PURPOSE OF PERFORMANCE MANAGEMENT IN ORGANIZATION

 

PURPOSE OF PERFORMANCE MANAGEMENT IN ORGANIZATION

Performance Management (PM) is a crucial part in human resource management process which is a systematic process of improving overall organizational performance by developing the performance of employees. Performance management is also related with the comparison of predetermined goals and objectives with the actual output of the employee for the set period.

As Weiss and Hartle (1997) commented, performance management is: ‘A process for establishing a shared understanding about what is to be achieved and how it is to be achieved, and an approach to managing people that increases the probability of achieving success.’

A formal PM program helps managers and their employees to visualize eye-to-eye on expectations, goals and career progress, and how those things align with the company’s vision (Fallon, 2017).

Performance management is a planned process of following primary elements

• Agreement
• Measurement
• Feedback
• Reinforcement (Rewards)
• Dialogue (Discussion)

PM focuses on future performance planning and improvement and personal development rather than on retrospective performance appraisal (Armstrong, 2006).

Performance appraisal is the continuous process of monitoring that the organizational goals are achieved in an efficient and effective way (Tyson & York, 2002).

Purpose of Performance Management

The basic purpose of PM is to improve the performance of individuals. From an organization view, it is to maintain control and to measure the efficiency. Apart from these, following processes also done through PM.

• Improving motivation of the employee
• Clarifying the expectation and reducing ambiguity about performance
• Determining rewards
• Training and development opportunities
• Improving communication
• Selecting people for promotion
• Managing career growth
• Counseling
• Setting goals and targets

The effectiveness of the performance management is recognized as the achievement of both financial and non-financial objectives, the development of skills and abilities, and the improvement of customer care and quality of process (De Waal, 2007)

Performance Management in Srilankan Private Sector

The main reason for staff turnover in Srilankan private sector is due to poor performance review process. Listed below are some of the common lapses.

• Targets assigned to employee without providing adequate resources.
• Training done just to fulfill HR department’s yearly training calendar.
• External environment effects are not considered to review process.
• Performance reviews are done at the year end without clarifying the expectation.
• Feedback sessions are done only to justify management decision and not to ask employee opinion.

References

Armstrong, M (2006) Performance Management, 3rd edn, Kogan Page, London.

De Waal, A.A. (2007), Strategic Performance Management, a Managerial and Behavioural Approach, Palgrave Macmillan, London.

Fallon, N. (2017, 03 01). Busines News Daily. Retrieved 09 17, 2019, from Business news daily: https://www.businessnewsdaily.com/4748-performance-management.html

Weiss, T B and Hartle, F (1997) Re-engineering Performance Management, Breakthroughs in achieving strategy through people, St Lucie Press, Boca Raton, FL

Tyson, S. and York, A. (2002), Essential of Human Resource Management, 4th edition, Butterworth Heinemann, Oxford