Employee Performance and Development

"The area of employment is changing dramatically, technology and globalization are impacting practices and experiences, and societies are becoming more global and multicultural" (Kareem & Hussein, 2019, p. 307). In this context, employee performance and development are taking an important role to ensure employability and profitability. Both performance and development go hand in hand. Or, as Ramli et al. (2018) put it, "to secure performance, special attention need to be employ [sic] in the training and development" (p. 722). This LinkedIn article aims to provide an overview of effective performance measurement and training programs, their challenges, and process.  It is structured in the following manner: first, it will address effective performance measurement and the process of performance improvement. Second, it reflects on the challenges to effective training with its individual phases. It concludes by emphasizing the importance of work culture on employee performance, training, and commitment.

The Five Challenges to Effective Performance Measurement

Employers face multiple challenges to effective and unbiased personnel evaluation. Gómez-Mejía et al. (2016) summarized these as challenges to rater errors and bias, the influence of liking, organizational politics, individual or group focus, and legal ramifications. While employers strive for an impartial performance process, having discretion over specific performance factors alone can open the door for performance evaluation bias (Kramer & Maas, 2020).

Appraisal Interview

In an appraisal interview, the employer discusses past performance with the employee. It is used to decide promotions, salary adjustments, aligning on targets, and is critical for the employee and the organizational effectiveness (Meinecke et al., 2017). However, to be effective, performance meetings should measure past performance and give an outlook for future plans (Gómez-Mejía et al., 2016). In this context, the HR literature differentiates between two evaluation concepts: management by objectives (MbO) and systematic performance appraisals (SPAs).

Wiemann et al. (2019) researched how different performance evaluation methods affect cooperative trust and climate. The researchers' surveyed 235 municipal administrations and analyzed data from 184 employees and 60 supervisors. The scholars assert that MbO positively influences trust and employee behavior due to employee inclusion and mutual goal setting. Wiemann et al. further opine that SPAs, on the other hand, harm trust, lack transparency, and are often perceived as unfair while weakening cooperative climate. The research from Wiemann et al. is particularly noteworthy for the realm of effective performance measurement, as the scholars compared MbO and SPA's impact on organizational fairness and performance. The study of Wiemann et al. has significant practical relevance. The authors recommend using only MbO, due to its design for participation, training, and transparency while discontinuing SPA as a performance evaluation tool as it lacks an employee development focus.  

Therefore, organizations should utilize MbO and use the appraisal interview to provide feedback and mutually align on future goals.   

Performance Improvement

When discussing performance improvements, it is not sufficient to conduct an annual evaluation meeting. Organizations should focus on daily performance management, identify the root course of the performance problems, create an action plan to rectify the situation and establish direct communication and feedback (Gómez-Mejía et al., 2016). Or, as Gnepp et al. (2020) put it, "a future focused approach to feedback holds great promise for motivating future performance improvement" (p. 23). The following paragraphs will address how to identify and correct performance issues, with a strong focus on communication.

Identification of Causes of Performance Problems

Performance issues can be a result of many reasons. Gómez-Mejía et al. (2016) note ability, motivation, and situational factors as causes for performance concerns. Gómez-Mejía et al. further allude to the risk of actor/observer bias, which describes the tendency to blame someone else for performance shortfalls. Managers and employees should identify the root course for performance issues with an open mind, without bias, and to find a solution, not assess blame. Performance problems can lay within or outside of the employee's control (for example, external factors, like material defects, might lead to increased quality costs and manufacturing inefficiencies outside of the employee's area of responsibility). After the root course of any performance shortfall is identified, management should develop an action to train and empower the employee, which is outlined next.

Development of an Action Plan and Empowerment of Employees

After identifying the underlying performance causes, management should involve the employee and seek the employee's "buy-in" to the training measure. Both parties, employer and employee, should align on the objectives of the training. As Gómez-Mejía et al. (2016) point out, the manager should strive to provide a supportive work environment, immediate feedback, and transition into a mentor role. The development of an action plan is often combined with creating a training plan outlined later in this paper.

Communications at Performance Evaluations

Meinecke et al. (2017) stress that communication during the evaluation meeting should not be a "one-way street" (p. 1068) and that employees should actively participate. The scholars recommend that employees prepare adequately for the conversation and further encourage managers to seek feedback from the employee to increase participation and satisfaction. Meinecke et al. further allude to the risk of following interview guidelines too rigidly, as predefined communication might discourage participation.  Further, the communication in the evaluation meeting should be directed designing the future and not only discussing past performance (Gnepp et al., 2020).

Venne and Hannay (2018) researched the effect of demographic change on business practices regarding performance evaluations. The authors opine that with generational changes, performance evaluation needs to adapt to a changing workforce culture, preferences, and priorities. In their paper, Venne and Hannay examine how career patterns and work culture transform in a multi-generational workforce. The scholars allude to the limitations and bias risk of conventional performance appraisal systems. Venne and Hannay point out that with generational changes, younger employees will question the employer's authority for their evaluation and look more toward a discussion on how to improve future performance. The scholars' paper is highly noteworthy when discussing the performance management process and communications at performance evaluations for multiple reasons. First, it outlines that the employee's focus, culture, and goals changed as younger employees seek more empowerment and participation and value growth opportunities more than job security. Second, the authors call for a redesign of evaluation tools from an administrative assessment to a development system. The scholars conclude by stressing the need for flexible performance review systems and offering timely, more frequent feedback directed to seek growth opportunities.

The Four Challenges to Effective Training

Gómez-Mejía et al. (2016) refer to the following questions when evaluating successful training measures: a) does the training resolve the problem, b) are the goals clearly defined and reachable, c) is there a return on investment on the training, and d) will the training measure be successful. Furthermore, each training phase, analysis, design, development, implementation, and evaluation, which will be discussed in more detail later in this paper, comes with its challenges. Lakra (2016) researched employees' opinions on the five different training phases and provides valuable insight into how to structure their training programs. Lakra's study consisted of a sample size of 300 employees, which reflected 7.5% of the total population. The scholar identified that managers mostly initiate training rather than the employees themselves. Lakra further asserts that the lack of understanding on the employees' side regarding why training is needed might lead to demotivation and dissatisfaction with the training. Furthermore, the author points out that the employee's opinion about a training program is affected by the ability to apply the trained skills in their role. The author concludes by asserting that training is often unorganized and calls for more employee involvement in structuring it. The work of Lakra is noteworthy when discussing the realm of the different training phases, as the author's study focuses on each of the phases individually and alludes to significant obstacles in each of them. By providing recommendations on improving each training phase, the author offers valuable practicable input on making training successful and mastering its challenges.

Assessment Phase

Employers evaluate the need for training in the assessment phase (Gómez-Mejía et al., 2016). Gómez-Mejía et al. include three main criteria in their needs assessment: organizational, task, and person. The authors include broad considerations like corporate culture and climate in the organizational assessment, while task assessment refers to all job requirements. Lastly, in the person assessment, the organization reviews the employee's performance and determines who needs training (Gómez-Mejía et al.).

Clarification of the Objectives of the Training

In the training design phase, the organization develops the training objectives by aligning on the specific previously identified needs (Lakra, 2016). Training goals should be challenging, achievable, clearly defined, and focus on the tasks necessary for the job (Gómez-Mejía et al., 2016).

Training and Conduct Phase

There are many choices regarding how and where to conduct training. Online training gained support and acceptance in the past years, as a result of the Covid-19 pandemic and the need to transform the training landscape. Regarding how to conduct training to make it successful for the organization and trainee, Malek et al. (2018) researched the relationship between manager training and turnover rate. The researchers analyzed 876 surveys from line-level employees and their direct managers. The scholars used multiple regression analysis and a seven-point Likert scale in their study, which identified a direct inverse relationship between management training and employee turnover intentions. The work of Malek et al. is noteworthy, as it identified a significant positive relationship between manager's training and the employee's perception of the manager's knowledge and commitment. The work of Malek et al. has further high practical application, as it validates the business case for investment in employee training, leading to a reduction in turnover. Malek et al. conclude by asserting that most managers are not adequately trained and recommend that organizations put more emphasis on hiring qualified managers and advancing their training programs.

Evaluation Phase

In the evaluation phase, the effectiveness of the training is evaluated (Gómez-Mejía et al., 2016).  Organization and trainee would assess in this phase if the training's objectives were reached (Lakra, 2016).

Legal Issues and Training

Training measures need to adhere to all legal guidelines and regulations (Gómez-Mejía et al., 2016; Vásquez-Torres, 2018). The Equal Employment Opportunity Laws, which disallow any discrimination based on race, color, religion, sex, or national origin, are most noteworthy in this context (Gómez-Mejía et al., 2016). Organizations need to pay attention to offer training without bias (for example, offer training only to younger employees) to the workforce.

Conclusion  

Training benefits the entire life cycle in an organization, is a strategy toward productive improvement and one of the most critical investments in HR (Vásquez-Torres, 2018).  It has a positive impact on work culture as highlights the employer's commitment to investing in human capital. While it is difficult to determine the exact return of investment (ROI) of training, organizations and trainees gain economic performance (Maria, 2018).  It is vital that organizations and trainees understand training not as a burden but as an investment into higher employee retention, satisfaction, and efficiency, which yields positive ROI's for organizations and employees alike.

References

Gnepp, J., Klayman, J., Williamson, I. O., & Barlas, S. (2020). The future of feedback: Motivating performance improvement through future-focused feedback. PLoS ONE, 6. https://doi.org/10.1371/journal.pone.0234444

Gómez-Mejía, L. R., Balkin, D. B., & Cardy, R. L. (2016). Managing Human Resources (8th ed.). Pearson.

Kareem, M. A., & Hussein, I. J. (2019). The Impact of Human Resource Development on Employee Performance and Organizational Effectiveness. Management Dynamics in the Knowledge Economy, 7(3), 307–322. https://doi.org/10.25019/MDKE/7.3.02

Kramer, S., & Maas, V. S. (2020). Selective attention as a determinant of escalation bias in subjective performance evaluation judgments. Behavioral Research in Accounting, 32(1), 87–100. https://doi.org/10.2308/bria-18-021

Lakra, N. R. (2016). Assessment of employee training: The case of steel industry in India. IUP Journal of Management Research, 15(4), 59–75.

Malek, K., Kline, S. F., & DiPietro, R. (2018). The impact of manager training on employee turnover intentions. Journal of Hospitality and Tourism Insights, 1(3), 203–219. https://doi.org/10.1108/JHTI-02-2018-0010

Maria, C. (2018). The costs of the professional training at the level of the economic entities: Long-term investment or expense? Ovidius University Annals, Series Economic Sciences, 18(2), 228–233.

Meinecke, A. L., Lehmann-Willenbrock, N., & Kauffeld, S. (2017). What happens during annual appraisal interviews? How leader-follower interactions unfold and impact interview outcomes. Journal of Applied Psychology, 102(7), 1054–1074. https://doi.org/10.1037/apl0000219

Ramli, A. A., Anuar, F. L. M. K., Rosli, I., & Jamalidan, S. A. (2018). The relationship of design, implementation, monitoring and evaluation in training and development towards employee performance in food and beverage industry. Global Business & Management Research, 10(3), 714–723.

Vásquez-Torres, M. D. C. (2018). Factorial analysis of the elements that compose the training in the small and medium enterprises of the Industrial sector. Management (1429-9321), 22(2), 42–59. https://doi.org/10.2478/manment-2018-0022

Venne, R. A., & Hannay, M. (2018). Generational change, the modern workplace and performance appraisal: Why changing workplaces need a developmental approach to performance appraisal. American Journal of Management, 18(5), 88–102.

Wiemann, M., Meidert, N., & Weibel, A. (2019). "Good" and "bad" control in public administration: The impact of performance evaluation systems on employees' trust in the employer. Public Personnel Management, 48(3), 283–308. https://doi.org/10.1177/0091026018814560