Effectiveness Of Performance Management Process Essay

704 Words Jan 29th, 2016 3 Pages
Performance management is used to ensure people are performing their jobs in the right way.

In order to be effective, performance management must differentiate between more and less effective employees.

The key to designing

effective performance management processes is to clarify exactly what the process is expected to

accomplish. Only then can companies make appropriate design decisions to ensure that

performance management does what it is intended to do.

If performance is defined in terms of objective, clearly

measurable goals, then performance evaluation is largely just a matter of systematic goal

measurement. For example, some jobs are evaluated entirely based on the amount of revenue

generated through sales. The only thing required to evaluate performance in these jobs is

keeping track of sales numbers associated with each employee. On the other hand, if

performance is defined using behavioral competencies or goals that cannot be measured in a

purely objective fashion, then more thought is required to create an effective evaluation method.

The performance management process must include steps to collect data to evaluate

employees. This will usually require developing an employee rating process. Most jobs fall into

this category.

Ratings are necessary to guide decisions around allocation of scarce resources such as pay,

promotions or training opportunities.

Research shows that 5 point rating scales typically result

in the most accurate…

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