Objectives
of Performance Management System
According to Armstrong and Baron
(1998) performance management is a strategic and integrated approach towards
the performance of individuals and teams who are delivering their best for the
success of the organization. Performance management is the continuous process
of monitoring that the organizational goals are achieved in an efficient and
effective way (Tyson & York, 2002).According to (Fadil and Geline,2012)
objectives of performance management could be defined as follows
·
To
review the performance of employees for a period of time.
·
To
evaluate the gap between the current and desired performance.
·
To
support the manager in conducting the control/audit.
·
To
help in improving relationships and communication between managers and
employees.
·
To
establish the strengths and weaknesses of employees, in order to identify
training needs and future development.
·
To
provide the feedback from employees regarding their performance.
·
To
ensure the clarity of expectations and responsibilities of the functions to be
performed by employees.
·
To
evaluate the effectiveness of other functions of the organization's human
resources such as recruitment, selection, training and development.
Furthermore,
the main goal of performance management is to ensure that the organization as a
system and its subsystems work together in an integrated fashion for accomplishing
optimum results or outcomes (Bragger et al., 2014). According to Johnson & Shields (2007) , performance
management approach has become an indispensable tool in the hands of the
corporates as it ensures that the people uphold the corporate values and tread
in the path of accomplishment of the ultimate corporate vision and mission. At
the same time, Kinicki, Jacobson, Peterson, & Prussia( 2013) states ,it is
a forward looking process as it involves both the supervisor and also the
employee in a process of joint planning and goal setting in the beginning of
the year. Moreover, DeNisi
& Smith (2014) defines, the major objectives of performance management are ,
·
·To
enable the employees towards achievement of superior standards of work
performance.
·
·To
help the employees in identifying the knowledge and skills required for
performing the job efficiently as this would drive their focus towards
performing the right task in the right way.
·
·Boosting
the performance of the employees by encouraging employee empowerment,
motivation and implementation of an effective reward mechanism.
·
·Promoting
a two way system of communication between the supervisors and the employees for
clarifying expectations about the roles and accountabilities, communicating the
functional and organizational goals, providing a regular and a transparent
feedback for improving employee performance and continuous coaching.
·
·Identifying
the barriers to effective performance and resolving those barriers through
constant monitoring, coaching and development interventions.
·
·Creating
a basis for several administrative decisions strategic planning, succession
planning, promotions and performance based payment.
·
·Promoting
personal growth and advancement in the career of the employees by helping them
in acquiring the desired knowledge and skills.
Video 1 : Objective of having good performance management system
Video 1 : Objective of having good performance management system
Source :Mark Debinski ,2012
Armstrong,
M. & Baron, A. (1998), Performance Management: The New Realities, Institute
of Personnel and Development, London.
Bragger,
J., Kutcher, E., Menier, A., Sessa, V., & Sumner, K. (2014). Giving
nonselective downsizing a performance review. Human Resource Development
Review, 13, 58-78. doi: 0.1177/1534484313492331 0.1177/1534484313492331.
DeNisi,
A., & Smith, C. (2014). Performance appraisal, performance management, and
firm-level performance: A review, a proposed model, and new directions for
future research. The Academy of
Management Annals, 8, 127-179. doi:10.11606/rco.v11i29.122140.
Fadil,O.,Gelina,M.,2012,
‘Performance Management, Its Assessment and Importance’, Audit Department, Post
Telecom of Kosovo, Pristine, Kosovo b Finance Department, Faculty of Business
Administration “Kristal” University, 41(1),pp.434-441.
Johnson,
L., & Shields, J. (2007). Lessons from management–union partnership in
teacher performance appraisal in the New South Wales public education system.
The International Journal of Human Resource Management, 18, 1214–1227.
doi:10.1080/09585190701392048.
Kinicki,
A. J., Jacobson, K. J., Peterson, S. J., & Prussia, G. E. (2013).
Development and validation of the performance management behavior
questionnaire. Personnel Psychology, 66, 1–45. doi:10.1111/peps.12013.
Tyson,
S. and York, A. (2002), Essential of Human Resource Management, 4th edition,
Butterworth Heinemann, Oxford.
Hi Nadee, it is stated by several authors that Performance Management encompasses critical activities.
ReplyDeletePerformance management is an ongoing and continuous process which involves three main steps. Firstly, need to identify and set objectives which are aligned with the company mission. Then it is required to observe and measure performance against the set objectives on a periodic manner and to provide and receive required coaching and feedback accordingly (Aguinis, 2013). Effective Performance Management allow employees to enhance productivity, improve communication between employees and managers, clarify job responsibilities and expectations, develop employee capabilities to their fullest extent through effective feedback and coaching, drive behavior to align with the organization’s core values, goals and strategy and provide a basis for making operational human capital decisions (Pulakos, 2004). To sustain optimal outcome, organizations are required to have effective performance management systems to promote and develop the values, principles and competencies. It is required to facilitate constructive discussion between the employees and their supervisors to clarify the work performance gaps and to design Performance Improvement Plan (PIP) with periodical review. Post the PIP discussion, supervisors are required to monitor and review the consistency of employee performance, ensure the support and resources that require to bridge the performance gap, periodical feedback on performance and the possible consequences if performance standards are not met (Sahoo and Mishara, 2012).
Hi Nilmini, I agree with you . The basic purpose of performance management system is to creating the alignment in between the organization objectives and its sub systems to achieve the organization objectives( Carter McNamara,2008). In modern organization there should be a balanced performance management system to achieve the organization objectives. By strategically using the performance management system organizations can develop its performance standards, can develop the measures and then reports the finding for further improvement and in this a continuous process keep running (South Carolina, 2002). A balance performance management system initiative was taken by Kaplan; Norton, (1992) to achieve the organization’s vision strategically. Balance score card focusing on the four business prospective i.e. financial, customer satisfaction, business process and the organization learning and innovative culture. A recent survey determined that the companies use an average of 13 management tools at the corporate level. These tools are intended to help measure or monitor the performance of an organization, and within this the most popular performance related tool was the Balanced Scorecard (Rigby and Bilbo bead 2005). In the absence of a basic strategic context, managers found it hard to agree on an appropriate set of measures of organizational performance (Ahn, 2001). Balance scorecard is the platform for measuring the organization performance having coordinating with financial and non financial aspects of business (Irwin D, 2002).
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