Performance management is an important part of any organization. It encompasses various disciplines and is usually done in relation to the overall performance of an organization. A performance management system is usually a continuous process whereby the human resource department of an organization creates employees participative in achieving the organizational vision, purpose, and goals of the organization by attaining the stated goal. Such processes also help to quantify the effectiveness of performance and help managers to track and measure progress made by employees and their roles and responsibilities.
A major objective of any management system such as performance management systems is to ensure good performance, which in turn benefits all parts of an organization. Managers should set up good performance review systems and train their employees to use them. The purpose of these performance reviews is to identify the good performers within an organization, review their performance, and provide guidance for the improvement of other employees. It should be remembered that good performers should be encouraged rather than penalized. Both positive and negative performance reviews should be given to employees, with specific suggestions for improving on their performance.
A good manager should monitor his own performance and train his employees to do the same. A well established performance management system ensures that the managers understand their responsibilities and the importance of monitoring their performance and informing their employees accordingly. Managers should also know how to motivate their employees by giving them a specific incentive to work for the betterment of the organization. If there are no incentives or rewards for employees, they will feel reluctant to work for the cause and contribute towards the success of the organization. This will definitely have a negative effect on the overall performance of the organization as a whole.
Active learning and problem solving are two essential components of any successful performance management systems. Learning by doing allows the employees to explore the knowledge of others in the organization, sharpen their skills, and develop new ideas. Problem solving is another important component of this learning activity, which enables managers to solve problems by employing scientific methods, by collaborating with the people around them, and by implementing complex planning procedures. Active learning involves activities such as training, workshops, seminars, teleconferences, and case studies. These activities are intended to foster understanding, improve leadership skills, enhance problem solving capability, develop and implement decision making procedures, improve employee motivation and commitment, develop and improve people skills and abilities, and build team spirit.
Effective performance management systems will support and be in coordination with the organizational objectives. These objectives are usually set by the senior management. The objectives are normally related to the performance of an individual human resource, the development and growth of an organization, the productivity of employees, the efficiency with which organizational processes are conducted, and employee productivity. The objectives may also relate to the performance of the entire organization, which may include customer satisfaction. Some common objectives include the achievement of organizational goals, the expansion of employee benefits, competitive advantage, and cost savings.
Effective performance management systems will support and guide the development of plans and programs. Plans and programs are designed and developed to achieve specific objectives, which are then implemented. They can include corporate strategy, financial objectives, short-term and long-term goals, and operational objectives. They are developed to support the overall goals of the organization, as well as the expertise and capacity needs of key people.
Performance management systems often provide feedback on the performance of employees, managers, and departments. These feedback cycles are designed to enable managers to evaluate performance against organizational goals. The process of feedback is carried out periodically, usually on a periodic basis, such as at the end of each month, or at the end of each quarter. The feedback is used to help managers determine whether the progress of employees, departments, and even the entire organization is on the right track.
Performance management systems are used to facilitate the alignment of objectives and resources, to attain organizational goals, and to ensure that these goals are aligned. They provide managers with a framework within which to align their actions and the efforts of individuals and teams. This enables them to take strategic and tactical decisions that are in line with the achievement of specific objectives. They also provide managers with the opportunity to make informed decisions, which are necessary for achieving long-term objectives. They allow managers to link the activities of individuals and teams, to the achievement of organizational objectives, and to measure their success as they progress toward these objectives.