An organisation essentially works with and through people to achieve preset goals by operating in a systematic manner according to a well-charted plan. Unplanned behaviour or effort can never lead an individual or organisation in the direction of success. It is the aggregate result of individual performance of assigned tasks by the personnel according to defined goals that achieves success for an organisation. Just as strategic plans are prepared for the organisation as a whole and operational or tactical plans are chalked out for different departments and sections, work objectives or targets need to be set for every staff member. Progress of implementation must be monitored periodically and mid-course corrections initiated in order to achieve the goals. Performance standards need to be first identified and communicated to every employee, and performance indicators established to evaluate individual performance in the assigned areas at the end of the appraisal period. Performance assessment is usually related to reward schemes in most organisations. The whole process is generally known as the Performance Management System (PMS).
A performance management system primari...
It is the responsibility of the management to ensure that the PMS process is aligned to strategic plans and future success of the organisation. At the same time it is also the intention of senior managers to use the PMS tool to improve the individual performance and output of employees while building their capabilities and that of the team. "The overall aim of the appraisal scheme is to maximise individual effectiveness and potential so that employees' efforts are targeted towards the achievement of company objectives" (CIPD, 2004, 2PM 7.1). Performance appraisal must be tailored as an important activity in an employee's work life, especially after the period of probation on appointment. Other benefits of a suitable PMS include the following:
Define goals and set performance standards and targets of achievement for each employee
Enhance efficiency and performance levels of every employee
Ensure employees' job satisfaction and commitment
Motivate them to improve their performance and achieve greater success
Forge closer bonds between employees and management hierarchy
Provide a forum for sharing employees' concerns, suggestions, and causes of discontent, if any
Facilitate identification of training needs and professional development areas for each employee
Identify employees' potential, strengths, and weaknesses, with a view to human resource development
Provide incentives through performance-linked rewards and increments
Enable better communication between management and staff, and show concern for each other
Maintain and update employee profiles including skills, core competencies, potential, etc.
Performance Management Process