What is Performance Management - Essay Example

What is Performance Management? Performance Management is the facilitation of high achievement by employees. Performance management involves enabling people to perform their work to the best of their ability, meeting and perhaps exceeding targets and standards (Bayat, 2011). Performance management can be coordinated by an interrelated framework between manager and employee. Key areas of the framework to be agreed are objectives, human resource management, standards and performance indicators, and means of reward.

For successful performance management, a culture of collective and individual responsibility for the continuing improvement of business processes needs to be established, and individual skills and contributions need to be encouraged and nurtured. One tool for monitoring performance management is performance appraisal. For organizations, performance management is usually known as company performance and is monitored through business appraisal. The value of Performance Management have for Mega-Widget CompanyFor Mega-Widget Company, Performance Management’s is beneficial as it facilitates the organization’s capacity to deliver strategic and operational goals which can be translated to a growth in sales, reduction of costs, and increased operational efficiency ultimately translating to greater competitiveness and enhanced bottom line.

It also provides the employee a clear understanding of how meeting target performance adds value to the organization’s strategic goals (Mithas, 2011).What is the value of Performance Management for individual employee?For the individual employee of Mega-Widget Company, Performance Management is beneficial as it creates an environment that motivates employees to be at its best. Through Performance Management, employees are also able to know how much and how they are contributing to the growth of the organization.

And as the employees contribute to the growth of the organization, Performance Management provides the incentive structure by which employees are rewarded for achieving if not exceeding their goal in the organization (Salden and Sowa, 2011).Performance feedback is the on-going process between employee and manager where information is exchanged concerning the performance expected and the performance exhibited. Constructive feedback can praise good performance or correct poor performance and should always be tied to the performance standards (Mithas, 2011) The value of Performance Management’s feedback for the employee at Mega-Widget CompanyPerformance feedback is designed to improve the performance of employees as correlated to Performance Management.

It serves as a mechanism to reinforce and praise positive behavior and as a corrective measure to a less than desirable performance. This mechanism is to ensure that individuals are able to deliver the strategic and operational goals of Mega-Widget Company and bridge performance gap between actual performance and desired performance.The value of Performance Management for Mega Widget Company as it relates to its employees For the Mega-Widget Company, it ensures that each of its component, particularly the employees are performing according to the Performance Plan.

It ensures that the organization is able to deliver its strategic and operational goals that will be executed by its manpower, align organizational activities and process according to the strategic goals of Mega-Widget Company.The necessity of Performance Management for the internalization of Mega-Widget CompanyThe international expansion of Mega-Widgets would inadvertently expose the company to different labor practices across the globe. This could be risky without the mechanism that would make employees performance standard across the different regions of the globe.

Performance Management would ensure that the performance of Mega-Widget Company employees would be the same anywhere in the globe.ReferencesBayat, R. F. (2011). Impact on the Productivity of Human Resources Management, Performance Evaluation.  Australian Journal of Basic & Applied Sciences.  5(12): 1629-1635. Mithas, Sunil; Ramasubbu, Narayan; Sambamurthy (2011). HOW INFORMATION MANAGEMENT CAPABILITY INFLUENCES FIRM PERFORMANCE.  V. MIS Quarterly, 35(1):137-A15. Selden, Sally; Sowa, Jessica (2011).

Performance Management and Appraisal in Human Service Organizations: Management and Staff Perspectives. Public Personnel Management, 40(3):251-264