Performance management benefits.

 

Benefits of Performance management.

 To get better outcomes organizations to require an effective performance management system to promote and develop the principles, values, and competencies. because the organization's success completely depends on the performance of the employee. According to Den and Verburg (2004), it is a whole work system that begins when a job is defined as needed and expectations are clearly communicated to the employee.

 According to Sahoo and Mishra (2012), there are 7 aspects that need to be defined clearly in a good performance management system, 

1.     Clear job description. 

2.     An appropriate selection process. 

3.     Achievement-based performance standards, outcomes, and measures. 

4.     Effectual orientation, education, and training. 

5.     Coaching and feedback. 

6.     Periodic performance-development discussions. 

7.     An effective compensation and recognition system.

 

Performance management systems will be beneficial to both employers and employees. Based on the industry-level analysis by Martinez (2005), there are benefits and negative effects of the performance management system. it is a common scenario to have both pros and cons after implementing performance management in the organization. 

·       Focus employees’ attention on the organizational goals. 

·       Business improvement. 

·       Improve customer satisfaction. 

·       Increase productivity. 

·       Align operational performance with strategic objectives. 

·       Improve people’s satisfaction.

·       Align people's behaviors toward continuous improvement. 

·       Improve company reputation. 

·       Employees get benefits based on their performance. 

·       Managers can assist employees.

Effective performance management opens dialog between a company, management, and employees as a whole. That helps to build trust and support each other to achieve goals. According to Buchner (2007), The clearly defined objective and frequent assessment of employees helps to identify ways to improve employee skills. A performance management system is required to have in an organization, and there can be positive and negative impacts because of it, with the effectively managed system can help to build employee skills and achieve the organizational goals.

  

                                                                                          Source : Sahoo, C., and Mishra, S. (2012)

References.

• Den, H., and Verburg. R., (2004) High-performance work systems, organizational culture, and firm effectiveness. Human Resource Management Journal, Vol 14. 
• Sahoo, C., and Mishra, S. (2012) Performance management benefits organizations and their employees. India: Human Resource Management International Digest. 
• Martinez, V., (2005) What is the Value of Using Performance Management Systems? 
• Buchner, T., 2007. Performance management theory: A look from the performer's perspective with implications for HRD. Human Resource Development International.