Performance Management System

Performance management system is use to identify, measure and developing the performance of individuals and teams. It also aligns performance with strategic goals of the organization. It ensures that people work together effectively toward organizational goals, therefore individual performance is equal to company performance. Performance management system gives contributions to employees, supervisors and organizations. To employees, it clarifies definitions of job and success criteria. It can increase the employee’s motivation to perform and their self-esteem, also enhance their self-insight and development. To supervisors, it communicates supervisors’ views of performance more clearly. Supervisor can gain insight about subordinates, making the employees become more competent. To organization, it clarifies the organizational goals and facilitates organizational change. Fairer and more appropriate administrative actions can be make and also better protection from lawsuits. In this case, the company started from a family business and don’t have a human resource department. There is no formal performance management system to review the performance of the employees regularly, therefore there is a rumor saying that only those employees who have extremely good relationship with the department will get a high rate of salary increase or promotion. This company culture had demotivate employees. They think no matter how hard they work, they still cannot get a high rate of salary increase or promotion, so a performance management system is need to be develop.
There are few steps in a performance management system cycle. Firstly, identify the prerequisites. We need to cascade the organization mission and goals effectively throughout organization to employee. Then align the strategic plan with performance. Our mission is “We sell high quality food and beverage products”. Our goal is to ensure customers will build their business, employees will build their futures, and