MSG Team's other articles

10069 Job Analysis Process

Where to place the employees in order to best utilize their skills and talent? How to determine the need of new employees in the organization? How to eliminate unneeded jobs? How to set realistic performance measurement standards? How to identify the jobs and prepare a plan to fill them? Well, all this can be effectively […]

12832 Competency Management Approach for Setting Superior Performance Benchmarks

In the present business environment of cut throat competition and globalization, competency based practices have gained much of an attention from the contemporary organizations. They aim at achieving an optimum performance in the long term by developing the skills and competencies of the employees on a continuous basis. Competency based management systems are primarily employee […]

11121 Role of HRD in Determining Fit between an Employee and His/Her Role

The previous article on personality briefly discussed how organizations and the HRD function determine the fit between the employee and his or her role. This article looks at this topic in depth with specific reference to the role of the HRD function and the managers in this alignment. For starters, whenever an employee is hired, […]

9818 Importance of Being Efficient at Workplace

Before we begin this topic, let us throw some light on the following example. Peter and John were best friends who did their studies together at Alpha management school (Just an example).They both got their first jobs in XYZ Organization as marketing executives. Within a span of five years, Peter was promoted as Vice President […]

8900 Designing an Effective Pay and Perks Package across the Organizational Hierarchy

The Five Challenges of Determining Pay and Perks Challenges in Organizations Ensuring fair pay and perks packages across the organizational hierarchy can be challenging for Human Resources or HR Personnel. For one, they have to ensure that the Pay Gap between the Topmost and the Lower most levels is not too high to demoralize the […]

Search with tags

  • No tags available.

Definition of Performance Management

The role of HR in the present scenario has undergone a sea change and its focus is on evolving such functional strategies which enable successful implementation of the major corporate strategies. In a way, HR and corporate strategies function in alignment. Today, HR works towards facilitating and improving the performance of the employees by building a conducive work environment and providing maximum opportunities to the employees for participating in organizational planning and decision making process.

Today, all the major activities of HR are driven towards development of high performance leaders and fostering employee motivation. So, it can be interpreted that the role of HR has evolved from merely an appraiser to a facilitator and an enabler.

Performance management is the current buzzword and is the need in the current times of cut throat competition and the organizational battle for leadership. Performance management is a much broader and a complicated function of HR, as it encompasses activities such as joint goal setting, continuous progress review and frequent communication, feedback and coaching for improved performance, implementation of employee development programmes and rewarding achievements.

The process of performance management starts with the joining of a new incumbent in a system and ends when an employee quits the organization.

Performance management can be regarded as a systematic process by which the overall performance of an organization can be improved by improving the performance of individuals within a team framework. It is a means for promoting superior performance by communicating expectations, defining roles within a required competence framework and establishing achievable benchmarks.

According to Armstrong and Baron (1998), Performance Management is both a strategic and an integrated approach to delivering successful results in organizations by improving the performance and developing the capabilities of teams and individuals.

The term performance management gained its popularity in early 1980’s when total quality management programs received utmost importance for achievement of superior standards and quality performance. Tools such as job design, leadership development, training and reward system received an equal impetus along with the traditional performance appraisal process in the new comprehensive and a much wider framework. Performance management is an ongoing communication process which is carried between the supervisors and the employees through out the year. The process is very much cyclical and continuous in nature. A performance management system includes the following actions.

  • Developing clear job descriptions and employee performance plans which includes the key result areas (KRA') and performance indicators.

  • Selection of right set of people by implementing an appropriate selection process.

  • Negotiating requirements and performance standards for measuring the outcome and overall productivity against the predefined benchmarks.

  • Providing continuous coaching and feedback during the period of delivery of performance.

  • Identifying the training and development needs by measuring the outcomes achieved against the set standards and implementing effective development programs for improvement.

  • Holding quarterly performance development discussions and evaluating employee performance on the basis of performance plans.

  • Designing effective compensation and reward systems for recognizing those employees who excel in their jobs by achieving the set standards in accordance with the performance plans or rather exceed the performance benchmarks.

  • Providing promotional/career development support and guidance to the employees.

  • Performing exit interviews for understanding the cause of employee discontentment and thereafter exit from an organization.

A performance management process sets the platform for rewarding excellence by aligning individual employee accomplishments with the organization’s mission and objectives and making the employee and the organization understand the importance of a specific job in realizing outcomes.

By establishing clear performance expectations which includes results, actions and behaviors, it helps the employees in understanding what exactly is expected out of their jobs and setting of standards help in eliminating those jobs which are of no use any longer. Through regular feedback and coaching, it provides an advantage of diagnosing the problems at an early stage and taking corrective actions.

To conclude, performance management can be regarded as a proactive system of managing employee performance for driving the individuals and the organizations towards desired performance and results. It’s about striking a harmonious alignment between individual and organizational objectives for accomplishment of excellence in performance.

Article Written by

MSG Team

An insightful writer passionate about sharing expertise, trends, and tips, dedicated to inspiring and informing readers through engaging and thoughtful content.

Leave a reply

Your email address will not be published. Required fields are marked *

Related Articles

Components of Performance Management System

MSG Team

Competency Management Approach for Setting Superior Performance Benchmarks

MSG Team

Benefits of a Performance Management System

MSG Team