The performance management process involves an organization’s three key working models: The participative model, the top-down and the bottom-up models. In this process, workers are the main stakeholders involved in the decision making process. In this process, they are encouraged to be active participants in their own development. Their feedback is valuable to the whole organization as it provides valuable information on what needs to be improved, what weaknesses exist in the current performance, and what new requirements need to be fulfilled to improve the overall quality of the performance improvement.
The participative performance management process is an open, collaborative, feedback-based approach where management and employees work together to design, analyze and control the employee s performance, long term objectives, task performance, contribution to the business and other aspects. It involves employees giving their inputs on issues and problems so that the problems can be solved. It enables employees to see how their position and responsibilities affect others. Through this, the employees get to know each other and work as a team to improve and develop their individual skills. Through this method, problems are solved together.
Top-down performance management focuses on the identification of the strengths and weaknesses in the organization, setting or creating job-related expectations. This is achieved by conducting interviews, appraisals, discussions and surveys with employees and utilizing tools like target practicing and others. The appraisal enables the managers to set standards and identify performance problems.
The bottom-up performance management is the opposite of the top-down technique in which managers depend more on the evaluations of employees. It is done in order to ensure that employees are capable of implementing the ideas and thoughts of the management. Through this method, feedback from employees is crucial to assess the employees’ job performance. It also involves managers using evaluations and feedback in order to set job-related expectations for employees.
Top-down and bottom-up performance management processes differ because they have different objectives. While the latter focuses on the development of the business strategy and planning its execution, the former deals more with the formulation of the goals and strategies. Performance appraisal also has an extensive process, which involves the formulation of policies, the creation of a performance management system, the formulation of performance management plans, providing feedback, monitoring and measuring performance, and evaluation of performance. These activities are to be performed by a manager in accordance to the organizational objectives.
An effective performance management system should also have coaching elements. Coaching is one of the most important activities of an organization, which can facilitate the development of leaders. In addition, good coaching encourages employees to set goals and to set them continuously. It also helps managers to set standards for employees to reach their desired performance level. And, in turn, it enables employees to maintain high levels of performance even when under heavy workloads.
Coaching also helps in improving the interpersonal relationship between employees and employers. Managers benefit from this connection of mutual understanding because it allows them to understand job-related problems better. Moreover, it increases employee motivation because it provides an atmosphere that motivates people to work effectively. In addition, it facilitates effective communication and therefore, improves the quality of output and makes employees more responsible towards each other and their employers.
Feedback is an essential element of performance management and goal management. It’s not only providing feedback to employees; it’s equally important to provide feedback to the employer. This is because the success of any performance management process depends on the involvement and participation of both the parties. If there are involvement and participation from the employer, there will surely be positive results from the whole exercise. However, if the employee doesn’t have enough motivation and interest in the matter, it will have little impact on the performance management process.