An Effective Performance Management System Essay

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Defined as “a process by which managers and employees work together to plan, monitor, and review an employee’s work objectives and overall contribution to the organization,” performance management represents an integral aspect of human capital management that has evolved dramatically over the last few decades (HR Resource Center). From the 1970s where annual evaluation was the standard, to results-based evaluations measured by outcome-oriented goals, present day performance management focuses on continuous communication, coaching, and feedback between a supervisor and an employee to accomplish both the strategic objectives of the organization and the career goals of the employee (UC Berkeley Human Resources, 2016). However, an efficacious performance management system requires more than an update of an organization’s performance management process and strategies.
A survey performed by Watson Wyatt showed that only three out of 10 workers agreed that their company’s performance management system helps improve performance and less than 40 percent of employees said their systems established clear performance goals, generated honest feedback or used technology to streamline the process (Pulakos, 2004). The successful utilization of a performance management system is dependent on an organization’s approach for “establishing a shared understanding about what is to be achieved, and how it is to be achieved” with its employees (Tracey B. Weiss, 1997). Successful performance
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