Factors Affecting Performance Management Systems Business Essay

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In order to achieve common recognition of work prospects, areas and opportunities that exist for the growth of the employees as well as for the organization by appraising performance outcomes, an evolving concept of performance management is on the rise. Performance management is a systematic process that links means that enable organizations to foster a common image related to the goals set by the organization and in providing direction to workers so that they can comprehend and preserve for both, individual as well as company’s performance (Holton, 2002). According to (Salem, 2003) , performance management can be stated as a methodology that is integrative and orderly for the purpose of enlightening organizational performance that encourages a philosophy focused towards the attainment of planned aims, mission, vision and principles. More precisely, it is concerned with evaluating the performance of workforces so that development can be carried in by relating suitable assessment and rewards for the efforts of the employees and by simplifying the flow of communication, boosting learning prospects and explicatory work engagements (Salem, 2003).


Lockett has underlined a number of performance management’s goals. They are as follows: The main aim of performance management is to facilitate the workforce of an organization to achieve higher standards of performing their job responsibilities. Performance management enables the employees to improve the level of their current performance by authorizing, encouraging and executing an operative reward mechanism. Facilitating smooth flow of communication so that potentials regarding roles, tasks, reporting are simplified between the managers and the employees. It enables the communication of corporate, business and functional goals alongside providing a systematic and apparent opinion about performance of the employee. Ensures constant supervision and coaching. The key aim for performance management is to identify and resolve the barriers that prevent effective performance. This can be done by way of providing instructions, active governance, close monitoring and change interventions. Building a foundation for numerous organizational assessments deliberate arrangements, succession planning, advancements and rewards linked with performance. Providing employees with the opportunity to prosper by exploiting the opportunities that exist so as to achieve personal growth and improvement in their career (Lockett, 1992).


For performance management system to be implemented, there are a number of conditions that must exist prior to its execution. These factors include: Ability of manager to mobilize the organization. Effectively communicating the roles, duties and responsibilities of all such individuals who are the participants in the process of bringing about change. Transparency and Simplicity Practicality and Participation Equality and Objectivity (Amatayakul, 2005).


In the views of Joseph R. Grima, performance management should be: Participative: Performance management is a two way process and must encourage the participation of both supervisor and employee. This participation should be there for establishing objectives at the very start of the assessment period and at the end, evaluating results. Task-oriented: Performance should be measured on the basis of business objectives and the outcomes,

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