Performance Management System Essay

1224 Words 5 Pages
1.0 Performance management system
Within any organization, performance management can be taken to mean a continuous process through which an organization identifies, develop as well as measure the performance of individuals who are usually the employees’ according to the definition by (Outtz, & Society for Industrial and Organizational Psychology, 2010). The employee and team performance within the organization need to be aligned with the company strategic goals for it to be effective. The essay sets out to explain the set of strategies that shall use to convince the client firm that costs involved in implementing a performance management system shall outweigh costs in the transition from performance appraisal to performance management system.
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The process of administration needs information that is both valid and useful (Chincarini & Kim, 2006). There are fundamental decisions that are to be made within the organization, and they include promotions, salary adjustments, termination or employee retention, identification of the poor performers, identification of employees with superior performance, layoffs and pay increases. Performance management systems shall make it possible for the implementation of reward systems within business entities. The case represents the administrative function of the performance management system within the business …show more content…
The increasing levels of competitions on the global scale have made it possible that organizations get their key strategies right. Firms are looking forward to identifying their position in the market; they are also looking towards increasing the level of innovation with an aim of attaining both the short term and long term objectives.
In meeting their objectives, they are also faced with the problem of choosing the talented employees that are suited towards meeting the objectives of an organization. The financial and physical resources are also to be combined in specific ways that shall reduce cost components within the business entity. The aspect, therefore, poses varying threats to the business entity, and the management need to get also the aspects right to remain at the front of the highly competitive market. The process shall be made possible by setting in place the correct performance management systems and closely managing them to attain the highest levels of

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