Custom «Performance Management and Employee Services» Essay Paper Sample
Employees are the most important resources owned by an organization. They act as a bridge between an organization and its customers. All customers’ interaction processes with any organization are done through the human resources. Commonly, success of any given organization depends on the value (attitudes, behaviors, competency, and performance levels) of its employees. Therefore, organizations should place as much emphasis on employees’ performance expectations, as they place on product quality and customer satisfaction.
According to Artley and Stroh (2001), lack of emphasis of employees’ performance expectations result into poor performance of the employees. This is because; the employees do not have any guiding principles indicating what is expected of them. They therefore tend to relax their efforts towards the organizational goals and objectives. Poor employees’ performance result into low productivity, hence poor organizational performance (Artley & Stroh, 2001). Lack of proper definition of employees’ performance expectations result to inability of an organization to answer questions such as; how are we doing, are we meeting our targets, are our customers satisfied, and do we need to improve? The answers to these questions are very important in decision-making. Therefore, lack of emphasis on performance expectations gives rise to poor decisions, which when implemented result into poor organizational performance (Artley & Stroh, 2001).
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Similarly, if an organization fails to emphasize on employees’ performance expectations, the hiring and recruiting functions have negative outcomes. Usually, lack of emphasis on employees’ performance means lack of sound guidelines for hiring and recruitment functions. Therefore, such an organization ends up hiring unskilled/ill-skilled and incompetent employees. Due to absence of skilled and competent workforce, the evaluation outcomes are always negative: employees do not meet performance standards. In the same way, promotion outcomes are negative: an organization lacks competent employees to allocate in demanding positions. At first, lack of emphasis on employees’ performance may not affect compensation of employees. However, due to poor organizational performance, an organization may experience financial problems, forcing it to reduce the pay per employee. For instance, poor productivity may result to decreased revenue, which in return may result into decreased profits. Decreased profits mean less cash to cover operating expenses, which include employees’ salaries. Moreover, due to less cash flow, an organization may not be able to meet its short-term debts (current liabilities).