The Importance & Impact of the Performance Feedback System

Performance Feedback System

• Performance Feedback is a method in which the job performance of an employee is documented, measured, and evaluated (Clampitt, 2017).

• The purpose is to provide guidance for an employee to improve job performance

• The basic parameter of a Performance Feedback can be used to motivate the employee to achieve or exceed a company’s performance standard

• The Performance Feedback can be used as a corrective tool by a manager to build greater self esteem for the employee

Performance Feedback System

Principles

Performance Feedback Principles

• Main principals managers must emphasize and express to employee

• Identifying performance goals

• Provide guidance for employee to achieve performance goals

• Must evaluate the results and provide them to the employee (positive & negative)

Standards

• Manager must motivate employee to seek and maintain the performance standard

• Manager must place emphasis on consistency to the employee to maintain performance

standard

• If performance standard is not met by employee – manager must have employee embrace

continuous improvement

Performance Standards

Flexibility and Viability

• Manager must continually evaluate their own performance feedback standards

• Due to constant changes in technology, competitive environment, and organizational needs

• Manager must challenge themselves to make certain that performance feedback standards are

current, sufficient, and vital enough to meet organizational goals

Implementing and Sustaining

Implementing and

Sustaining

• Manager must relate to employee how one’s performance impacts the organization
• Managers must provide employee with External Focus information (i.e. customer complaints & organizational business trends)
• Manager and employee must acknowledge performance feedback system is subjective
• Manager must always provide honest performance feedback when evaluating

employees

Manager's Feedback

• Employee’s job responsibilities

• Organizational standards in which employee is being evaluated on

• Employee receiving useful and encouraging informal feedback

• Employee receiving useful performance feedback from performance appraisals

Methods

• Manager must utilize Self-Appraisal & Task-inherent feedback

• Manager must exercise Routine Performance Feedback to the employee

• Manager must ensure Routine Performance Feedback is a regular and normal part of the job

• Manager must seek out every opportunity to provide employee with feedback

Methods

Case Study: Fannie Mae, Freddy Mac, & AIG

Case Study

• Poor job performance by employees of Fannie Mae & Freddy Mac led to financial uncertainty

and downward spiral in housing market (Andrews, 2018)

• Poor job performance by employees of AIG caused powerhouse insurance company to falter

into a financial collapse (Gethard, 2020)

• Employees performing poorly with banking and lending policy standards

Conclusion

• Manager will implement a Performance Feedback System that promotes employee learning &

growth

• Manager can utilize an effective Performance Feedback System to help an employee achieve

organizational performance goals

• Manager can utilize an effective Performance Feedback System to deter poor motivation, poor

job performance, and poor communication pertaining to the employee

• An effective Performance Feedback System assists the manager, employee, and the

organization to meet and overcome the systematic and future challenges that it will encounter

References

Amado, K. (2019. Fannie Mae and Freddie Mac bailout. www.thebalance.com/what-was-thefannie-mac-bailout-3305658

Andrews, J. (2018). The financial crisis of 2008: Why the housing

bubble caused a crisis.

www.curbed.com/2018/8/29/17788844/financial-crisis-2008

Clampitt, P. (2017); Communicating for managerial effectiveness:

challenges, strategies, and solutions. 6th ed.

Gethard, G. (2020). Falling giant: A case study of AIG.

www.investapedia.com/articles/economics/09/american-investment-group-aig-bailout.asp