07. PERFORMANCE MANAGEMENT

 

Figure 1 : Performance Management 

WHAT IS PERFORMANCE MANAGEMENT?

Performance management is a tool that helps managers to monitor and evaluate employees work. The goal of performance management is to create an environment where people can perform to the best of their abilities and in alignment with the organization's overall goals.

Performance management is systematic process to improve organizational performance by developing the performance of individuals and teams working with an organization. It is a means of getting better results from the organization, teams and individuals by understanding and managing their performance within a framework of planned goals, standards and competence requirements. Performance management is a tool that helps managers to monitor and evaluate employees work. The goal of performance management is to create an environment where people can perform to the best of their abilities and in alignment with the organization's overall goals. In other words, performance management is the process of managing an organization’s management strategy. This is how plans are converted into desired out comes in organizations.

Figure 2 : Importance of Performance Management 

IMPORTANCE OF PERFORMANCE MANAGEMENT?

The purpose of performance management is to ensure employees and teams are given the resources they need to develop, the recognition they deserve to be motivated, and the accountability to know what is expected. 

There are six purpose of performance management 

Strategic:

 It links the organization’s goals with individual goals & reinforce behaviors for consistent achievements. 

Administrative:

It is a source of valid and useful information for making decisions about employees, including salary adjustments, promotions, employee retention or termination, recognition of superior performance, identification of poor performers, layoffs, and merit increases.

Communication:

 It allows employees to be informed about how well they are doing, to receive information on specific areas that may need improvement, and to learn about the organization’s and the supervisor’s expectations and what aspects of work the supervisor believes are most important. Developmental:

 It includes feedback, which allows managers to coach employees and help them improve performance on an ongoing basis.

 Organizational maintenance:

 It yields information about skills, abilities, promotional potential, and assignment histories of current employees to be used in workforce planning as well as assessing future training needs, evaluating performance achievements at the organizational level, and evaluating the effectiveness. 

Documentation:

 It collects data that can be used to assess the predictive accuracy of newly proposed selection instruments as well as important administrative decisions. This information can be especially useful in the case of litigate.

Figure 3 : Performance Management System 

CONCLUSION

Performance management is a crucial aspect of any organization’s success. By focusing on goal- and expectation-setting and creating a continuous performance management process, you’re empowering your employees to develop and improve every day and ultimately setting your organization up for success

There are three clear trends that affect performance management systems. First, individual values and needs are diverse and changing, and the heterogeneity of the workforce is increasing. Second, technology is embedded into almost every aspect of work, including performance management. Third, global expansion is increasing the diversity of employees and the cultural contexts in which they work. 

For performance management systems to be aligned with organizational goals and individual needs, they must consider all three trends.

REFERENCES

https://www.tutorialspoint.com/performance_management/performance_management_introduction.htm

https://www.zimyo.com/resources/insights/objectives-of-performance-management/

https://businesscentricnetwork.com/management/summary-of-six-purposes-of-a-performance-management-system/

https://www.oreilly.com/library/view/performance-management-putting/9780470493915/h3_smit_9780470493915_oeb_c16_r1.html