Analysis Of The Companies ' Performance Management System

Performance appraisal is an important issue in human resource management and has a significant effect in the performance of an organisation. It is the system of evaluating the performance of employees regarding the accomplishment of their responsibilities and determining their potential to grow and develop. Bias in the evaluation process can affect the accuracy and appropriateness of the performance appraisal. Bias is a serious issue because it affects the ability to make appropriate decisions about the promotion of employees. A performance appraisal system that works to the disadvantage of members of a group can also pose legal issues.

Performance appraisal is a method which is increasingly used to evaluate employees to determine the degree to which they are performing effectively and encourage them to direct their energies towards organizational performance. Although the appraisal is being practiced, there are criticisms made against the system which generally arise from within the Orthodox and radical management frame work.

Development of a performance appraisal system that is effective in a human service organization is of benefit for the organization and the employees. For a performance appraisal system to be effective, the system has to be strategic, designed to fit the specific needs of the organization, non-discriminatory, non-bias, with correct implementation and administration. Many different components, must to be incorporated to make this type of system beneficial for all who use it, and all who are evaluated by the system.

As stated by Peter F. Drucker, “Management is about human beings. Its task is to make people capable of joint performance, to make their strengths effective and their weaknesses irrelevant.” Performance management is essential to achieving an organization 's mission statement and business goals, and also in attracting, retaining, and motivating qualified employees. There are many benefits and reasons why an organization should execute a performance management system. Performance appraisals establish the basis for qualifying, recognizing, and rewarding employee contributions. In this paper, I will discuss what performance management is, the problems with the current performance management system at my organization, how other organizations have succeeded in their performance management system and how I would advise management at my current organization to improve our performance management system.

Performance appraisal is an evaluation and grading exercise undertaken in organizations to achieve several objectives such as employee motivation, identification of training needs, rewards and remuneration, employee development through feedback etc. [Fig. 1]. All methods for performance appraisal have several advantages and disadvantages based on location of the firm, socio-economic environment, vision and mission of the firm, organizational structure and other factors. Organizations in different industrial sectors may have different focus areas of work and different values and thus, expectations from employees vary across sectors.

Performance Management is an ongoing process of communication between a supervisor and an employee in an effort to accomplishing an organization’s strategic objectives (Mello 2015). Performance Management occurs throughout the year and provides feedback on expectations, identifying goals and objectives, and results. Based on Mello there are five strategic decisions that has to be made when developing a Performance Management system. The strategic decisions that has to be made are (1) how will the system be used (2) who will evaluate the system (3) what will be evaluated (4) how will the information be evaluated and (5) what methods wills be used to evaluate the information (Mello 2015).

The next section pertains the theoretical concepts and concerns about performance management. Its definition, essences and principles also purposes.

The contents of this paper will reveal the performance evaluation process and how can it become successful during the employee evaluation process. As well as is the process difficult from the manager or the employee perspective’s by also the revealing various traits of an effective manager in the workplace.

Section 1: Introduction The theme of this paper is to formulate an effective performance management system, incorporate the HR concepts needed to manage that system, identify any strengths or weaknesses with the plan provide recommendations to implement the performance management plan. The references used will come from Chapter 8-10 of the textbook and several other web based sources.

There are many different ways we could look and implement a performance management system. We will first describe a few of the common plans used and ones we believe we can draw from to develop and implement into our own performance management model. Implementing this plan now will lay the foundation for ongoing development our firm’s human capital and assimilation of new employees into the system as we continue to grow.

The term ‘performance' is a familiar term used in many aspects of everyday life. Most dictionaries define it as the manner or quality of functioning and it is appropriate to apply it to organizations, with regard to monitoring and quantifying their operating capabilities. Performance measurement system will be those traditional, financially-based performance measures which periodically summarize the organization's performance for the benefit of shareholders, lenders, creditors and statutory authorities.

Performance management is the system in which the employees are reviewed at regular intervals so they are monitored to tell the employer how they perform in their jobs and can they improve their performance. Employee performance measurements can determine an employee 's compensation, employment status or opportunities for advancement. This is usually be carried out by the employee’s manager, however it is practical to include HR managers in the process. In order to be competitive, companies must continue to monitor the performance of its employees.

Performances management structure are designed with the target of advance both, individual and organizational performance by recognize performance requirements, ensure regular feedback and help employees in their career development. The main goal of performance management is to ensure that the organization and employees work together to get best results. For example organization should help to employees in identifying the knowledge and ability required for performing the job efficiently as this would drive their focus towards performing the right task in the right way. Organization should help encourage employees personal growth and development in they career and help to get the desired skills and knowledge. The purpose of performance management is make employee feel motivate at work and make them understand about they investment in the organisation. Successfully reach the set target as well as it also focus on helping the employees to understand what is being require from them and how they could deliver it to the organisation.

He also states that there are two components of performance management system i.e. Performance Evaluation system and Performance Reward system. The success of performance reward system is based on Performance Evaluation System. It is not the absolute performance of the employees that matter but their relative performance. He focused on the three dimensions to measure the performance: growth of business, profitability and

According to Nigro, Nigro and Kellough, (2014), performance appraisal refers to the systematic performance appraisal of employees in order to measure their skills and talent for the purpose of further personnel growth and development. Performance appraisal is mostly carried out in the private sector where the performance of employees is crucial as the organizations are focused on profits. However, the difference between the aims of private organizations and the public organizations introduces a problem when it comes to measuring the performance of civil servants. Thus most civil servants may not be overly enthusiastic about implementation of performance appraisal in their organization because of some inherent flaws of most of the techniques used, for example, ranking is prone to biasness of the appraiser which may in turn affect the morale or even employment status of a civil servant. This paper will thus seek to address the issues that affect implementation of performance appraisal systems in public organizations as well as providing possible solutions that can be implemented in the public organizations.