An effective performance management is a systems which allows employees and managers to regularly review their division’s continuous development and company’s evolving objectives.

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2. EFFECTIVE PERFORMANCE
MANAGEMENT

3. EFFECTIVE PERFORMANCE MANAGEMENT
Fig.1. Performance Management
Cycle

4. INTRODUCTION
 Performance management refers to a continuous process of increasing performance
via setting of goals which aligns with the organization’s strategic goals, skills, knowl-
edge as well as people's abilities (Gruman & Saks, 2011).
 An effective performance management is a systems which allows employees and
managers to regularly review their division’s continuous development and company’s
evolving objectives.
 The performance appraisal gives managers an opportunity to convey to an workers
the specific suggestion and expectations for future performance.
 It also gives the employees an opportunity to share with her manager their career
aspiration and professional goals (Cascio, 2015).
 Research suggest that, effective management promotes employees’ engagement,
promotes staff development and increase productivity.

5. CHARACTERISTICS OF EFFECTIVE PERFORMANCE
MANAGEMENT
 Should be Practical. This means that, it should be highly available, user-friendly and ethical (Caruth
& Humphreys, 2008).
 Should be relevant. An effective performance management system should generate results which
guides personnel administration.
 Should be accurate. This means that, it should allow managers to identify underperforming
employees and employees who consistently meet their targets.
 Should be Fair. To be fair, employee payment, company objective and goals etc. should be
considered (Cascio, 2015).

6. EFFECTIVE PERFORMANCE MANAGEMENT
 Effective performance management should have clear objectives. Its objectives
should be specific, clear, open and timely.
 Effective performance management should be standardized. Its rules, form as well
as procedures must be standardized with a well-defined performance standards
and criteria. Moreover, employees must be fully aware of these standards.
 In an effective performance management, evaluators must be Trained. This means
that, they should be knowledgeable and with effective skills in designing appraisals
as well as in correcting rating errors (Caruth & Humphreys, 2008).

7. EFFECTIVE PERFORMANCE MANAGEMENT
 Should be job Related. The appraisal must focus on job-related performance and
behavior while providing information on job related areas and activities.
 Should create a platform for participation and feedback. An effective performance
management must be communicated to both the raters and employees and must
be open and participative (Gruman & Saks, 2011).
 Should assist in focus on people potential. This means that, it should- help
employees reach their potential and the purpose of appraisals which is supposed
to be developmental.

8. EFFECTIVE PERFORMANCE MANAGEMENT
 Should recognize differences. Companies varies in terms of size, work, resources as
well as environment. This means an effective performance management should be
designed to meet the needs of particular business (Piccolo et al., 2010).
 Should provide for post appraisal interview. An interview with the workers should
be put to consideration to determine the difficulties of work and training needs by
the workers.
 Lastly, should provide a platform for rewards. The management should inform
workers of the type of gift/motivation or amount of increase of salary to expect for
better performance (Mone & London, 2018).

9. CASE STUDY: WELLS FARGO
 Studies indicate that, most organizations have developed a performance appraisal
system to evaluate employee performances (Anitha, 2014).
 However, as per the study, the organizations fails to look into the performance
appraisal system to assess its effectiveness.
 This means that, companies should understand that performance appraisal systems
may not be always effective, though some characteristics put together makes it
effective (Saks & Gruman, 2011).
 In the case study of Wells Fargo, to some extent, it has goods traits of an effective
performance management.
 However, the performance management has also very many shortcomings

10. STRENGTH OF WELL FARGO
PERFORMANCE MANAGEMENT
 To start with, the company has set relevant and clear objectives which is a good
trait of effective performance management. The case study suggest that, the
community Bank leadership revealed that the organization objectives/plans were
unattainable.

11. WEAKNESS OF WELL FARGO
PERFORMANCE MANAGEMENT
 It failed to be Job Related. As per witness in the case study, Wells Fargo branch
employees had no related experience and were put in a high-pressure environment
which contributed to unethical working.
 Failed to set standards and fairness in the organization. As per witness in the case
study, inexperienced bankers mostly were promoted according to sales success.
The promoted workers became inexperienced managers who gauged success
based on sales performance.
 The bank failed to focus on people potential and was only focused on ranking and
company’s development.

12. WEAKNESS OF WELL FARGO
PERFORMANCE MANAGEMENT
 Failed to create a standard platform for rewards. As per the case study,
compensation strategies for employees were based on meeting certain threshold
requirements for eligibility.
 Failed to consider differences between employees. As per the case study, the bank
extorted extreme pressure on workers to meet or exceed their goals. Failure to
meet these goals, an employee could be fired or face disciplinary action. This
forced employees to work unethically.
 The performance management failed to be relevant and practical. January goals
were very unrealistic.

13. CONCLUSION
 An effective performance management has many traits which once put in
consideration can promote both the goals of employees as well as those of the
management.
 However, as per wells forego, though it considers some good traits of performance
management, its performance management has very many shortcomings.
 Though the company has well set plan and strategies, it fails to be job related, to
set standards and fairness, to consider people potential, set standard platform for
rewards, failed to consider differences between employees and it has permanence
management which is not relevant and practical.

14. THANKS FOR YOUR TIME

15. REFERENCES
 Anitha, J., 2014. Determinants of employee engagement and their impact on employee
performance. International journal of productivity and performance management.
 Caruth, D.L. and Humphreys, J.H., 2008. Performance appraisal: Essential characteristics for
strategic control. Measuring business excellence.
 Cascio, W.F., 2015. Managing human resources. New York: McGraw-Hill.
 Gruman, J.A. and Saks, A.M., 2011. Performance management and employee
engagement. Human resource management review, 21(2), pp.123-136.
 Mone, E.M. and London, M., 2018. Employee engagement through effective performance
management: A practical guide for managers. Routledge.
 Piccolo, R.F., Greenbaum, R., Hartog, D.N.D. and Folger, R., 2010. The relationship between
ethical leadership and core job characteristics. Journal of Organizational Behavior, 31(2‐3),
pp.259-278.
 Saks, A.M. and Gruman, J.A., 2011. Manage employee engagement to manage
performance. Industrial and Organizational Psychology, 4(2), pp.204-207.

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