Managing Employee Performance


Managing employee performance is one of the key drivers for organizational success in the present context of firms trying to adopt a resource centered view of the organizational.

We have seen elsewhere that integrating HRM practices with those of organizational goals and strategy increases the competitive advantages for the firm.

Similarly, managing employee performance within the larger framework of organizational goals is critical for organizations that count people among their key assets.

As we have been mentioning throughout, firms in the service sector that lay a lot of emphasis on people need to ensure that employee performance is managed in a holistic manner.

A Two Way Street

When we talk about employee performance, we need to remember that it is a two way process that tie in the manager and the employee with the HR manager playing the role of a mediator.

For instance, any discussion about employee performance has to include the manager and the employee or the manager and the managed. Hence, it is imperative that both parties to this transaction realize their responsibilities and work together to ensure that the process is smoothened.

In the succeeding sections, we discuss the role of the manager and the employee and how organizational focus on managing employee performance can play a role as well.

The Role of the Manager

The manager has a duty to ensure that his or her management of the employees is free of biases and prejudices.

It’s been the case across industries and verticals where the employees feel discriminated against leading to attrition, lower employee morale and in the extreme cases, lawsuits against the company.

Hence, the manager has to “walk the talk” and not simply pay lip service to the company’s policies on employee performance.

During the course of working together as a team, there are bound to be instances where friction between the manager and the team and within the team manifests itself. It is incumbent upon the manager to ensure that this does not morph into a corrosive effect that threatens the very existence of the team.

Managing Employee Performance

The Role of the Employee

The above section looked at the role of the manager. The manager has a duty to manage the team effectively and so does the employee have corresponding responsibilities as well. Absenteeism, Shirking Work, A negative attitude and a blase approach to work are some things that the employee must avoid.

It is helpful to the employee to know that once he or she is categorized as having an attitude problem, then it would be difficult for the employee to break the perception and perform effectively. This does not mean that the employee has to take whatever comes his or her way.

The point here is that the employee must use the channels available for redressal instead of sulking at work if he or she has grievances about the manager.

Organizational Focus

Though the role of the HR manager and the organization seems to be relatively small, it is a fact that organizational goals and culture play a very important part in ensuring that employee performance is managed to the benefit of the organization.

Most of us have read about or heard the benefits of working for MNC’s (Multinational Companies) in India. The reason why they are highly talked about is the perception among potential and aspiring employees that these companies treat their people well. Though the point here is not to belittle Indian companies, the objective of this section is to highlight the ways in which organizations can shape the treatment of people in theory and practice.


We have seen the centrality of managing employee performance to the success of the organization. If organizations want to cut down on attrition and boost sagging employee morale, the first thing they can do is to ensure that the employee performance management system is streamlined.

Only by a focused approach towards this key driver of organizational effectiveness can the firms ensure that they do not lose out on the “war for talent” as well as “retention” of achievers.

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Human Resource Management