The Importance of an Organization's Performance Management System

1538 Words 7 Pages
One of the many ways to measure an organization's success in meeting or achieving its strategic objectives is to evaluate the performance of its employees. This evaluation, if it is to be effective or of substantial value to the organization, it needs to be systematic and purposeful. In order to explain the impact that a performance management system can have on other areas of human resource management, it is necessary to define the relationship between a performance management system and human resource management. First, a performance management system is one area of human resource management. It is now becoming a strategic issue for organizations, in their pursuit of addressing deficiencies in the performance of employees in a timely …show more content…
In context, human resource management involves human resource planning, design of jobs and work systems, and utilizes policies on employee separation, laws regulating employment and information systems to facilitate its implementation where necessary. From the above, we can firmly conclude that a performance management system is an area of human resource management, which can serve multiple purposes. Mello (2002 p. 298 - 300) described at least five purposes. First, he says that performance management systems are to facilitate employee development. Through an assessment of the deficiencies in employee performances, the employee can be made to benefit from training programmes specifically designed to meet these needs. For example, the performance management system must be equipped to provide performance feedback - an indication of employees' acceptance of the system and its consequent utilization to provide meaningful information on employee needs. This emphasizes the impact of performance management on the area of training. Training as an area of human resource management needs to be cognizant of the training and development needs of the organization so that human development can be propelled in the right direction. The reciprocal relationship between these two areas of human resource management suggests a sort of symbiosis that is needed to achieve the desired outcomes from both perspectives. The…