Integration with other human resources management activities * Performance management systems serve as important “feeders” to other human resources and development activities. i) Relationship between performance management and Training, learning and development activities – performance management provides information on developmental needs for employees. Enable organizations to use their training resources in the most efficient way. ii) Performance management provides key information for workforce planning - because organization’s talent inventory is based on information collected through the performance management system. It allows for assessing the current talent and making predictions about future needs both at the individual and organizational levels. iii) Development plans provide information on what skills will be acquired in the near future. This information is also used in making recruitment and hiring decisions. iv) There is an obvious relationship between performance management and compensation systems.
Tools used under Comparative and Absolute systems and their Pros & Cons: Tools used | Pros | Cons | Essay | * Produce useful and detailed feedback | * Totally unstructured * Difficult to quantify & use for personnel decision * Comparisons across individuals are virtually impossible | Behavior checklists | * Easy to use and understand | * Scale points used are often arbitrary and we cannot assume that a one-point difference has the same meaning along the entire scale * Detailed and useful feedback is difficult to extract from the numerical rating provided | Critical incidents | * Allow supervisors to focus on actual job behavior rather than on vaguely defined traits | * Quite time consuming when gathering critical incident data * Difficult to quantify the impact of the incident | Graphic rating scales | * The meaning of each response category is