Organization Behavior "Performance Management Essay

Pages: 11 (3584 words)  ·  Bibliography Sources: 8  ·  File: .docx  ·  Level: College Senior  ·  Topic: Business - Management


In order to fill the gap between training and development needs and the organizational requirements, the Management must institute an effective people performance management system for all categories of its workforce (Boselie, Dietz, & Boon 2005).

Goal Setting:

Managers are assigned different short-term and long-term targets which they have to achieve through their subordinates within specified deadlines and allocated resources. In order to accomplish these targets in an effective and efficient fashion, the managers need to get the work done through their subordinates in a well-organized fashion. The Performance Management model by Michael Armstrong gives a special focus on Goal Setting for the achievement of organizational objectives in a cost-efficient way. Armstrong believes that managers can divide their big targets into small targets and assign them to teams. These teams further divide their targets into sub-targets which are assigned to individual team members according to their interests and areas of expertise (Boxall & Purcell 2003).

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Armstrong has presented a set of important strategies which managers need to follow in order to ensure that their goals are being achieved effectively. According to his Performance Management model, the goals must be achievable, clear, and time-specific. Those goals which are ambiguous and come up without specified deadline are difficult to be achieved by the team members. A number of research studies have been done which relate the organizational success and competitiveness to the effective achievement of goals. Most of these research studies also rank goal setting and accomplishment as one of the major functions of a business manager (Guest, Michie, Sheehan, & Conway 2000).

Feedback from Internal Customers:

TOPIC: Essay on Organization Behavior "Performance Management" and Assignment

Employees are the internal customers of an organization. Thus, the feedback which organization gets from these internal customers is also important for its effective functioning and performance. In order to ensure a continuous improvement in the organization's productivity, the managers need to get feedback from their employees on regular basis. This feedback may come with the help of Management by Objective (MBO) technique. However, those employees who do not participate in MBO programs can also give their feedback to the managers if there is an effective communication system within the organization. Feedback enables the managers to resolve the issues and problems in the organization's working environment, operational setup, and related services (Becker & Huselid 2006).


Leadership is one of the core functions of a manager. It is also considered as the key to organizational success and prosperity in its industry. From goal setting and strategic planning to problem solving and employee motivation -- leadership is essential in all the organizational processes and affairs in one way or another. For a manager to be successful in his career, he must possess strong leadership skills. These skills can help him in managing the organizational members effectively and get the work done through them efficiently (Hutchinson & Purcell 2003). Researchers are of the view that effective leadership improves the employees' performance at all organizational levels. They argue that employees always need guidance and direction by their supervisors and leaders in performing their job responsibilities in an effective and efficient way. If leaders are not there, the employees cannot work according to the expected criteria or standards which ultimately results in an inefficient use of organizational resources.

Effective leadership is essential for organizational success because it is directly related to the organizations' strategic planning and direction. There are leaders at the Top organizational positions in the form of Board of Directors and Senior Management that set the direction for the organization's strategic moves in its industry. At the same time, these leaders are responsible to ensure strong industrial relations. They have to formulate policies and strategies that show the organization's true concern for its employees. The Board of Directors needs to design the organization wide Human Resource Management policies which are both in favor of the organization as well as acceptable for its employees (Armstrong 2012).

The Role of Line Managers:

Line managers are the lower level managers in an organization. They are the direct supervisors of the low level employees and daily wage workers in the organization. Most of the researchers believe that line managers can be regarded as the most responsible personnel for the performance and productivity of the organization's lower level staff. Reason being, they have to get the work done from these people in a standardized format and working patterns. They have to set the working hours, job positions and work options, leave and job rotations, and other job-related decisions for their employees (Hutchinson & Purcell 2003). Line managers largely contribute in improving the organizational productivity through its employees. As line managers directly report to the middle and top managers about the progress and learning of their subordinates, they better know which employee is performing better than the others. This thing helps the top managers in their succession planning practices, i.e. selecting the right individuals from the bottom level to fill the top level positions in the organization (Bratton & Gold 2003).

Managing Employee Turnover:

Turnover refers to the ratio between employees who left the organization to the employees who join it during a particular period of time. For any type of organization, high turnover can be dangerous; both operationally and financially. It not only disturbs the continuous performance of business operations, but also costs in the form of expenditures on new recruitment and selection processes (Gerhart 2005). When an employee leaves the organization, all his job responsibilities and tasks are temporarily assigned to his coworkers. In this way, it also disturbs the routine performance of these coworkers which ultimately affects the organizational productivity. Therefore, when an organization observes a high turnover, it must realize that its organizational setup lacks an effective people performance management (Chen & Farh 2002).

The People Performance:

The People Performance model presented by John Purcell has great implications for the organizations to ensure remarkable success and competitiveness through their human resource. His contributions are mainly focused on managing the employees' performance and productivity through consolidated effect of all the major human resource management policies and practices. He has based his People Performance model on four important pillars. The first pillar, human resource management entails all those activities and day-to-day practices which are related to the effective management of employees' behavior, morale, and work options (Purcell 2007). Purcell believes that organizations should equally focus on the intrinsic side of their human resource management practices, i.e. The employees should not only be provided with good salary, compensation benefits, and learning opportunities; the working options and the work environment is also equally important for their efficient performance. He believes that organizations should provide them flexible work options so that they can achieve a good balance between their personal life and the professional career (Guest, Michie, Sheehan, & Conway 2000).

The second pillar of his model focuses on providing sufficient training, motivation, and opportunities to the employees so that they can effectively contribute towards the organization's success. The third pillar takes the role of line managers in the employees' performance improvement process whereas the last pillar focuses on analyzing employee behavior and outcomes on regular basis (Purcell 2007).

Organizational Behavior:

Organizational behavior entails the observable actions and attitudes of individuals within an organization. It is developed by the organizational members through common beliefs and thoughts which they share within their workplace and express to the outside world. In order to analyze the behavioral components within an organization, it is imperative to look at its culture which is the collection of communication and interaction among its employees and the efforts which it makes to strengthen this culture and improve its employees' performance through different motivational techniques (Bratton & Gold 2003). Both Purcell and Armstrong have also highlighted organizational behavior as an important parameter to judge whether an organization is moving in the right direction towards its success or not. They believe that organizational behavior tells the hidden stories from the organization's internal contexts which are untold in its formal publications. Therefore, managers also need to focus on building strong organizational culture and instituting an effective communication system within the organization (Becker & Gerhart 1996).


Keeping in view the significance of people performance management for an organization's success, it can be recommended that organizations should keep their industrial relations management policies at their top priority. On one side where managers are directed to save the organizational costs through different tactics and strategies; they should also make efforts to manage their employees so that they perform effectively and utilize the organizational resources efficiently. First of all, they should assess the training and development needs of each individual employee in the organization and then arrange proper training according to their area of job responsibilities and future growth requirements. Secondly, they should use different motivational techniques to keep the employees committed and dedicated towards the organization's objectives and strategic goals. They can use both monetary and non-monetary benefits to increase the morale of… [END OF PREVIEW] . . . READ MORE

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How to Cite "Organization Behavior "Performance Management" Essay in a Bibliography:

APA Style

Organization Behavior "Performance Management.  (2012, December 30).  Retrieved January 18, 2022, from

MLA Format

"Organization Behavior "Performance Management."  30 December 2012.  Web.  18 January 2022. <>.

Chicago Style

"Organization Behavior "Performance Management."  December 30, 2012.  Accessed January 18, 2022.