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Chapter 1 - Introduction to Performance ... > Philosophy of Performance Management

PHILOSOPHY OF PERFORMANCE MANAGEMENT

Etymologically, philosophy is ‘loving wisdom’, and when we relate it to performance management systems, it means the critical evaluation of all the facts of an experience. Critical evaluation means assessment that is free from bias or prejudice. Hence, performance management philosophy means a value-based approach to evaluate the performance of employees.

 

Hughes Communications India Ltd (HCIL) is a subsidiary of Hughes Communications Inc., USA, and is the largest satellite service operator in India. HCIL's philosophy of performance management is ‘what gets measured, gets assessed and what gets assessed, gets enhanced’. HCIL appraises employee performance on an annual basis, giving credit for their achievements and setting targets for the forthcoming year. HCIL has developed a balanced policy that is both objective and holistic in its approach. HCIL's HR team facilitates the appraisal process and also trains senior personnel in assessing individual performance. It shares a reciprocal relationship with various processes facilitating continuous improvements in areas such as selection, career planning, goal setting, reward schemes and culture building. Assessments in HCIL are not just for improvement and development, but are also well recognized and rewarded.

 

Professionally managed organizations always emphasize on developing performance management systems based on their perceived performance management philosophy. To develop employees to deliver their best is all along the motto of all professionally managed organizations. Through well-crafted performance management systems, organizations ensure that people are geared for success and ultimately help organizations to achieve their business goals. An Indian MNC starts its performance management system with its hiring process. It invests time to understand the prospective employees' goals, capabilities, career expectations, etc. Once the new recruits cross such successive hurdles, they ultimately become the right fit for the job and become part of a high-performing team. The structured performance management systems enable their employees to get clear feedback and incentives, based on performance results, and also to get a clear direction about the next performance cycle. Performance management philosophy for the company, therefore, is to develop an organized system of evaluation that communicates mutual performance expectations, monitors results of work activities, collects and evaluates performance that determines achievement of goals, and uses performance information for important decisions and also for allocating resources.

From the foregoing discussions, it is clear that performance management philosophy basically espouses the values and beliefs of the organizations on their embraced performance management systems. Going through the performance philosophy, it is possible to understand the specific roles of the employees, their superiors and the organization as a whole. For example, we can understand how the embraced performance management philosophy of any organization aligns the efforts of managers and employees with the goals of the organization, from the following specific roles:

  • Employees irrespective of their hierarchical levels must feel responsible to communicate their performance with the managers. They must actively participate while framing their development plan and extend all support to deliver their best to achieve the organizational goals.
  • Managers must develop performance targets for their employees through mutual discussion, recognize the performance of employees, and guide the employees to improve their performance, extend the resource support, and take them through rigorous training and development programmes. The underlying philosophy here is to develop people and to harness their potential.
  • The organization must feel responsible to design and develop a transparent performance management system. To make the performance management system operational, the organization must also develop the skill and ability of managers and truly make them the enablers to drive change in the organization through effective performance management systems.

Thus, the espoused values and beliefs of effective performance management system, when positive, can motivate employees to deliver their best. Any high-performing organization can achieve excellence and sustain in competition. The espoused philosophy of performance management systems translates to job behaviours, job responsibilities and performance goals.

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