Why Is Performance Management Necessary in Organisations? Critically Assess the Difficulties That Arise in Its Implementation.

Topics: Management, Employment, Reward system Pages: 5 (1917 words) Published: March 14, 2012
This essay is going to explain why performance management is necessary within an organisation. Then go on to critically assess the difficulties to implement performance management in an organisation and how it affects individuals in the organisation.

(Armstrong and Baron 2010) define performance management as 'a process which contributes to the effective management of individuals and teams in order to achieve high levels of organisational performance. As such, it establishes shared understanding about what is to be achieved and an approach to leading and developing people which will ensure that it is achieved'. They go on to stress that performance management is a key tool within an organisation to ensure that managers, manage the company so they are as successful as possible. This ensures that the team know what is expected of them and understand how to do this, and are able to deliver with the skills they have and are taught in the organisation. The manager needs to show his team that they are all supported and are given positive feedback when the team has been successful. However as a member of a team it is important for a manager to allow team members to voice their own opinions on the team’s aims and objectives.

Performance management is important for an organisation to monitor so it allows individuals to know what is expected of them by the organisation they work in and so they know what they need to do to help the organisation to be a success and for them to participate towards that success. It is also necessary for the organisation to monitor performance management so they can check on an individual’s performance and to see if there performance needs to be improved and what action is needed for that individual to improve themselves. Furthermore performance management can also be used to improve an individual’s job satisfaction and so they can reach their full potential not just for their own benefit but for the organisation they work for.

Performance management however can be difficult to implement in an organisation, as they promise more than they achieve. The main reasons for this is due to management not supporting the performance management scheme therefore they do not brief the team properly in how to implement the scheme into the organisation. This then branches off into line management thinking that the scheme is a waste of time and therefore they mishandle the objective setting review process. The staff then believes that the scheme which is in place will have a damaging rather than a beneficial effect on their performance and then don’t perform as the scheme should allow them too. Overall the scheme does not have quality control within the whole operation. Consequently the scheme when put in place within an organisation must have full support throughout the workforce as these issues can b resolved through careful planning and appropriate training to all managers and staff. (Armstrong, M) The scheme should then be monitored at all times to ensure it is having a beneficial effect.

When it comes to performance management in larger companies they use a more formal performance management within their organisations, by focusing on motivational, performance and development issues. There are typical steps an organisation do to introduce this is to an individual, firstly they sit the employee down and establish a performance agreement which both the individual and the manager agree with. To ensure that this is followed through the individual’s performance data is gathered and measured via appraisal method. When the manager has reviewed their performance both the individual and the manager then undergo an interview/ appraisal to discuss their performance. The interview can end in the employee gaining positive feedback or agreeing further on how to improve the individual’s performance. However this process is very time consuming and is an easy method for less skilful or inexperienced managers to...
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