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MGMT338 U3 IP - Research Paper Example

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Performance management ensures that goals and objectives are being achieved in an efficient and effective manner. Performance management from organizational perspective relates to the…
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Performance Management Summary Performance management is an extensive term which can be attributed to various fields of study. Performance management ensures that goals and objectives are being achieved in an efficient and effective manner. Performance management from organizational perspective relates to the skills and actions needed by supervisors and manager to effectively mange the performance of their workers. This concept can be applied to organizations, employees, departments, and the process that are in place in an organization. It is used as a measure by various firms in order to align their strategic objectives with the employee goals, company resources and systems (Bacal, 2012).
Performance management of process includes the review and evaluation of processes performance and effectiveness. The use of clear objectives, standards, performance dimensions, and other measures helps to focus companies and also employee’s efforts. This increases productivity as departments within the organization get what needs to be done, and the redundant work is eliminated. This further saves organizational cost and streamlines the entire business operations. There are various tools to choose from which can help in evaluating the performance and developing appraisal systems. (Dinkin, E.,2009) These include ranking systems, three sixty feedback system, forced distribution, management by objectives, competency based performance, graphic rating scale, and behavioural anchored rating scale. There are multiple types of performance management plans that can be used by organizations. These range from strategic plans to the individual operational performance plans. The performance management plans that are used in the strategic planning of the firm relate to the long term performance goals and objectives. Hence, performance management plans can be divided into three main categories, the long term performance management plan, short term performance management plan, and micro level or individual level performance management plans. (Gruman, J. A., & Saks, A. M. ,2011)
The impact of performance management on employees and the organization is positive in terms of productivity and efficiency. The use of performance management to align the strategic goals and objectives with the employee goals and aims help in streamlining and effectively achieving these strategic goals and objectives. The organizational productivity and performance is enhanced with the use of performance management. It has impacted directly on the company’s gross sales; the performance improvement has resulted in increased sales for the company. Similarly, the streamlining of processes has resulted in the reduction of cost for the organization; all the redundant and cumbersome processes and tasks are evaluated and improved using performance management. The use of performance management systems have helped to reduce project cost overruns for organizations. The overall time taken is reduced for performing the tasks, creating strategic objectives, implementing operational changes, and setting of goals. The communication process is also quickened with the help of performance management. The use of performance management has created transparency in the achievement of goals, increasing moral and creating confidence in bonus payment process. The employees are satisfied when their aims and objectives are aligned with the organizational goals and objectives. It also helps the employees by providing a career pathways, and career development opportunities (Martocchio, 2011). There should be an adequate reward and incentive system that is agreed upon by all the employees; the performance management will lose its effectiveness when employees are not satisfied and motivated, in turn causing problem in the implementation of performance management in the organization.
Bacal, R. (2012). Managers Guide to Performance Management. McGraw-Hill. Data retrieved from:
Dinkin, E. (2009). 5 point plan: Five steps to developing a long- term total compensation plan. Employee Benefit News, 23(6), 32. Retrieved from the Proquest database.
Gruman, J. A., & Saks, A. M. (2011). Performance management and employee engagement. Human Resource Management Review, 21(2), 123-136. Data retrieved from:
Martocchio, Joseph J, (2011). Strategic Compensation: A Human Resource Management Approach, Pearson Education, Inc., publishing as Prentice Hall. Read More
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