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Importance of performance management systems
Characteristics of an ideal performance management system
Characteristics of an ideal performance management system
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Introduction Performance management is the process of establishing a favorable working environment for a given organization such that every employee will have the ability to work at their level best to achieve the organizations goals and objectives. This process basically involves developing clear job description, acquisition of proper work force, providing appropriate training of employees and designing equitable compensation plans along promoting career development for the employees. Managing performance in any given corporate body is one of the most important contributions that managers should put into consideration. Setting up goals, laying down objectives and strategizing on appropriate methods to achieve such goals are the main essentials …show more content…
To mean that the management should not set goals that cannot be attained and targets that cannot be reached. Finally, these goals need to be time bound, in that they should be planned for within a given scope of time, to make them effective.
References
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Schwartz, A. E. (1999). Performance management. Hauppauge, NY: Barron's Educational
(2014). Strategic performance management systems: impact on business results. Journal Of Computer Information Systems, 54(3), 25-33.
Walsh, K., & Fisher, D. (2005). Action inquiry and performance appraisals: Tools for organizational learning and development. The Learning Organization, 12(1), 26-41. Retrieved from http://search.proquest.com/docview/215656699?accountid=32521
In 2012, Forbes contributor Sebastian Bailey professed, “Bad performance management costs a lot and delivers very little. In fact, when it goes wrong, he tells us, it dilutes the effect of every other people investment. Yet, when done right, the impact is significant (Bailey, 2012). We learn from Aguinis (2013), that there are dangers associated with a poorly implemented performance management systems. These include; increased turnover, wasted time and money, decreased motivation to perform, as well as damaged relationships and lowered self-esteem (p.9). The first purpose of performance management systems is to help top management achieve strategic business objectives (Aguinis, 2013). This reinforces behaviors that are consistent with the company’s cultures and goals and also plays an important role on the commitment, engagement and loyalty of company employees. Employees who have clear expectations, can align their values and vision with the company’s, understand what is expected of them and what they earn in return will have higher satisfaction and longevity within an organization.
Life is all about setting goals and trying to achieve them. The same theory also applies in the managerial industry. The accomplishment of desired results in a business is called performance. One of the major concerns of the top managers of a firm is the actual performance of the firm so its measurement is unavoidable.
Process management: How the organization designs and improves key processes. 7. What is the difference between a'smart' and a'smart'? Organizational performance results: How the organization performs in all key business areas, including customer satisfaction, financial performance, human resources, partner performance, operational performance, governance and social responsibility. ASQ, n.d.
Managers can determine individual performance and evaluate the productivity of employees (Bohlander and Snell, 2010). Moreover, the managers can optimize productivity in their organizations through performance management process. To determine the effectiveness of the performance process, it has to meet the following requirements.
Marks and Spencer's Definition of Performance Management Performance management provides Marks and Spencers with needed information on their employees. The information helps Marks and Spencers develop the skills of the employees based on the information collected at the appraisal, it helps recognise when training is needed. Performance management helps M&S by improving their service by having able workers that work to their full abilityand by improving the relationship between workers and the company. Here is Marks and Spencer's definition of performance management: Performance management is a joint process that involves both the supervisor and the employee, who identify common goals, which are linked to the goals of the organisation. This process results with the establishment of written performance exceptions later used as measures for feed back and performance evaluation.’
The Mayo Clinic (Mayo) provides a compelling and instructive example of the critical role of performance measurement in managing performance behaviors. An analysis of the Mayo approach offers insightful understanding of effective performance management practices. Accordingly, this paper reviews the Mayo performance management system from four perspectives (a) leadership strategy, (b) performance measurements, (c) human resources management, and (d) the alignment of performance with strategy. The discussion concludes with an assessment of the alignment of the elements comprising the Mayo performance management system with recommendations for strengthening those alignments.
In conclusion, each segment of the performance management process holds a vital link to the next. Not unlike knocking over one domino in a series, it has an effect on the next domino. If one portion in the process is dysfunctional, the next may be identical in its dysfunction – and on and on.
A good performance management system encourages management to take responsibility for making sure their employees meet the organization’s objectives and goals (Gary, 2004). Furthermore, according to Bowes (2009), there is good evidence that shows when good performance management systems are in place and implemented effectively, revenue, shareholder value, employee satisfaction and investor interest will all increase. Therefore, while, the Blame Library’s performance management system needs improvement in several areas it is in their best interest to continue to improve their performance management system by starting with their prerequisites. Once they have job analyses and developed job descriptions for all the jobs at the library, they will be in a good position to start working on the other characteristics of a good performance management system.
Performance management is a management tool used to value, monitor and measure a company’s strategies that ensure the efficiency and effectiveness of its product delivery. This management tool does not focus on the organisation and on its employees as well as stakeholders. It is a continuous process that entails that managers make sure that organisational and employee values are corresponding (Aguinis, 2005,p.1/2-1/5). Performance Management brings about the competencies in the employees, increases self-esteem by giving feedback to employees, there is a low number of lawsuits because it helps understand the company better (eThekwini Municipality, 2008,p.10-11). According to Pride, Hughes and Kapoor (2011, p.288) performance management creates motivation for employees; one theory of motivation is of Expectancy, which stipulates that employees satisfaction is driven by expectations of what an organisation will offer in return.
Performance management is a process that guarantees an organisation and all of its available resources are working collectively and effectively towards achieving the organisation’s mission or goal. Performance management affords an understanding of what drives an individuals, and even organisations, performance at all levels. An understanding of performance management allows for the identification and minimisation of unproductive areas of an organisation, as well as an ability to predict future performance. It is a powerful tool that can be used by managers at all levels of an organisation to help improve a company’s productivity.
Performance management is used for the basis of promotion, reduction in force purposes (talent management), gives transparency of what an organization is looking for, merit increases, and lastly it provides protection against lawsuits for unlawful termination by keeping written documentation. Performance evaluations are advantageous to both the organization and the employee. A leading advantage of performance evaluations is it gives the employee an opportunity to create and achieve smart goals. Although performance evaluations primary function is to measure whether an employee is a good fit or a bad fit for the organization, its function is so much a broader. Performance management is tool purposely used to motivate employees to examine themselves and determine if they have selected the profession that is best for them; consequently the feedback an employee receives from their superior supports them with increase their knowledge and
Grubb, T. (2007). "Performance Appraisal Reappraised: It's Not All Positive." Journal of Human Resource Education. Vol. 1, (No. 1,): 1-22.
Performance management is a continuous process that creates a working culture to encourage employees to improve their work performance and reach their full potential during their stay of employment. Performance Management also provides strategic direction, develop competency in employees and instill organization value. This paper will identify methods and affects that performance management plan has on the organization and their employees.