What is Performance Management System?
Performance management is a process where managers and employees work together to achieve their organizations’ mission, goals and objectives while reviewing employee’s work objectives and contribution to the organization.
These processes can be implemented in the organization as whole or only to a specific department.
Strategic Advantages of Performance Management System
When adopting a PfM System into an organization following factors will influence and influenced in an organization.
Achieving Strategic Goals - The organizations’ strategic goals should be reflected when defining the PfM processes Hence in the long term PfM will help achieving the goals.
Assisting Administrative Role - Performance evaluation in PfM merits the employee output and skill. The administration can take the input from the PfM and make better decision more suitable to its current condition.
Improve Communication - PfM assigns the employee their job specific role and their objectives. In addition, later the output will be evaluated. This can help the manager to channel his communication input or directive according to the employee to performance. Hence the communication between will be constructive and efficient.
Continual Improvement - The improved communication the manager can choose a better leadership role, such as mentoring, coaching, delegating etc to get the maximum output. In turn this will be a continual improvement in the employees’ career.
Evaluating the Performance- PfM is the scale for the employee, department and organizational performance evaluation. This is done by various tools and techniques, which in turn will affect the performance of the above parties and help diagnose the bottlenecks at earliest.
Advantages of Implementing Performance Management System
Incorporation of the PfM can yield many results according to Aguinis, H., (2009) following are some,
- Organizational objectives be defined
- Motivation or intention to perform will be high
- Confident level in the organization will be high
- Leadership/Management can better understand about their followers
- Job specific roles are defined and clarified
- Self-assessment and development increased
- Decision making by the administration will be fair agreeable
- Competency level of the employee will increase
- Misconduct by the employee will reduce
- Protection from litigation against unfair treatment and misconduct
- Leadership goals and feedback of performance will communicated specifically and clearly
- Employee turnover will be less
- Voice behaviour is encouraged
- Employee engagement will increase
- Encourages the employee to take new challenges and innovate the performance
- Over and under performer can be identified which in-turn can helps to utilise performance improvement
Disadvantages of a poorly implemented Performance Management System
Poorly implemented has dire results and end up as a threat to the organization. According to Aguinis, H., (2009) main threats of a poorly implemented PfM are as follows,
- Increased turnover or resent from activities
- Fabrication of false feedback or misleading information
- Less motivation and confident in employees
- Monitory ,effort and time wastes
- Deteriorate relationship
- Increased job burnouts and dissatisfaction
- Increased chances or legal prosecution
- Unjustified demands on managers’ and employees’ resources
- Biased view rises causing unfair and standard and rating
Implementing PfM
The process of PfM consist of the following,
1. Motivate Change
2. Lay Foundation
3. Sustain Behaviour
4. Monitor and Improve (Pulakos et al, 2012)
References
Aguinis, H., (2009). Performance management. Upper Saddle River, NJ: Pearson Prentice Hall.
Pulakos, E. D., Mueller Hanson, R., O’Leary, R. S., & Meyrowitz, M. M. (2012). Practice guidelines: Building a high-performance culture: A fresh look at performance management. Alexandria, VA: Society for Human Resources Management Foundation.
The important factor is how the organisation could monitor the performance management systems. Most companies fail to monitor the performance management system. It would be good if you can elaborate more on managing the PM system.
ReplyDeletewell said Hamdhan,
ReplyDeletegood explanation about performance management.
The relationship between management control systems (MCS) and the strategy process is a largely unexplored area of strategic management
It is also based on nates we can understand the major issues in the design and use of performance management and control systems acquired.
but there also had weaknesses. you well prove that advantages and disadvantages in your blog.
In many organization the supervisor’s and subordinate’s understanding of a performance management system / performance appraisal is that it’s only for pay raise / salary increment. One must understand that it is beyond that, it’s a comprehensive process starting from monitoring and developing the desired characters to rating their progress and rewarding them for their achievements.
ReplyDeletePerformance management is something that is done continuously in order to track the performance of your employee and the development to achieve organizational goals. It is important to have a proper performance management system for continuous growth of both the employees and the organization.