The paper "Performance Management System" is an outstanding example of management coursework. Organizations speak of their ‘ embedded values’ and announce their ‘ visions’ for the organization for the next five years. According to Mayo (2004) both these – the values and visions convey the kind of company they want to be. Mayo suggests that organizations do not have values; only people do. The vision that a company has includes the kind of organizational behavior expected, and the goals expected to be delivered through employee productivity and performance. In an effort to attain the organizational objectives, firms try to understand human behavior and assess those it considers to be high performers.
The leadership behaviors needed to realize the organizational goals and organizational goals are increasingly becoming intertwined. If the organization is determined to achieve its goals it would work towards attaining people capable of delivering these goals and then make efforts to retain them. This requires a regular performance appraisal of the people but according to Falconer (2004), a fifth of the UK’ s largest employers do not have any performance management system in place.
Thus there remains a gap between theory and practice, between the rhetoric and reality of human performance management in contemporary organizations. A performance management system (PMS) is supposed to be an ongoing process of communication between the supervisor and the employee. It focuses on issues of performance, development, and achieving workplace results. The right PMS should be such that individual performance is aligned with the organization’ s missions and goals. The planning process starts with clear and defined goals set before the employee along with the expectations (Connell & Nolan, 2004). The job description is also reviewed at the beginning of the performance cycle along with the employee should any changes be felt necessary. A study by Personnel Today and PeopleSoft, the HR software supplier conducted an online poll of 900 businesses.
The research revealed that 19 percent of the businesses with more than 5000 staff did not have any performance management at all in their organizations. Forty-six percent of employers with fewer than 100 staff did not have any performance management system in place.
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