In this competitive era, organizations are focusing on managing the resource generators (employees) and improving their productivity. Employees are the creators of a successful organization. It is the responsibility of the management to ensure the satisfaction of the employees and thereby improve the productivity. One of the tools available to managers for motivating and satisfying the employees is performance counseling. This article dwells on the need for counseling as a structured intervention mechanism and effectiveness of counseling in improving the productivity of the employees.

The 21st century businesses are operating in the knowledge age. The business environment is dynamic and organizations are continuously exploring alternative strategies and policies. This is necessitating the employees to upgrade their competencies regularly. The job descriptions and job functions are undergoing changes creating a dichotomy in the expectations of the employees and managers. The dynamic work environment is also increasing job stress of employees, a result of ambiguity in expectations. It is imperative for business managers to achieve synchronization between performance and expectations of managers and employees. And performance counseling is a good tool to manage these expectations.

Performance counseling is defined as a regular, although not necessarily formal, contact between the manager and employee for the purpose of discussing successes and failures in completing assignments and duties. This will also include the observations of the managers on the conduct and behavior of the employee and any deviations noticed from acceptable behavior and office discipline in areas of attendance, usage of resources, etc. Performance counseling can be undertaken in a specific meeting organized for the purpose or as part of the routine work-related interactions between the manager and the employee.

Performance counseling as per the above definition assumes that the key result areas, expected results, acceptable conduct and behavior, and policies of the organization are known to the employee. In cases where the clarity is absent, the first step in the counseling process is to provide the information to the employees. Organizations normally provide the information about the job function, key results, key personnel, policies and procedures of the organization, etc., as part of the induction process. In organizations and departments, which do not have an induction process, the manager has to assume the responsibility for providing such information. This is the first stage of a proper performance counseling culture to develop in the organization.

HRM Review Magazine, Performance Counseling, Managerial Dilemmas, Structured Intervention Mechanism, Business Environment, Dynamic Work Environment, Resource Requirements, Organizational Culture, Programming Languages, Analytical Skills, Organizational Systems.