Performance Management System
‘In currant dynamic business world humans are considered as a resource, due
to its capability to generate positive or negative influence towards the
business success’
‘Performance management is a systematic process for
improving organizational performance by developing the performance of individuals and
teams. It is a means of getting better results by understanding and managing performance within an
agreed framework of planned goals, standards and competency requirements’
As an operational processes ‘Performance management
is the system through which organizations set work goals, determine performance
standards, assign and evaluate work, provide performance feedback, determine
training and development needs and distribute rewards’
Aims of Performance Management
With the implementation of effective performance
management system, organizations are expected to be achieved its vision, mission,
goals and objectives (Palukos, 2004). Further performance management
processes are used to communicate its expectations to employees and manage
employee behaviors and actions towards to achieve goals. it’s also facilitate
organizations identify ineffective performers for training and development
programs
Padukos, (2004) emphasized that: ‘Performance
management is the key process through which work gets done. Good Performance
management system provides means for individuals within agreed framework of
planned goals, standards and competency requirements and improve capacity of
individuals to meet and exceed organizational expectations and personal targets
with full potential. As well as Performance management can play an important
role in rewarding employees by providing them with positive feedback and the recognition
of their accomplishments.
Fourfold purpose of performance management system
are as follows
1.
Strategic
communication
Convey to people what doing a good job means and entails.
2. Relationship building
Create stronger work relationships by bringing managers and those they manage together regularly to review performance achievements.
3. Employee development
Provide performance feedback as a basis for the joint analysis of strengths, weaknesses and areas for improvement and an agreement on a personal development plan and learning contract.
4.
Employee evaluation
Assess the performance of employees (performance appraisal) as a basis for making decisions on job reassignment, promotion or performance-related reward.
Performance
Management Cycle
Figure 1: Performance Management Cycle
Source :
Performance management is a natural process in
management. Aforementioned performance management cycle corresponds with
Deming’s (1986) plan-do-check-act model
1. Performance Planning
Performance planning is based on performance
agreements. The most important aspect of performance planning is the processes
of aligning individual goals with the strategic goals of the organization.
Objectives should be ‘SMART’. SMART objectives provide directions for people exactly
what they have to do, when they have to do, who have done and why they have to
do. Performance agreement emerge from each role requirement and the performance
review
2. Managing Performance
Performance of individuals need to be managed throughout
the year. The most important factor is continuous management of individual
performance and identify and implement performance improvement plan
3. Performance Review
Performance review is focal point where identify
performance and issues in performing given job roles. Performance review
meeting is most productive way to evaluate performance of individuals against
corporate objectives. Performance review facilitates managers and individuals
to evaluate compliance together and develop solutions for the identified issues
so that individual can become better in future. Further individuals are
encouraged to assess their own performance and improve their performance in
future
4. Performance Assessment
During the stage of performance assessment, conduct
overall assessment and give ratings for individuals, according to their
performance and level of target achieved
Example
I work for a company in the health care industry,
which follow streamline procedure for employee performance Management. Company
directors communicate strategic goals to the executive committee managers, executive
committee managers delegate strategic goals to senior management and line
managers accordingly. Strategic goals converted into corporate goals and
gradually delegate as department goals and finally upto individual targets at
the level of general staff. Each and every employee is given job specific Key
Performance Indicators (KPI) each year. Key performance indicators are
developed by line managers during the discussion with employees. Line managers
as guiders and followers evaluate performance of employees of the department by
annually. KIPs are compromise with three different aspects as performance
outcomes, work behavior out come and career development plan.
It is evident that such type of performance
management system contributes to establish and maintain performance driven
culture within the organization while improving productivity of human resource.
References
Armsrtrong, M., 2014. Armstrong's Handbook of
Human Resource Management Practice. 13th ed. UK: Ashford Color press Ltd
.
Armstrong, M., 2009. Armstrong's Handbook of Performance Management. 4th
ed. London and Philadelphia: Replika press Pvt Ltd .
Briscoe, D. B. & Calus, L. M., 2008. Employee Performance
Management: policies and practices in Multinational Enterprises, in performance
Management System: A global perspective. Routledge, Abingdon: s.n.
Mohran, A. M. & Mohrman, S. A., 1995. Performance Management is
'running the business Compensation & Benefits Review. In: s.l.:s.n., pp.
69-75.
Neill, G., 2008. Managing Employee performance and Reward. Asia
pacific Journal of Human Resources , Volume 46.
Palukos, E. D., 2004. Performance Management, A roadmap for
developing, implementing and evaluating performance management systems. United
States of America: SHRM Foundation .
Qureshi, A. & Hassan, M., 2013. Impact of performance Management on
the organizational Performance. Academic Research in Economic and
management Sciences , 2(5), pp. 54-76.
Armstrong and Baron, (2005) define performance management as "the process of contributing to the effective management of individuals and teams to achieve a high level of organizational performance." it makes a vital contribution to support the key human resource management activities of human capital management, enhancing levels of engagement, talent management, learning and development, and reward
ReplyDeleteHi Chamara, i agree with your definition for performance management. according to the Armstrong (2009) ‘Performance management is a systematic process for improving organizational performance by developing the performance of individuals and teams'. According to the industrial exposure i have, it is evident that , performance Management processes has been integrated with training and development, talent Management and reward & recognition also.
DeleteHi Thanuja, I agree with your post. Establishing high performance culture by effective leadership where employees take responsibility for continuous improvement of business and for their own skills with contributions within a provided framework will be the overall aim of performance management (Armstrong, 2006).
ReplyDeleteHi Nilushi ,
DeleteAgree with your points. continuous improvement in organization ensure with the implementation of effective performance management system, organizations are expected to be achieved its vision, mission, goals and objectives (Palukos, 2004).
Hi Thanuja. As performance assessments are based on performance planning, it is the most significant component of the performance management process (Owino , Uloch & Kimemia, 2019). Employees decide on the aims and key performance areas that can be achieved over a year during this cycle. Olusanya et al (2012) state that effective planning in a performance management system positively contributes to improved employee productivity in an institution.
ReplyDeleteHi Asanthi,
Deletei am agree with your points.
according to the Deming's PDCA cycle , it is proved that accurate planning generates more benefits in effective manner.
it is applicable in same manner in performance management system also.
Hi Thanuja , Effective performance management cycles align managers' or supervisors' and employees' efforts with the organization's goals (Russell and Russell, 2009).
ReplyDeleteHi Maheshi,
Deletei am agree with your comment.
performance management processes are used to communicate its expectations to employees and manage employee behaviors and actions towards to achieve goals. it’s also facilitate organizations identify ineffective performers for training and development programs (Palukos, 2004).
Agreed with you Thanuja , Effective performance management cycles align managers' or supervisors' and employees' efforts with the organization's goals (Russell and Russell, 2009).
ReplyDeleteHi Thanuja, I agree with above. According to (Ingram and McDonnell, 1996) measuring the performance of employees should be a compulsory task. It allows an Organization to have a record of organizational activity in order to determine their progress and help refocus strategy.
ReplyDeleteHi Hashini,
Deletei am agree with your comment.
During the stage of performance assessment, conduct overall assessment and give ratings for individuals, according to their performance and level of target achieved (Armsrtrong, 2014).
Hi Thanuja, I agree with above. According to (Ingram and McDonnell, 1996) measuring the performance of employees should be a compulsory task. It allows an Organization to have a record of organizational activity in order to determine their progress and help refocus strategy.
ReplyDelete