New Organizational Structures and Changing Career Patterns

New Organizational Structures

Holacratic structures are composed of teams which can be brought together and dissolved quickly to meet organizational goals. As a form of self-management, a holacracy’s decision power resides in these fluid teams, or “circles,” which helps to disperse power throughout the organization. Rather than a formal hierarchy, these teams have a set of simple, explicit, and public rules that dictate how work gets done. If anyone has an issue with a current process, they can raise and resolve them at regular group meetings. The aim of a holacracy is to distribute decision making while enabling everyone to work on what they do best. Holacracies still possess some structure and hierarchy, but it’s based more on circles and what people think of as departments rather than on people. Zappos and Medium have been two of the most visible adopters of the holacratic method.

While the hierarchal model enabled industrial-age companies to thrive, the rise of the information economy has rendered this model harder to optimize. In factories, knowledge and intellect is concentrated at the top. Actual production, in contrast, requires little thought and massive coordination and repetition. Knowledge-based organizations, by contrast, require each employee to be

Changing structure is not easy for any organization. There is a lag between technical reality and culture. To catch culture up, we must reframe the challenges of adapting to the 21st century as an opportunity.

Some experts go so far as to advocate for eliminating all titles within an organization, though critics wonder how employees could advance their young careers without an external step ladder of success. But Carter says eliminating titles will also help break down employees’ glass ceilings. Without parameters defining their jurisdictions and authority, they can assume more responsibility and boost their level of involvement in projects.

The key to profitable performance is the extent to which four business elements are aligned:

  • The individuals responsible for developing and deploying the strategy and monitoring results.
  • The structure, processes and operations by which the strategy is deployed.
  • The necessary roles and responsibilities.
  • The experience, skills and competencies needed to execute the strategy.

New Organizational Structures and Design

Learning Organizations

In an environment where environments are continually changing, it’s critical that organizations detect and quickly correct its own errors. This requires continuous feedback to, and within, the organization. Continual feedback allows the organization to `unlearn’ old beliefs and remain open to new feedback, uncolored by long-held beliefs.

In a learning organization, managers don’t direct as much as they facilitate the workers’ applying new information and learning from that experience. Managers ensure time to exchange feedback, to inquire and reflect about the feedback, and then to gain consensus on direction. Peter Senge, noted systems theorist, points out in his book, The Fifth Discipline that the learning organization is “continually expanding its capacity to create its future for a learning organization, `adaptive learning’ must be joined by `generative learning,’ learning that enhances our capacity to create.”

Virtual Organization

This emerging form is based on organization members interacting with each other completely, or almost completely, via telecommunications. Members may never actually meet each other.

Network Structure

This modern structure includes the linking of numerous, separate organizations to optimize their interaction in order to accomplish a common, overall goal. An example is a joint venture to build a complex, technical systems such as the space shuttle. Another example is a network of construction companies to build a large structure.

Self-Organizing Systems

Self-organizing systems have the ability to continually change their structure and internal processes to conform to feedback with the environment. Some writers use the analogy of biological systems as self-organizing systems. Their ultimate purpose is to stay alive and duplicate. They exist in increasing complexity and adapt their structures and forms to accommodate this complexity. Ultimately, they change structure dramatically to adjust to the outer environment. (Some assert that self-managed groups are self-organizing systems, although others assert that self-managed groups are not because an ultimate purpose is assigned to team members).

Characteristics:

  • Organic in nature: Less rules and regulations, sometimes no clear boundaries and always-changing forms.
  • Strong employee involvement: Input to the system starts from those closest to the outcome preferred by the system, from those most in-the-know about whether the organization is achieving its preferred outcomes with its stakeholders or not. This way, the organization stays highly attuned and adaptive to the needs of stakeholders.
  • Authority based on capability: Ensures the organization remains a means to an end and not an end in itself
  • Teams: Share’s activities to take advantage of economies of scale at the lowest levels of activities and ensures full involvement of employees at the lowest levels.
  • Alliances: Takes advantage of economies of scale, e.g., collaborations, networks, strategic alliances/mergers, etc.
  • Flatter, decentralized organizations: Less middle management, resulting in top management exchanging more feedback with those providing products and services; also results in fewer overhead costs.
  • Mindfulness of environments, changes, patterns and themes: Priority on reflection and inquiry to learn from experience; develop “learning organizations”.

Changing Career Patterns

Significant differences were observed in job mobility and organizational mobility of the various generations, with younger generations being more mobile. However, despite significant environmental shifts, the diversity of career patterns has not undergone a significant shift from generation to generation.

Job mobility no longer carries the stigma once associated with job change, although it can be emotionally stressful. Corporate upheavals of the early 1990s and low unemployment rates during the last part of the decade have caused changes in job search and hiring practices. Companies, especially those in technology fields that are in dire need of qualified, skilled, and experienced employees, are driven to recruit workers away from their current employers. Workers, who see job mobility as a way to find work that is appealing, challenging, and offers growth potential, are viewing career change as a way to progress through the uncertainties of the workplace. Job mobility is most prevalent among individuals who are first entering the labor market.

Although changing careers may seem overwhelming to many, the examples presented in this Digest show that changes are possible and probable. Employment will be increasingly characterized by sequences of decisions and work/role transitions. Similar sequences of behaviors, experiences, and judgments will influence ever-changing career patterns. For workers who seek continued and rewarding employment, career management skills will become increasingly important. Workers will need to be able to identify their strengths, goals, and skills; conduct ongoing assessments of their values and goals; monitor themselves and their job situation; and develop the interpersonal and negotiating skills needed to manage organizational career systems. Life changes and career changes often go hand in hand, offering the skilled and flexible worker opportunities to use these changes to personal advantage.

Requisites of Effective Career Planning

Career planning is an extremely crucial but an overwhelming task. This is a step that is often skipped by most of the people in their professional lives. Planning your career means that you are not leaving things to chance but taking control of your career journey.

Career planning can help you in the following ways:

  • Save time and energy: Career planning helps you avoid going after a profession that does not align with personal goals and abilities. The earlier you plan, the better it is.
  • Figure out your goals: It becomes easier to figure out personal objectives and goals through career planning. It is always better to chase your goals instead of working aimlessly.
  • Focus: You will be able to determine a clear path to follow with the help of career planning. It helps you avoid feeling lost and lets you focus on the right aspects.
  • Make confident choices: Career planning puts you in the driver’s seat in your career journey and lets you make confident choices for your future endeavors.

Tips for career planning

Find a mentor: Find a mentor or a coach within your network. It can make a huge difference to your career in the long run. You can also take help of a professional counselor.

Keep options open: If you do not find a desired role or company in your city, be open to exploring other geographies.

Keep updated: Career planning is a lifelong process. So, keep reviewing your plan and update it as per the changing market.

Network: Connect with professionals within your network. Getting someone’s support and advice can speed up the process and broaden your perspective.

Be realistic: Keep in mind your personal circumstances and available resources.

Switch career: It is never too late to start over. No matter how old you are, if you are not happy with your current profession, do not hesitate to switch.

To ensure successful career planning, a number of steps should be taken, these include:

Goals: The corporate goals must be laid down clearly in terms of career development opportunities in the organization.

Support: Career planning efforts must receive consistent support, commitment and assistance from the top management of the organization.

Placement: Every effort must be made to put employees on jobs that are in tune with their capabilities. If a talented employee is put on the routine job, he will quit in frustration.

Reward-performance: Employees must be willing to expand their abilities, trainers must be willing to coach, counsel and share their knowledge with the employees. There must be appropriate rewards for people from both sides who show promise.

Career Paths: The career paths for different types of employees must be laid down clearly. First the organization should track promotions for talented employees, seniors could be used on jobs requiring experience and judgement, juniors could be used for jobs that demand routine application of rules and procedures etc.

Continuous Tracking: Career planning efforts should be carried out on a continuing basis keeping the changing needs of the employees and the organization in mind. A record of career movements of employees could be generated and maintained by the effective use and implementation of a HRIS.

Publicity: Everyone should be aware of the career opportunities within the organization.

Role of employer and employee in Career Development

The employee, the manager, and the employer all play roles in planning, guiding, and developing the employee’s career. However, the employee must always accept full responsibility for his or her own career development and career success. This is one task that no employee should ever leave to a manager or employer. For the individual employee, the career planning process means matching individual strengths and weaknesses with occupational opportunities and threats. The person wants to pursue occupations, jobs, and a career that capitalize on his or her interests, aptitudes, values, and skills. He or she wants to choose occupations, jobs, and a career, and a career that make sense in terms of projected future demand for various types of occupations.

Of course, career planning only gets one so far. Many people who had previously worked hard to train as computer systems analysts were devastated to find that the dot-com collapse had dramatically reduced the need for systems analysts. However, uncertainties like these only underscore the need for keeping one finger on the pulse of the job market, so as to be better positioned to move when a career change is required.

The Employee Role:

Making decisions like these is the employees responsibility. For example, an employee can do several things short of changing occupations. An employee must know what he is looking for in a job and to what extent his current position is fulfilling his needs. Get rid of energy-draining, low impact responsibilities. Employee can enhance his networks, for instance, by joining a cross-functional team at work, discussing career goals with role models, conducting informational interviews with people whose jobs are of interest and becoming a board member for a nonprofit organization so that the employee can interact with new people. If an employee is satisfied with his occupation and where he works, but not with his job as it is currently organized, the employee must reconfigure his job. For example, consider alternative work arrangements such as part time work, flexible hours, or telecommuting; delegate or eliminate the job function least preferred and seek out a ostrich assignment that will let him work on something that the employee finds challenging.

Workplace Politics

Employee development programs cannot always place the same amount of emphasis on all employees at once, and not all employees are interested in growing personally and professionally. When some employees take part in development programs and others do not, it creates an opportunity for negative workplace politics. Employees have a responsibility to refrain from gossiping about or resentfully treating others who take advantage of development programs, and to refrain from looking down on employees who choose not to participate.

Outside Learning

Certain aspects of employee development programs place a great deal of responsibility on employees to work hard in their personal time. An employer can offer a college tuition reimbursement plan, for example, but employees have to put in their own hours studying and working toward their degree. Likewise, employers can send employees to seminars and workshops, but employees must choose to use their time for learning and making professional contacts rather than treat the trip like a vacation.

Attitudes

Employees absolutely must have positive attitudes when approaching employee development programs. An attitude of entitlement or complacency can seriously hinder employees’ professional growth. If an employer gives an employee additional responsibility, for example, it is up to the employee to view it as an opportunity to learn and grow rather than being forced to do extra work. In addition, employees have a responsibility to make the most of training sessions rather than complain that training wastes their time.

Taking Initiative

Employee development initiatives can involve identifying potential management candidates on the front lines and giving them training and extra responsibility to prepare them for a future promotion. Employees have the responsibility to speak up to management about their ambitions and desire to progress in their career, however, and must earn the attention of management through excellent individual and team performance.

Employer Role

The manager plays a crucial role in career’s development. First of all, he should be a mentor to expand the capabilities of the individuals and improve their performance. According to John Kotter (2012), the role of the manager as a mentor can be helpful particularly for young employees, who have just started their career. He emphasizes that the successful executives, who he has known, have had two or more these sort of relationships with their managers in the early stage of their career. The mentors provided them with specific information, important contacts or skills.

The effective manager should incorporate coaching skills into his management style. For instance, at Intel, the management department is responsible to help the workforce understand the shifting demand for their skills and ensure that the staff will be provided with appropriate training. At Reuters, the employees are also receiving the guidance to help them to work more efficiently.

Role of Mentor in Career Planning

Mentoring is a relationship between two people with the goal of professional and personal development. The “mentor” is usually an experienced individual who shares knowledge, experience, and advice with a less experienced person, or “mentee.”

Mentoring is a process of developing formal relationships between junior and senior members of the organisation, in certain cases mentoring also takes place between peers. In other words it is a process of developing relationships between more experienced members of an organisation and the less experienced ones for transfer of knowledge and skills. These associations are developed with the intent of developing career functions. For example, coaching, sponsorship, protection to peer, challenging assignments, introduction to important contacts and resources are certain ways in which mentoring may happen.

Mentors become trusted advisers and role models people who have “been there” and “done that.” They support and encourage their mentees by offering suggestions and knowledge, both general and specific. The goal is to help mentees improve their skills and, hopefully, advance their careers.

A mentoring partnership may be between two people within the same company, same industry, or same networking organization. However, the partners come together, the relationship should be based on mutual trust and respect, and it typically offers personal and professional advantages for both parties.

Mentoring is also targeted to psychological functions; role modeling, counseling, benchmarking individual practices are various ways in which the latter is achieved. It is no doubt an important tool that apart from employee development also leads to increased job satisfaction, organisational dedication and career achievement.

Mentoring Techniques

Mentoring requires an exercise of great wisdom, caution and expertise on the part of the mentor. There are many techniques that are used these days, some of which have been briefly explained below:

  • Mentors are assigned with the responsibility of preparing their mentee for change. The focus is to prepare the individual mentally before he/she is asked for change, so that the change is not taken as negative and instead a developmental process. This mentoring technique s called sowing.
  • The other entering technique is called as accompanying, wherein the mentor is involved in the learning process of mentee side by side explicitly, guiding all the time.
  • Doing is yet another mentoring technique in which the mentor uses his own example to make something understand. It is also called leading.
  • Harvesting is one technique that is essentially aimed at evaluation of the past learning’s and to extract conclusions from the same.
  • Catalyzing is one technique wherein the process of learning or knowledge transfer is speeded. This is done only when a significant amount of change is achieved.

Best Practices

Open doors

You have great connections that could benefit your mentee. To help your mentee learn and grow, introduce them to people in your network who could provide insight on how to be successful in their chosen field.

Respect differences

Your mentee’s path may be entirely different than yours, so try not to make assumptions about their experiences, goals or skills. Work with your mentee to recognize how their unique backgrounds and experiences shape their perspective and can be leveraged.

Know your worth and your limitations

Don’t question whether you are qualified to be a mentor what you may take for granted might be invaluable knowledge to someone else. At the same time, it’s also important to recognize your limitations and seek out advice and support when needed, which is a great way to model problem-solving skills.

Empower, don’t solve

Most mentors are amazing problem solvers. But great mentors empower their mentees to find their own solution to a problem or challenge. Sometimes, the journey is more important than the result.

Mutual accountability

Trust and accountability are the foundations of any successful mentoring relationship. Hold your mentee accountable to set goals. By the same token, make sure you’re practicing what you preach.

Set expectations

The most successful mentoring relationships have agreed-upon expectations and goals. Must be transparent about what you can bring to the relationship and what you hope to get out of it.

Celebrate milestones

Recognize small achievements along the way. This is a great way to keep your mentee excited and engaged.

Provide opportunities for growth

Ensure that you provide genuine and honest feedback in a supportive manner. Conversely, be open to receiving it.

Learn from each other

When sharing knowledge and advice with your mentee, ask them questions about their point of view, insights and perspectives. The best relationships happen when a mentor and a mentee can learn from each other.

Role of Technology in Career Planning and Development

People tend to restrict the impact of technology on career planning to only those candidates searching for jobs on the internet. While that is a crucial change in career planning, it is by no means the only change that technology has brought in an employee’s life. Thanks to the advances in technology, employees can now undertake a self-assessment of their skill-sets through various online platforms and portals.

Technology can help facilitate career development conversations between managers and employees in a number of ways, including support for regular discussions between staff and supervisors across the career management process. A career development planning section on the regular performance review form can ensure that managers and employees discuss and document employee career goals and that managers assign the appropriate career development opportunities. Employees can also document their broader skills and abilities as well as their career plans in their digital talent profiles. These profiles should be configurable so you can include all the sections you need.

The employees can now get a clearer idea of the areas they need to focus on to get a wellrounded profile. It reduces their dependence on employers and immediate supervisors to get a feedback on their performance in the form of performance reviews. These employees also don’t need to rely upon counsellors or on the human resources department to get their suggestions and to get their questions answered.

Connectivity also helps people from different departments to be connected, which increases overall efficiency and time utilization. The employees can now easily get the response to their queries over mails and instant messengers, as opposed to the earlier method of walking to the desk and getting questions asked. Instead of just one mentor, now there are several ones who can help you out when you are in a fix.

All the credit for providing these facilities goes to the Internet. Internet or technology facilitates the employees to learn new courses and enhance their skills and add weightage to their resume. Even the organizations are making use of the online modules for providing training to their employees.

Mails and instant messaging systems facilitate the employees to communicate easily and the answers to their queries can be fast received. The number of mentors who guide the employees in the due course of their learning also increases.

Concept of High-Performance Teams

High-performance teams (HPTs) is a concept within organization development referring to teams, organizations, or virtual groups that are highly focused on their goals and that achieve superior business results. High-performance teams outperform all other similar teams and they outperform expectations given their composition.

A high-performance team can be defined as a group of people with specific roles and complementary talents and skills, aligned with and committed to a common purpose, who consistently show high levels of collaboration and innovation, produce superior results, and extinguish radical or extreme opinions that could be damaging. The high-performance team is regarded as tight-knit, focused on their goal and have supportive processes that will enable any team member to surmount any barriers in achieving the team’s goals.

Within the high-performance team, people are highly skilled and are able to interchange their roles. Also, leadership within the team is not vested in a single individual. Instead the leadership role is taken up by various team members, according to the need at that moment in time. High-performance teams have robust methods of resolving conflict efficiently, so that conflict does not become a roadblock to achieving the team’s goals. There is a sense of clear focus and intense energy within a high-performance team. Collectively, the team has its own consciousness, indicating shared norms and values within the team. The team feels a strong sense of accountability for achieving their goals. Team members display high levels of mutual trust towards each other.

What distinguishes high-performance teams from other groups is that a team is more than a collection of people simply following orders. To function effectively, a high-performance team also needs:

  • A deep sense of purpose and commitment to the team’s members and to the mission.
  • Relatively more ambitious performance goals than average teams.
  • Mutual accountability and a clear understanding of members’ responsibilities to the team and individual obligations.
  • A diverse range of expertise that complements other team members’ abilities.
  • Interdependence and trust between members.

There are four key reasons why teams work:

  • A group of individuals brings complementary skills and experience that exceed the abilities of a single individual.
  • Teams support real-time problem-solving and are more flexible and responsive to changing demands.
  • Teams provide a unique social dimension that enhances the economic and administrative aspects of work.
  • High-performance teams generally have more fun at work than low-achieving teams or individuals.

Characteristics

Different characteristics have been used to describe high-performance teams. Despite varying approaches to describing high-performance teams there is a set of common characteristics that are recognised to lead to success

Participative leadership: Using a democratic leadership style that involves and engages team members.

Talent, skills and work ethic: High-performance teams begin by recruiting and retaining their best talent while quickly helping low-performing members find other places to work. Morale typically increases as performance increases. After selecting for talent, it is critical to ensure that the team members possess complementary skills (e.g., technical, problem-solving, decision-making and interpersonal skills). Team members must exhibit a sustained commitment to performance excellence, exercise candor and mutual respect, and hold themselves and their organizations accountable at both the individual and team levels.

Effective decision-making: Using a blend of rational and intuitive decision making methods, depending on that nature of the decision task

Open and clear communication: Ensuring that the team mutually constructs shared meaning, using effective communication methods and channels

Valued diversity: Valuing a diversity of experience and background in team, contributing to a diversity of viewpoints, leading to better decision making and solutions

Mutual trust: Trusting in other team members and trusting in the team as an entity.

Incentives, motivation and efficacy: Both monetary and nonmonetary systems that encourage high performance have a positive impact on tactical implementation of the team’s goals. Over the long term, intrinsic motivators such as personal satisfaction at work and working on interesting projects provide the greatest impact on performance. In addition, a belief in one’s self and abilities encourages people to take more strategic risks to achieve team goals.

Managing conflict: Dealing with conflict openly and transparently and not allowing grudges to build up and destroy team morale

Clear goals: Goals that are developed using SMART criteria; also each goal must have personal meaning and resonance for each team member, building commitment and engagement

Defined roles and responsibilities: Each team member understands what they must do (and what they must not do) to demonstrate their commitment to the team and to support team success

Coordinative relationship: The bonds between the team members allow them to seamlessly coordinate their work to achieve both efficiency and effectiveness

Positive atmosphere: An overall team culture that is open, transparent, positive, future-focused and able to deliver success

Linking Performance Management to Compensation

Write results-oriented job descriptions

Many companies find it beneficial to rewrite their job descriptions to include more results-oriented and measurable information. Instead of simply including the specific tasks or duties of the job description, consider adding why the duty is performed, or which results it aims to achieve, and how the performance will be measured.

For example, for the marketing director role in an assisted living facility, the roles and responsibilities might look like this:

  • Facilitate the move-in process to build relationships with new residents. Metric: New resident satisfaction.
  • Ensure respite apartments are ready to show to ensure marketability. Metric: Apartment turnover.
  • Develop and maintain a detailed marketing plan to great market share. Metric: Competitive market data.

The overarching goal of the compensation strategy is to ensure an organization has allocated the money necessary to motivate the performance needed to achieve the business strategy. To that end, compensation should also tie into the overall performance management strategy.

Practices must therefore be understood by employees and based on hard, objective data. It is essential to maintain an approach in which equal pay is given for equal work. These critical objectives can be achieved by:

  • Standardizing pays practices and basing the compensation system on benchmarks
  • Achieving internal parity
  • Providing competitive hiring scales
  • Reformatting or rewriting job descriptions
  • Creating a meaningful performance management tool

The four types of direct compensation for employees you’ll see most often are:

  • Hourly Pay/Wage: The most common and direct form of compensation. Typically used with unskilled, semi-skilled, and part-time positions.
  • Salary: Customarily a yearly amount that is split evenly into pay periods so that workers receive the same amount every paycheck throughout the year. Positions that require more education or specific skills generally pay a salary.
  • Commission: Commission-based compensation is designed to incentivize employees to produce at a high level and may be used in certain industries where the employer cannot guarantee a consistent workload.
  • Bonuses: Bonuses give businesses a flexible option to reward employees additionally for great performance.

Steps

Build a Pay-for-Performance Compensation Strategy

By linking performance and compensation management efforts, employers not only provide clear compensation guidelines for themselves, but they can help employees understand their value and work to increase it.

HR professionals should lead these strategic planning efforts by first working with senior leadership to create these strategies (and subsequent tactics). Second, you’ll want to make sure these strategies are tied to applicable data because your people will want proofs. Data from your performance management efforts can help in this process.

Improve Pay Communication

But don’t run too fast. There is some aligning that needs to take place before you discuss your pay-for-performance strategies with your people.

According to the survey mentioned above, two-thirds of the employees who felt they were underpaid were at least paid at market value, and 35 percent were actually paid above market value.

Compensation is an exchange of value, and as we’ve already discussed, value is about perception. So, even if you come up with a perfect strategy to compensate your people according to their real value, it’ll be for nothing if they don’t understand it.

Performance Management Implementation & Strategies

Performance management is a strategic process and an integrated approach. The process involves an ongoing dialogue between the supervisor and the employee for setting goals which are achievable and contribute in the direction of fulfilment of the organizational goal. The main objective of performance management approach is to proactively manage employee’s performance for accomplishing organizational goals by attaining a desired level of performance. It believes in linking the performance plans of an organization with the strategic vision and identifying the major performance indicators and KRA’s for enabling the employees to achieve the expected outcomes for their organization.

Any performance management process broadly involves three stages and these are:

  • Goal Setting and Motivation which is normally done in the beginning of the session.
  • Encouraging Stage which is normally undertaken when the employees get involved in the process of pursuit of the assigned task.
  • The final stage is the Stage of Rewards and Consequences which is applied after the completion of a task.

Performance management is always a forward planning process which is developmental and facilitative in nature as it involves the team leaders and the employees in a joint process of decision making for fixing smart targets. It aims at breeding performance orientation in the employees for developing high performance organizations. The entire process involves identification, evaluation and development of the work performance of the employees through effective management practices like continuous coaching, feedback and regular communication. The process includes the following stages:

  • Work Planning and defining expectations
  • Monitoring performance
  • Developing the weak performance areas
  • Performance rating
  • Rewarding good performance

Step 1: Set expectations

Performance management starts with meeting with each employee to discuss which results and behaviors are expected of them. Don’t list off what you want and expect your team members to quietly obey. Instead, ask your employee to participate in deciding what is realistic for them to achieve. Be as specific as possible to ensure everyone is on the same page. This avoids an “I didn’t know I was supposed to do that” situation a few months down the line.

Step 2: Observe

Laid out expectations, and team participated in setting their objectives. Now take a step back and observe how the plan takes shape, helping out as necessary and maintaining regular communication.

  • Give ongoing feedback: Rather than waiting until the review period is over, be sure to give feedback and coaching on a regular basis. This ensures the employee develops and helps them reach their objectives. Give advice or constructive criticism as needed.
  • Reinforce: Likewise, make sure he maintains good performance by making it clear it is being noticed. If good performance is not praised, employees will lose motivation. This is especially crucial when an employee exceeds their performance standards or expectations. If you don’t acknowledge it, they might wonder why they’re working so hard.
  • Give updates and resources: As your project goals change, so might the employee’s objectives. Be sure to update them on any such changes immediately. Provide them with all the resources they need to facilitate goal-setting or to maintain their performance during the shift. Whether it’s training, tools, or readings, make sure they have what they need to do the job.
  • Observe and collect performance info: Keep track of examples of good and bad performance on a daily basis. These examples will be used during the performance review process to highlight what improvements are needed, and what they’re already knocking out of the park.

Step 3: Assessment

It may be appropriate to evaluate results, for others behaviors, and for some, both. To help you figure out what to assess for what employee, consider this:

Assess results if: Effort will always lead to results; results show consistent improvement over time; or if there are several different ways to do the job right and get good results. 

Assess behaviors if: Effort and results aren’t connected in an obvious, very direct way; results take months to develop; or if bad results can come from factors outside of the employee’s control.

Self-appraisals:

Let the employee do a self-appraisal as well, or give them a chance to explain how they think they did. Self-ratings pinpoint discrepancies between how a team member views themselves, versus how others view them. These discrepancies provide teaching moments, and highlight areas needing development. Self-evaluations also minimize defensiveness, help team members learn, and ensure they feel the performance management process is fair.

Appraisal forms:

A valuable way to assess performance is to fill out a template or complete an appraisal form. You can also invite an employee’s peers to complete one, as this can be a great way to assess teamwork or how the person acts when you aren’t around. However peer evaluations can be subject to bias and context, so don’t rely on them as your sole source of information.

Step 4: Review

The final step of performance management is to sit down with the employee and discuss their performance during the review period. Share your observations, assessments, and feedback, and ask the employee for their opinion on what they did well and what they need to improve on. Then brainstorm ways to improve performance during the next term. You should also discuss their development and plans for the future.

Performance Monitoring Meaning, Objectives and Process

Performance monitoring may be defined as the process of appraising an environment of continuous learning and development. It will be done by maintaining the employee’s performance, enhancing individual competencies to make them more productive for the organization.

Performance monitoring and performance benchmarking are measures that are used to stimulate good performance outcomes. They are considered important in industries where there is an absence of competitive market processes. Performance monitoring involves the measurement of performance over time against indicators of performance or key performance indicators (KPIs)

Objectives of Performance Monitoring

Performance monitoring explicitly promotes the value that a manager and their managee accept as joint responsibility for monitoring progress on the tasks and goals agreed upon during the initial performance planningor expectation setting meeting and subsequent review meetings. The managers use instruments like written reports, review discussions and on-the-spot inspections to track:

  • Setting and defining goals to fulfill company objectives
  • Timely and quality fulfillment of managing tasks and goals.
  • Help and support legitimately needed by the managee’s tasks, including those agreed upon during planning and review meetings.
  • To improve employee’s job performance as well as methods and techniques of measuring.
  • Setting the right expectations for managers and employees
  • Introducing the continuous learning and development process.
  • Periodic reviews help the performance manager.
  • It helps in correct planning assumptions and errors mid-course before it is too late.
  • It monitors and encourages progress, and keep the work on track.
  • It strengthens a dyadic relationship between the manager and the employee.

Process of Performance Monitoring:

  • Scheduled meetings.
  • Periodic written reports.
  • On-the-spot inspections, or field or site visits in case of managees whose location is different from that of the manager.
  • Relevant and reliable information from other available sources.

Approaches of Performance Appraisal: Trait Approach, Behaviour Approach, Result Approach

The employee performance appraisal process is crucial for organizations to boost employee productivity and improve their outcomes. Performance appraisals are an annual process where an employee’s performance and productivity is evaluated against a predetermined set of objectives.

Performance management is super important, not only because it is the determining factor in an employee’s wage rise and promotion but also because it can evaluate an employee’s skills, strengths, and shortcomings accurately.

One of the important considerations in creating your organization’s performance management (PM) system is the approach used to measure performance. According to organizational researcher Herman Aguinis (2009), there are three types of criteria

  • Trait Approach
  • Behaviour Approach
  • Result Approach

The behavior approach to performance management focuses on specific behaviors that an employee engages in. Aguinis (2009) suggests that using a behavioral approach is appropriate when there is not a clear link between behaviors and results, outcomes of performance are far away in the future, and results are not in the control of the employee.

When there is a clear link between employee behaviors and an outcome, a results approach may be more appropriate (Aguinis, 2009). The results approach focuses only on the end result of employee actions (e.g. mistakes made, machine parts produced, sales per month). This approach tends to be more objective than the other approaches, and it is appropriate under a number of circumstances. A results approach is ideal when employees have the skills need to complete work tasks, and they can recognize and correct inaccurate behaviors (Aguinis, 2009). This approach also works when employees improve over time. This may incentivize them to improve their skills and develop expertise in order to achieve the desired results. Additionally, the results approach works well when there are several ways to get to the desired approach. Sales people can use many different approaches to making sales, and not all ways are needed by each individual. The results approach allows knowledgeable employees to use their information and resources to obtain the desired performance in a more autonomous way.

A third approach is to measure employee traits during the review cycle. Traits are relatively unchanging characteristics of an individual, such as personality or intelligence. The idea is that there is a relationship between some traits and performance, such as extraversion and leadership performance. However, this may be problematic for PM systems because traits are relatively stable and not in control of the employees. It is difficult to justify giving employees lower scores because they are introverted. Employees are less likely to see this process as fair. Additionally, having a desired trait does not mean that the employee will use it to perform better at work. Capability does not equal performance. Therefore, the trait approach to measuring performance is rarely warranted. The exception might be if the organization is going through major structural changes, but the organization should have a clear justification for using traits backed by HR and the legal department. In almost all cases, employers can use behavioral and results approaches to evaluate employees.

Organizations may also be interested in using multiple methods in their PM systems. For example, a results approach may be more applicable to Starbucks district retail managers, who focus on setting and achieving sales goals quarterly goals, than for baristas, who focus on making drinks and engaging with customers.

Trait Appraisal:

Malcolm can use traits as a standard. A trait is a characteristic that an individual possesses. Traits include things such as appearance, attitude, initiative, work ethic, leadership ability, a sense of ethics, loyalty, adaptability and judgment.

One big issue with using traits as a standard in judging performance is that they are pretty much subjective in nature. On the other hand, if the trait has some legitimate relationship to the job, then it may have some value in appraisal. For example, Malcolm’s company expects its pharmaceutical sales reps to be immaculately groomed and professionally dressed. In this case, appearance has relevance and can have some degree of objectivity if a dress code is established.

Behavioral Appraisal:

Behaviors can also be used as criteria in performance appraisals. While traits are characteristics, behaviors are actions. Of course, to be effective, the behaviors must be related to the performance being appraised. Malcolm may use behaviors that demonstrate cooperation and team building when developing team appraisals. Salespeople may be assessed on their persistency in making cold calls to doctors to set up appointments.

Results Approach:

This approach focuses on the product or the outcome of one’s effort. It seeks to identify and evaluate what has been accomplished by an employee subject to appraisal. Management by objectives MBO) is usually regarded as the most appropriate format for using the results approach.

Performance appraisal is undertaken to serve a variety of management purposes. The controversy regarding which approach is best can only be resolved when you consider the reasons for doing the appraisals. Hence, the contingency approach has an overarching consideration here.

Six most-used modern performance methods:

  1. Human-Resource (Cost) Accounting Method

Human resource (cost) accounting method analyses an employee’s performance through the monetary benefits he/she yields to the company. It is obtained by comparing the cost of retaining an employee (cost to company) and the monetary benefits (contributions) an organization has ascertained from that specific employee.

When an employee’s performance is evaluated based on cost accounting methods, factors like unit-wise average service value, quality, overhead cost, interpersonal relationships, and more are taken into account. Its high-dependency on the cost and benefit analysis and the memory power of the reviewer is the drawback of human resources accounting method.

  1. Management by Objectives (MBO)

Management by objectives (MBO) is the appraisal method where managers and employees together identify, plan, organize, and communicate objectives to focus on during a specific appraisal period. After setting clear goals, managers and subordinates periodically discuss the progress made to control and debate on the feasibility of achieving those set objectives.

This performance appraisal method is used to match the overarching organizational goals with objectives of employees effectively while validating objectives using the SMART method to see if the set objective is specific, measurable, achievable, realistic, and time-sensitive.

  1. Psychological Appraisals

Psychological appraisals come in handy to determine the hidden potential of employees. This method focuses on analyzing an employee’s future performance rather than their past work. These appraisals are used to analyze seven major components of an employee’s performance such as interpersonal skills, cognitive abilities, intellectual traits, leadership skills, personality traits, emotional quotient, and other related skills.

Qualified psychologists conduct a variety of tests (in-depth interviews, psychological tests, discussions, and more) to assess an employee effectively. However, it is a rather slow and complex process and the quality of results is highly dependent on the psychologist who administers the procedure.

Specific scenarios are taken into account while performing psychological appraisal. For instance, the way in which an employee deals with an aggressive customer can be used to appraise his/her persuasion skills, behavioral response, emotional response, and more.

Advantages of psychological appraisals:

  • Extract measurable, objective data about not just an employee’s performance but also potential.
  • Can be deployed easily when compared with other performance appraisal methods.
  • Offer introverted or shy employees a platform to shine and prove their potential.
  1. Behaviorally Anchored Rating Scale (BARS)

Behaviorally anchored rating scales (BARS) bring out both the qualitative and quantitative benefits in a performance appraisal process. BARS compares employee performance with specific behavioral examples that are anchored to numerical ratings.

Each performance level on a BAR scale is anchored by multiple BARS statements which describe common behaviors that an employee routinely exhibits. These statements act as a yardstick to measure an individual’s performance against predetermined standards that are applicable to their role and job level.

The first step in BARS creation is generation of critical incidents that depict typical workplace behavior. The next step is editing these critical incidents into a common format and removing any redundancy. After normalization, the critical instances are randomized and assessed for effectiveness. Remaining critical incidents are used to create BARS and evaluate employee performance.

Advantages of using BARS:

  • Eliminate construct-irrelevant variance in performance appraisal ratings by emphasis more on specific, concrete, and observable behaviors.
  • Enjoy clear standards, improved feedback, accurate performance analysis, and consistent evaluation.
  • Decrease any chance for bias and ensure fairness throughout the appraisal process.
  1. Assessment Centre Method

The concept of assessment centre was introduced way back in 1930 by the German Army but it has been polished and tailored to fit today’s environment. The assessment centre method enables employees to get a clear picture of how others observe them and the impact it has on their performance. The main advantage of this method is that it will not only assess the existing performance of an individual but also predict future job performance.

Advantages of the assessment centre method:

  • Can be tailored to fit different roles, competencies, and business needs.
  • Enhance a participant’s knowledge, boost his/her thought process, and improve employee efficiency.
  • Offer an insight of the employee’s personality (ethics, tolerance, problem-solving skill, introversion/extroversion, adaptability, etc.)
  1. 360-Degree Feedback

360-degree feedback is a multidimensional performance appraisal method that evaluates an employee using feedback collected from the employee’s circle of influence namely managers, peers, customers, and direct reports. This method will not only eliminate bias in performance reviews but also offer a clear understanding of an individual’s competence.

This appraisal method has five integral components like:

  1. Self-appraisals
  2. Managerial reviews
  3. Subordinates Appraising manager (SAM)
  4. Peer reviews
  5. Customer or client reviews
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