Effectiveness Of Performance Management Process Essay
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
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…