Performance Management Theories

Performance Management - Complete Controller

Performance management is a crucial part of human resource management, as it enables the effective use of available resources. The core benefit of using performance management is that it enables the management to mold the employee’s performances following the strategies of an organization.

These aspects can be pivotal to increasing employee engagement to increase the organizational outputs to meet customer satisfaction and improve quality. Human resource management of organizations, to increase employee motivation, uses several theories.

Motivation theory

Frederick Herzberg has introduced a motivation theory based on two factors. Therefore, the theory is also referred to as the two-factor theory. These factors are based on Motivation and Hygiene; hygiene factors are considered extrinsic motivators, and motivation factors are considered intrinsic motivators. The hygiene factors include working conditions, salary and job status, company policy and benefits, and working relationships.

Unavailability of these extrinsic factors in the workplace tends to decrease the motivation level of employees, which can adversely affect their performance. The main reason behind this aspect is that these factors are considered the essential elements in any workplace and organization. However, where these elements are focused more, organizations can grow rapidly due to the enhanced motivational level of employees, which will ultimately result in an increased level of performance. Check out America's Best Bookkeepers

Although these factors cannot affect and increase employees’ dissatisfaction, they are responsible for affecting the performance level of employees within the workplace. However, motivation factors are intrinsic motivators, and these factors include recognition, achievements, the level of responsibility, and the need for personal growth.

These factors can be pivotal to increase the satisfaction level, and a decrease in these factors would increase the dissatisfaction in employees, which will ultimately affect and change the performance level of employees. However, these changes can be positive or negative as well. This aspect can be presumed by using the concepts of incentive programs used by the organizations, particularly by human resource management, to enhance the organization-wide performance.

Operant Conditioning

Operant conditioning determines that several rewards and punishments can change employees’ behavior and help them learn new behaviors, meet and increase the performance level of employees.

The theory is based on two concepts of reinforcement and punishment, whereas both can be negative and positive. The management reinforces the positive behaviors of employees by using positive and negative reinforcement. In positive reinforcement, employees tend to provide incentives and rewards.

Rewards or incentive systems are used as a mechanism to control the activities, and this concept has gained widespread attention by the management to surge the employee’s performance level. The incentives provided by the organization can be based on increased salary, bonuses, share in company’s profit, Privilege Rewards, as well as upward promotion in an organization, which can also increase the benefits provided to the employees.

These benefits can attract the employees to increase their performance and efficiency and provide them with the desired behavior. Negative reinforcement tends to remove the unfavorable stimuli after the display of behavior. The management reinforces the behavior. Rewards are paid to employees to increase their performance, but management withdraws these rewards in several cases. Check out America's Best Bookkeepers

Furthermore, punishments are provided to the employees to omit their unsatisfactory behavior. Positive punishment is used when employees show certain undesirable behavior. These punishments can be used to enhance the daily-based performance level. Punishments are provided in terms of penalties to withdraw the negative behavior of employees.

Negative punishment is based on removing an element to reduce the chances of occurrence of certain undesired behavior. For example, downward promotion and withdrawal of certain rewards and benefits can negatively reinforce the behavior.

Furthermore, they can play an essential role in increasing the motivation level and increasing the employees’ performance level. However, some researchers suggest that using negative reinforcement techniques can negatively affect employee satisfaction and self-esteem.

Certain controversies surround the use of punishment and its role in increasing the effectiveness and controlling human behavior. The author considered this approach the traditional method, which was not accepted in today’s society, as a means of control.

This technique can be essential to achieve positive results only on a short-term basis. Human resource management can use this practice to form a competition-based motivation, which can play an essential role in compiling employees to increase their performance.

The performance level of employees can influence the output quality, as it is crucial to improving the performance. Management and administration use reinforcement techniques to enhance the efficiency of employees across various divisions and units in organizations. One of the most influential practices of Performance Management is training and development programs, which can be pivotal to increasing employees’ efficiency level. Check out America's Best Bookkeepers

Quality management and Performance Management

Along with incentive programs and proper performance management, employee motivation can be enhanced, but firms can also bring innovation in their operations. In addition, the satisfaction level of employees enhances their engagement and interest in their working activities, which can play an incremental role in increasing employee efficiency.

The efficiency level of employees can be pivotal to bringing innovation in employees’ activities, which can increase the innovation in organizational operations. Authors, to enhance the quality, have introduced several theories.

Deming theory is crucial to enhance the quality by using 14 points illustrated in theory. The theory suggests that organizations have used this system to evaluate the needs of quality improvements while keeping in mind certain quality standards.

Quality standards must comply with customer expectations related to quality, as it can increment the customer satisfaction level. However, gaps in quality standards and customer expectations related to can affect their satisfaction level adversely. This aspect can also affect the company’s profitability as well as productivity in the market.

Deming 14 points can play an incremental role in increasing customer satisfaction while exploring their quality needs. Furthermore, the theory also provides a process based on four principles to identify, maintain, and implement the quality needs within a continuous process.

The process is based on four principles, which include plan, do, act, and check. The process can play a pivotal role in planning and working on the quality needs and then consistently checking and improving the quality. Quality can be based on providing quality products and services, but high-level operational quality is also required to achieve a competitive advantage in the industry.

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