Performance Management

 
Performance Management

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Introduction
	Over the years, organizations have depended on performance appraisal system to evaluate the employees’ achievement against the organizational goals. Performance appraisal motivates employees to work towards achieving organizational goals and objectives on time. It also enables managers to reward employees based on their achievement in attaining organizational goals. Information obtained from performance appraisal play a crucial role in the decision-making process in the organization (Reinhart, 2000). Managers formulate and implement new policies and strategies such as organizing vocational training and capacity building seminars with the aim of improving employees’ productivity.
	With the current stiff competition in the business arena, organizations are compelled to redesign their performance management system so that to maintain their productivity and competence. With this respect, different organizations have applied the concept of performance management system as one of their competitive advantage strategies. There are many types of performance management, approaches adopted either singly, or in combination in organizations. These include; comparative approach, attributive approach, behavioural approach, result and quality approach.
	The paper compares and contrasts the comparative approach and behavioural approach in performance management system.

Comparison
	Both comparative approach and behavioural approach are designed to correlate employees’ performance and organizational goals and objectives. In respect to comparative approach, an employee’s achievements are compared with other employees in the same department. This implies that the management evaluates what the employee has achieved in a given period and correlates with the organizational goals. Behavioural approach focuses on evaluating employees’ performance based on the behaviour the workers explicate. Managers believe that when employees’ inculcate certain behaviours they will perform effectively and increase their productivity (Wilmouth, 2002). However, the bottom line is that both approaches are designed to correlate employees’ performance and organizational goals.
	In both approaches, employees are provided with feedback explaining their employer's expectations of them as regarding performance and conduct. After analysing employees’ performance based on these two approaches, managers provide employees’ with a guideline and feedback on how they will enhance their performance next time. Employees are also able to identify key areas that they need to improve as well as decide on effective ways to implement change.  Employees’ with high credentials are motivated through promotions, rewards and other incentives whereas those employees with low performance are encouraged to improve.
	Both approaches use ranking scale strategy in evaluating employees’ performance. Comparative approach employs simple ranking scale where employees are ranked from the top to the lowest level. Behavioural approach use behaviourally anchored ranting scale strategy where certain behavioural anchors are used to depict certain performance levels. Employees’ performance is correlated with the behavioural anchors thus ranking them in an ascending order.
Contrast
	Comparative approach involves the process of comparing and ranking employees’ performance with other employees in the same department whereas, behavioural approach evaluates employees’ achievement based on behaviours they explicate.
	Behavioural approach is applicable to the entire organization unlike, comparative approach, which is applicable to all employees in the same department. Behavioural approach assumes that stated behavioural values are applicable to all employees irrespective of their roles in the organization. On the other hand, comparative approach articulates that employees have different abilities, but they should have similar goals and objectives to attain.
B. Comparative approach
	Starbucks Coffee Corporation is a leading company in the coffee industry. Since its invention in 1971, the company has established more than 19900 coffeehouse outlets in 60 countries worldwide. The company sells salads, hot and cold coffee, snacks, sandwiches, coffee beans and tumblers. The company has employed 150,000 workers in all its coffee outlets. In 2009, the company recorded $10.9 billion revenue collection, which was an increase of 25% higher than the previous year. This immerse success can be attributed to several factors, but effective performance management system is the contributor. However, implementation of the comparative approach system will play a pivotal role in enhancing productivity.
Advantages
	It helps in decision-making process in the organization. Through the comparative approach, managers are able to formulate and implement policies that aim at en