Overcoming Performance Management

The focus on Overcoming Performance Management Shortfalls covers holistically on the organizations, environment and individuals themselves. Performance Management is a powerful tool in organizations because it will help increase the employees’ performance and in the long run, will increase the organization performance. However, many organizations fail to execute the effective performance management because it was dealt with too technically until they forget to incorporate the humane aspects to it. Organizations often claimed to implement the best performance management practices because they handled it through computerized system and follow through rigid policies and procedures. Nevertheless, this makes the performance management failed …show more content…
The terms are such as performance, performance indicator, key performance indicator, performance management and performance management system.Similarly, de Waal (2007) explained three (3) stages of successful performance management; a strategic management model will make simplicity and a mutual awareness of the organization’s vision and mission, and anticipated goals which happens at all levels, either for individuals, units, departmental or divisional. This will create unity from all parties to achieve organizational goals. The strategic model emphasized on critical success factors (CSFs) and key performance indicators (KPIs); balanced scorecard (BSC); and management information technology. The study also explained that BSC will give the organization a general idea on the organization operation, and will be able to concentrate on the crucial details for tracking and planning business strategies purposes. Further, he said a performance-driven-behavioural model is formed by nurturing performance-driven behaviour; aligning personal objectives with organization objectives; and relating performance management with good management. The individuals are the major key players in the organizations, therefore they need to be proactive and result-oriented. The management plays supporting roles in giving training and development, review and determining incentives.Ferreira and Otley (2009) PMS …show more content…
System errors happened when performance management system was used only to detect if the list of individuals KPIs have been achieved. But there was no match done between individuals and the organizational goals. Unfortunately, the system only monitors the input individuals have made, but no mechanism is used to monitor the output for the organizations. Sadly, the output produced for the organizations are influenced by the factors beyond the input given by the individuals. So, the performance management does not effectively focus on individuals. Furthermore, there was no target being laid out as support for the management and individuals to fall back. When there is no target, the management will have tendency to be biased on the