In today’s business environment, it becomes necessary to review the performance of employees time-to-time so that any deficiency faced by the employees come to notice. In performance management system, employees as well as manager work together to plan and monitor the performance (HRINZ, 2015). For ensuring the effective performance management system, there should be certain factors. The ideal performance management system is such that is valid, reliable, evaluative, practical, and specific. In the first section of the report, characteristics of an ideal performance management system have been discussed in detail. By reviewing the performance of employees continuously, motivation of employee’s increases which further results in better productivity. Besides this, it offers various benefits that are being taken into consideration. In addition to this, disadvantages of poor performance management system are discussed. It plays a major role in the organization by ensuring the proper functioning of HR department. Therefore, aim and role of performance management system is highlighted. At the end of the report, discussion is carried on the reward system.
A tool that is used to communicate the goals of the organization to all the employees. It also reflects the individual performance as well as achievement of an employee that further evaluates and keeps the record of every employee in the organization. It helps the manager to manage all the resources that results in success of the organization. It is very wide and complicated function of HR department in organization (Carpi, Doughlas & Gascon, 2017). It includes various activities such as continuous communication, joint goal setting, continue reviewing the performance of employees and providing feedback for their performance. Performance management is a incessant process by recognizing, determining, and developing the performance of teams and individuals in the organization.
It helps in building a culture of high performance for individuals as well as teams that further helps in jointly take the responsibility for improving processes of business in continuation. In the words of Rollins, (2015), it is a process of assisting the employees in identifying their skills and knowledge required for effective job performance.
Development of employee’s capacity can be achieved by various ways. Every employee including those who are on the similar position can be encourage for how they are performing and what they can do to improve their performance. In various cases, the needs can be met through providing training but there are many other possibilities like mentoring, working on projects and e learning (Bacal & Associates, 2018).
Performance management system plays an important role for the employees, managers, as well as organization. There are several contribution made by the performance management system which are as follows-
The manager exactly knows what the task was allocated to employees and it helps the manager in checking whether the work is done according to the schedule and direction or not. In addition, performance management also helps the manager to bring the employees on correct track back because a manager receives bonus and incentives as well feel a sense of accomplishment when its employees achieve the target.
Performance management plays an important role in the organization by ensuring continuous feedback to its employees. Its aim is to align the individual objective to the objective of organization. It also ensures that the individuals in organization hold the corporate values by performing their task. It also has aim of establishing a best culture for teams and individual take the responsibility of their individual skills and organizations. It has another aim of developing the abilities of individuals in order to meet the expectations of organization. Mainly, it concerns about the guidance for those people who want to develop themselves in the organization.
Performance Management System is an important area that is handled by the senior manager and HR manager in the company (Hearn, 2018). It assists the HR manager to know the gaps in performance of employees and fill those gaps by taking corrective actions. It plays the role as five stages of the cycle. First, it ensures what organization wants to achieve throughout its business processes. Afterwards, the strategies that are set out in the planning stage are executed by taking suitable course of actions. It also ensures the monitoring of progress. In the next stage, data that is received from tracking of activities is analysed to know the reasons of those activities that are not on track. In the end, it predicts the outcomes of the processes.
It is a mechanism for distributing something in return to the employees for their performance. It can be in the form of monetary and non-monetary terms. It plays a major role in the organization to motivate the employees in performing well. The employees receives both tangible as well as intangible returns. Tangible returns include the allowances, bonus that is received besides the salary of employees (Human Resource Management, 2018). Employees strive for various intangible incentives also in the organization. These include recognition, status, future growth opportunities and some challenging work. These financial as well as non-financial rewards help in motivating the employees in the organization.
Reward of an employee is greatly depending on the performance of the employees in the organization. It is true that connection between the team of various persons is the hardest part. This is an essential issue due to the planning, setting the expectations, checking performance of employees and develop the abilities in employees to perform in a best possible manner. When rewards are linked with performance of employees, it becomes easy for the organization to achieve the acceptable target. Without reviewing the performance of employees, it is not possible to reward the employees correctly. Without an appropriate performance management system, rewarding employees will lead to conflict in the organization (Patricia, 2015). Performance management is not associated with the pay. The key use of reward in the performance management is to increase the motivation level of employees in the organization. Various organizations use the performance management system to reward the employees in the organization. This helps in providing fair pay to employees in the organization. Usually at the time of rewarding, past data and current performance of employees is kept in mind so it does not create any further confusion in the mind of employees.
Conclusion
From the above discussion, it is concluded that Performance management system is important for the success of the organization. It helps in reviewing the performance of employees properly on timely and continuous basis. It is essential for the organization is to use the effective performance management system. For this, the performance system should ensure the correct and reliable facts so that employees rely on their output. In addition, practicability and validity is also an important factor for the ideal performance management system. The purpose of performance management system is to boost the morale of employees by giving further direction for improvement. Due to poor performance system, organization faces various problems. The major impact of poor system is on the employees. Their morale decreases and sometimes they quit the job also due to unfair evaluation. In this way, it plays a major role in the HR department.
References
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