Criteria for Success of Performance Management - Coursework Example

Running Head: Performance Management Performance Management of Table of Contents Introduction……………………………………………………………………3 Background and definition…………………………………………………….4 Advantages of performance management……………………………………. 5 Comprehensive nature of performance management………………………… 6 Criteria for success of performance management……………………………. 7 Best Practices of Performance Management………………………………… 8 Recommendations for development of performance management………….. 9 Conclusion……………………………………………………………………10 References…………………………………………………………………….11 Performance Management Introduction Performance management has emerged as an important and significant tool for measuring the individual skills, expertise, and abilities of employees inside an organization. This is a relatively new concept in management and organizational development theories. However managers have been performing and accomplishing assessments and reviews of their employees for a long time. Individuals have been trained by organizations to increase their efficiency and effectiveness. Organizational processes and operations like marketing, promotion, management, planning, and allocation of resources has been carried out in organizations for decades. Most of these activities have been performed because of the requirements of the organization. Performance management is concerned with coordinating and synchronizing these activities so that the required results are achieved inside an organization. Preparation, teaching, and guidance are vital tools for the success of the organization but they cannot convey the preferred outcomes. Performance management is concerned with acquiring and achieving the preferred outcomes which would contribute to the increasing the competence and efficacy of the organization (Atkinson, 1997). Globalization has made the world into a small place with the opening of major markets. An organization needs to acquire competitiveness and marketing edge in order to survive the aggressive entry of new players into any new market. Performance management becomes a vital tool which helps assist the management in measuring the performance of their organization (Eichen, 1997). This paper introduces the concept of performance management and highlights the benefits of this approach in organizational development. It studies the development of performance management and how it can help to achieve the desired outcomes. Background and definition Performance management is concerned with enhancing the ability of organizations to evaluate growth and development by accomplishing fixed aims and objectives. It consists of studying the difference between tangible and preferred outcomes. This creates a benchmark for the organization where it understands and perceives the efficacy and success of its performance management systems and processes (Bacal, 1998). The process is a cycle which consists of numerous stages. In the first stage the purposes and targets of the organization are recognized and identified. The tasks are subdivided into short term, medium term, and long term aims and objectives. The second stage consists of the management providing their opinions and comments on the entire process. The entire process is tuned and altered according to the opinions of the management. Finally the performance management process consists of conducting surveys and analyzing the results of individual employees. Each appraisal is properly documented while management ensures feedback which highlights the positive and negative aspects (Bacal, 1998). The disparities between tangible and preferred outcomes are closed by improving the system of performance management inside any organization. Performance management can also consist of preparing and designing the efforts and exertion that are required to achieve the desired results. It consists of checking and scrutinizing the abilities of the employees as they strive to achieve the preferred outcomes. Staff training is enhanced and developed with a system of appraisals that gives bonuses and incentives for enhanced performance (Bacal, 1998). The best performers are adequately compensated with rewards that seek to create inspiration for other employees to follow. Performance management can be used to increase the motivation of employees as it also consists of a system of rewards and incentives (Wills, 1998). Advantages of performance management Performance management is a crucial and vital tool which ensures the success of organizations. The different processes like finance, marketing, sales, information technology, management, budgeting are all coordinated and synchronized under one system to bring out the results for the success of the organization. It closely interlinks individual efforts with organization efforts so that the organization can successfully maintain its competitive edge. Value added services are increased because of the implementation of performance management systems (Bacal, 1998). Performance and volume of sales of any organization is directly linked with the establishment of an efficient and effective performance management system. The financial benefits of performance management lead to the saving of administrative and labor costs. It enhances workers productivity while ensuring a smooth and steady supply and chain management process for the organization. One of the greatest benefits of performance management is that it acts as catalyst to empower employees to perform proficiently and resourcefully. The employees witness a marked increase in communication, management, decision making, time management, and disciplinary skills (Bacal, 1998). A system of rewards, incentives, and bonuses also stimulates the employees to work in an efficient and proficient manner. It creates a sense of satisfaction and contentment inside employees. The management also benefits as they are in a better position to monitor and observe the performance of employees. Auditing and quality control processes are increased because of the use of innovative performance management systems. Performance management is thus found to have many benefits for an organization that needs to aggressively increase its human and financial capital. Comprehensive nature of performance management Performance management does not concern itself only with the development and training of employees. It consists of a comprehensive process which covers all aspects of the organization. The various departments of the organization are also monitored and observed under a performance management system so that they can achieve the most wanted effects. Financial department for instance is given a series of objectives which include the short term, medium term, and long term duration. A performance management system can set the goal of increasing the volume of sales for the current fiscal year (Bacal, 1998). It would set a number of benchmarks, strategies, and tactics to achieve the desired outcome. Similarly the computer department of any organization could be given the task ensuring the automation and smooth facilitation of the organization’s work processes. IT systems would be identified as vital for saving the time and costs for the organization. Performance management can be used to execute and employ policies which protect the organization. These policies could be used to ensure the creation of a friendly and cooperative environment. A safe environment can be one of the objectives of the performance management system (Bacal, 1998). New projects can be assigned as they are examined and observed by the performance management system. Teams can be created for the accomplishment of specific objectives and goals of the organization. Performance management is an inclusive and comprehensive system of measurement, observation, and validation which ensures the success of the organization. Criteria for success of performance management The effectiveness of any organization is subject to the criteria of comparing it with other similar organizations. Different organizations which are providing services or products in different areas have diverse criteria for success. The process of performance management is evaluated against numerous indicators as compared to the establishment of a single indicator for their success. Effective management has been identified as one indicator for the success of performance management inside organizations. The management has creative and innovative methods and tools at its disposal to ensure that predetermined goals of the organization are achieved (Bacal, 1998). An organization can successfully accomplish and achieve its performance management system if it successfully adapts to the internal and external conditions in which it operates. This consists of studying the consumer behavior while reforming the work flow and process of the employees. Collaboration is identified as being helpful for the organization that needs to adapt to ground realities. Motivated and resourceful leadership is crucial for the success of the performance management processes. This means that leaders should have the courage and vision to achieve the dreams. They also have unique ability to make employees feel that they are part of the organization (Bacal, 1998). The employees should be motivated to understand that the growth of the organization is directly linked to their own personal growth. Superior performance management systems enhance the ability of the organization to create products which can be value added for their customers. Finally the technique of the organization to make the external conditions favorable will be crucial for the success of their performance management systems. Best Practices of Performance Management Performance management is an integrated and incorporated process which utilizes and perfects the entire operations of an organization so that results are achieved within the designated time period. The results which are monitored under a performance management system are marked according to their importance. This helps the management in monitoring the progress of the activities. Several tools are established which enhance the process of observing these activities (Bacal, 1998). The management engages in a continuous and thorough process of obtaining feedback from the participants. Positive activities are reinforced and encouraged by management. Performance management is used in combination with other training and development programs that enhance the efficacy of an organization (Bacal, 1998). Measuring the results is vital to ensure whether the program is being successfully implemented or not. Any obstacles or hurdles are immediately identified and rectified in order to ensure the smooth operations of the performance management system. This system focuses on the outcomes and results which can help the organization to increase its volume of sales and revenue. It can also contribute to the development of employees with their skills and expertise being enhanced. The various subsystems must work in harmony and balance in order to ensure the success of the performance management system. This consists of dividing the tasks according to the specialties of the department. The financial department for instance will identify how revenue can be generated so that the computer department can purchase and develop systems that automate the entire operations and processes of the organization. Recommendations for development of performance management The primary step for any organization that seeks to implement a performance management system is to identify the short term, medium term, and long term objectives of the organization. After this review, the organization will look at its strengths and weaknesses. It will carry out financial feasibility reports and estimates of how these obstacles and hurdles can be overcome (Bacal, 1998). It will set realistic predetermined goals which will be divided amongst the departments and employees. The desired outcomes are clearly identified and marked by the organization in the next stage. These results must directly contribute to the success of the organization. They must be in harmony with the aims and objectives of the company. The results have to be categorized according to their importance so that the crucial outcomes are achieved in advance. Detailed and explicit measures are used to identify the results of the organization. After that extensive documentation is conducted which help to bring out the criteria for the success of the plan. Management and leadership conduct extensive reviews and appraisals of the performance management program which allows them to judge its efficacy. Any shortcomings can be overcome by changing some of the plans (Bacal, 1998). Performance reviews are conducted which can provide rewards if the desired outcomes have been achieved. Performance management plans are updated and changed if the desired results are not being achieved. Another recommendation is that the indicators which measure performance must be in line with the goals of the organization (Finigan, 1999). This will be instrumental in motivating the employees to perform in an enhanced and efficient manner. Conclusion Performance management is a relatively new concept which calls for the synchronization and coordination of activities that will bring the desired outcomes for the organization. These activities are based on the fixing of certain aims and objectives of the organization. This is an important process which appraises and evaluates the performance and skills of individual employees. This can be used to measure the overall effectiveness and efficacy of the organization. The advent of globalization has pushed the need for comprehensive and integrated management tools and processes that would assist organizations in modifying their performance while maintaining their marketing edge. Performance management is a series of steps which include identifying the objectives, creating a performance plan, monitoring the results, and management intervening to obtain feedback. The discrepancies between actual and desired results mean that the performance management system needs to be modified so that they can be removed. Measuring the results is vital to ensure whether the program is being successfully implemented or not. Any obstacles or hurdles are immediately identified and rectified in order to ensure the smooth operations of the performance management system. The effectiveness of any organization is subject to the criteria of comparing it with other similar organizations. Performance management must be used in combination with other techniques so that the organization remains established in its desired market. Adaptability is one of the key features of the success of any organization. This means that it has been able to influence or change its internal and external conditions in its favor. References: Bacal, Robert (1998). Performance Management . McGraw-Hill Professional. Finigan, Kathleen. "Performance management gives a competitive edge" Capital District Business Review, Albany: February 15, 1999 Wills, Linda. "Documenting performance now may help in the future." Houston Business Journal, Houston: November 27, 1998 Atkinson, Anthony J., John H. Waterhouse and Robert B. Wells. A stakeholder approach to strategic performance measurement. Sloan Management Review 38, no.3 (Spring 1997): 25-37 Eichen, Susan P. and David N. Swinford. Performance measurement and incentive compensation. Journal of Strategic Performance Measurement 1, no.3 (June-July 1997): 28-33. Read More