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Performance Management For a Profit Organization - Thesis Example

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Mostly research is conducted on the performance management system of non-profit making organizations. This is because performance management in…
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Performance Management For a Profit Organization
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Download file to see previous pages This section summarizes the study or the convenience of the readers.
The first section of the study is the introductory part which includes a background of performance management and its external and internal factors. The external factors which affect performance management are share prices, environment of the market, competition, reputation, regulatory environment, etc. On the other hand the internal factors are the employees, management, labor unions, suppliers, etc. The performance management techniques and produces utilized by profit-making organization are effective or non-effective would be identified through the research that is done in this study. The critical review of the literature contradicted the stated problem of this research. The problem was that the current performance management procedure or practices are not effective. However, the critical review of literature has been put forward to prove the fact that the present performance management frameworks in profit-making organizations are proving to be effective.
The literature review has been streamlined with research objectives and problem areas in order to find an effective solution. The traditional performance management framework was based on remuneration and financial performance of the company. The employees, their skill, and performance appraisal was planed based on their last drawn salary of the individual. However, this scenario has changed now. The performance, productivity, creativity, skill, and enthusiasm of the employees to contribute towards the sustainability of the company are taken into account in case of performance management as well as performance appraisal. Training and development are very effective in such case because the low performing employees are not punished, but they are given the opportunity to enhance their skill and knowledge, so that they can also pull themselves up.
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