Essays on Performance Management System Literature review

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The paper 'Performance Management System' is a good example of a Management Literature Review. In the fast-changing and competitive world, companies strive to develop effective human resources that facilitate the achievement of set goals. Companies do this through different performance review systems like performance management and performance appraisals. Additionally, firms aspire to create a successful performance system to enable it to achieve its objectives. Nevertheless, this cannot be achieved if managers constantly make errors in their evaluation processes. Therefore, this paper seeks to explore the difference between performance management and performance appraisal; successful versus unsuccessful performance system; and common errors committed, as well as their remedies. Performance management and performance appraisal To begin with, Deb (2006, pp.

201-220) says that performance appraisal is one of the tasks that all managers dislike conducting in their organizations after people’ s dismissal. Appraisals meetings are meant to pressurize managers due to the influence they apply on the forthcoming occupational course of any worker concerned. Managers also dislike appraisals because of the connection many firms create between it and return, and for the responsibility of a judge or assessor that managers should perform in this situation. Generally, Venkateswara (2004, pp.

213-225) asserts that performance appraisal may be viewed as a process aimed at assessing and rating, or review workers’ performance. Relevant managers conduct appraisals annually, while the system’ s design and certification routinely filled in performance evaluation meetings by managers are arranged by the human resource function. Because usually related to paying, this is the event in which organizational managers needed to act as judges, accounting for the top-down process. One of the aspects of improving performance is by performance appraisals.

This is a crucial element of performance management, and a major feature of a firm’ s life (Deb 2006, pp. 201-220). Performance appraisals are more than just a yearly ritual and they are seen as the main lever to improve business performance. According to Ittner, Larcker, and Randall (2003, pp. 715-741), performance appraisal is the process of assessing the performance and evaluating the training or development needs of a worker. It can also be defined as a process of evaluating individual performance against pre-fixed objectives or criteria, involving the collection of information, at least one meeting, and some kind of report that can comprise of a performance rating. Ittner, Larcker, and Randall (2003, pp.

715-741), further say that performance appraisal is a process that permits an individual employee’ s general abilities and the possibility to be evaluated to enhance their performance. An appraisal is not possible to be somewhat practical for a small family business or a sole proprietorship. Performance appraisal is beneficial in organizations in a number of ways. To start with, an appraisal may be a central part in ensuring that company members know what is anticipated of them; thus playing a critical role in the socialization of members to adapt to the firm’ s culture (Venkateswara 2004, pp.

213-225). For instance, its value as a company socialization process is intimately linked to the business attempts to manage culture, which is one of the indispensable elements of the human resource management mechanism to the employment association. Bacal (2007, pp. 23-30) shows that increasingly firms are now employing performance management as a way of introducing cultural alterations in companies. Secondly, organizations use performance appraisal in the improvement of the present performance.

Thirdly, firms utilize performance appraisal offer feedback; that is the endorsement and confirmation that businesses are on the right, and direct or advise others on better ways of doing things. Additionally, organizations use performance appraisals to enhance motivation; identify potential; and identify development and training needs. Besides, Bacal (2007, pp. 23-30) says that businesses use performance appraisal to emphasize professional development and sequence planning. In addition, performance appraisal is useful in letting individuals be aware of the company’ s expectations on them; as well as evaluating the selection process’ s efficiency.

This system is also employed in rewarding salary performance or increases associated pay. Performance appraisal is used in solving job problems, and setting objectives based on the SMART model; specific, measurable achievable, realistic, and time-bound.


Bacal, R 2007, How to Manage Performance, McGraw-Hill, New York. Pp. 23-30.

Deb, T 2006, Strategic Approach to Human Resource Management, Atlantic Publishers & Distributors (P) Ltd, New York. Pp. 201-220.

Delpo, A 2007, The Performance Appraisal Handbook: Legal & Practical Rules for Managers, Nolo, Berkeley. Pp. 13-20.

Ittner, C, Larcker, D & Randall, T 2003, 'Performance Implications of Strategic Performance Measurement in Financial Service Firms', Accounting, Organizations and Society, vol. 28, no. 7-8, pp. 715-741.

Kaplan, RS & Norton, DP 2001, 'Transforming the Balanced Scorecard from Performance Measurement to Strategic Management: Part II', Accounting Horizons, vol. 15, no. 2, pp. 147-160.

Kennerley, M & Neely, A 2003, 'Measuring Performance in a Changing Business Environment', International Journal of Operations & Production Management, vol. 23, no. 2, pp. 213-229.

Krausert, A 2009, Performance Management for Different Employee Groups: a Contribution to Employment Systems Theory, Physica-Verlag HD, New York. Pp. 120-130.

Mathis, R & Jackson, J 2010, Human Resource Management, South-Western College Pub, Cincinnati. Pp. 347-350.

Pulakos, E 2009, Performance Management: a New Approach for Driving Business Results, Wiley-Blackwell, Hoboken. Pp. 65-70.

Smither, J 2009, Performance Management Putting Research into Practice, Epub Edition, John Wiley & Sons Inc. Hoboken. Pp. 100-120.

Venkateswara, R 2004, Performance Management and Appraisal Systems, Response Books, a division of Sage Publications, New Delhi. pp. 213-225

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