Unit 5_The Concept of Employee Performance

The main aim of this unit is to introduce the concept of employee performance.
Most organisations want to encourage their employees to advance and succeed as
this enhances the company as well as the workforce but there are differing opinions
as to what motivates high performance and how it should be evaluated and
rewarded.

In some organisations, performance is evaluated in the form of an appraisal or

performance review, which is usually carried out at regular intervals, such as
annually. The review is normally carried out by the line manager or HR department.
It is a way to analyse the positives and negatives that have occurred and helps set
targets and goals and identify training and development opportunities. It also
provides an opportunity for the employee to suggest any improvements and to air
any grievances. As well as regular reviews, effective management would also offer
regular feedback to staff in an informal context. This could take the form of
acknowledging when tasks are carried out well and offering thanks. If improvements
are required, then a low-key discussion can provide the chance to clarify
expectations and objectives and keep projects on track.

There are differing opinions as to how good work should be recognised. It might
take the form of rewards, either financial or non-financial, such as a payrise,
bonus, promotion, flexible working hours or enhanced benefits. However, it is
also argued that rewards can demotivate staff and result in a competitive culture
rather than encouraging collaboration. There are concerns that performance-
related rewards have the potential to encourage bad behaviour. For example,
when they are linked primarily to results or profits, it might deter staff from
alerting management to concerns. Other discussions relate to how performance
is measured, whether it is objective or subjective, whether incentives should be
awarded due to merit or length of service.

In traditional work environments, there was often the concept of a job for life. An
employee was likely to stay with a company for a long period and would be
promoted and rise through the ranks at regular intervals. The eventual arrival at a
senior position could be seen as a reward for loyalty rather than a reflection of talent.
While modern organisations may still offer incentives to encourage good employees
to stay with the company, there is less expectation that workers will spend their
entire career with one firm. Instead, most people will have a variety of jobs with
different companies throughout their working life, moving on if they feel they
will achieve greater recognition or career progression elsewhere. With this
mobile workforce, corporations with a reputation for recognising and rewarding
performance are likely to attract a greater pool of talented applicants.