Employees are a company ‘s of import plus. They are the 1 who plan, manage, form and command concern activities on behalf of the organisation to vie with rivals. In an organisation, the success of the concern non merely lies on its fiscal stableness and its resources direction, but besides lies on its employees. Employees play a really of import function in assisting organisation to accomplish ends.
In the past decennary, increasing Numberss of administrations have been mensurating employee ‘s public presentation that they believe finally affect profitableness every bit good as able to offer several benefits. Therefore, there is presently a great involvement in public presentation measuring with many companies trying to implement the system such as the Balance Scorecard in order to mensurate their single employee expeditiously. However, there is besides grounds that many of these executions are non successful.
The chief aims of this survey were to analyze whether mensurating the public presentation of an employee is an indispensable tool within direction control and analyze on assorted attacks to actuate employees to work towards the company ‘s strategic purposes by giving several illustrations of companies. The survey found that there are several benefits and drawbacks for companies carry oning public presentation measurings on their employees. Therefore, it becomes more of import in understanding of how the companies to guarantee their employees to accomplish the organisation ‘s vision, ends and aims.
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PERFORMANCE MEASUREMENT OF AN EMPLOYEE
The chief aim of public presentation measuring is to supply comprehensive and timely information on the public presentation of an employee. This information can be used to pass on ends and current public presentation of an employee straight to the company ‘s ends and aims, to give early warning signals, to do a diagnosing of the failings of an employee, to make up one’s mind whether disciplinary actions are needed and to measure the impact of actions taken.
It has farther defined by Platts and Sobotka ( 2010 ) that “ single public presentation measuring is the procedure that supports the organisational control system by associating the work of each single employee or director to the overall mission of the work unit. ” Platts and Sobotka ( 2010 ) has besides identified that “ there are three functions attributed to single public presentation measuring which are answerability, inducements and inspiration. ”
With public presentation measuring, a company can supervise the execution of its programs and find when programs are unsuccessful and how to better them. In short, the public presentation measuring system is the bosom of the control system that provides for organisational acquisition.
In 1992, Kaplan and Norton argued that the jobs of the traditional public presentation measuring systems could be overcome if a house adopts a Balanced Scorecard which is a set of steps that give top directors a fast but comprehensive position of the concern. The strength lies in the manner the Balance Scorecard integrates different categories of organizational public presentation which are fiscal and non-financial, internal and external. The Balanced Scorecard explicitly links the different dimensions of concern public presentation measuring to organizational scheme and integrates four ways of looking at public presentation, it is besides a tool for concentrating the administration, bettering communicating, puting organizational aims and supplying feedback on scheme, it besides measures how employees performed in relation to corporate scheme.
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Performance measuring on employee is a tool used by the direction to measure employee. Evaluation requires a comparing. To measure the public presentation of an employee, its directors have to compare that public presentation with some criterion. Such a criterion can come from past public presentation, from the public presentation of similar employees, from a professional or industry criterion. But without such a footing for comparing, it is impossible to find whether the employee is executing good or ill. And to compare existent public presentation against the public presentation standard requires a assortment of outcome steps, combined with some input ( plus environmental, procedure, and end product ) steps.
Performance measuring on employee is besides a tool to command the behaviour of employees. To make this, direction demands to mensurate the corresponding behaviour of single employee and so compare this public presentation with the demands to look into who has and has non complied. These guidelines are truly demands, and these demands are designed to command. The measuring of conformity with these demands is the mechanism of control.
Performance measuring on single employee is besides a powerful vehicle for reenforcing positive behavior whereby documenting an employee ‘s strength is a positive incentive, and tends to carry through one ‘s demand for self realization. The employees want to cognize what they are making with their ain hereafter while lending to the organisation. It is of import in a successful plan to demo the relationship of employee ends, occupation satisfaction, and motive. It is besides of import that employees know what your ends are.
Harmonizing to Smith ( 1993 cited Platts and Sobotka, 2010 ) , “ coercing persons to present on set steps may burrow their vision, cut down their impulse to experiment, and do them to sub-optimise. ” “ Over measuring at the single degree may take to bet oning, originative accounting, or fraud and jeopardize the effectual concern operation. ” ( Kohn, 1997 cited Platts and Sobotka, 2010 )
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Some of the jobs with public presentation measuring are that involved deficiency of criterions and clear way whereby without cognition of the criterions and a proper measuring programme, employee is likely to comprehend unfairness, subjectiveness and prejudice in the rating. The feeling here is that prejudice would impact the wage of employees and if a peculiar supervisor holds a score against an person, the employee could be harmed.
In add-on, some supervisors may gloss over the procedure because they feel that it would be excessively hard to make up one’s mind to take away or deny an employee extra wages. The fact that most programme fail is normally due to two jobs which are the deficiency of preparation in evaluation employees and inappropriate standards and methods for measuring have been implemented. Supervisors should be trained in public presentation direction, so fix their employees for the procedure.
There is the deficiency of supervising by company officers whereby directors that do non do the clip to detect their subsidiaries in the work environment are forced to take between giving their employees inflated evaluations or lower evaluations based upon deficient information or insouciant observation. Another important drawback for public presentation measuring can be in the country of end puting whereby if unrealistic ends are developed and the employee fails to obtain the hyperbolic end, his religion in obtaining the following period ‘s ends will be diminished.
Harmonizing to Karen A. at Al. ( 2004 ) , the public presentation measuring system such as Balance Socrecard shows a deficiency of consideration to the measuring of human resources, employee satisfaction, supplier public presentation, product/service quality, environmental/community position.
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ALTERNATIVE APPROACHES TO MOTIVATE EMPLOYEES TO WORK TOWARDS THE COMPANY ‘S STRATEGIC AIMS
Maslow ‘s hierarchy of demands emphasis on two cardinal basic premises. ( 1 ) Peoples are seen as being motivated by a desire to fulfill several different types of demands. ( 2 ) People ‘s demands are arranged in a hierarchy of importance. Once one demand is satisfied, another demand emerges and demands satisfaction. Maslow formulated five types of demands in a hierarchy of importance ranked from the lowest degrees of demands to the highest degree of demands.
Maslow ‘s Hierarchy of Needs
Herzberg ‘s research on motive led to the development of his motivation-hygiene theory, which considers both occupation satisfaction and occupation dissatisfaction. The factors associated with positive feelings about the occupation were known as incentive factors. Motivator factors included the intrinsic factor of a occupation when nowadays, should make high degrees of motive, such as challenge of work, duty, acknowledgment, accomplishment, and promotion and growing. On the other manus, disgruntled employees were found among the hygiene factors. Hygiene factors are the extrinsic factors of a occupation that, when positive in nature, maintain a sensible degree of occupation motive but do non needfully increase it, including working conditions, company policies, supervising, colleagues, and salary and occupation security.
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Alternate Approach 1
Platts and Sobotka ( 2010 ) have revealed that: “ in certain fortunes, directors can depute duty to their employees and have assurance that the decision-making of these employees will be in the best involvements of the undertaking and the company without officially specifying and supervising the expected public presentation. ”
Job design refers to the manner that a set of undertakings or an full occupation is organized. Job design involves the structuring of assorted facets of the occupation content, for illustration, occupation design might affect increasing occupation duties, the assortment of undertakings, or employee liberty.
Job design is of import to the forming map for two major grounds. First, undertaking activities need to be grouped in moderately logical ways. Second, the manner that occupations are configured, or designed, has an of import influence on employees ‘ motive to execute good. Thus, direction demands to see both efficiency and motivational issues in planing occupations that will ease effectual public presentation.
Herzberg ‘s two-factor theory indicates that employee motive can be increased through basic alterations in the nature of employee ‘s occupation ( occupation enrichment ) . Hence, occupations should be redesigned to let for increased challenge and duty, chances for promotion and personal growing, and acknowledgment. Job enrichment as seeks to better both efficiency and human satisfaction by agencies of constructing into people ‘s occupations, a greater range for personal accomplishment and acknowledgment, more ambitious and responsible work, and more chance for single promotion and growing. Approachs to occupation design include:
Job expansion: This involves enlarging a occupation by horizontally increasing the figure of undertakings or activities required. Theoretically, occupation expansion will actuate employees to increase productiveness. The motive will happen from the alleviation of ennui, since the diverseness of alteration is stimulation in and of itself.
Job rotary motion: It moves employees from one undertaking to another. Job rotary motion distributes the group tasks among a figure of employees.
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Job enrichment: It allows employees to presume more duty, answerability, and independency when larning new undertakings or to let greater engagement and new chances. It entails more self-monitoring and more planning and commanding determination.
Job technology: It allows employees to see how the work methods, layout and handling processs are linked together every bit good as the interaction between people and machines.
There are several illustrations of successful fabrication companies in Malaysia with a level organisational construction and rapid and direct communicating channels to enable pull offing their employees via direct contact, without the demand for extended single steps, by increasing occupation duties, the assortment of undertakings, and employee liberty in order to actuate them to work towards the companies ‘ strategic ends.
Alternate Approach 2
Platts and Sobotka ( 2010 ) have revealed that: “ the function that single public presentation measuring can play in incentivizing workers can besides be replaced by alternate mechanisms, in some environments whereby the effectual stimulation and motive of single employees to present needed criterions may non ask a formal nexus between public presentation and wages. Satisfying working conditions and the built-in value of ‘heroic action ‘ may alternatively replace for performance-related-rewards. ”
Fortunately, some recent surveies have shown that employees ‘ motive is non entirely affected by money. Money entirely is non a great motivational tool to accomplish high public presentation and optimal productiveness. In fact, some research workers have suggested that money is really a dismotivator that its presence does non needfully vouch occupation satisfaction.
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The environment in which single performs can impact his or her public presentation. Work environment can be divided into two major classs, which are ( 1 ) physical environment, which includes comfy and safe workplace with ample of back uping resources and equipments ; ( 2 ) societal environment, which includes the relationship in organisations with other people ( such as supervisors, peer-group, and subsidiaries ) and societal systems ( such as Torahs, regulations, policies, and incentive plans ) .
By cognizing that work environment had important consequence on employees ‘ degree of motive, directors must make the work environment that supports their employees towards higher public presentation. Physical environment can impact the motive of employees to execute their occupations. A comfy and safety workplace with ample support resources and equipment may hold a positive consequence on employees work public presentation. Besides that, employees ‘ societal environment determines their attitude toward work, their outlook about supervising, their response to inducements, and most of their other occupation responses.
Supervisory can besides act upon employees ‘ attempt and public presentation under certain fortunes. Therefore, the relationship between supervisor and employee is indispensable point because the immediate supervisors have the considerable influence over the ability of employees in prosecuting their personal ends on the occupation.
In Malaysia, the bulk of public listed companies such as Texchem, Sime Darby and etc. are supplying good working environment every bit good as good benefits for all employees alternatively of running the single employee public presentation measuring in incentivizing employees with performance-related-rewards. They are still able to actuate their employees to execute better and concentrate on the existent ends of the companies.
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Alternate Approach 3
Platts and Sobotka ( 2010 ) have revealed that “ employees gain inspiration from experiencing that they contribute to overall undertakings or to the administration ‘s public presentation. ” Their research has proven that “ companies which inspire their staff to accomplish extraordinary consequences for the administration may non trust on single public presentation measuring to accomplish these results ; they may alternatively carry through this in other ways. ”
Directors must acquire in the wont of congratulating employees unfeignedly for a occupation good done. A personal thank-you offered face-to-face is all it may take to do an employee bunco ; a note of felicitation on the completion of a particular undertaking is positive encouragement for the employee to give his or her best. Some directors explained to subsidiaries why their occupations are of import and how their work fits into the entire operation. They bring employees into assurance and acknowledge them as of import people in the organisation.
Another signifier of acknowledgment is listening to what employees have to state. When the director gives an employee a sincere attending, he or she recognizes that employee as an of import individual, a individual whose thoughts and sentiments involvement the directors. Furthermore, most directors find that a echt word of congratulations for work good done can be much more effectual than knocking an employee ‘s defects.
Harmonizing to Nelson ( 1994 ) , the figure one from of acknowledgment desired by employees is verbal grasp or congratulations from their immediate foreman. This is followed by written grasp or congratulations by their immediate foreman. Peoples have a desire to experience needful and appreciated at work ; people who receive this support are happier and more productive at work.
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In Malaysia, wholly Bankss every bit good as other public listed companies are continuously and efficaciously pass oning their vision to employees and recognizing the work done by employees of which may promote such designation on single employee every bit good as may further a sense of dignity among their employees. This is an attack at least tantamount to inspiration through single public presentation measuring.
The determination of this survey concluded that companies do non necessitate formalistic single public presentation measuring systems in order to accomplish high public presentation criterions. This survey explored that alternate attacks can replace for the functions of public presentation measuring by actuating employees to work towards higher public presentation and increased productiveness.
Overall, employees are the assets of any company in any industry, hence, companies should be carefully see the presenting single public presentation measuring as it can non affords to confront such job which subsequently in bend impacting the company itself. The priceless information gained from this survey can supply penetrations to what widen the consequence are on occupation public presentation. Furthermore, when companies efficaciously manage demands of their employees, this will better the relationship between both parties.
The occupation features theoretical account ( skill assortment, undertaking individuality, undertaking significance, liberty and feedback ) is one of the most popular attacks to occupation design. The occupation features model focal point on what makes occupations per se motivated for occupation enrichment every bit good as occupation expansion. When employees are per se motivated by their occupation, good public presentation makes them experience good and motivates them to execute at a high degree.
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Besides that, acknowledgment and congratulations could assist organisation to retain best employees and actuate them into higher public presentation. It is of import to supply employees with non-financial wagess such as acknowledgment and attending. This type of wages can be really effectual and efficient because it does n’t be anything. As organisations and directors continue to look for ways to run into the productiveness and motive of today ‘s organisations, the increased acknowledgment of their human resources must be on primary importance.
Companies create work environment that motivate people in the organisation. Part of making a good environment is holding clear apprehensible organisation waies and ends, every bit good as outlooks of how single public presentation contributes to those ends. Second portion to making a good work environment is supplying developing, cognition, and the tolls to carry through the organisation ends.
By cognizing the factors that really motivates employees in executing their occupations, this will assist organisations to place, recruit, employ, train, and retain a productive work force. This will ensue an increased employees ‘ motive and productiveness, lower turnover and absenteeism rates, and a greater overall synergism in increasing the organisation effectivity and efficiency. Therefore, it requires both directors and employees working together towards meeting and transcending the organisational aims and ends.