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Procedia - Social and Behavioral Sciences 41 (2012) 434 – 441

International Conference of Leadership, Technology and Innovation Management

Performance Management, Its Assessment and Importance

Fadil Osmania , Gelina Maliqi (Ramolli)b , a*
a
Audit Department, Post Telecom of Kosovo, Pristine, Kosovo
b
Finance Department, Faculty of Business Administration, “Kristal” University, Tirana, Albania

Abstract

In this paper are explicated the process of management and the performance evaluation of employees, which is one of
the most important issues for human resource in the organization.

A special focus is put on the importance of individual performance, the stages through which this process to be
realized, targets, key indicators, and challenges of which are facing the human resources in the public and private
organizations.

©2012
© 2011Published
Published by Elsevier
by Elsevier Ltd. Selection
Ltd. Selection and/or
and/or peer peer-review
review under responsibility
under responsibility of International
of The First International Conference on
Leadership, Technology and Innovation Management
Conference of Leadership, Technology and Innovation Management

Keywords: Performance Management; Performance Assessment; Performance Assessment Process; Performance Indicators.

* Corresponding author. Tel. + 377-45-999-900

E-mail address: fadil.osmani@gmail.com

1877-0428 © 2012 Published by Elsevier Ltd. Selection and/or peer review under responsibility of The First International Conference on Leadership,
Technology and Innovation Management
doi:10.1016/j.sbspro.2012.04.052
 Fadil Osmani and Gelina Maliqi (Ramolli) / Procedia - Social and Behavioral Sciences 41 (2012) 434 – 441 435

1. Introduction

Performance Management – it’s a relatively new concept in management. Initially it’s applied to the
private sector and later is going to be used in the public sector.

Performance Management identifies the organization's objectives, the necessary results to achieve
these objectives, the ways to be effective these objectives, and the drivers to achieve them.

This means that being engaged is not the same as achieve results. It makes us understand that the
training, work and great commitment – are not results. Just for this, the performance management has its
focus on achieving the best results within the organization, department, team or individual through
understanding and performance management, orienting our efforts towards efficiency within a framework
of planned goals, standards and skills required.

In short, performance management includes all activities that ensure the organization's objectives are
being met effectively. One of the most important part of human resource management in the organization,
which also is a issue to be considered in this paper with particular emphasis is the performance assessment
of employees (staff).

2. Definition and Concepts of Performance Assessment

2.1. The Process of Performance Assessment

Performance means the process where employees with their engagement of knowledge and skills
perform the work through the realization of their objectives effectively. Performance assessment is part of
the performance management process, which is a collection (finalization) of communication for a certain
period between the manager and the employee. Performance evaluation is usually applied for a yearly or
half-yearly period depending on performance management policy of the organization concerned. For
instance, in Kosovo, Post Telecom that is a public institution applies the method of performance
evaluation for half-year, but there are public institutions who apply the method of performance evaluation
for quarterly period, while private institutions apply the method of performance evaluation for a yearly
period in cases where the assessing is done. In Albania, as in public institutions also in private institutions
is applied the method of performance evaluation for a yearly period.

The first step - the process of performance assessment is the establishment of standards which will
then be used as a basis for comparing actual performance of employees. This step requires the definition
of criteria for assessing the performance of employees as successful or unsuccessful and the level of their
contribution to the realization of objectives of the organization. These standards must be clear,
understandable and measurable.

Illustrative example: Performance management policy of Post Telecom in Kosovo (currently is a

public institution) and Albania's public institutions, as a standard performance evaluation are applying
SMART method, this means that these objectives should be:
S - Specific
M - Measurable
A - Achievable
R - Realistic
T - Time bound
436 Fadil Osmani and Gelina Maliqi (Ramolli) / Procedia - Social and Behavioral Sciences 41 (2012) 434 – 441

Organization of Post Telecom in Kosovo and Albania's public institutions are focused precisely on the
principle of SMART approach given the fact that the objectives of PT-Kosovo as well as the public
institutions in Albania, being in connection with the strategy of these institutions, and then appears that
these objectives are specific. Also, these targets are based on results so they are measurable. Since the
objectives are related to the level of responsibility of each employee in these institutions, it ensures that
these objectives are achievable and realistic. Consequently, for the fact that these targets are set to be
realized within a half-yearly period of for Post Telecom in Kosovo and for a yearly period for Albania's
public institutions, then these goals are time bound.

The second step - after setting these standards, the manager is responsible to communicate them to all
employees in the organization. This helps employees understand their role in the organization and to be
more committed to their tasks.

Establishing performance
standards

Communicating standards
and expectations

Measuring the actual

performance

Comparing with standards

Discussing results
Providing feedback

Decision-making and taking

corrective actions
Fig. 1. Performance Assessment Process

The third step - is the evaluation of performance which is aimed at assessing the achievements of
employees and the commitment they made to achieve the objectives of the organization.

The fourth step - after assessing the performance is going to be the comparisons with standards in
order to see the deviations of the employees’ performance from the defined standards. This includes the
evaluation of data regarding the performance of employees.

The fifth step - the performance assessment process is incomplete without the communication of
feedback or the result of performance assessment to employees by the manager. This enables employees
to high scores to know that their efforts are appreciated and rewarded, while to the employees with poor
performance make aware that their performance should be improved. But the way of communication and
acceptance of feedback varies; it also presents the manager's ability to communicate this result of his
employees. According to a popular saying: “A successful Manager is one who can lay a firm foundation
with the bricks others have thrown at him.” The purpose of this statement is the solution of problems or
motivation of staff for the further work.
 Fadil Osmani and Gelina Maliqi (Ramolli) / Procedia - Social and Behavioral Sciences 41 (2012) 434 – 441 437

The sixth step - this is the last step, involves decisions-making regarding employee’s performance and
steps to be taken against him/her according to the assessment made, such as: compensation, promotion,
degradation, transfer, etc...

Here is an example of the Annual Assessment Form used in the public administration in Albania.

ANNUAL ASSESSMENT FORM

End of the Year ________
(To give back at the Human Resources Department within 15 th November)

Sect io n A

E mp lo y e e D et a i ls

Name / Surname ______________________________________________________________

Birthday ______________________________________________________________
Date of beginning work in civil service ________________________________________________
Place of work ___________________________________________________________________
Current position _______________________________________________________
Date of beginning in current position ________________________________________________

Sect io n B

Ge ne ral Pu rpo s e Wo r k
___________________________________________________________________________________

Ob je ct iv es of Work Indicate the level of assessment

(according to the importance) for each objective 1 - 4

1. ___________________________________________________________;

2. ___________________________________________________________;

3. ___________________________________________________________;

4. ___________________________________________________________.

S ectio n C

The level of basic skills

Indicate the level attained for each skill : 1-4 / Untested abilities should be marked with “x”.

Basic Skills Level Basic Skills Level

Management Self-organization
Judgment Writing skills
Teamwork Verbal communication ability
Use of resources Quality of service
438 Fadil Osmani and Gelina Maliqi (Ramolli) / Procedia - Social and Behavioral Sciences 41 (2012) 434 – 441

Self promotion Technical ability

Creativity

Sect io n D

Overall superior assessment

(i) Reporting Officer

General comments to show any particular advantages of employees and any area or
skill that must be improved.
.............……........……...…………………………………………………………………………..
.............…....………...……………………………………………………………………………..
I assessed the employee according to the Guidelines for Evaluation and I think that the
general level of performance at work is:

[ 1 – extremely well; 2 – good; 3 – generally sufficient; 4 – not sufficient ]

Name Surname /Signature ………….....………… Level ……….................…......

Position of Work .............................................… Date…................................….

(ii) Comments made by the countersigning officer.

..............…………………………………………………………………………………………….
........…………………………………………………………………………………………….......

I think that the Report of the Assessment

x is not made in accordance with the standards required;
x is in accordance with the Evaluation Guideline. I am satisfied that the assessment is fair and
accurate

Name Surname /Signature ………….....………….... Level ……….................…......

Position of Work .............................................… Date…................................….

Section E

Proof making notification

I read and I got a copy of this assessment and am aware that I can appeal through my direct supervisor
within 10 days.

Name Surname / Signature ……...........…………….. Date……...................…

…………………………………………………………………………………………………………....
========================================================================
 Fadil Osmani and Gelina Maliqi (Ramolli) / Procedia - Social and Behavioral Sciences 41 (2012) 434 – 441 439

3. Objectives of Performance Assessment

3.1. Challenges of Performance Assessment

After the selection and hiring of personnel in the organization, employees must then be evaluated and
motivated. Just when they feel valued and motivated, the employees can work effectively and will not be
inclined to leave the organization.

The objectives of the assessment performance are:

x To review the performance of employees for a period of time;
x To assess the gap between the current and desired performance;
x To assist the manager in conducting the control/audit;
x To help in improving relationships and communication between managers and employees;
x To establish the strengths and weaknesses of employees, in order to identify training needs and
future development;
x To provide the feedback from employees regarding their performance;
x To ensure the clarity of expectations and responsibilities of the functions to be performed by
employees;
x To evaluate the effectiveness of other functions of the organization's human resources such as
recruitment, selection, training and development;
x To reduce employee grievances.

In order for the performance appraisal process to be effective and successful, organizations face
different problems and challenges.

The main challenges involved in the evaluation of performance are:

x Defining the evaluation criteria
Identification of assessment criteria is one of the biggest problems facing the executive manager.
In order to access the evaluation, selected criteria should be measurable.
x Creation of assessment instruments
The aim of the assessment performance process is to evaluate the performance of employees more
than that of employers. The focus should be on developing the organization's employees.
x Lack of competence
Executive Manager must carefully choose the evaluators. They should have the necessary
knowledge to determine the evaluation criteria carefully. They should have experience and
training needed to implement objectively the process of evaluation.
x Errors in the assessment
Many errors based on personal bias of evaluators, and the influence of others can drag the
evaluation process. Therefore, the evaluator must make an objective assessment (not subjective),
impartial and fair of the employees performance.
x Resistance
The assessment process can be faced to resistance from employees and trade unions, for fear of
negative assessment. Therefore, communication with employees is needed in order to make clear
to them the purpose and process of performance assessment. Also, the standards must be clear and
known by staff, so that every employee should be aware of what is expected of him /her.
440 Fadil Osmani and Gelina Maliqi (Ramolli) / Procedia - Social and Behavioral Sciences 41 (2012) 434 – 441

3.2. Key Indicators of the Performance

The performance indicators are efficient evaluative of the performance. These indicators are used to
evaluate differences between employees and how to use their knowledge to increase their productivity -
which leads to increased productivity of the organization.

Key performance indicators are: 1- Productivity; 2- Quality of work; 3- Initiative; 4- Team work; 5-
Problem solving.

4. Types of Performance Assessment

There are three types of performance assessment systems that focus on: 1- Assessment of features /
attributes of personal character; 2- Behaviors; 3- Results; 4- Self-assessment.
x Assessment of features / attributes of personal character - enables managers to evaluate the
personal characteristics of their employees that are relevant to their work performance such as
skills, talents and personality. However, this type of assessment also has its disadvantages, as
having a specific personal characteristic not guarantee that this feature will be used at work and
will result in higher performance. For instance, employee may have high capability, but its
performance may be lower due to the low level of motivation by his leaders. Given the fact that
character features are relatively stable, employees have little opportunity to change them in favor
of performance.
x Assessment of behavior - Through the evaluation of behavior (action reaction), managers assess
how performing the employees. While evaluation of the character features estimates the
employees, behavioral assessment evaluates what they do and how employees react to the work
process. Since for the employees is easier to change their behavior in the work process than
character features, then the feedback is more likely to lead to better performance than in the first
case.
x Assessment of the results - people differ from their abilities and inclinations. There is always a
difference between the quality and quantity of the same work which is performed by two different
persons. An employee may engage more but does not contribute at all to achieve the objectives of
the organization. An example of this is the case when each employee in manual mode compiles
every form and procedure, while the other carries them using computer technology. Therefore, for
the organization is necessary the performance evaluation based on results and quality in order to
understand each employee skills, competencies and values.
x Self-assessment - is another method of evaluation that puts the employee to assess and evaluate its
performance in meeting the objectives of the organization. However, the problem of performance
evaluation by the individuals themselves followed by suspicion that people can be subjective. For
this reason it is not even realistic to expect that of themselves will be the right assessments by
employees.

5. Conclusions

Organization's human resources are of great importance to its success. Without effective employees,
organizations would work so ineffective and would risk failing to enforce claims of its objectives and
mission. Therefore, every organization within the strategy that has, it applies the most appropriate system
of performance management, a process that helps in the commitment of all employees towards achieving
the objectives of the organization.
 Fadil Osmani and Gelina Maliqi (Ramolli) / Procedia - Social and Behavioral Sciences 41 (2012) 434 – 441 441

If employees see that is evaluated their work and commitment, then this result as motivation for their
work further. As a component related to performance evaluation and plays an important role in
motivating employees is to stimulate to growth the salary or other forms of rewards such as
appreciation/gratitude, praise, etc. Therefore, many international organizations or institutions within their
organizational structure apply the method of the remuneration as a result of the good performance of their
employees.

This would be good to apply in Kosovo since the performance assessment process is seen as something
more formal and must necessarily be accomplished by the leaders, where in most cases is done the
subjective evaluation of left out without assess the real capabilities and results of employee performance.
While in Albania, although is applied the method of remuneration as a result of the good performance of
employees in public institutions, yet it remains a matter of choice because often-times the assessment is
subjective and related to narrow personal or political according to management department or institution's
political leaders.

Also, an element that must be present in the evaluation of performance in both Kosovo and Albania is
to focus more attention on finding and application of methods for improving performance, rather than just
their application without any positive result.

It is suggested that in the future to organize workshops, conferences, roundtables and sessions aimed at
different training and awareness of the reviewers of the importance of human resources, and the
importance of assessing the value and contribution they provide that are propulsive towards a most
successfully future of the organization or institution.

6. References

[1] Havolli, Y. Human Resources Management. Research Institute RINVEST, Pristine; 2005.
[2] Koli, Z. & Llaci, Sh. Human Resources Management. University Book Publishing House, Tirana; 2005.
[3] Qesku, A. Assessment of individual achievement at work, Training Institute of Public Administration TIPA-ITAP, Tirana, 2005.
[4] Performance Appraisal 2007. Issued on 21st May 2008
http://appraisals.naukrihub.com/definiton-concept.html
[5] Performance Appraisal Feedback 2007. Issued on 21st May 2008
http://appraisals.naukrihub.com/pa-feedback.html
[6] Process of Performance Appraisal 2007. Issued on 21st May 2008
http://appraisals.naukrihub.com/process.html
[7] Challenges of Performance Appraisal. Issued on 23rd May 2008
http://appraisals.naukrihub.com/challenges.html
[8] McNamara 2008, Performance Management-Basic Concepts. Issued on 27th May
http://www.managementhelp.org/perf_mng/perf_mng.htm