Analysis of Performance Management System in L&T

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CHAPTER – 1 ____________________________________________________________ ___________ Theoretical framework 1.1 Introduction In the current scenario organizations all over the world are under tremendous pressure for the improving their performance for survival and growth due to increasing competition. One such source of improving is “technology” and the other is “human system” existing in the organization. Today the world is shrinking and hence, more and more organization has an easy access to sophisticated technology due to relatively easy availability and transfer availability of technology. Thus the source of improvement i.e. the ‘human system’ that will differentiate a successful organization from unsuccessful one. Human resource…show more content…
They state that “performance management is a process that directs the energy of people in an organization towards achieving strategic goals”. Performance management is the current buzzword and is the need in the current times of cut throat competition and the organizational battle for leadership. Performance management is a much broader and a complicated function of HR, as it encompasses activities such as joint goal setting, continuous progress review and frequent communication, feedback and coaching for improved performance, implementation of employee development programmes and rewarding achievements. The process of performance management starts with the joining of a new incumbent in a system and ends when an employee quits the organization. Performance management 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. It is a means for promoting superior performance by communicating expectations, defining roles within a required competence framework and establishing achievable benchmarks. Performance management is an ongoing communication process which is carried between the supervisors and the employees throughout the year. The process is very much cyclical and continuous in nature. A performance management system includes the following actions. * Developing clear job descriptions and employee performance plans which includes the
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