PERFORMANCE MANAGEMENT
Performance management is a means of getting better
results from the organisation teams and individuals. It is about the agreement
of objectives, knowledge, skill and competence requirements, and work and
personal development plans. It involves the joint and continuing review of
performance against the objectives, requirements and plans, and the agreement
and implementation of improvement and further development plans. (Armstrong, M
(1996) Employee Reward, London IPD).
Harrison (Harrison, R (1997) Employee
Development, London IPD) defines the key elements of Performance Management
Systems (PMS) as follows:
Setting targets and establishing
desired performance levels.
Appraising and improving performance
Ensuring continuous learning and
development
Giving recognition and rewards
PMS can be seen as a tool to be used for all managers
together with their team members to improve both individual and unit
productivity. Egan (People Management, May 18, 1995 v1 n10 p34(3), A clear path to peak performance. (employee
development) Gerard Egan.) advises to present the PMS as a value-added management
system rather than a HR system. According to Egan PMS is a business system
because it is about improved performance and business results. Both managers
and their team members should be held accountable by their organisations, not
only for its use but also for its continual improvement. The users should
fine-tune the system so that they find it indispensable.
O'Neal and Palladino (Personnel
Journal, Feb 1992 v71 n2 p93(8) Revamp ineffective performance management.
Sandra O'Neal; Madonna Palladino.) emphasise the frequent failure of PMS at
many organisations because of a lack of clear and identified objectives;
reliance on behavioural traits; poor linkage to reward systems; inexpert,
fearful, or poorly prepared supervisors; lack or participation or support by
top management, and perhaps an even greater failing is performance management's
lack of support for such fundamental business goals as improved productivity,
customer satisfaction and quality. Few senior executives see
performance-management systems as a powerful means to these essential ends;
even fewer reward it accordingly.
Moravec (Management Review, Feb 1996 v85 n2 p38(5)
Bringing performance management out of the Stone Age. (performance appraisal
systems)(includes related article on performance measurement) Milan Moravec.)
explains the essential link between business goals and individual performance
as follows:
“Individual
values need to be aligned with corporate values. The vision flows from this set
of values, and business strategies flow from the vision... The vision and
values can be translated into objectives and guidelines for performance.
Performance management provides feedback on how well people are doing in terms
of practising their values.”
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