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Management - Performance Management - Essay Example

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Introduction The modern business environment is characterized by a high level of competitive rivalry, and for this reason performance management is such an important issue. It enables the management of an organization to increase and improve organizational capability and outcomes…
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Management - Performance Management
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"Management - Performance Management"

Download file to see previous pages Clearly, performance management is important to organizational goals because it assesses the overall performance of the organization. Planning performance is an important organizational activity because it ties together different organizational factors, such as HR processes, strategy, and capability. In task 2, it has been explained why a well designed performance management system should monitor and review performance. After it, the difficulties in appraising individual performance have been addressed. What is Performance Management? Performance management can be defined as the process by which line managers influence organizational roles and functions in order to ensure that actual outcomes match strategic aims and expectations. Traditionally, organizations implemented the framework of performance appraisals which had a number of problems. The system of performance management aims to eliminate these problems by being a dynamic system. The performance appraisal system is a static one and therefore cannot be used in the rapidly changing present-day business environment. Performance management is a dynamic process which integrates individual performance objectives or standards of staff with operational plans. Performance management is a framework for aligning human resource management to organizational goals. ...
As a result, the management is able to take into account the contextual factors of business strategy, workplace technology, and employee involvement. Because these factors are taken into account, organizational goals are more strategically aligned. This indicates the importance of performance management to organizational goals. The process of goal-setting is a key component of performance management. It guides the interactions between managers and employees in clarifying mutual duties and responsibilities. Therefore, it ensures that they are aligned to the overall performance of the organization. Organizational goals are related to the overall performance of the organization. If they are not aligned to the strategic focus of the organization, the result will be poor organizational performance (Mintzberg, 1987). Performance management ensures this strategic alignment. The three contextual factors have been mentioned. They are all essential components of organizational goals and they are taken into account by performance management. For example, business strategy defines the goals and objectives which give the organization its competitive advantage. Therefore, business strategy should be included in goal-setting. This can be achieved through performance management. Performance management also facilitates employment involvement. Unless employees are involved in determining organizational goals, they will not be motivated to perform at the highest possible level. In that case, organizational goals may not be effective. Therefore, by facilitating employee involvement, performance management aligns employee goals with organizational goals. As a result, the competitiveness and overall success ...Download file to see next pagesRead More
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