MN7181-Managing Performance

Effective Performance Management and Appraisal

Performance management can be defined as a systematic process for improving organizational performance by developing the performance of individuals and teams (Armstrong, 2006).

Performance Management is an approach to evaluate people that raise the likelihood of reaching clearly defined, pre-set goals and targets. The performance management process helps the managers and supervisors through performance appraisal method to provide feedback to the employees regarding their current performance at job and expected level of performance. It provides clear direction to the employees about management expectations regarding their performance. The compensation and rewarding system is also established based on the performance of the employees over the stipulated period of time. It also assists the organizational leadership to identify the training needs of the employees and resolve the performance related issues. It provides opportunity to the managers to set the performance expectations and keep proper tracking of the employee’s performance. The supervisors and managers can measure the performance outcomes by comparing it with the performance expectation and performance appraisal can be done on the basis of this procedure.

According to Armstrong (2006), the performance management process should be formally reviewed once or twice a year in order to have a fair knowledge of key performances and development issues. Most of the modern era organizations are presently conducting midyear reviews in addition to the yearend reviews in order to look forward what needs to be done by the employees to achieve organizational goals during the stipulated time frame.   

The performance appraisal process is conducted between the employee and his or her supervisor for the first round and then between the supervisor and the manager before going into the third round. The third round includes the above people as well as the HR manager but excludes the employee. Managing employee performance within a larger framework of organizational goals is critical for organizations that count people as their key assets but still, it can be done efficiently as discussed above.

Conclusion

In conclusion performance management is important for organisations and businesses to keep track of how their staff is getting on in terms of their work life. They are able to compare and measure the performance to ensure a successful organisation with positive motivated employees.  As mentioned above Organisations, managers and employees have been practicing good performance management all their lives, executing each key component process well. Goals are set and work is planned routinely. Progress towards those goals is measured and employees get feedback and rewards accordingly. High standards are set, but care is also taken to develop the skills needed to reach them. Formal and informal rewards are used to recognize the behavior and results that accomplish the mission.  

References

Armstrong, M. (2010). A Handbook of HUMAN RESOURCE MANAGEMENT PRACTICE. 10th ed. London and Philadelphia: Kogan Page.