[TYPE THE COMPANY NAME]

PERFORMANCE
MANAGEMENT
HUMAN RESOURCE MANAGEMENT
[Type the author name]
 Performance Management is a process that involves communication between a manager
or supervisor and an employee. This process focuses on the expectations, objectives, goals, and
feedback in other words it is the continuous process of identifying, measuring and developing the
performance of individuals and teams in an organization, it also makes sure that performance is
aligned with the strategic goals of the organization.

Performance management contributes to an employee by clarifying the definitions of the

job to the employee, it increases their motivation and self-esteem. It helps the managers
communicate with supervisors about the views of the performance more clearly and differentiate
better between good and poor performers and it contributes to the organization as a whole by
making the goals clearer, taking more appropriate actions and better protection against law suits,
however if the performance management system is poorly implemented it could lead to lowering
the employees self-esteem, job dissatisfaction or even damage employee relationships, it could
increase the managers turnovers due to unjustified demands on managers available resources.

However like every other process this too has its cons, carrying out this process is usually
costly and time-consuming to set up and run. An employee or supervisor can over-emphasize the
period immediately before the assessment. Supervisors are often reluctant to write criticisms
down because they would be held responsible for their teams’ irresponsibility.

Employee engagement is another important factor that influences sustainability in

enterprises. There are many ways that employee engagement could be measured, the methods to
measure employee engagement could include academics and practitioners. Employee
engagement reflects the investment of the employees’ physical commitment, emotional
attachment and behavioral energies in such a way that one invests comprehensive aspects of
oneself in the performance of a role.

There are many stages that a firm needs to carry out to be successful in the performance
management process the first stage being planning, this is when a firm sets its objectives and
defines what is needed and required by the organization. The next stage includes monitoring and
developing this is when there is a two way communication between the manager and employee,
the skills of their employees are looked at to provide any necessary training. The next stage is the
formal process of performance review, there is a written document of the results achieved by
employees, held at least once a year, this stage also includes rewards.

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 A common mistake that is made by people is that they think performance management is
the same as performance appraisal, this problem arises because for a vast majority of employees
today their total experience of performance management is only an annual performance review
(or appraisal or evaluation or assessment).

However it is extremely important to know that an employee that is working hard or

staying busy constantly does not mean they are performing well, attending training sessions, and
even having a strong commitment may not necessarily lead to a high performance. When the
employee is unable to perform well they can be counselled about their performance problems, the
management could provide them with a written or a verbal warning if their performance still
continues to be unsatisfactory the company could give them a temporary disciplinary layoff to let
them know about the seriousness of the situation; even after carrying out all these steps if the
employee is unable to perform well they would be removed from the organization. All these steps
need to be taken before dismissing the employee as Performance management is about what a
company is going to do to help an employee in their development to become increasingly better
whereas Performance appraisal is only how an employee is evaluated and the progress that is
made by assessing or measuring the employee’s actual performance on a regular basis over time.

The performance management cycle

Performance management is a continuous process which involves planning, monitoring
and reviewing the performance of employee.
Step 1-Planning: The first step of this continuous cycle is to keep planning. Managers review the
employee’s job description to check its validity and update it if there is any significant change in
the employee’s responsibility. They then develop a plan for the tasks expected results and
measures that will be used to evaluate performance. They identify objectives which help their
employee increase their skills knowledge and competencies related to their work, they generally
have a development plan and a reaching agreement as to when they should achieve these goals
by, when setting these objectives firms need to make sure they are SMART; i.e. the goals should
be Specific, Measurable, Attainable, Relevant and Timed (FIG 1 - appendix). Most companies
nowadays try to involve their employees in the process of setting goals so that the employees can
easily identify and understand the required behavior.

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Step 2-Monitor: To ensure the performance management process is effective, it is important that
the employee performance must be continuously monitored. Monitoring does not simply mean to
watch day-to-day activities but instead pay attention on the achieved results. During this phase
both the positive and the negative performance of employees are consistently documented.
Managers must also identify and remove the any barriers that may prevent the employees from
accomplishing performance objectives. Based on these findings the supervisor will be able to
identify the employees' strengths and shortcomings. The shortcomings can then immediately be
addressed and employers can provide continuous coaching, training and give them assignments
that challenge them to take on more responsibility which improves their skills and abilities.
Constant constructive or positive feedback should be provided. The feedback should be timely,
specific and frequent. Recognition for an effective performance is strong motivator.

Step 3-Review: The last step in the cycle of performance management where new implemented
process is evaluated to see if it has resulted in the expected performance improvement. The new
data is analyzed and measured to see if the implementation of the plan is giving the results that it
should. Performance management system previously had managers writing a factual description
in the form of an essay on the employee’s performance based on their overall impression. The
employees can be rewarded for their performance in various ways this could be either in the form
of recognition and non-monetary rewards such as praising the employee for a job well done or
monetary rewards such as a bonus.
It is important to act on the results of the performance management cycle, if the
implementation of the new process, goals or employee responsibilities was successful the process
should be standardized and documented so it can keep going on. However if the changes made
were not successful, the organization should learn from the trial and make adjustments wherever
necessary to overcome the problems and then document the new knowledge so that any
corrective action required can be taken at the planning stage as the cycle continues again.

Performance Management and Employee Engagement

Performance management can be used as an umbrella covering a variety of approaches in
managing employee performance. Performance management helps employees in managing and to
link their micro activities to the macro issues of the co-operation in three ways:

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 1. Setting clear targets, objectives and behavioral standards for individual employees derived
from an organization strategies
2. Regular monitoring and a systematic review of progress and feedback
3. Performance appraisal evaluation in order to reinforce desired behaviors’ through
differential rewards.

As global competition intensifies performance management practices a way to enhance

organizational performance.

Performance management is reviewed in terms of its relationship to employee

engagement. The three processes include performance agreement, ongoing feedback and
performance appraisal (FIG 2 - Appendix). Consistent approaches of performance management
should be carried out throughout the year to successfully engage employees.

Managers need to consider individual and organizational goals, values and interests to
promote employee ownership and well-being. Employees need to be the architects of their own
jobs rather than being handcuffed with a fixed job description. Employee participation allows
employees to be their true self to their jobs and thus delivers creative and extra performance.
After job performance expectations are agreed upon performance development and facilitation
should be discussed in order to foster employee engagement. Performance facilitation includes
setting plans and resource development support to achieve performance expectations. This
includes physical resources, coaching, training and supervisor and coworker feedback and
support.
It is important for managers to include ongoing performance feedback as it is helps in
communication between employees and subordinates. They can obtain emotional resources
through interpersonal relationships with other employees. Co-worker relations have been found
to be predictors of job engagement .Furthermore, research has shown that job appreciation from
peers is the most predictive of job engagement under conditions of high job demands.
The employee engagement objective of performance management provides an additional
way for practitioners and researchers to understand its roles within sustainable firms. The
application of specific concepts of "self" constructed performance management and
psychological capital could prove interesting and uncover useful research and practice venues.
Possible associations between a set of integrated performance management activities and the
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concept of three psychological conditions (meaningfulness, availability, and safety), leading to
engagement, and its link to sustainable corporate performance outcomes can also be explored and
tested through research.
More importantly, in order for future research on performance management to have an
impact on organizational performance and sustainability, a comprehensive approach in the study
of the performance management practices within sustainable organization's context and culture as
argued by Haines and St-Onge (2012) and DeNisi and Smith (2014) should be conducted.
Research only on a stand-alone performance management and its influence on individual-level
performance is not sufficient. Research encouraging a deeper approach to the study of sustainable
contexts in relations to performance management processes can promote further debate over a
more "engaged" and "sustained" body of performance management practices, which remain
underdeveloped in performance management research. Hopefully, the discussions, issues, and
ideas set forth in this paper will stimulate interest and research incorporating employee
engagement in the field of performance management to achieve the ultimate goal of corporate
sustainability.

Performance management as a motivational tool.

Understanding what motivates and triggers each individual can assist an organization in
motivating their employees to perform at their maximum potential. Performance management can
be associated with the various theories of motivation.
Frederick Winslow Taylor (1890, 1911) believed that workers can be motivated mainly
only by pay. His Theory of Scientific Management argued that workers do not naturally enjoy
doing work and therefore need to be under close supervision and control at all times; and
managers should break down the production system into a series of small tasks to keep them
interested. Workers should also be given appropriate training and tools so that they are able to
work as efficiently as possible on one set task. Workers would then be paid either by the piece
rate method this meant they were paid according to the number of items they produce in a set
period of time. As a result workers are encouraged to work harder and maximize their
productivity.
As time passed this approach made the workers feel like they were being treated as human
machines. This theory can be linked to Macgregor's two fundamental approaches to managing

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people, the theory X and theory Y, The theory X; speaks to employees that are unwilling to take
on any responsibility and are essentially only working for money. It follows an autocratic
management style. On the other hand the theory Y speaks about a more democratic management
style, this group believes that work is as natural as rest or play, and people would fulfill all their
duties at work without any required threats of punishment, the would also try to accept and seek
out responsibility, which would lead the performance to increase.
Elton Mayo however went against all these theories and said that "workers are not just
concerned with money but could be better motivated by having their social needs met whilst at
work". This factor was ignored by F.W.Taylor. Mayo introduced the Human Relation School of
thought, he focused on managers that actively communicated with their employees, and treated
their employees as individuals who have meaningful opinions. His theory aligns with the
democratic management style and incorporates elements of the performance management cycle,
where every employee is encouraged to give their opinion and work alongside management.
Abraham Maslow put forward a theory that there are five levels of human needs which an
employees need to have fulfilled at work in order to be motivated at the job. These are identified
in the figure below (Fig 3 – Appendix). It is a bottom up approach, he identified that if certain
need cannot be met the person will not be motivated to move on to the other level.
Whereas Herzberg in his two-factor theory stated that there are hygiene factors and
motivator factors that motivate an employee. Hygiene factors speak to the need for a business to
avoid unpleasantness at work, as they can cause discontent at work. Some of the hygiene factors
could include, Company policies and administration, Wages, salaries and other financial
remuneration, working conditions, Feelings of job security.
Motivator factors on the other hand are based on the individual need for personal
development. If effective, these factors can actively create job satisfaction, they can motivate an
individual to achieve above-average performance and effort. Some of the motivator factors
include Status, Opportunity for advancement, Gaining recognition, Responsibility, Challenging /
stimulating work, Sense of personal achievement and personal growth in a job.
There are similarities between Maslow and Frederick Taylors’ theories; they both suggest
that needs have to be satisfied for the employee to be motivated. However, Herzberg argues that
only the higher levels of the Maslow Hierarchy (e.g. self-actualization, esteem needs) act as a
motivator. The remaining needs can only cause dissatisfaction if not addressed.

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Tasks Demands and its Effect on Performance
The efforts, skills and knowledge required for successful task performance are known as
task demands. There is an inverse relationship between these task demands and task performance,
i.e. when the workload is higher, performance is found to be low and vice versa. High levels of
workload reduce the time and concentration of an employee to process information and the
ability of the employee to make a correct decision. This could in turn lead to an increase in stress
and errors. However, if the workload is too low, it could lead to negligence and boredom in the
workplace which would result in a decrease in the performance. If there is an increase in the
workload, there is a possibility that the employees might have a strategy to handle the tasks, but if
the workload and tasks demand increases the capacity of an employee, the performance
decreases.

In construction task performance is influenced by task demands and the applied capability.

A task demand however depends on what the task is, the environment in which the task
needs to be carried out and the worker’s behavior. Applied capability means the worker’s skill
and human factors like activeness and fatigue. Physiological demands are needed for construction
tasks because there are many different and repetitive tasks which may require carrying heavy
load. Environmental factors also play an important role as it includes the surroundings in the
work area and social environment which affects stress.

Biases in evaluation
There are various mistakes that may take place in the evaluation process that are usually
supposed to be avoided. Managers should be well aware of these errors so that they try not to bias
one employee from another.

Halo: - It is a tendency to form a positive image of an employees. It implies that the employees
rating will be high on all criterion rather than independently for a single item.

Horns: - It is the opposite of halo bias, here a negative image of an employee is formed and it
leads to low ratings. This bias may come up if the manager dislikes or has very little confidence
in an employee.

Central tendency: - in this form of bias, the manager usually rates most of the employees as
average. This is because managers refuse to use the ratings at the either ends of scale.

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Leniency / strictness bias: - in this form the manager tends to be more lenient and/or strict while
rating employees. They may also be strict or lenient with one employee as compared to other
employees.

Same-as-me:- This is a tendency to rate the employees who seems to be similar to the rater more
favorably than the dissimilar employees. At times, this tendency may be based on race, gender,
color, religion, etc. which is a violation of human rights.

Interview with XAD technologies

Our team conducted a short interview with Mona Inam, the HR manager at XAD
technologies Dubai, this company, established in 2006 offers services and solutions in areas of IT
Networks, Telecommunication, and Security. They have offices in Dubai, Abu Dhabi, Sharjah
and Riyadh.

XAD technologies currently has a total of 1000 employees and about 200 soon to join
employees who are still either under the training process or the Ms. Inam who has been the
human resources manager at XAD for the past six years, is responsible for all the eight
employees in her department.

Some of the most common problems faced when it comes to performance of the
employees at work is the employee’s attitude and language these issues at XAD technologies are
overcome by conducting internal meetings with the workers visiting their accommodation to
make sure they are physically and mentally fit and explaining the future plan or steps that could
be taken if their lack of performance continues.

Xad has managed several projects in Telecommunication Network Development,

Construction, Services and Maintenance, Real Estate Development, Establishment of Factories
with prestigious clients like Etisalat and du Telecommunications. When the company gets a new
project they either hire new staff or transfer the existing staff to the new project, Ms. Inam
believes it is very important to provide training because if proper training is not provided errors
could be made and there could be possible quality issues in the project which could then affect
both the cost of the project and also lower the image of the company in terms of efficiency
towards the client.

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 Ms. Inam has a designed form for each category and position to do their assessment, the
reporting manager of the staff carries out the assessment and only based on their assessment and
recommendation do they carry out the promotion process and salary hike. In case a negative
feedback is provided Ms. Inam then has a one to one meeting with the staff member to make
understand where they are lacking and what needs to be done to improve their performance.

Performance management needs to be extremely effective this can be done by making

sure it is relevant to the job, it easily and clearly distinguishes between effective and ineffective
performance and is fair and acceptable. It is highly necessary to act on the results of the
performance management cycle by continuously planning, monitoring and reviewing the
performance of a cycle and avoiding any bias known or unknown when evaluating. Most
importantly the communication should be clear especially when it comes to employee
engagement, as we know performance management can be used as a motivational tool. It is also
extremely important to be aware of the inverse relationship between task demands and task
performance.

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Appendix:

FIG1: Fig 2:

PM – EM PLOYEE ENGAGEM ENT

Performance
Agreement

Ongoing Feedback

Performance
Appraisal

Fig 3:

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References:

http://search.ebscohost.com.ezp.cud.ac.ae/login.aspx?
direct=true&db=bth&AN=86929016&site=bsi-live

http://userwebs.cth.com.au/~gcutts/Management/19b_reasons.htm
https://search-proquest-
com.ezp.cud.ac.ae/docview/1782995227/fulltextPDF/D97F6CAD6688491APQ/1?
accountid=33975
https://search-proquest-
com.ezp.cud.ac.ae/docview/1913308611/fulltextPDF/47BC33477AD3446CPQ/1?
accountid=33975
https://search-proquest-
com.ezp.cud.ac.ae/docview/1774525722/fulltextPDF/27F6E5B333AE4ED1PQ/1?
accountid=33975

HERZBERG, F. et al. 1957. The motivation to work. 2nd Ed. New York Maslow, Abraham
(1954). Motivation and Personality. Harper and Row New York:

TAYLOR, F. W. 1890. The rise of scientific management. Madison; London: University of

Wisconsin Press.

http://tutor2u.net/business/people/motivation_theory_herzberg.asp motivation in theory

Neely, A 1998, Measurement of business performance - why, what and how, The Economist,
London.

https://talentmanagement360.com/the-difference-between-performance-management-and-
performance-appraisal/

Interview Conducted:

MONA INAM- HR Manager-XAD TECHNOLOGIES LLC

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 1. Could you tell us a little bit about the brief history on how the company was
established?
Ans: Xad Technologies LLC, established in 2006, is an ISO Certified (9001:2008) company,
which offers services and solutions in areas of Telecommunication, IT Networks, and Security
Xad has established Offices in Dubai, Abu Dhabi, Sharjah and Riyadh, with more than 1000
specialized sales, engineering and other professionals
Xad has managed several projects in Telecommunication Network Development,
Construction, Services and Maintenance, Real Estate Development, Establishment of
Factories with prestigious clients like Etisalat and du Telecommunications.

Xad is currently working with Etisalat and du Telecommunication Corporations in Abu Dhabi,
Dubai
2. Tell us a little about the company’s main goals?
Ans: Vision Statement
To be one of the leading regional companies known for services, trust and innovative
solutions in Telecom, IT and Security Solutions
Mission Statement
To be the first choice of stake holders and business and channel partners by providing
desired solutions and services
To introduce innovative solutions in Telecom, IT, Communications and Security sectors to
the UAE and the regional industry
To promote Research culture and contribute in the development of the country and the
region
3. How long has the company been operational? How long have you been working at this
Company?
Ans; I have been working here 2012 and it has been operational since 2006.
4. What would the number of employees in the company be on an average?
Ans; 1000 employees and 200 to join.
5. How big is the HR department of the company?
Ans: 8 employees.
6. How important is it in your perspective to provide employees with feedback on their
performance? And why?
Ans: For our company it is very important to get the feedback of the staff performance and also
it’s very important the staff provide the feedback of our company management. In this way
the employee can improve their performance based on our feedback similar vice versa for
the company.
7. What are some of the most common problems you face when it comes to performance
of the employees at work?
Ans: Employee’s attitude and language.

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 8. What were/are the possible strategies you use solve the problems you shared?
Ans: Internal meeting/visit to their accommodation, explain about the future plan which will be
benefit for them.
9. What is your perspective on the importance on training employees before any new
task or job?
Ans: We do Training.
When the company gets a new project and we hire or transfer the staff to a new project, it is
very important for us to provide the training and also nominate a good trainer for that. If we
do not provide them with a proper training then there can be an error or quality issue in the
project which can affect the cost of the project and also can lead doubt about company
efficiency towards the client.
10. What are the techniques/systems used to appraise the employees for a task they
perform well?
Ans: The tools we use for the appraisal is we have designed form for each category and position
to do their assessment, the reporting manager of the staff will do the assessment and based
on their assessment and recommendation we do the promotion and salary hike. In case we
provide a negative feedback from the manager then we have 1 to 1 meeting with the staff to
make understand where lacking happening is and what needs to be done to improve his
performance.

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