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Managing performance and productivity

Human resource plays an important major role in the organizations, and business world. It is considered as one of the primary resources. Performance and productivity are the two engines of the organization’s success. The performance and employee productivity should be sustained in the organization for the long run of the organization. Performance and productivity are interconnected variables in the business context.

Managing performance

Performance implies the action of doing things that are using things, attending to conditions, processing, communicating, and achieving results. According to Malia (2011), performance is the actual work that is done to ensure that an organization achieves its mission. Malia argues that the end product of the performance should be measured against four elements, respectively quantity, quality, cost, and risk factors.

Managing employee’s performance can be identified as performance management. It is the systematic process by which an agency or an organization involves its employees as individuals and members of a group, in improving organizational effectiveness in the accomplishment of the organization’s mission and objectives. Moreover, performance management is the system for integrating the management of organizational and employees performance (Ajala, 2012).

Performance management is an approach to creating a shared of the purpose and aims of the organization, helping each employee to understand and recognize their part in contributing to them, and thereby managing and enhancing the performance of both individuals and the organization.” Berman, (2015) suggests that the approach include development of the organization objectives and mission, enhancing communication within employer and employees so that they will be well aware of the objectives and planning of the business. This approach can also clarify individual performance, rewarding and improving the performance of the staff and career development (Austin, 2013).

Figure 1: Performance management

The managing performance included planning, monitoring, developing, rating, and rewarding in an organization in the cycle of managing performance. Managing performance is getting better results from the organization, groups, teams, and individuals by understanding and managing performance within an agreed framework (DeNisi, 2011).

Productivity

Productivity is commonly defined as a ratio between the output volume and the volume of inputs. It can be defined as the measures of how efficiently production inputs like labor and capital are being utilized in an organization to produce a given level of output. Productivity is the key source of economic growth and competitiveness and as such is basic statistical information for many international comparisons and organizational performance even at the international level (Emerson, 2015).

Figure 2: Employee productivity

Employee productivity can be defined as the amount of work or output produced by an employee in a specific period. In the organization, it is the responsibility of the operation manager and top management to understand how long it takes the teammates to compete for a specific task and if there are any bottlenecks along the way that the manager can see to overcome the issue (Nabatchi, 2015).

James Clear (2019), defines productivity as a measurement of the efficiency of a person completing a task. He states that productivity is more than just getting things done. He argues that productivity is more about sustainability in the employee performance and maintains a steady, average speed on some kind of works not maximizing the speed on all the works and tasks (Lappalinen, 2019).

The importance of managing performance and productivity

Performance management and productivity are crucial elements in the organizational context. The following points are the importance of managing performance and productivity.

·      Managing performance and productivity convert the general customers into loyal customers through good customer services, healthier workplace relationships, and motivated employees (Saunila, 2019).

·      It reduces conflicts and grievances in the organization. Managing the employees’ performance keeps the eye on the employee’s performance and satisfaction. It helps to identify whether the employees have any problem with the organization or among employees (Rantala, 2019).

·      Increases employee engagement, when employees are engaged the performance will increase, and that respective increases the employee productivity and reduces the uncertainties in the organization (Walter, 2016).

·      The organization can increase its financial growth and sustainability in the market, and able to cope up with the disruptive changes that are happening in the industry. By managing the performance organization can improve the skills and capabilities of employees and increase their productivity (Rajesh, 2017).

The way to measure performance management and productivity

As managing performance and productivity essential and significant factor in the organization, the top management should ensure the performance management and productivity that ensures whether the factors are on track to achieve the organizational goals and objectives (Shrivastava, 2017). The following table shows the way of measuring performance management and productivity.

Table 1: Measuring managing performance & Productivity Source: Anderson, 2021

Recommendations to improve the managing performance and productivity

1.  Incorporate more evaluating tools to get a clear measurement.

Apart from the above tools organizations can initiate some other tools to measure managing performance and productivity. Those are given in the below table.

Table 2: Recommendation

Source: Smith, 2020

2. Align the employee’s goals and personal needs with the organizational objectives and goals.

An organization should identify the employees' individual needs and align them with the organization’s objectives by providing them suitable training and development programs that align the individual and organizational goals. Through this organizations can increase productivity and manage performance (Sockley, 2020).

3. Enable tow way and horizontal communication in the organization

Injecting a powerful team communication app or tool into the organization workflow. Evaluate the various choices available in the market, including team messaging app, discussion boards, group chat apps, video conferencing tools, etc. Identify what tool or software would work best for the team and then use it to successfully collaborate within the workplace (Tahir, 2014).

Conclusion

Managing performance and productivity are the two eyes of the organization. Performance is the actual work that is done to ensure that an organization achieves its mission. Productivity is a ratio between the output volume and the volume of inputs.

The factors are evaluated by performance appraisal, time tracking, 360-degree feedback, management by objective, and personal development tools. As a recommendation, the organizations can use some more various evaluation tools, align the individual needs with organizational objectives through effective training and development programs to enable the two ways and horizontal communication.

References

1)     Ajala, E.M., 2012. The influence of workplace environment on workers’ welfare, performance and productivity. The African Symposium.

2)     Austin, R.D., 2013. Measuring and managing performance in organizations. Addison-Wesley.

3)     Berman, E.M., 2015. Performance and productivity in public and nonprofit organizations. Routledge.

4)     DeNisi, A.S., 2011. Managing performance to change behavior. Journal of Organizational Behavior Management, 31(4), pp.262-276.

5)     Emerson, K. and Nabatchi, T., 2015. Evaluating the productivity of collaborative governance regimes: A performance matrix. Public Performance & Management Review, 38(4), pp.717-747.

6)     Lappalainen, P., Saunila, M., Ukko, J., Rantala, T. and Rantanen, H., 2019. Managing performance through employee attributes: implications for employee engagement. International Journal of Productivity and Performance Management.

7)     Malia, D. and Walters, D., 2016. Managing retail productivity and profitability. Springer

8)     Shrivastava, S. and Rajesh, A., 2017. Managing performance better: advent of a new appraisal system at Infosys Limited. Human Resource Management International Digest.

9)     Smith, J.S., Shockley, J., Anderson, S. and Liu, X., 2020. Tension in the Emergency Department? The Impact of Flow Stage Times on Managing Patient‐Reported Experiences and Financial Productivity. Decision Sciences.

10) Tahir, N., Yousafzai, I.K., Jan, S. and Hashim, M., 2014. The impact of training and development on employees performance and productivity a case study of United Bank Limited Peshawar City, KPK, Pakistan. International Journal of Academic Research in Business and Social Sciences, 4(4), p.86.

11) Ye, J. and King, J., 2016. Managing the downside effect of a productivity orientation. Journal of Services Marketing.