Googles Performance Management System

Googles Per ashesance Management SystemContents (Jump to)1. INTRODUCTION2. aspect OF HR STRATEGY3. IMPLEMENTATION OF PERFORMANCE MANAGEMENT4. EVALUATION OF PERFORMANCE MANAGEMENTREFERENCES1. INTRODUCTIONThe practice of world re arising centering is concerned with all aspects of how tidy sum argon employed and managed in organizations. The main rule of human resource caution is to begin sure that the organization is able to attain success finished people. HRM aims to increase organisational efficiency and ability and the capacity of an organization to achieve its goals by devising the stovepipe use of the resources available to it. Human resource focussing mainly deals with organizational behavior, organization design and development, people resourcing, military operation management, learning and development, advantageing people and employee relations.In the organizational context, action is usually localised as the extent to which an organizational member contributes t o achieving the goals of the organization. achievement management is a regular exhibit to improve organizational achievement by improving the effect of individual persons and teams. The mental process management strategy is practical to be the procedure of providing the study nigh the slaying of the employee and is consider being the important tool in the closes interpreted by the human resource department. Performance management is defined as Performance management is a strategic and integrated approach to delivering hold watered success to organizations by improving the surgery of the people who tame in them and by growing the capabilities of teams and individual contributors (Armstrong and Baron, 2004).Performance management is the order of formulating, implementing and evaluating the travel procedure of employees, so that the organization lead achieve their goals and objectives. Successful performance management is designed to develop performance, recognize perfo rmance requirements, and provide feedback related to those requirements and help with cargoner development.The overall aim of performance management is to establish a high performance culture in which individuals and teams take responsibility for the continuous usefulness of business processes and for their proclaim skills and contributions deep down a framework provided by effective leadership (Armstrong, 2006).The objectives of performance management argon (Hawkes, 1998)To sustain employees to find knowledge and skills to do their muse well,To encourage in the ability of improved standards of work performance of an employee.For employees to work towards definite goals.For employees to dispirit regular feedback on performance andFor employees to achieve personal growth finished acquiring signifi raftt knowledge and skills and attitudes.In todays business environment, the companys bottom line is to make much(prenominal) profit in long term by suck uping, retaining and mo tivating top talent people for utmost performance. The approaches of companies for attaining loot ar by oblation the best abide bys in the industry. The company which is in that list is Google Inc.Google early years, the expect engine attracted an ever growing number of trusty users, which finally lead to an initial public pass valuing Google at US$ 23 billion. After the IPO, Google under the professional leadership of CEO Eric Schmidt, has grown greatly and continuous to innovate and expand into a numberless of industries, such as communication and web applications and so forth The modern environment in which Google operate is very competitive. According to Google employees and their technical knowledge is companys greatest prefer (NYU IBA, 2008).This case study leave alone focus on performance management tool of proceeds and feedback brass of Google. Concentrating on how reward body is influencing the employee performance? And what are the methods use to evaluate the feedback performance management?2. FORMULATION OF HR STRATEGY2.1 Process of Performance ManagementPerformance readiness and agreementsThis process helps people to get into action so they can achieve proposalned and agreed resolving powers. This process briefly focuses on the elements a standardised what has to be done and how it should be done and what is to be achieved. And this process is equally concentrated on developing people helping them to learn and well-favoured them the support they need to do well. The film directors and the individuals carry out performance and development plan jointly. These planning should lead to an agreement on what ineluctably to be done by two parties.This process is concentrating onRole profiles impersonal settingsMeasuring performance and assessmentPerformance planningDevelopment planningRole profiles This section describe the function in terms of the list result areas define what the role possessor desires to know and be able to do and how they are likely to discharge in terms of behavioral competencies and maintenance the organizations core values.This process will concentrate on acclivity the role profiles, defining the core result areas, defining the technical competencies, defining the behavioral competencies, and core values.Objective Setting This process describes the organizational goals or objectives to achieve over a period of magazine by the departments and the individuals. This will give ongoing role or the work objectives, targets, tasks, behavioral expectations, values, performance improvement, learning, and integrating objectives to manager and the individuals.As per (Armstrong, 2006) most of the organizations follow SMART mnemonic to summarize the characteristics of skilful objectives.S (Specific) Clear, understandable and challenging.M (Measurable) quality, quantity, money and time.A (Achievable) challenging but in the reach of a experienced and committed person.R (Relevant) related to the objectives of the organization so that the goal of the employees is associated to corporate goals.T (Time framed) objective is to be completed within a timescale.Measuring performance and assessment This process is a significant model in performance management. It is the main finding for providing and generating feedback, it identify where things are going well and where things are not going well, so that necessary action to be taken.The criteria for measuring the performance should be (Armstrong, 2006)linked to the strategic goalsFocusing on inputs, outputs and outcomes, and behaviors.Point out the data or evidence that will be available as the source for measurement.Be as specific as possible in accordance with the purpose of the measurement and the accessibility of data.Give a sound basis for advice and action.Be comprehensive, covering all the main aspects of performance.The CIPD surveys of performance management in 2004 discovered that, in order of significance, the following performance measures were employ by the respondents (Armstrong, 2006).Attainment of objectives capablenessQualityContribution to teamCustomer careWorking relationshipsOutputFlexibilitySkills/learning targets line up personal objectives with organizational goalsBusiness awarenessFinancial awarenessPerformance planning The performance planning is part of the performance management chain, which involves contract between the manager and the person on what presently needfully to do to achieve objectives, move up standards, improve performance and develop the required competencies. It also establishes priorities the key aspects of the job to which attention have to be minded(p). The aim is to make sure that the meaning of the purpose, performance standards and competencies as they apply to everyday work is understood. Agreement is also reached at this phase on how performance will be careful and the proof that will be used to begin levels of competence. It is important that these pro cedures and evidence requirements should be known and fully approved now because they will be used by persons and managers to check and license achievements (Armstrong, 2009).Personal development planning Personal development plans provide a learning action plan for which employees are responsible with the support of their managers and the organization. It may contain official training but, more importantly, it will admit a wider set of learning and development actions such as self managed learning, training, mentoring, project work, job improvement and job enrichment. It is likely to focus on development in the existent job, and to improve the capacity to make it well and to enable individuals to take on bigger responsibilities, ext subverting their ability to accept a broader role. This plan so contributes to the success of a policy of continuous development that is predicated on the belief that everyone is able of learning more and doing disclose in their jobs. The plan will also give to enhancing the likely of persons to carry out higher(prenominal) level jobs (Armstrong, 2009).Managing performance throughout the yearManaging performance is that it is a continuous process that reflects normal penny-pinching management practices of setting direction, monitoring and measuring performance and taking action accordingly. Performance management should not be imposed on managers as something special they have to do. It should instead be treated as a natural function that all good managers carry out. This approach contracts with that used in conventional performance appraisal systems, which were usually built around an annual event, the formal review, which tended to do well on the past. This was carried out at the behest of the personnel department. Managers proceeded to manage without any further references to the outcome of the review and the appraisal form was buried in the personnel record system (Armstrong, 2009).Performance review and assessmentPerfor mance management is a permanent process it is compulsory to have an official review once or twice a year. This will give an idea on the key performance and development issues. There are mainly five performance management elements for review meetings they are agreement, feedback, measurement, positive reinforcement and dialogue. These elements will leads to the end of the performance management cycle by informing performance and development agreements (Armstrong, 2009). The criteria for the performance review areAchievements with respect to objectivesThe level of skills and knowledge possessed and applied (Technical competencies)Performance is getting effected in job by the behavior (Competencies)Day-to-day effectiveness2.2 Learning and DevelopmentEmployee development is the main method followed by most of the organizations to develop organization performance, which in turn requires a perceptive of the processes and techniques of organization, team and individual learning. Performan ce reviews can be regarded as learning events, in which employees can be encouraged to think about how and in which ways they want to develop. Development programs are reflecting the needs of sequence plans and looking for to promote leadership skills (CIPD, 2010).In a successful organization, employee developmental needs are amplifyressed. Developing in this case federal agency increasing the ability to make through giving training, develop new skills or by giving more responsibilities. Introducing the processes of performance management provides an outstanding opportunity to identify developmental needs. During the planning and monitoring of work, deficiencies in performance become clear and can be addressed. Areas for improving good performance also image up and action can be taken to help successful employees progress even better (OPM, 2010).2.3 360 Degree feedback360 Degree feedback recognizes the difficulty of management and the value of input from a range of sources. The feedback is frequently unspecified and may be presented to the employee to the manager or to both employee and manager. Some organizations do not arrange for feedback to be mysterious. Whether or not feedback is anonymous depends on the organizations culture (Armstrong, 2009).The main advantages of having feedback areIndividuals get a broader sales booth of how they seem by others.It gives people a broad view of their performanceIncreased awareness by senior management.The main disadvantages of having feedback areEmployees or managers do not always give honest feedback multitude may feel stress in receiving or providing feedbackToo much official procedure (bureaucracy)In organizations they do not have a practice of open feedback it is likely that 360 Degree feedback will be seen with greater levels of distrust.2.4 RewardReward management is concerned with the formulation and implementation of strategies and policies in order to reward people fairly, equally and consistently in ag reement with their value to the organization (Armstrong, 2009).The aims of reward management areReward people as per the organization want to pay for.Reward people for the value they creating. soma up a performance cultureMotivate people and obtain their commitment.Help to attract and financial support the high quality people the organization desires.Operate fairlyOperate transparently2.5 Rating performanceRating scales can be defined alphabetically, or numerically. Initials are sometimes used in an take in charge to disguise the hierarchical nature of the scale. The alphabetical or numerical points scale points may be expound adjectivally, for example, a= excellent, b= good, c= satisfactory and d= dissatisfactory.2.6 Advantages and concerns of performance managementThe advantages of performance management arePerformance management focuses on results instead of behaviors and activities.Aligns organization activities, and processes to the goals of the organization.Explains long te rm views of the organizationProvides specificity in commitments and resourcesProvides specificity for comparisons, directions and planning.The concerns convey about performance management are that it seems extraordinarily difficult and often unreliable to measure phenomena as complex as performance. People point out that todays organizations are rapidly changing, thus results and measures quickly became obsolete. They add that translating human desires and interactions to measurements is impersonal even heavy handed.2.7 Role of line managers and HR managers in performance managementHuman Resource cleavage at any organization has unique challenges, it has to make sure that the employees are motivated and dedicated to the organization with complete reliability and honesty. However, at the same time, the Human resource division has to make sure that the market dynamics are not badly affected by the be volumes of investment involved in the process. And also line managers are crucial to the success of performance management. just in that respect can be problems with their commitment and skills and it is necessary to involve them in developing the process, provide training and guidance, gain top management support, keep the process wide-eyed, emphasize that performance reviews provide for quality time with their staff and need not be stressful if conducted properly.The main objective to the success at Google Inc. is simple work procedure apart from the incredible perks and compensations. There are a a couple of(prenominal) fundamental rewards existing at Google like, there is no real hierarchical structure in the company, and it works in fine groups it will give an opportunity to maximize the performance and this follows a flat structure. The ideas getting at the work place which are shared within the groups. Even though they work in smaller groups, they will have a project manager to look over the development of the committees. The company treats the small groups and teams as individual start-ups (NYU IBA, 2008).3. IMPLEMENTATION OF PERFORMANCE MANAGEMENT3.1 Methods of performance managementThere are number of methods we can use for managing performance. Below table shows some information on a number of official methods of performance management that may be used (Department of Economic Development, Tourism and the arts, 2010).ProcessWhat is this method?Where is this method used?360 Degree appraisalThis method gives a valuable approaching into how the persons work and behavior. This method is often used for managers and supervisors. While the values of this method are very useful, it can be administratively good method for small businesses.This method is used when funding and time is available.Where it is important to get quite a few perspectives on a persons performance, for example in the customer service roles or where the person is working crossways teams.Self assessmentJust the name suggests, the individual assesses their own pe rformance to set criteria. This is a good method for identifying where the businesses opinion of performance and the individuals opinions are different.Where there is an interview based performance management processCompetency based assessmentsIn this method they will access skills and capabilities.Ability can be harder to define in jobs with a high level of vagueness or where outcomes are not clearly express, such as managing relationships with staff.Where there are task oriented jobs with little or no ambiguity or decision making responsibility.Management by objectivesA collaborative method, the MBO defines goals and future targets by consultation. Future tasks, behavior and productivity, for example, are discussed and a SMART plan is created so that the manager and staff member are aware of what needs to be achieved, to what standard and by when.Where the business uses formal processes to manage performance and where outcomes can be measured accurately.Google feedback program Goo gle implements formal and informal feedback system to evaluate their employees. At Google, an employees manager report and individual reports are considered for the evaluation process. Its formal system of evaluation uses 360 Degrees review method. The employee will also selects three or more officials to review his performance. These reviews are made twice a year and this will reflect on the performance review with an employees bonus. Anyways, there is nothing surprise because regular checking of the performance is a form of informal feedback system and they are more comprehensive than a formal review which is performed twice a year (NYU IBA, 2008).Google reward program Google reward system extensively makes use of these formal and informal feedbacks, where the bonuses are based on the combined performance of the corporate, team and an individual. It got a complex structure of promotions and stock options within the organization. In addition, there is a strong clan society within t he organization and comparatively flat organizational structure, making the company more a fusion of the two reward system.One of the Googles most exhilarating employee rewards is its capability to offer stock options. Stock options are typically to exercising the option and purchasing stock at a given date or not, however Google has decided to take a more modern approach to its reward. Transferable stock options are a compensation program that Google developed for the purpose of allowing employees to dispense their options off to a bidder. In this way, Google not only increases the value of every stock option given to its employees but also enhance its options valuations (NYU IBA, 2008).4. EVALUATION OF PERFORMANCE MANAGEMENTGoogle feedback program By considering all the supra statements, we can say that Google has room to improve upon its feedback system in terms of making it more stabilise and prearranged. In addition, one-on-one interaction should be encourages as much as pos sible. The informal feedback should come in some sort of format that helps employees more than hurts them, and gives beneficial analysis rather than negative and strange feedback (NYU IBA, 2008).Google reward program What is Googles incentive in giving out these perks and rewards?. Well it is becoming increasingly important to attract and keep top talent in an increasingly competitive job market. With competition from technology giants like Microsoft and Yahoo Google is offering US$2000 to the current employees, if they refer a friend to work at Google. At the same time these perks and rewards help differentiate Google from its competitors that have expanded their own benefits program in recent years.Despite the seemingly phenomenal environment at Google, we believe the company should consider the system of perks to run across a stable employee base in the future. In the future, an overemphasis on perks may not build sufficient employee commitment, especially if competitors can i mitate Googles programs. Thus, it is better Google slowly merge the perks with the rewards system. Increasing employee rewards, rather than merely offering interesting perks will in the long run help increase employee productivity and loyalty (NYU IBA, 2008).REFERENCESArmstrong, M. and Baron, A. (2004). Managing performance performance management in action. London Chartered Institute of Personal and Development.Armstrong, M. (2006). Performance Management samara Strategies and Practical Guidelines. 3rd Ed. London Chartered Institute of Personal and Development.