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Performance management

PM systems are also perceived as unfair when top better by conversing with employees and constantly
performers are not recognised. It is thus important revisiting goals.
to reward top performers which will then lead, not For technology to influence perceptions of
only to perceptions of fairness among top employees fairness, however, it needs to capture individual
and, most likely, the rest of the employees in the performance on a more thorough basis, gauge
organisation, but motivation will become widespread it from differing perspectives and also suggest
when employees see that their efforts will be behaviours for developmental purposes.
recognised. It is advised that incentives are designed First and foremost, the utmost detail needs to be
according to the individual in order to be the most considered. Are performance ratings among peers
effective. perhaps not working because peers are not so
Spot bonuses are another form of recognition certain how to rate one another? Maybe the system
that proves to be a win-win for both parties. First needs to be readjusted so that criteria are set out in
of all, as a rule of thumb, reward is most effective a more fool-proof manner, guiding individuals on the
soon after the task has been completed. Reward ratings they assign. It is important that ratings are
acts as reinforcement, motivating employees to justifiable for heightened fairness perceptions.
consistently produce the effort that earned them Secondly, and just as important as the first point,
the reward. Rewards are less effective when time development must be separated from evaluation
has gone by and employees have already forgotten feedback. Apps can capture copious amounts of
their contributions. Spot bonuses that are rewarded data from a wide array of sources. However, the
timeously are not only effective in reproducing the capturing of this data may have an imprisoning effect
desired behaviours, but are also a great way to avoid on employees. They may feel distrusted and that
salary inflation as the payments remain impartial of the the company is keeping too close an eye on them.
base pay. A solution is to differentiate between the systems
Now that perceived fairness has been addressed that assist in employee development and those that
in terms of employees’ personal goals aligning with
organisational goals, management’s role as a coach serve as an evaluation function. Employees may
as well as the role that remuneration plays, there withhold valuable information that could contribute
is another factor that plays a significant role. This to their development if they have the fear that this
factor is the role of technology. Technology in a PM data will influence their evaluation. This ultimately
system, can, in fact, influence perceptions among the causes the PM system to be ineffective and affects
stakeholders. Let us have a closer look. development.

What role technology plays in Conclusion
reinforcing fairness We need PM not only to keep our employees
Technology can have a significant impact on PM for engaged and on track but to keep the organisation
running as a whole. The different aspects of PM
several reasons:
1) Cost reduction: The cost of administration is systems have been highlighted but the one factor
considerably reduced as one is cutting out the middle that bears the greatest weight is fairness. A PM
man. The human labour required for designing and system cannot be successful if it has not won
implementing a good PM system is significantly over the perceived fairness of its stakeholders.
decreased when replaced by technology; and Thus, ensure your system is considerate of both
2) Saving time: Not only is designing and employees and managers and ensure that the
implementing a PM system time consuming, but developmental areas are segregated from the
it is also subject to human error. By means of evaluative areas of the system. Once this has been
artificial intelligence, the time span of the process carried out, you’re ‘A’ for away with an engaged
is significantly decreased. Not only this, but since workforce and a company that meets its goals!
software is pre-existing, it saves one time to merely
implement a system rather than designing and
working out the whole process oneself. Dr Mark Bussin is the Executive Chairperson at
Studies have revealed a positive effect of PM- 21st Century Pay Solutions Group,
relate technologies (mobile) and the performance of www.21century.co.za, a Professor at University of
individuals as well as the overall performance of the Johannesburg, Professor Extraordinaire at North
company. Since recording goals and tracking them West University, Chairperson and Member of various
is made so much simpler, managers can keep better boards and remuneration committees, immediate
track of the company as a whole and employee past President and EXCO member of SARA, and a
engagement improves as employees feel they are former Commissioner in the Office of the Presidency.
part of the process with continuous feedback. Some Daniela Christos is a Candidate Human Resources
mobile apps can also encourage managers to coach at 21st Century Pay Solutions Group.

HR FUTURE · JUNE 2018 29