Evaluation Of Employee Performance Management

2846 Words Mar 12th, 2015 12 Pages
EMPLOYEE PERFORMANCE MANAGEMENT
Employee Performance Management is a process implemented in order to create a shared understanding between management and the labor force regarding expectations for the execution of organizational goals and objectives. Companies that apply Employee Performance Management tend to garner a higher level of performance from employees and will see improvements in both efficiency and innovation that will surpass that of their competitors. EPM encompasses motivational theories for workforce optimization with regard to efficiency, productivity and time. The success of a company, measured in earnings and revenue, depends on the optimization of employee performance. Effective employee performance management is a continuous cycle that relies on five key components; planning, monitoring, development, rating and recognition. (CIMA, 2011).
Performance is a measure of whether or not the employee is achieving company goals effectively and efficiently provided that it contributes to the overall objectives of the organization. Management should have a strong understanding of the role of each employee as well as the ability to convey their expectations to the work force. Historically, Performance Management began as a means of income justification and was used to determine employee wages based on individual performance. Organizations using Performance Management did so in order to encourage behaviors that derive desired results from employees. In practice,…
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