1.) 2 purposes of performance management and its relationship to business objectives Performance Management is a process that ensures that the aims and objectives are met effectively and efficiently in a long term. Armstrong and Baron define Performance Management as “a strategy which relates to every activity of the organisation set in the context of its human resource policies, culture, style and communication systems.” It is a process by which organisations align their resources systems and employees to their objectives and strategy. Two of the purposes of Performance Management are:
* It enhances the individual and organisational performance. Armstrong and Baron suggest that Performance Management “contributes to the effective management of individuals and teams in order to achieve high levels of organisational performance”. If the individual are performing well and if the organisation meets its objectives, this will benefit the organisation ( in term of income, quality of the products, customer’s satisfaction, motivation, attraction and retention of staff…), the employees (job satisfaction, rewards…) and the government (lower unemployment, decrease debt, more taxes and less benefit)
* It enables the individual to identify and meet his personal development needs. This means ensuring that individuals are aware of the organisational expectations and how they can achieve high performance. Individuals will achieve higher level of performance if they have the support to identify the area they need to improve and the support to develop their skills, their knowledge and their behaviour to contribute to the organisational objectives.
2.) 3 components of Performance Management system.
Performance Management is vital to enhance the performance of the organization by ensuring that the individuals understand the organisational expectations and the objectives and by ensuring that they have the necessary support and skills to meet the goals. To do so Performance Management uses key components. 3 of these keys components are: * Induction / socialisation: It is an opportunity for the organisation to present what are the culture, the expectations and objectives. It will raise awareness on the organisational procedures and policies and it will bring clarity on the role of the individual and on his colleagues’ roles within the organisation. Induction is important because it helps the individuals to integrate the organisation.
* Jointly agreed aims, objectives and targets: The goal setting theory established by Latham and Locke suggests that individuals are more likely to be motivated if targets have been set. Setting goals involves defining specific, measurable, attainable, realistic and time-bounded goals (SMART goals).
* Appraisal: It is the process through which an employee is assessed by the line manager. The CIPD defines appraisals as “the central pillar of performance management”. It is a key component for reviewing performance over a period of time, identifying areas where the individuals need development, setting future targets and identifying what the organisation can do to support the individuals.
3.) The relationship between motivation and Performance Management
Motivation is vital because the more motivated the individuals are, the more likely they are to put more effort into a task. Performance Management’s purpose is to direct these efforts into achieving higher level of performance. Performance Management will use motivation to meet the organisational objectives. Different individuals have different factors motivating them and these factors can change over time. This is the reason why organisations need to engage continuously with their employees through appraisals, one to one meetings… to determine what motivate them. Many studies have been carried out on the subject of motivation and many theories have been developed to help the organisations to determine what motivate...
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