a) Why performance management is important?
Performance management is a process of assessing the key abilities of the employees of an organization and thereby to create a work environment which employees are able to perform to the best of their ability. Performance management is a documented workflow system that begins its assessment when an employee starts work in an organization. It therefore also ends when the employee leaves the organization. factors it …show more content…
Benefits of a good Performance Management System for the company
1) Organization strategic goals and aligning it to the various teams and department to enhance understanding and acceptance of the efforts in the same direction to achieve strategic growth
2) Incentives and rewards to be on a equitable basis and could be more credible , it should be recognized / motivated to get better returns.
3) The contents of the appraisals will help to make human resource planning and adjustment training programs, to express the work of the good performance needs. (Bardot, n.d.)
Effective performance management system includes the following components
Performance planning is the first and most important component towards any performance management process and in turns also forms the basis of performance appraisals. Performance planning is done concurrently by the employee and the appraising manager in the beginning of the session. This usually includes goal setting and time to achieve the goals put forth. During this period the employees decide on the targets and key areas performed over a year within the performance budget to be finalized by an agreement with the manager and …show more content…
New set of goals are established for an employee and new deadline are provided in accomplishing these objectives. Employees are being clearly communicated on the areas which the employee is expected to improve within a stipulated timeframe. This performance action plans are jointly and mutually approved by the managers and employees
Potential appraisal forms a basis for retention and movement of employees. By implementing competency mapping and various assessment techniques, potential appraisal are performed. It provides crucial inputs for jobs rotation and reshuffling of management and succession planning.
Importance of Performance Management
- A performance management system enables a business to sustain profitability and performance by linking the employees’ pay to competency and contribution.
- It provides opportunities for concentrated personal development and career growth.
- Aligns direction of employees to organization goals therefore tasking and expectations are well managed and clearer.
- Enables supervisors and subordinates an equal opportunity to express themselves under structured conditions.
- Organizations can effectively manage the performance appraisal process with our online performance management system.
- It calls for higher level of coordination, channeled information flow, and timely review. (tsheten,