Performance Management System: A Case Study IntroductionPerformance management refers to the systematic process of collecting and analyzing information about employee performance in order to monitor progress towards certain desired results. Usually, the performance management process uses performance information to program resource allocation and decision making. The main objective of performance management is to use results obtained to enhance organizational learning. Lee (2006) has explained that service excellence, continuous quality improvement and enhancement of financial responsibility are the core principles of performance management. These principles should be incorporated into the employees’ daily work to serve as guidelines during the performance management process.
By embracing performance management, organizations support environments of service excellence and continually improve internal and external customer satisfaction through identification of point of contact resolution. Performance management also helps in creating high quality business processes using data and initiatives as the foundation of work. This ensures that business practices and procedures are conducted within the required regulatory guidelines and in the safest method possible. To begin the performance management processes the supervisor and employees should collaborate in developing desired performance standards.
The supervisor should take an active role in developing a performance plan which directs employee’s efforts towards achieving specific results which support the employee’s professional growth as well as organizational growth (Milliman et al, 2002). The goals and objectives of professional growth should be discussed throughout the year while providing a framework to ensure that employees achieve the desired results through mutual feedback. At the end of each rating period, employee’s performance should be praised against existing results and new goals established for the next rating period. In today’s world of business, performance management is beneficial to businesses in a number of ways.
Firstly, the process enables managers to set clear targets for employees and in return employees perform to desired standards, both in terms of how the results are achieved and what is expected. Secondly, by ensuring that employees get a clear understanding of what is expected of them, performance management enhances employees’ contribution to the growth and success of the organization, which in turn helps in realization of strategic objectives (Roberts, 2003). In addition, performance management is likely to result in high productivity and employee motivation and commitment through increased job satisfaction.
Managing employee performance in a clear and fair manner can help avoid later problems in other aspects of organizational management. Generally, performance management is an ongoing process with formal reviews at agreed intervals during the year. Although the degree of formality will vary depending on the nature of the company’s workplace, it is important to ensure that employees get a clear understanding of what they are expected to do. This is better achieved through regular discussions with employees about their performance.
Steps in Performance Management Process: Case Study of Omega Inc. Performance Appraisal and Performance Planning Performance appraisal is the basis of an effective performance management process. Basically, performance appraisal involves setting goals for performance expectations. There are two important tasks to consider during performance appraisal. The first consideration is whether the goals have been written objectively and communicated clearly. The second consideration is whether these goals are capable of contributing to achievement of business strategy. The ability to communicate strategic business objectives clearly is an essential step in creating alignment of objectives.
When setting performance goals, key job responsibilities and expectations should act as the guideline and reference.