Performance Management System

1178 Words5 Pages
Performance Management System A human resources director (HRD) has the responsibility from the chief executive officer (CEO) of the company to build an effective performance management system. This primary charter is important to the goals of the organization in order for it to be productive, cost-effective, and weather the ups and downs of any business. The primary reason for this is that effective leadership requires people with knowledge of the business and how one makes decisions and respond most successfully. The performance management system is a path to increasing employee awareness of their own effectiveness in the business unit, guiding them to be better, both in their career (personal development) and in the business (finding the future leaders of the company). As part of the current task force grouped to upgrade the current approach, a systematic program instituted by the HRD to boost the effectiveness of the program should be implemented. The strategy should include a coordinated system of rewards, training for supervisors to provide actionable output from annual performance reviews, and a meaningful conversation between each tier of the organizational structure. Rewards are important within the performance management system because it provides a connection from the employee to the success of the company. One idea to increase this connection is to create a program to reward ideas that are turned into cost-savings or new revenue streams for the company not
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