The mandate to operate at an optimal performance level and meet financial and organizational expectations are transforming the way organizations do business. This evolution is driving higher standards of competence in day-to-day operations and adding new pressure to increase stakeholder value. In today’s rapid-paced business climate, the agility with which a company manages performance can determine market position and company profitability.
Defining Performance Management
Performance management is the integrated process of defining, assessing, and reinforcing employee work behaviors and outcomes (Cummings and Worley 2005). Performance management focuses on understanding, optimizing, and aligning action and decisions and ensuring the collaboration and empowerment of all individuals across the business network. It includes practices and methods for goal setting, performance appraisal, coaching, employee development and reward systems.
More than ever, organizations need broader measures of employee performance to ensure that (1) deficiencies are address in a timely manner through employee development programs that meet the needs of the organisation and its market, (2) employee behaviours are being directed toward performance of specific objectives that are consistent with the work unit and the organization strategy, and (3) employees are provided with proper and timely feed back to assist with their career development.
These practices jointly influence the performance of individuals and work group, and enables them to work across strategic, tactical, and operational levels to align actions to ensure optimal performance.
In order for effective performance management to take place, the process must utilize information from three time periods to do so. It makes use of data from the past in order to gather information form past performance. This information is then utilized in the present for the establishment of work
References: Cummings, T.G and Worley, C.G. 2005. Organization Development and Change. USA: Thomson South-Western Accel-Team.Comhttp://www.accel-team.com