PURPOSE
OF PERFORMANCE MANAGEMENT IN ORGANIZATION
Performance Management (PM)
is a crucial part in human resource management process which is a systematic
process of improving overall organizational performance by developing the
performance of employees. Performance management is also related with the comparison of
predetermined goals and objectives with the actual output of the employee for
the set period.
As Weiss and Hartle (1997) commented,
performance management is: ‘A process for establishing a shared understanding
about what is to be achieved and how it is to be achieved, and an approach to
managing people that increases the probability of achieving success.’
A formal PM program
helps managers and their employees to visualize eye-to-eye on expectations,
goals and career progress, and how those things align with the company’s vision
(Fallon, 2017) .
Performance management
is a planned process of following primary elements
- Agreement
- Measurement
- Feedback
- Reinforcement (Rewards)
- Dialogue (Discussion)
PM focuses on future
performance planning and improvement and personal development rather than on
retrospective performance appraisal (Armstrong, 2006).
Performance appraisal is the continuous process of
monitoring that the organizational goals are achieved in an efficient and
effective way (Tyson & York, 2002).
Purpose of Performance
Management
The
basic purpose of PM is to improve the performance of individuals. From an
organization view, it is to maintain control and to measure the efficiency. Apart
from these, following processes also done through PM.
- Improving motivation of the employee
- Clarifying the expectation and reducing ambiguity about performance
- Determining rewards
- Training and development opportunities
- Improving communication
- Selecting people for promotion
- Managing career growth
- Counseling
- Setting goals and targets
The
effectiveness of the performance management is recognized as the achievement of
both financial and non-financial objectives, the development of skills and
abilities, and the improvement of customer care and quality of process (De
Waal, 2007)
Performance Management
in Srilankan Private Sector
The
main reason for staff turnover in Srilankan private sector is due to poor performance review process. Listed below are
some of the common lapses.
- Targets assigned to employee without providing adequate resources.
- Trainings are done just to fulfill HR department’s yearly training calendar.
- External environment effects are not considered to review process.
- Performance reviews are done at the yearend without clarifying the expectation.
- Feedback sessions are done only to justify management decision and not to ask employee opinion.
· References
Armstrong,
M (2006) Performance Management, 3rd edn, Kogan Page, London.
De Waal, A.A. (2007),
Strategic Performance Management, a Managerial and Behavioural Approach,
Palgrave Macmillan, London.
Fallon, N. (2017, 03 01). Busines News Daily.
Retrieved 09 17, 2019, from Business news daily:
https://www.businessnewsdaily.com/4748-performance-management.html
Weiss, T B and
Hartle, F (1997) Re-engineering Performance Management, Breakthroughs in
achieving strategy through people, St Lucie Press, Boca Raton, FL
Tyson, S. and York, A.
(2002), Essential of Human Resource Management, 4th edition, Butterworth
Heinemann, Oxford
good explain jinendra. we can get knowledge about PURPOSE OF PERFORMANCE MANAGEMENT IN ORGANIZATION. Thanks for sharing your knowledge..
ReplyDeleteThank you Wasantha.
DeleteApplication of your topic in srilankan context is very important. Good work
ReplyDeleteThank you for your comment Kasun.
DeleteInteresting article , nicely explained about Performance Management , we can get the idea from this article. thanks for sharing this.
ReplyDeleteThank you for your comment Malintha.
DeleteThis comment has been removed by the author.
ReplyDeleteGood job Jinendran. I agreed with you. Managers are using the performance appraisal for controling their subordinates or staff not for evaluate them. Because of that the staff turnover is very high in
ReplyDeleteSrilankan private sector.
Shall we pary for that our manager are be a good leaders.
Thank you Malitha for your valuable comments.
Delete"The main reason for staff turnover in Srilankan private sector is due to poor performance review process." This is somewhat true, Because some companies main CEO's like Mudalali type, So they do not trust on proper evaluation,They just believes rumors and other things.
ReplyDeleteThank you for the your valuable comment.
DeleteContinues feedback is important to ensure the focus of the employees and to identify their lacking areas. Good job Jinendran.
ReplyDeleteAgree with you that in Sri Lanka most of the staff turnover happened due to poor performance management. We see that mainly in banking sector.
ReplyDelete
ReplyDeleteStrongly agree with you. The main reason for staff turnover in Srilankan private sector is due to poor performance review process. Practical thing to discuss
Get right choice about the right jobs given to employees and maintain it to the success is important.also carefully managed the employees rewarding are helps to motivate them and increase their work dignity.
ReplyDelete