The Performance Management (PM) system refers to the organization activity to ensure that employees work is aligned with the company strategic objectives, vision and the goals are met consistently and efficiently.
Performance appraisals and awards systems are tools of PM that can improve the work performance of employees by helping them realize their full potentials in carrying out their organization mission; ensure that employees understand what is expected from them, and also to provide information for use in making work-related decisions for management.
The general objective of the study, therefore, is to evaluate the performance management and furthermore the appraisal system of Luminex Corporation aligned to the organization strategic goals. Elements such as goal setting and reward system are evaluated to provide insights into the success and efficiency of the performance management program.
Having an effective performance management system could improve morale, motivation and overall productivity by identifying employee’s strengths and addressing areas that need improvement.
Performance management is an ongoing process that ensures that employees get the direction, coaching and developmental opportunities that they need to continually improve their work performance. The overall goal of performance management is to ensure that the organization and all of its subsystems are working well together and they align to the organizational strategy and performance goals.
According to (Lam 2014, pg. 183), PM aims to recognize good performance and continuously improving the performance of the employee by fostering a culture of cooperation and partnership between management and employees. Thus, the performance of an organization goes hand in hand with the performance of its employees.
Improving employee’s performance has become an important factor in many organizations and the need of having an effective performance appraisal system is an important tool for measuring and improving productivity.
PM emphasis is on improvement, learning and development in order to achieve the overall business strategy and to create a high performance workforce.
According to Furnham (2004), PM can serve different purposes such as: increasing productivity and product quality. Furthermore performance appraisals can identify and address employees who make an unusually high number of mistakes. Paying individual attention to each employee when setting goals can boost workers' commitment to achieving appraisal objectives.
Performance management plays an important role in the Luminex organization, and it’s performed on many levels, from the individual to organizational level in order to assure efficiency, effectiveness, and competence.
To achieve the overall company goal, several ongoing activities are in place, including identification and prioritization of results, establishing means to measure...