Components of Performance Management System
April 3, 2025
Any effective performance management system includes the following components: Performance Planning: Performance planning is the first crucial component of any performance management process which forms the basis of performance appraisals. Performance planning is jointly done by the appraisee and also the reviewee in the beginning of a performance session. During this period, the employees decide…
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…
A good performance management system works towards the improvement of the overall organizational performance by managing the performances of teams and individuals for ensuring the achievement of the overall organizational ambitions and goals. An effective performance management system can play a very crucial role in managing the performance in an organization by: Ensuring that the…
Review of performance once or twice in a year provides an objective or a sense of focus on the key performance or development issues. Performance review meetings form the basis for enabling both the managers and the individuals to positively explore ways for improving the performance in the near future and to identify solutions for resolving the issues which come in the way of attainment of predetermined performance standards.
Some of the crucial objectives of performance reviews are as follows:
Performance review meetings should focus on two major areas: Firstly on performance improvement measures and secondly, the meeting should be forward looking in nature rather than backward looking. The main problems which normally arise during the period of performance reviews are:
The above discussed problems can be checked by adopting the following measures:
The golden rules for conducting a performance review meeting:
Guiding principles of a review meeting:
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