PERFORMANCE MANAGEMENT IN HRM

 PERFORMANCE MANAGEMENT IN HRM

Performance management one of the main functions of HRM and it is an evaluation system that used by HRM department to assess the employee’s productivity within an organization.

Source: (Saldanha, 2021)

What is Performance Management.

Performance management is a set of processes and systems aimed at developing employees, so they perform their job to the best of their ability. The goal is to help employees build on skills that enable them to perform better in their roles, reach their potential, and boost their success while also accomplishing the strategic goals of the organization (Vulpen, n.d.).

Performance management system is tool which is used to communicate the organizational goal to the employees individually, allot individual accountability towards that goal and tracking of the progress in the achievement of the goals assigned and evaluating their individual performance. Performance management system reflects the individual performance or the accomplishment of an employee, which evaluates and keeps track of all the employees of the organization (mbaskool.com, n.d.)

In practice, performance management means that management is consistently working to develop their employees, establish clear goals, and offer consistent feedback throughout the year (Andreev, 2023).

Source: (Vulpen, n.d.)

Why Performance Management is important.

1. Performance management supplements the annual performance review - This prepares both employees and managers about what to expect during the annual appraisal. It keeps both the manager and the employee in the loop about ongoing changes to the performance management process, what both can do to streamline it, and how performance overall can be improved.

2.  To employees, continuous performance management indicates that managers value them - Employees believe that their managers are interested in their work and care about their goals and any issues they may face in the course of their job. They also become more open to receiving constructive feedback.

 

 Main Stages of the Performance Management

Source: (Lalwani, 2020)

1.   1.   Planning

This stage entails setting employees’ goals and communicating these goals with them. While these goals should be disclosed in the job description to attract quality candidates, they should be communicated once again when the candidate becomes a new hire. Depending on the performance management process in your organization, you may want to assign a percentage to each of these goals to be able to evaluate their achievement (Lalwani, 2020).

2.    Monitoring

In this phase, managers are required to monitor the employee’s performance on the goal. This is where continuous performance management comes into the picture. With the right performance management software, you can track your teams performance in real-time and modify and correct course whenever required  (Lalwani, 2020)..

3.    Developing

This phase includes using the data obtained during the monitoring phase to improve the performance of employees. It may require suggesting refresher courses, providing an assignment that helps them improve their knowledge and performance on the job, or altering the course of employee development to enhance performance or sustain excellence  (Lalwani, 2020)..

4.    Rating

Each employees performance must be rated periodically and then at the time of the performance appraisal. Ratings are essential to identify the state of employee performance and implement changes accordingly. Both peers and managers can provide these ratings for 360-degree feedback  (Lalwani, 2020).

5.    Rewarding

Recognizing and rewarding good performance is essential to the performance management process, as well as an important part of employee engagement opens a new window. You can do this with a simple thank you, social recognition, or a full-scale employee rewards program that regularly recognizes and rewards excellent performance in the organization (Lalwani, 2020)..

 

Conclusion.

Performance management system is very important for an organization to move towards achieving the expected targets/goals. Employees needs to be supported by managers /leaders to get the maximum from the employees. Practicing a good performance system can benefit the employees as well as the organization. 


References

Andreev, I., 2023. Performance Management. [Online]
Available at: https://www.valamis.com/hub/performance-management#what-is-performance-management
[Accessed 16 08 2023].

Lalwani, P., 2020. What Is Performance Management? Definition, Process, Cycle, and Best Practices for Planning. [Online]
Available at: https://www.spiceworks.com/hr/performance-management/articles/what-is-performance-management/
[Accessed 16 08 2020].

mbaskool.com, n.d. Performance Management System - Meaning, Importance, Components & Process. [Online]
Available at: https://www.mbaskool.com/business-concepts/human-resources-hr-terms/3552-performance-management-system.html#:~:text=Performance%20management%20system%20is%20a%20very%20broader%20and,feedback%20of%20the%20performance%20and%20rewarding%20the%20achievements.
[Accessed 16 08 2023].

Saldanha, V., 2021. Performance Management: Concept and Definitions. [Online]
Available at: https://pulsehrm.com/performance-management-concept-and-definitions/
[Accessed 16 08 2023].

Vulpen, E. v., n.d. What Is Performance Management? The Complete Guide. [Online]
Available at: https://www.aihr.com/blog/what-is-performance-management/
[Accessed 16 08 2023].

Vulpen, E. v., n.d. What Is Performance Management? The Complete Guide. [Online]
Available at: https://www.aihr.com/blog/what-is-performance-management/
[Accessed 16 08 2023].

Comments

  1. Performance Management is a crucial and fundamental function of human resource management. It focuses on setting a clear process for managers to follow in order to get the best from their people.

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