The Concept Of Performance Management

Performance management system makes a clear link between the performance and compensation, and allows the employees to understand the areas which need to be improved and directs them to appropriate training opportunities to enable improvement in performance to take place. Joseph Martocchio says, “Work with line managers to design the performance appraisal plan which best fits the specific duties and responsibilities of particular roles” (Martocchio, 2011). Compensation and reward decisions are likely to be arbitrary in the absence of a good performance management system. In short, performance management is a key component of talent management in organizations. It allows assessing the current talent and making predictions

When looking at performance management it can be defined as (1) ‘a process which contributes to effective management of individuals and teams in order to achieve high levels of organisational performance. As such it establishes shared understanding about what is to be achieved and an approach to leading and developing people which will ensure it is achieved.’ We can see from this definition that managing performance is crucial to the overall performance of the organisation and meeting its goals and objectives. This process must then be strategic but also link other aspects of the organisation such as individuals and teams. As defined above, performance management is ultimately about achieving high levels of

* Plan: need to clearly identify what performance is required and how it will be measured

Performance management relates to an organization’s ability to implement a system to evaluate and advance employee performance. Achieving peak performance requires consistency, clear objectives, and constructive employee evaluation. According to Mithas, Ramasubbu, & Sambamurthy (2011), an organization must design the performance management system based on extensive research about the organization’s mission, and then properly communicate the purpose of the system to employees, stakeholders, and decision makers. After the performing the research, the information should be used to establish the appropriate performance management specialized for the organization. In addition, an effective performance management system should align

Performance management is a tool that managers use to ensure that their companies remain at the top of their competitive edge. The Chartered Institute for Personnel Development (CIPD, 2008), defines performance management as a method by which individuals and teams are managed in a way that achieves high performance at an organisational level. The individuals within the organisation share an understanding of the achievement goals of the organisation. In order to achieve this, a general strategy is created, with each individual within the organisation understanding his or her role and requirements within such a strategy

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.

The literature review brings up some interesting common themes and issues that run through the existing literature, research and definitions of performance management. These common themes will focus on features of performance management and its application in an organisation.

1. Two Purposes of Performance Management and its relationships to business objectives. Performance management is a repetitive process, established by organisations to help them in accomplishing their objectives (goals, as listed in the organisation’s vision) by maximizing the performance of an individual, team or whole organisation and ensure that the objectives are achieved. 1 The Performance Management Process is a key component of organisation’s overall approach to the management of its people. As part of the performance management system, Performance Management Process aims to achieve the following: To enable an individual

Help each individual to complete his task. Every team should follow the planned the assignment which set by the director of the organization because every team objective is linked to organizational objective. Team should inform the project manager of task status and any problem arisen. Every team should select right person having right skill and knowledge to compete the task.

Performance management refers to a process by which managers monitor, rate and reward an employee for their work and contributions towards the achievement of organizational goals. The assessment of an employee 's contribution usually plays a major role in promoting individual accountability. This ensures maximum contribution of the employee. Performance management therefore forms an integral part of a business organization mainly because it creates a conducive environment for business where the staff is motivated and good working relationships exist among them.in most cases, performance management focuses on individual employees performance , the small groups in which they work or the various departments found within the organization. Some of the important roles played by performance management in an organization which makes it important today include;

The definition of the term ‘performance management’ varies in different literatures. As Hutchinson(2013) summed up, combined with Den Harton’s theory(2004), it is a continuous process which links individual and team objectives with organizational goals by measure and improve employee’s skill and performance. According to Armstrong (2012), human resource management aims at making sure the organization has the most talented, skilled and engaged people in order to attain its goals. In this context, performance management is one staple practice helping managers identifying and retaining most competent employees as well as correcting poor performance.

One of the most important resources of any organization is its employees, the human resource. This makes it very important that these resources are properly managed; so that they thrive and grow along with the organization. People stream defines performance management as “A process for establishing a shared workforce understanding about what is to be achieved at an organizational level. It is about aligning the organizational objectives with the employees’ agreed skills, competency requirements, development plans and the delivery of results. The emphasis is on improvement, learning and development in order to achieve the overall business strategy and to create a high performance work force”. The performance

Performance Management is a critical and vital part of every organization. Motors and More, Inc. as a company have several issues with employees feeling that unfair treatment exists in the company which has led to a high turnover rate. For Motors and More to be successful, they must adopt a performance strategy that embodies accountability, transparency, completeness and equity. ( Ulrich, Allen, Brockbank, Younger and Nyman pg89 ) Accountability as it relates to performance strategy ensures that the employees are given complete and precise goals that directly relates to the overall business strategy of the company. Once the measure is clearly defined, it makes it easier for employees to be evaluated

which organisational aims and objectives are used as a start up for the setting of objectives, for divisions, departments, teams and individuals.

In the Case of Performance Management by Brent Gardner, the company of Brent is requesting all the midlevel managers and below to reapply for the job which is another way of saying that the company will downsize its manpower. It is important that one is clever with corporate politics, otherwise, the basis will be performance and profitability. Mostly, the internal stakeholders are affected, especially those who are the low-performing or non-performing employees. For this scenario, Brent and his team members are the internal stakeholders because they are affected by the problem, and have to come up with solutions to address the problem.