¶ … performance management? Performance management is the company's goals equal the employee's activities and outputs. Defining performance, it specifies which aspects of employee's performance remain relevant to the business through job examination. Job examination or analysis means getting detailed data concerning jobs. Measuring performance involves measuring said aspects through performance evaluation. Performance evaluation is a method for managing performance. After evaluations, employees gain feedback and learn whether their performance has been effective or not.
Typically, businesses perform the process of performance management annually. Most of the reviews are for individual performance management while others are for pay decisions or establishing training priorities. In recent times, numerous business are moving toward ore streamline, frequent performance reviews. When examining the model of performance management, one may look at organizational strategies, individual attributes, and situation constraints, which all go to individual behaviors. From there it moves on to objective results. The three main purposes of performance management are strategic, administrative, and developmental.
Strategic links employee activity with the business' objectives. Administrative decisions like pay raises, salary, retention, promotions, terminations, and layoff fall under the administrative section. If employees perform well, they are develop to be better in the developmental section. Google Inc. has an effective performance management system as read in the case study.
It does so my mirroring the corporate values and culture. The CEO as well as senior management demonstrate visible support. They also focus on the appropriate business performance measures. They communicate the total rewards system. Google Inc. is well-known by the public to offer excellent benefits and pay to its employees. They also adjust the system when necessary and set clear expectations when it comes to employee development.
What are the five performance measures criteria? The first is strategic congruence. This means the extent to which the performance management system produces job performance constant with the business' aims, culture, and strategy. The second is validity. This means the level to which a performance measure evaluates all the pertinent and only pertinent aspects of job performance. Reliability is the consistency of such a performance measure and to the extent at which a performance measure is clear of random error. The fourth acceptability is the level where those using it assess a performance as adequate or satisfactory. The fifth is the level where a performance measure relays detail guidance towards employees concerning what is expected as well as how the employees may meet said expectations.
Google Inc. is a valuable company with excellent abilities to find and retain innovative employees. By having a strategic focus on people management, the company is able to find the kind of people they need to keep their company on top in terms of creativity, innovation, and customer satisfaction. In order to keep up with modern times and the internet, Google has learned to shift their people management into data-based people management. "The basic premise of the "people analytics" approach is that accurate people management decisions are the most important and impactful decisions that a firm can make. You simply can't produce superior business results unless your managers are making accurate people management decisions" (Sullivan, 2015). Because Google now utilizes analytical decision-making, is facing the obstacles of HR which rely traditionally on relationships. Relationships act as the antithesis of Google's analytical decision-making. Therefore one possible error from their methods is the lack of effort in building relationships.
That is not to say their efforts are not successful. Google's approach leads to highly productive employees. "Its approach has resulted in Google producing amazing workforce productivity results that few can match (on average, each employee generates nearly $1 million in revenue and $200,000 in profit each year)" (Sullivan, 2015). However, there is little need or reliance on building and maintaining relationships, which may prove to be a bit of a reason why some people leave Google Inc. over time even with the amazing free food and employee benefits package. Although the benefits come from data gathered by Google, it cannot gather certain things that are hard to observe or calculate like a feeling of family, of belonging that Google Inc. may lack due to their strong use of people analytics. Minimization of such errors may come from attempting to build relationships through their workforce through team building activities and other social gatherings to enable a sense of community.
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