BUS681: Compensation and Benefits
October 24, 2011
This research paper is based on the development and implementation of completely integrated performance management system. The organizations are enjoying many benefits by implementing the performance management system. It has helped in improving the productivity of employees in most of the organizations. It is to be understood that apart from advantages, the system also carries some disadvantages. It is time consuming and there are chances of biases entering into the system.
Performance Management Issues
Performance management can be defined as a systematic process, which helps an organization by improving the effectiveness of its employees, so that the organization can achieve desired results. The performance management in an organization includes proper planning of work and setting expectations to be achieved. In addition to this, the performance management also consists of monitoring performance of employees and training them, so that they can improve their performance and reward employees who perform exceptionally well. Types of Performance Management Plans
Planning can be on organizational level. The most prominent types of performance management plans are strategic and administrative plans. The plans established on organizational level are called as Strategic Plans. Whereas, the plans established for a department or area of the firm are said to be administrative plans. Strategic planning is concerned with long range planning. It also often involves plans which relate to how the design firm reacts to the outside environment to the local business community, the economy, and other external influences. Strategic planning focuses on where the design firm sees itself in the future. Administrative plans relate to the internal need and pressures on the design firm. Administrative plans are most concerned with the organization of a firm's resources; how they are obtained, what they will be used for, and how they will be used. These plans are critical to any firm, as they seek to show how the firm will go about doing what it wants to do. Impact of performance management on employee and organization The implementation of performance management system has many benefits for organization. The implementation of this system leads to the effectiveness of employees in an organization. Some benefits of this system are as follows: It helps to assesses performance based conversations
The managers in most of the organizations have a hectic schedule and do not have enough time to interact with their subordinates. It hinders the training of subordinates given by managers and when the managers are not able to even give the feedback for subordinates. It is not possible to implement performance management system into the organization, if there are no frequent meetings of employees with their managers. Therefore, the consistent feedback given by managers to their juniors does not only enhance their performance, it is but also good for entire organization. Helps to staff who need skills development
The effective use of performance management system is very useful for developing the employee's job skills by providing them proper training. In addition to this, it plays an important role in the development of an organization. The system is a great tool to motivate the employees for a better performance. The efforts made by the employees are awarded. Performance appraisals also motivate other staff members to perform the member to get the appraisals in their salary. It is basic requirement of the HRM function that the issues should be resolved as early as they arise. The management should try to motivate the staff by providing financial incentives to them. The financial awards can be directly related to the performance of employees. According to Business Management and Strategy, “A motivated employee is responsive of the definite goals and...