Contemporary performance management practice in global context.
Performance management is a systermic process for improving organizational performance by developing the performance of individuals and teams. It is a means of getting better results by understanding and managing performance within an agreed framework of planned goals , standards and compentancy requirements. As Weiss and Hartle (1997) stated performance managament is : ‘ A process for establishing a shared understanding about what is to be achieved and how it is to be achieved , and an approch to managing people that increases the probability of achiving success.
The following three underpinning performance management have been identified by Buchner (2007)
- Goal theory - Goal theory , as developed by Latham and Locke (1979) , highlights four merchnisam that connect goals to perofoamce out come 1) they direct attention to priorities 2) they stimulate effort 3) they challenge people to bring their knowledge and skills to bear to increase chances of success. 4) the more challenging the goal ,the more people will draw on their full repertoire of skills. This theory underpins the emphasis in performance managemt on setting and agreeing objectives against which performance can be measured and managed.
- Control theory - control theory focus attention on feedback as a means of shaping behavior. As people receive feeedback on their behavior they appreciate the discrepancy between what they are doing and what they are expected to do and take corrective action to overcome discrepancy. Feedback is recognized as a crucial part of performace managemt process.
- Social cognitive theory - social cognatrive therory was developed by Bandura (1986). It is
- based on his central concept of self -efficacy . This suggests that what people believe they can
- do powerfully impacts on their performace . Developing and strengthening positive self - belief in empoloyee is therefore an important performace management objective.
Overview of control theory
Control theory focuses on control mechanism which should be imposed at all levels of an organization. There are different forms of control which an organisation can use in order to get the desired results such as:
- organizational structure,
- behavioral controls like norms and policies of an organization or
- performance measurement mechanisms.
These results have to be congruent with the objectives and goals of an overall organization (Barrows & Neely, 2012). Control theory has three types of control systems:
- Under behavior control, employer monitor and evaluate the actions of the employees on a regular basis, as per the standards of the organization and then reward accordingly.
- In case of output control the performance of an employee is controlled with rewards or sanctions after evaluating it on the basis of organizational standards.
- Input control system seek to control the selection and training process of an employee. However, it is important to ensure the availability of required competencies in the employees as desired by the organization for growth and development (Krausert, 2009).
Out of these three systems, organisations can use any type of control system or a combination of different models. Selection of the control depend on the structure, norms, policies and administrative information in an organization (Shell, 1992).
Managing performance through controlled process in the system
Control theory helps in performance management by evaluating the output of the system for its consistency with pre-defined sets of parameters. In case of any kind of deviation it will be adjusted by the controller in the system. This model is popularly known as Cybernetic model (Barrows & Neely, 2012). This model helps the managers to control the performance of the employees. Similarly, it also generates faster and better outputs by regular monitoring and feedback. Cybernetic model states that, if an organisation can execute control and performance more effectively and efficiently, it can easily cope up with the changes in its external environment.
Cybernetic model of control theory Sources : (Barrows & Neely, 2012
Strength and weakness of control theory
All humans have some basic needs which Maslow had defined at several levels. This includes:
- physiological,
- safety,
- belongingness,
- esteem and
- self actualization.
An employee hopes to meet these basic needs by working in an organisation. Once their needs align with the organization’s standards and demands, desired behavior will be achieved (Luria G., 2008). Thus, these needs make control theory more applicable as it acts as a controller in syncing employee behavior with the organizational behavior standards. Therefore, this will eventually lead to achieve the desired performance.
On the other hand control theory assumes that employees look at their feedback. This feedback controls the quality of the output. However it can also have a negative impact, as it could result in decreased motivation and productivity level of the employee. In control theory employee performance is also controlled by the rewards and recognition which an employee achieves once his performance meets the standards of an organization. However control theory sounds too mechanical and fails to contemplate that humans are not mechanical objects (Locke, 1991).
Control theory sounds more mechanical in terms of human behavior and performance. It can go well with a Bureaucratic, strict organization framework where employee actions are continuously monitored and controlled. But now days work environment has become more dynamic, challenging and competitive. Employees need to undergo all type of self learning and skills upgradation in order to survive.
Application of control theory at workplace
There are multiple applications of Control theory at workplace. In order to increase the performance of employees, managers must assign specific and challenging goals to employees that will upgrade their performance. However, organisations should avoid the ambiguous goals which do not have the specific standards and direct feedback (Campion & Lord, 1982). This is because without clear feedback and proper standards, employees will not be able to rectify their errors.
On the other hand regular supervision by the supervisors on the subordinates in the workplace can be analyzed with the control system (Carver & Scheier, 1981). Similarly managers can use Control theory in management program “to facilitate continuous flow of feedback between managers and employees in an organization to track and evaluate achievements as a team” (Pennsylvania State University World Campus, 2016). So organisations can apply Control theory in the areas where there are evaluation of performances, team meetings and check-ins. In case of human resource management, all three types of control system which are behavior control, output control and input control can be utilized to analyze behavior and performance of an employee (Shell, 1992).
Nowadays, organizations have open work culture which involves regular sharing of ideas and opinion. Employee behavior, output and input cannot be controlled completely in such present business environments. Similarly organisations should ensure that employees have freedom to handle the complexities and challenges they are facing. So, more research is required on control theory to tackle dynamic work culture and environment.
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