culture, and the system’s compatibility with other human resource management systems should inform the performance management system’s objectives. While performance management for decision-making and employee development are obviously related, it is crucial to note that these two objectives are rarely supported equally well by a single system. When a performance management system is used for decision-making, the evaluation data serves as the foundation for salary raises, promotions, transfers, assignments, and other administrative HR actions. When a performance management system is utilized for development, the appraisal information guides the training, job experiences, coaching, and other activities that people will engage in to build their capabilities. Theoretically, it is conceivable to have a performance management system that is effective for both decision-making and development, but in fact, this can be difficult to achieve. In addition, research indicates that the objective of the assessment (decision-making versus development) influences the observed ratings. 1 The majority of employees receive ratings on the high end of the spectrum when ratings are utilized for decision-making. Ratings for developmental purposes are typically more variable, reflecting both the employee’s strengths and growth requirements. An illustration will demonstrate why it can be challenging to emphasis decision-making and development equally inside the same system. This organization’s managers evaluate its employees and then convene to calibrate their evaluations and determine compensation. Managers then hold review conferences with each employee to discuss performance, pay raise, and stock option grants. The meeting is designed to include developmental feedback. The wide range of percentage increases and stock options, however, enables managers to efficiently correlate success with rewards. With so much at risk, the majority of the conversation is generally devoted to justification by both parties rather than how the employee may grow. The meeting environment is not favorable to providing and receiving feedback, and employees are hesitant to express their development needs for fear of a negative influence on their compensation. Even in this organization’s strong performance-based culture, emphasis is placed on the decision-making part of performance. Effective performance management systems have a well-defined process for completing evaluation activities, as well as clearly defined roles and timetables for both managers and employees. Especially in firms that utilize performance management as the foundation for compensation and other HR decisions, it is essential to treat all employees fairly and equitably.


In the context of an organization, performance is typically described as the extent to which a member contributes to attaining the organization’s objectives. In service-oriented firms, the fundamental source of competitive advantage is the workforce (Luthans and Stajkovic, 1999; Pfeffer, 1994). In addition, a commitment performance approach considers employees as assets or resources and values their opinions. The contribution of employee performance to organizational performance is significant. Initially, employee performance is what a person does or does not do. Employee performance could comprise output amount, output quality, output timeliness, presence at work, and cooperation (Güngor, 2011). Macky and Johnson argued that better individual employee performance might also benefit the performance of the corporation. According to Deadrick and Gardner’s (1997) definition, employee performance is the record of outcomes achieved for each job function over a set time period. In this method, performance is represented as a distribution of outcomes attained, and it may be quantified using a number of metrics that reflect an employee’s performance pattern across time. Darden and Babin (1994) stated that employee performance is a rating system utilized by many organizations to determine an employee’s competencies and output. Good employee performance has been associated with an improved consumer perception of service quality, whilst bad employee performance has been associated with an increase in customer complaints and brand switching. In conclusion, employee performance might be defined as the associated tasks required of a worker and how successfully those tasks are carried out. Then, many firm people directors evaluate the performance of each employee annually or quarterly to help employees find areas for improvement.



The principles of performance are examined through the evaluation of overall performance and the management of performance, and the evaluation of performance is the act of categorizing specific outcomes within a predetermined timeframe (Coens & Jenkins, 2002). In addition, the adage “If you can’t measure it, you can’t manage it” underlies the rationale for a company to have a complete and thorough performance measuring system.

The Influence of Employee Management on Organizational Objectives



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