Introduction
As one of the branches of social science, the theory and application of management science has touched all types of organizations and all aspects of life, ranging from the personal to the State. Management is usually defined as the process of achieving results through and with others by maximizing the utilization of available resources.
Management is a process that is needed in the corporate world, because in the management process there are steps or stages in achieving company goals so that they can achieve these goals effectively and efficiently.
In addition to the management process that needs to be considered in an agency or organization, performance in an agency also needs to be considered. Because, performance is the result of work and also an assessment of the work of someone who is involved in the world of work of an agency. Therefore, performance also requires management, so that the results obtained or the performance of the workers or employees can achieve the results intended by the company.
Today the company faces many challenges from the environment. The changes happened so quickly and sometimes unpredictably. These changes include economics, technology, markets and competition. This change requires companies to change all the habits that have been done so far in order to face a high level of competition and to achieve the desired goals. For this reason, a new approach is needed in evaluating employee performance known as Performance Management.
Implementing performance management will provide benefits to organizations, teams, and individuals. Performance management supports the overall goals of the organization by associating the work of each worker and manager to the entirety of his work unit. Everything will be discussed in this paper
Problem Formulation
- What is the meaning of management, performance, and performance management?
- What is the purpose of performance management?
- What are the basic principles of performance management?
- What are the success criteria for performance management?
- How performance management challenges?
- Name the benefits of performance management?
PERFORMANCE MANAGEMENT
In the management of an organization or company, good governance or managerial is needed. Basic knowledge of management needs to be well understood and applied by managers so that it will be very helpful in carrying out their tasks in an effort to achieve organizational goals. Good management is the key to the welfare of a society consisting of a wide variety of organizations. One of the key aspects in management is how managers can recognize the role and importance of parties that will support the achievement of company goals.
Definition of Management, and Performance Management
The term management (management) has been interpreted by various parties with different perspectives. Management comes from the word to manage which means to control, handle or manage. In general, the definition of management is the management of a job to obtain results in order to achieve predetermined goals by moving others to work.
According to G. R. Terry, management is defined as a distinctive process consisting of planning, organizing, implementing, and supervising to determine and strive to achieve goals by utilizing human resources and other resources.
According to James A. F. Stoner, management is defined as the process of planning, organizing, leadership, and supervising the efforts (efforts) of members of the organization and using all the resources of the organization to achieve the goals that have been set.
Management is the process of using organizational resources by using others to achieve organizational goals effectively and efficiently. Namely by carrying out management functions such as, planning, organizing, directing and implementing, supervising, etc. Management can be defined as a process consisting of planning, implementing, and controlling.
Meanwhile, the word performance stands for work energy kinetics whose equivalent in English is performance, which is often translated into the word performance. The definition of Performance according to some experts is as follows:
- Performance is a set of results achieved and refers to the act of achieving and executing something of the work requested (Stolovitch and Keeps, 1992)
- Performance is one of the total collections of work that exists in workers (Griffin, 1987)
- Performance is a function of motivation and ability. To complete a task or job a person must have a certain degree of willingness and level of ability. A person's willingness and skill are not effective enough to do something without a clear understanding of what to do and how to do it (Hersey and Blanchard, 1993)
- Performance refers to the level of success in carrying out tasks as well as the ability to achieve predetermined goals. Performance is declared good and successful if the desired goal can be achieved well (Donelly, Gibson and Ivancevich, 1994)
- Performance as the quality and quantity of achievement of tasks, whether performed by individuals, groups or companies (Schermerhorn, Hunt and Osborn, 1991)
- Performance as a function of the interaction between ability (Ability=A), motivation (motivation=M) and opportunity (Opportunity=O) or Performance = ƒ(A x M x O); meaning: performance is a function of ability, motivation and opportunity (Robbins,1996).
Of the two words management and performance, when combined into one new word, namely Performance Management. Some definitions are expressed by experts as follows:
- Performance management as a communication process that is carried out continuously in partnership between employees and their direct supervisors. This communication process includes activities to build clear expectations and an understanding of the work to be done (Bacal, 1994).
- Performance management as a means to obtain better results from organizations, teams and individuals by understanding and managing performance within a framework of agreed goals, standards, and attribute requirements (Armstrong, 2004).
- Performance management is a management style whose basis is open communication between managers and employees regarding goal setting, providing feedback both from managers to employees and vice versa (Schwartz, 1999)
- Performance management is the foundation and the guiding force that is behind all organizational decisions, work efforts and resource allocation (Costello, 1994)
- By paying attention to the opinions of experts, it can be formulated that basically performance management is a management style in managing performance-oriented resources that carries out an open and sustainable communication process by creating a common vision and strategic and integrated approach as a driving force to achieve organizational goals.
Performance management is a process designed to improve the performance of managers-driven organizations, groups, and individuals. Performance management includes an ongoing review of performance and is carried out jointly based on agreement on targets, expertise, competencies, work and development plans, as well as the implementation of plans for further improvement and development.
Performance itself is future-oriented, tailored specifically based on the specific conditions of each organization/individual and based on a causal model that connects inputs and outputs.
So, the conclusion of performance management is an activity that reviews performance on an ongoing basis to improve and develop performance further.
Objectives Performance management.
Performance management in practice has a variety of objectives that can help with work effectiveness and efficiency. As for the objectives of performance management, according to Noe et al (1999), there are three objectives of performance management, including:
1. Strategic Objectives
Performance management should attribute the activities of employees to the goals of orgaization. The implementation of the strategy needs to define the results to be achieved, behavior, characteristics of employees needed to carry out the strategy, develop measurements and feedback systems for employee performance.
2. Administrative Purposes
Most organizations use performance management information, especially performance evaluation, for administrative decisions, such as: payroll, promotions, dismissal of employees and others.
3. Development Objectives
Performance management aims to develop the capacity of employees who are successful in their field of work.
The general goal of performance management is to create a culture of individuals and groups bearing responsibility for continuous improvement of work processes and capabilities.
In addition, The general goal of performance management is to build a culture within the company that encourages individuals and groups to be responsible for continuously improving the company's operations and their capabilities and contributions. The objectives for implementing performance management are best determined and approved by top management. The goal according to Rojuainiah is:
- Improve the performance of organizations, groups and individuals
- Integrating organization goals, groups and individuals.
- Gain clarity on the company's expectations of the performance that must be achieved by individuals and groups.
- Develop employee skills and competencies.
- Improve closer cooperative relations between subordinates and superiors.
- Provide tools that can improve the objectivity of employee performance appraisal.
- Empower employees to manage performance and independent learning.
Basic Principles of Performance Management
As a basic principle in performance management is to value honesty, provide service, responsibility, feel like playing, there is a feeling of pity, there is a formulation of goals, there is consensus and cooperation, it is sustainable, two-way communication occurs and getting feedback.
1. Honesty
Honesty manifests itself in honest feedback communication among managers, workers, and co-workers. The assessment process will expand the understanding of subordinates by inviting them to honestly state what motivates them, what they like and dislike about their work, what they want and what is in their interest and how they should be helped.
On the contrary, managers also tell the truth in relation to subordinates about what they like and what they don't like about their work. So that managers are able to understand the obstacles of employees to achieve good performance.
2. Service
What is meant by service here is how to provide services to workers, such as if the worker has difficulty completing his work, then the manager helps the worker to be able to complete the work.
3. Responsibility
Responsibility is a basic principle in developing performance. By understanding and accepting responsibility for what they do and what they don't work to achieve their goals. In the manager's perspective, it is the responsibility of the manager to ensure the success of his subordinates.
4. Play
Performance management uses the principle that it cooperates with play. By using the principle of playing, the work done will not be a burden, instead it will be fun and become enthusiastic when doing the work.
5. Pity
The meaning of pity is that a manager has an attitude of understanding and empathy towards others. The pity of a manager will forget the mistakes behind and will start with something new
6. Formulation of goals
Performance management begins with formulating and clarifying in advance the goals to be achieved by the organization.
7. Consensus and cooperation
Performance management relies on cooperation between superiors and subordinates rather than emphasizing control and coercion.
8. Sustainable
Performance management is a process that takes place continuously, and is continuous
9. Two-way communication
Performance management requires a management style that is open and honest and encourages two-way communication. With two-way communication, the subordinate easily understands what his superiors want. On the contrary, the superior better understands what is happening and what the subordinate wants.
10. Feedback
Feedback in this case is in the form of possible experience and knowledge of past performance, which is useful for reviewing performance planning.
Performance Management Success Criteria
Successful performance will have a positive impact on effective work results that are able to achieve the goals of a company agency. Therefore, agencies that carry out performance management in their companies will be able to obtain effective performance. Thus, performance management can be declared successful if it meets the following criteria.
- The performance management process has allowed the experience and knowledge that individuals gain from work to be used to modify organizational goals.
- The process of organizing performance management can be adjusted to the actual work of the organization and how performance in general is managed.
- Performance management can add value in the form of short-term results and long-term development.
- The performance management process runs transparently and works honestly and fairly.
- The opinion of the stake holder is concerned about how well the scheme is working and actions are taken as needed to improve various processes. If the company pays attention and tries to meet the requests / interests of each sake holder, then performance management will be able to succeed.
Performance Management Challenges
The challenge facing performance management is the tendency to be avoided by both managers and workers. And they have their own reasons. In the eyes of managers, performance management is an additional workload, in addition to carrying out tasks that have been done so far. Meanwhile, on the side of workers, there are still many doubts because they do not fully understand the benefits of performance management for themselves.
The solutions to the problems regarding the challenges of implementing performance management according to the speaker are:
- Instilling in managers and employees that performance management is very urgent or important to improve the quality and quantity of work of both managers and employees, so that it will be able to increase productivity and achieve company goals according to targets and company planning.
- Knowing and Understanding the benefits of performance management, namely improving the work discipline of both managers and employees.
- Do not consider performance management as a burden, but instead consider performance management as a necessity for a company.
Benefits of Performance Management
An organization is formed to achieve the goals of the organization. The achievement of organizational goals shows the results of organizational work / achievements and shows organizational performance. The result of the work of the organization is obtained from a series of activities that are carried out. These activities can be in the form of managing organizational resources or the process of implementing work necessary to achieve organizational goals. To ensure that the activity can achieve the expected results, management efforts are needed in the implementation of its activities
Thus, the essence of performance management is how to manage the entire activity of the organization to achieve the previously set organizational goals. Performance management does not only benefit the organization but also managers and individuals. For organizations, the benefits of performance management are adapting organizational goals to team and individual goals, improving performance, motivating workers, increasing commitment, supporting core values, improving training and development processes, improving the skills base, striving for continuous improvement and development, striving for a career planning base, helping to keep skilled workers from moving, supporting total quality initiatives and customer service, supporting Cultural Change Program.
For managers, the benefits of performance management include: seeking clarification of performance and behavioral expectations, offering opportunities to use quality time, improving team and individual performance, seeking nonfinancial rewards on staff, assisting employees with low performance, being used to develop individuals, supporting leadership, motivational processes and team development, working on a framework for reviewing performance and compensation levels.
For individuals, the benefits of performance management include in the form of: clarifying roles and goals, encouraging and supporting to perform well, assisting in the development of abilities and performance, opportunities to use quality time, the basis of objectivity and honesty to measure performance, and formulating goals and plans for improving how work is managed and executed.
According to Costello (1994) performance management supports the overall goals of the organization by associating the work of each worker and manager to the overall mission of his work unit. How well we manage the performance of subordinates will directly affect not only the performance of each individual worker and his work units, but also the performance of the entire organization.
When workers have understood what is expected of them and have the necessary support to contribute to the organization efficiently and productively, their understanding of goals , self-esteem and motivation will increase. Thus, performance management requires cooperation, mutual understanding and open communication between superiors and subordinates.
Conclusion
Performance management is defined by Bacal (1999) as a continuous communication process carried out in partnership between an employee and a superior.
So, the conclusion of performance management is an activity that reviews performance on an ongoing basis to improve and develop performance further.
There are 3 types of performance management objectives, namely: strategic objectives, administrative objectives, and Development Objectives. The basic principles of performance management are honesty, service, responsibility, play, pity, goal formulation, consensus and cooperation, Sustainability, Two-way communication, Feedback. Performance management also has many benefits according to their respective positions, performance management is beneficial for the manager, employees and most importantly useful in achieving the goals, vision, mission of an organization.