What is Performance Management
System?
Performance
management system is the systematic approach to measure the performance of employees. It is a process through which the organization aligns their
mission, goals and objectives with available resources (e.g. Manpower, material
etc.), systems and set the priorities.
The competency, skills
and knowledge gaps are also identified through this process which can be
improved by providing guidance, trainings, coaching and mentoring to
employees or teams at different levels and designations. It optimizes the
results through a proper channel and process which reduces the conflicts
and grievances among teams or employees.
It aims to continuously
monitor and measure the performance standards against the desired goals and objectives.
Purpose of Implementing
Performance Management System
Managing employee’s
performance is the key objective of establishing systematic Performance
Management system in an organization. These process servers’ six main purposes
in the company:
1. Strategic
The system is a tool which should be aligned
with overall organization goal followed through department goal and individual
goals. The organizational strategic goals should be linked with each activity performed
by every department or employee.
2. Administrative
The system is also set the deciding factor of
employee’s promotion, demotion, salary increment, transfer and terminations. It
enables to identify the performers, non-performers or under performer employees
in an organization. It merits the competency and skill level of employees.
Hence, it clearly defines the administrative role as well and supports the
management decisions.
3. Communication
It is the effective communication channel to
inform employees about their goals, job responsibilities, key deliverable and
performance standards. Further, it is also a structure method to indicate
the key areas of improvement required by the employee in order to improvise his
performance. Further it provides the platform to learn and train on
skills, and knowledge for better performance and results.
4. Developmental
It is the structure method of communicating the
positive feedback, improvement areas, and development plans.
5. Organizational Maintenance
This system is the yardstick of measuring
employee, department and organization achievements and evaluating the performance gaps through various tools and techniques. Hence, it maintains the
health of the organization and its performance standards.
6. Documentation
It reviews, feedback and forms should be
documented and maintained periodically by every organization. It would
enable them to look forward, set new targets, design developmental needs,
design training and learning programmes, and career progression of employee and
for department. Hence, it helps in driving the organizational needs to
desirable objectives.
Benefits of Performance Management
In today’s global
environment where the market is evolving at a very fast pace, it is
important for an organization to understand the benefits of performance
management. Therefore, managing employee’s performance is the ultimate need of
an organization. The employees are considered as an asset by the
organization. The system serves various benefits to the organization,
which are as follows:
1.
It supports to provide
data to find the skills and knowledge gaps of employees in order to improvise
them through training, coaching and mentoring systems.
2.
It motivates employees
to take new challenges and innovate through structure process.
3. It provides new opportunities to employees for
their growth and development in their professional careers
4.
It defuses the
grievances and conflicts among team members through proper performance
evaluation system.
5.
It assesses the
employee’s performance fairly and accurately against the performance targets
and standards.
6.
Employees would enable
to provide better results because of clarity on their performance targets.
7.
Performance management
system provides the platform to discuss, develop and design the individual and
department goals thorough discussion among manager and their subordinates.
8.
The under performer can
be identified through performance reviews and can raise their skills levels
objectively. It quantifies the learning needs through individual development
plans or performance improvement plans as well.
References
PERFORMANCE MANAGEMENT SYSTEM 2018, Market Information.
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