Performance Management

Topics: Human resource management, Management, Performance management Pages: 6 (1828 words) Published: April 27, 2013
How can performance management in modern enterprises be strengthened?

Performance Management is one of the most important parts of Human Resource Management. As an indispensable method to strengthen management, Performance management has been adopted by many world-wide enterprises to make full use of resources and cultivate core competitiveness. However, limited by the poor business conditions, staff and many other factors, performance management in some enterprises always fail to achieve ideal effects. The purpose of the thesis is to through analysis and research on present situation of Performance Management, point out the issues of it, and finally suggest some rational ways to improve the standard of performance management.

Performance management has never been such important in contemporary enterprises. More than just analyzing the employee's performance periodically through a formal or informal performance appraisal process, performance management strategy continually examines the employee's working quality, relationships within the workforce. Performance Management is both a strategic and an integrated approach to delivering successful results in organizations by improving the performance and developing the capabilities of teams and individuals. (Armstrong and Baron, 1998). In order to survive and develop in the increasingly competitive market, managers have to pay more attention to performance management, which has a significant influence on the achievement of both individuals and organizations. As a matter of fact, more and more enterprises have started to realize the importance of performance management in their companies and they have explored many effective methods to improve the standard of performance management. However, ‘’a recent US survey of employee feelings about performance management indicates that 70-80% disagreed that their performance review helped them to improve personal performance. Over 60% felt that their performance management system fails to set clear goals or provide honest feedback’’. (Aberdeen Group, Business At Risk, WatsonWyatt WorkUSA, 2004). This essay will first define performance management and illustrate the importance of performance management. Secondly, it will concentrate on the benefits of an effective performance management system. Finally, it will discuss some potential problems in performance management and suggest some ways to improve the standard of performance management. Definition
When asked about the real meaning of performance management, most of people would say that performance management is just the same as performance assessment, which is a formal staff appraisal system. However, Performance management is “a continuous process of identifying, measuring, and developing the performance of individuals and teams and aligning performance with the strategic goals of the organization” (Aguinis, H 2009b, p. 2)

Performance management is a complex part of human resource management, which includes identification, measurement, and development, etc. By contrast, performance assessment is more like a test, which is static and focuses more on the result of performance evaluation. Generally speaking, performance assessment itself is a method of performance control, which is always regarded as a part of performance management. By understanding and inspecting the performance of employees, managers get the chance to assess the current performance of their staff, to monitor how this performance changes over time, and to figure out some effective methods to improve the standard of working performance.

What can we benefit from an effective performance management system? An effective performance management system plays a very crucial role in the improvement of organization, managers and employees’ performance. Table 1 shows the benefits of performance...

Bibliography: Aguinis, H., Joo, H., Gottfredson, R. K. (2011). Why we hate performance management –And why we should love it. Retrieved August 5, 2012, from
Markus, L. H. (2004). Performance management—problems and potential. Retrieved August 1, 2012, from
Aguinis, H., Joo, H., Gottfredson, R. K. (2012) Performance management universals: Think globally and act locally. Indiana University: Business Horizons
James, G. (1997) Improving performance management. Retrieved August 13, 2012, from
McIntyre, S. (2010) Improving employee productivity is something every business strives to do. Use performance goals to provide direction and motivation. Retrieved August 13, 2012, from
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