Essay
Unit 16 D2
- Institution
- PEARSON (PEARSON)
This is Unit 16 D2, where the importance of managing and measuring performance is assessed.
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Jay TranU16A2 D2 Assignment
(D2)- Assess the importance of measuring and managing employee
performance at work.
Employee performance is vitally important and is essential in the productivity of a business.
However, the performance of employees cannot go unnoticed, so businesses implement
methods to ensure that employee performance is managed appropriately and measured to
a suitable standard, to prevent a lack of said performance, which if it does occur, can
decrease business productivity and can make the business less profitable and suitable to
customer needs. In this assignment, the importance of measuring and managing employee
performance at work is to be assessed and explained.
The Importance of Measuring and Managing Performance
One reason as to why measuring and managing employee performance is incredibly
important is because it allows business to keep and retain key employees, meaning that
they do not have to spend more money and time training, employing and interviewing new
applicants for a vacant job role. By seeing how well their employees work, a business can
easily measure how well their performance is too, whilst also detecting any weaknesses,
both major and minor in these key employees. Therefore, using a fair evaluation strategy,
businesses can use it to determine where and why weaknesses lay, meaning that the
evaluation will provide the business with the strongest key employees, who will be at the
forefront of promotion, where their outweighing strengths in their skills and knowledge will
benefit the business in a quantifiable manner. This illustrates the importance of measuring
performance because measuring performance allows businesses to see the amount of work
employee are doing effectively and efficiently, thereby being used as a tool for further
promotions in the future. Monoux retains key employees such as teachers by managing
their performance by incorporating both financial and non-financial incentives as a tool for
motivation, allowing teachers to work harder. These incentives can include financial
bonuses, or extra time off work, adding to the government academic schedule of half-terms
and holidays for students. They can also promote the most hard-working teachers into
higher managerial positions such as Department Heads or Pathway Leaders, for which their
evaluated strengths can be used to further attribute to business performance as a whole to
make Monoux, as a college seem more appealing to potential customers. One advantage of
this is that the business is able to spend less money on training and employing new
candidates as they are still able to retain their current key employees, by using methods of
managing and measuring performance, as well as promoting them to a higher position.
Furthermore, another advantage is that it is clear for the business to understand and
acknowledge the various flaws and weaknesses certain employees may possess, making it
easier for businesses to identify solutions to resolve these weaknesses to enhance their
workers’ current strengths. However, one disadvantage is that some employees may
disagree with the fact that they are not part of the selected group of the strongest key
employees chosen by the business, which can affect staff morale, decreasing the level of
performance and the determination and motivation to work. Another disadvantage is that if
, Jay Tran
businesses use incentives to manage performance, especially those of a financial nature,
then this would mean that there will be an extension of cash outflow, meaning more money
is being spent rather than more money coming into the business. This will harm the overall
profit margin of businesses, making them head further towards a loss than to extra profit. A
recommendation I would suggest preventing this is that businesses should include all
employees that fit the profile of being capable of having outweighing strengths as well as
working better than the expected standard. This is so that no employees feel left out when
the business chooses the strongest employees, making staff feel as part of the businesses
and not shunned aside and forgotten about, although it may take longer for the business to
find the perfect employee for a promotion due to the longer list of employees as a result of
this recommendation.
Another reason as to why it is important to measure and manage employee performance at
work is because it is needed to identify employees and staff with talent and a strong work
ethic, alongside positive feedback from others. This is incredibly important because
methods of managing performance such as appraisal can be used to determine how much
employees are motivated, determined, and encouraged to give their best performance and
to work to the best of their ability. If they are not used, then that means that employees will
feel saddened by the fact that their efforts are going unnoticed, thereby having their
motivation and enthusiasm to work hard become depleted, meaning that overall staff
morale will harshly decrease, as will the feeling of appreciation and value. This will affect
employees to such a degree that they may leave their current place of occupation for
another organisation just to receive the appraisal of recognition, achievement, and praise
that they longed for, but were unable to receive before. In relation to Monoux, the college
does this by identifying the level of performance of teachers and how hard they work, using
the method of appraisal to manage their performance. As a result of their efforts, teachers
can receive praise, recognition, and achievement for the work that they do in which such
occurrences like promotions can be given to them as a sign of achievement and recognition.
An advantage of this is that even small gestures of praise and recognition are satisfactory
enough for employees to continue working hard and performing to the best of their ability.
This means that motivation and determination can still be maintained through these
gestures of appraisal, no matter how small. Another advantage is that appraisal acts as a
continuous tool for motivation and performance, meaning that it is reliable for businesses to
use to maintain employee motivation and performance as workers are always looking for
some form of praise and recognition for their actions and efforts. Regardless, one
disadvantage is that if employees do end up leaving to join another organisation, then this
means that not only does the business end up with a smaller workforce, but then that also
means members of their current workforce may feel compelled to also leave the business
for a fellow organisation to feel more respected and valued. This can further decrease
employee productivity, halting all business activities, making them less profitable and
receiving less profit. Another disadvantage is that it is possible for employees to overwork
themselves in an attempt to be noticed by the business and praised. This means that despite
their goal of appraisal, employees will end up stressed and worn out from working too hard,
resulting in less motivation to work and a decrease in employee productivity. A
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