MN7181 - Effective components of Performance Management System
1. Performance Planning: It’s the base of performance appraisals and it's equally done by the appraisee and the reviewee at the beginning of a performance appraisals session. Employees agree upon the targets and the key performance areas which performed over a year within the performance budget, which will be finalized with a mutual agreement between the reporting officer.
2. Performance Appraisal and Reviewing: The appraisals usually performed twice in a year as mid-year and annual reviews at the financial year-end. Initially, the appraisee forwards his self-filled up ratings with described achievements over the selected period in measurable terms. Final ratings will be granted by the appraiser while analyzing the causes and gaps of performance and how to overcome the entire process of review.3. Personal counseling and performance facilitation Performance Feedback: Feedback is highlighted as very important and it acquires awareness from the appraiser on improvements and information on whether the employee is contributing expected performance levels. It’s open and transparent feedback along with training and development which prior identified. The appraiser's personal counseling implements all possible steps and effective guidance to ensure that the employee is achieving expected outcomes. Mentoring and training programs could acquire the competencies for overall productivity improvement.
4. Rewarding good performance: This is a very vital point which will attract and motivate to work by an employee. Within this statement, the employee is rewarded publicly while recognizing his better performance. Also, an employee is having a direct influence on his self-esteem and achievement direction. With the same, the organization helps an employee to cop up with the failures successfully with affection satisfaction.
5. Performance Improvement Plans: New deadlines are provided while a new set of goals are formed for an employee to accomplish the objectives. It is clearly communicated about the sections in which the employee is required and agreed deadlines also assigned which employee must show this improvement where it is jointly developed and mutually approved by the appraisee and the appraiser.
6. Potential Appraisal: it’s a basis of both lateral and vertical movement of employees that implement competency mapping and various assessment techniques and it provides crucial inputs for succession planning with job rotation.
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References :
Managementstudyguide.com. (2015). Components of Performance Management System. [online] Available at: https://www.managementstudyguide.com/components-of-performance-management-system.htm.
Every institution is keen on employees' performance. Therefore performance management is vital regarding both the company & the employee as well.
ReplyDeleteYou have tried to enumerate the performance management system. I think in your trade just rewarding the performance would not be sufficient. The employee perceived performance is based on HR practices like compensation practices, performance evaluation and promotion practices.
ReplyDeleteBowman et al.(2011) Impact of Human resource practices on employee perceived performance in Banking sector of Pakistan, African Journal of Business Management 6(1).pp 323-332.
Well explanation
ReplyDeleteYou have brought in to discussion about the most effective components of performance management. Performance management aims of achieving better results by providing individuals with the means to perform well within an agreed framework of planned objectives. Managers could decide the ways of evaluating the employees based on their performance against the set goals. Deming's, (1986) performance management cycle defined the performance management as a natural process not a HRM tool.
ReplyDeleteIt is important to identify the difference between performance management and performance appraisal. Performance management as a continuous process of identifying, measuring, and developing the performance. Performance appraisal means evaluating the employee once a year. Neither it provides a feedback about employee’s performance nor any training or coaching to increase the performance of the employee.
ReplyDeleteWe know in an organization people have different performance levels. So managing them is one of the hardest task a HR manager should do and as if not the company cannot move towards achieving their goals.
ReplyDeletePerformance management system is very important to employees as well as employers. If employees can utilised the benefits they will satisfied & they will give there fullest support to the org. as well
ReplyDelete