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Assess How Performance Management Systems Benefit An Organisation's Efficiency And Effectiveness. How Can An Organisation Ensure Successful Implementation Of Performance Management Systems?

1123 words - 4 pages

Assess how Performance Management Systems benefit an organisation's efficiency and effectiveness.Avoiding performance issues ultimately decreases staff morale and management credibility; decreases overall effectiveness; and wastes management time fixing what hasn't been done properly. Organisations are always required to ensure that best value for money is achieved as well as efficient and effective use of resources. In order to achieve these goals, the use of a range of methods, techniques and processes is necessary,Performance management can be defined as the ongoing process of objective setting, performance tracking, generating improvement actions and coaching that leads to improved results from staff, which turns inputs into desired outputs. Managing performance is about understanding your employees' unique capability and having the right tools and know-how to motivate, empower and unleash their potential. If implemented properly, it is an investment in staff relations which, in turn, leads to better performance.Through performance management, each employee or team will know what is expected of them and what results they are responsible for achieving. This type of clarity is vital to the success of the organisation as a whole. Employees understand how they and their work fit into the organisation as a whole. Improved communication between management and staff can achieve greater output and productivity and solve problems.The typical performance management system is designed around a pyramid-type structure. At the base of the organisation, individual targets are linked to unit targets, which are then linked to divisional targets and, finally, the targets of the divisions are linked to the corporate goals of the organisation.Performance Management Development Systems (PMDS) incorporate employee development, considering what training and skills the employee requires in order to achieve their agreed goals. Periodic reviews are used to build up a picture of trends and practices over time and alert managers to areas that need further training and/or development. They provide an opportunity to review progress during the last 12 months and plan for the year ahead.Performance measures allow managers to demonstrate how effectively resources have been used to achieve a desired result, ie economy, effectiveness, efficiency and equity.Performance Management can:· provide a data base for the organisation's inventory of people, skills and potential· provide a mechanism for assessing performance and contribution to the organisation· reward/sanction excellent/poor performance· identify with individuals their strengths and weaknesses· assist career planning· stimulate training and development by evaluating training needs and assessing the value of training already provided· form a basis for salary review and administration· provide an up-to-date inventory of human capital within the organisation·...

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