Basic concept of performance management system

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Every organization needs to assess its employee’s performance not only for promotion but also for identifying its progress towards the organizational vision, mission, and objectives.


Performance management is a continuous process. The objectives of performance management are identifying and developing the performance of an organization by linking the individual’s performance and objectives to the organization’s overall mission, vision, and goals. In the case of performance management, we get two bold word- continuous process and inking with organizations’ goals.


What does mean by continuous process?


Performance management is an ongoing process. It is now more than an annual review. Instead of yearly meetings Performance Management is now transforming into a continuous feedback process. Due to rapid change in the world economy organizations face more competition in the market. To get a competitive advantage organization must monitor its objectives periodically. Therefore, they need to observe their employee’s performance wheater it is in the track or not and give feedback at their works to avoid further mistakes.

Popular Book: Performance Management Systems (Global HRM)

Performance management is a continuous process because the organization can reach goals thought the employee’s performance. Therefore, every time it needs to monitor how much they achieve. The overall organizational goals can achieve through the departmental goals and departmental goals can achieve by individual goals. So, individuals’ performance needs to manage to attain overall company objectives. Therefore, it is an ongoing process in an organization.  It is the process of setting goals and objectives, observing performance, and giving and receiving ongoing coaching and feedback.


Link to the organization’s mission and goals


Individual performance must align with the organization’s vision, mission, and goals. If the goals are one but performance goes another root the organization cannot sustain longer. Therefore, the performance management manager ensures that employees’ activities and outputs are aligned with the organization’s goals. To gain competitive advantage organization goals and employee performance must align. It, therefore, makes a direct link between employee performance and organizational objectives that helps employees’ to contribute to the organization explicitly.


Fundamental Goals of Performance management


The fundamental goal of performance management is to promote and improve employee effectiveness.  Performance management is a process where managers and employees work together. They work to plan, monitor and review an employee’s work objectives and overall contribution to the organization. It is not only an annual performance review, but performance management is also the continuous process of setting objectives, assessing progress and providing continuous practicing and feedback to ensure that employees are meeting the organization’s as well as their objectives and career goals.


How can you establish an effective Performance Management process?


Effective performance management helps the organization to reach its goals because it designs align with company vision, mission, and objectives. Therefore, the process of effective performance management is linking individual employee objectives with the organization’s mission and strategic plans. The employee has a clear concept of how they contribute to the achievement of the overall business objective. Also focusing on setting clear performance objectives and expectations through the use of results, actions, and behaviors. Defining clear development plans as part of the process, and Conducting regular discussions throughout the performance cycle which include such things as coaching, mentoring, feedback and assessment.

Popular Book:  Big Five Performance Management

Performance management systems are often underutilized and also misused. In fact, in many organizations, poorly implemented performance management systems can do more harm than good. If the manager unable to evaluate the performance of the employee effectively the organization does not reach its goals.

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