Principles and Importance of
Performance Management System
Well designed
and effective appraisal has two important functions. Firstly, it creates clear
basis for the ongoing relationship between a team member and their manager.
Secondly, it creates as effective performance management system that clarifies
the relationship between the individual and organization
The research conducted by Armstrong
and Baron (1998,2004) identifies the following principles of performance
management system.
1. It is about the approach of manage
people – it’s not a system
2. Performance Management is natural
processes of management and emphasize management job role
3.
Performance
management is a management tool that direct managers to manage their
subordinates.
4. Driven by corporate purposes and
values
5. To obtain solutions that work
6. Only interested getting visible
improvement through whatever the things you can do
7. Focus on changing behaviors and individual
improvement rather than paper work
8. Based on accepted principles and
procedures but functions flexibly.
9. Focus on development of organization
and development of performances not pay
10. Success depends on what the
organization is and needs to be in its performance culture.
Performance Management system is
expected to improve organizational performance generally by creating a
performance culture with the achievement of high performance in way of life
Contribution of performance
management system was defined by Jones et al (1995) as follows.
- Communicate
shared vision throughout the organization to help to establish and support
appropriate leadership and management styles.
- Define
individual requirements and expectations of all employees in terms of the
inputs and outputs expected from them thus reducing confusion and ambiguity.
- Provide a framework and environment for teams to develop and succeed
- Provide the climate and systems which support reward and communicate how people and the organization can achieve Improved performance.
- Help
people manage ambiguity
Example
With the
industrial experiences which I have; it has been observed that, Performance
Management is important tool of measuring employee performance of the
organization and easy to promote performance driven culture in the
organization.
In the healthcare industry, it is more practical to establish and
maintain natural processes of performance management to direct managers to
manage their subordinates. As a Health care organization, more than 1800
employees are covering in different type of job roles with different stake
holders. Standard operating procedure on performance evaluation and individual
development has been streamline consistency in managing performance and maintaining
principles of performance management. Therefore, even different types of
employees work for the organization; each employee is performing job toward to
achieve organizational Vision.
References
Armstrong, M., 2014. Armstrong's Hand book of
Human Resource Management. 13 ed. s.l.:Ashford Color Press Ltd.
FME, T., 2013. Performance Management Principles.
[Online]
Available at: http://www.free-management-ebooks.com/
Johnson, D., Ferris, G., Rosen, S. & Barnum, D.,
1995. Performance appraisal design, development and implementation. s.l.:s.n.
Drumm,
G. (2005), ‘‘Putting the pieces back together to realign performance in
the organization’’ performance Improvement, Vol. 44 No. 6, pp. 26-30.
Hi Thanuja, to add to posts based on the insights of Sharma, Budhwar, and Varma (2008), the steps in the performance management process can be divided into four main categories: planning, coaching, reviews, and rewards. The performance management process is act as the backbone of the organization. This is how performance management addresses workplace issues and prepares employees to achieve their personal goals and advance and develop their careers.
ReplyDeleteagree with your comment. performance evaluation can be regarded as a systematic process by which the overall performance of an organization can be improved by improving the performance of individuals within a team framework (Drumm, 2005).
DeleteHello Thanuja, I agree with your post. Effective performance management system should have a well-managed process of evaluation system, with specific roles and timelines for both managers and employees. When performance management systems are used for salary and other decisions it is important to have a fair and equitable practice towards all employees (Pulakos, E. D., 2004).
ReplyDeleteHI Nilushi, agree with your comment specifying critical success factors of performance evaluation system. its focus should be on changing behaviors and individual improvement while heading to corporate purposes and values (Armstrong and Baron, 2004)
ReplyDeleteHi Thanuja. I agree with the contents. And according to Armstrong (2009) a performance management system can assist break down large departmental strategic plans into specific, attainable performance goals for each worker. This simply offers a foundation for continuous monitoring of individual performance, feedback, and the implementation of performance improvement strategies.
ReplyDeleteHi Asanthi, agree with you.
DeleteIt can be regarded as a systematic process by which the overall performance of an organization can be improved by improving the performance of individuals within a team framework (Drumm, 2005).
Hi Thanuja. I agree with your post. According to Armstrong (2009), performance management system can assist break down large departmental strategic plans into specific, attainable performance goals for each worker. This simply offers a foundation for continuous monitoring of individual performance, feedback, and the implementation of performance improvement strategies.
ReplyDeleteHi Asanthi, agree with you.
DeleteIt can be regarded as a systematic process by which the overall performance of an organization can be improved by improving the performance of individuals within a team framework (Drumm, 2005).
Hi Nilushi, Agree with your comment. as addition to your comment , Performance management is essentially a commitment-based system of the organization. This seeks to align employee action and behavior towards the desired organizational goals. As employees are the key to the organization, their beliefs, values, behaviours, and actions have a profound impact on the organization’s outcomes and most organizations understand that employees tend to engage in behaviour that is recognized and rewarded, and avoid behaviour that is penalized.
ReplyDeleteAccording to the industrial experience i have, deviations form basic principles of performance evaluation generate negative impacts for the employee productivity and generate dissatisfaction on the job.
Agreed with you Thanuja , Performance management is a method of ensuring that the organization's objectives are met more competently and productively.
ReplyDeleteBy integrating internal and external objectives with corporate goals, performance management aims to improve operational performance (Armstrong ,2014).
Hi Maheshi, agree with your comment. Well designed and effective appraisal has two important functions. Firstly, it creates clear basis for the ongoing relationship between a team member and their manager. Secondly, it creates as effective performance management system that clarifies the relationship between the individual and organization (FME, 2013).
DeleteHello Thanuja. I agree with your post content. Performance manage mentioned is vital to an organization's success. According to Flapper, Fortuin and Stoop (1999), 'The success and continuity of an organization depend on its performance,
ReplyDeletewhich may be defined as “the way the organization carries its objectives into
effect”. This requires that “all noses are pointing in the same direction”, as everyperson in the organization contributes to the company objectives via his or her activities".
Hi Udana, Agreed with your points. as you said on performance management ,it is expected to improve organizational performance generally by creating a performance culture with the achievement of high performance in way of life (Armstrong, 2014).
DeleteHi Thanuja, Point well taken, Armstrong and Baron's conclusions suggest that during the 1990s there was a movement away from concentrating solely on the hard ' what of performance, as evidenced by a focus on objectives and outputs, towards a greater emphasis on the 'inputs or behaviours. At the same time they reported less enthusiasm for ratings, performance-related pay (PRP) and outputs. The 'new-style' performance management they identify also requires a switch of ownership, from a system owned and 'policed' by HR to a process designed for, and operated by, line managers. (Elizabeth Houldsworth; Dilum Jirasinghe, 2006)
ReplyDeleteHi Thanuja, I do agreed with you. Armstrong and Baron's conclusions suggest that during the 1990s there was a movement away from concentrating solely on the hard ' what of performance, as evidenced by a focus on objectives and outputs, towards a greater emphasis on the 'inputs or behaviours. At the same time they reported less enthusiasm for ratings, performance-related pay (PRP) and outputs. The 'new-style' performance management they identify also requires a switch of ownership, from a system owned and 'policed' by HR to a process designed for, and operated by, line managers. (Elizabeth Houldsworth; Dilum Jirasinghe, 2006)
ReplyDelete