Why Is Performance Management Necessary in Organisations? Critically Assess the Difficulties That Arise in Its Implementation.

1907 Words Mar 4th, 2012 8 Pages
This essay is going to explain why performance management is necessary within an organisation. Then go on to critically assess the difficulties to implement performance management in an organisation and how it affects individuals in the organisation.

(Armstrong and Baron 2010) define performance management as 'a process which contributes to the effective management of individuals and teams in order to achieve high levels of organisational performance. As such, it establishes shared understanding about what is to be achieved and an approach to leading and developing people which will ensure that it is achieved'. They go on to stress that performance management is a key tool within an organisation to ensure that managers, manage the
…show more content…
To guarantee that the managers are conducting the interviews correctly the Human Resource Department could carry out anonymous questionnaires/ surveys to ensure that employees are satisfied with the scheme and that the feedback they have gained from the former interviews has been useful and beneficial for them. The results can then be further analysed and the outcome could be further training for the employee if needs be.

To encourage performance in an organisation, some companies introduce a reward system. ‘Reward refers to all of the monetary, non-monetary and psychological payments that an organisation provides for its employees in exchange for the work they perform’ (Bratton, 2003). This promotes employee’s to work harder in order for them to gain such a reward, a reward can consist as a pay performance, praise or a job promotion (Umesh Chaudhary, 2008). Reward system nevertheless can convey two messages how an employee’s contribution is valued and what an employee is being paid for within the organisation. However when introducing a reward system it must be communicated well so that all the employee’s see that it is fair, this is vital as all employee’s should understand the reward system so they all have an equal chance of receiving a reward for their job performance. Although reward systems are seen to benefit the individual themselves, if the individual improves their job performance this will profit the

Related Documents