Performance Management Issues Essay

1316 words - 5 pages

Performance Management Issues
Performance management can be defined as a systematic process, which helps an organization by improving the effectiveness of its employees, so that the organization can achieve desired results. The performance management in an organization includes proper planning of work and setting expectations to be achieved. In addition to this, the performance management also consists of monitoring performance of employees and training them, so that they can improve their performance and reward employees who perform exceptionally well (Berger, 2000).
Types of Performance Management Plans
The strategic and administrative plans are the two most prominent types of performance management plans. While plans established on organizational levels are called Strategic Plans, the plans established for a department or area of the firm are known as administrative plans.
Strategic plans may be used to plot the long-term direction, it is not a reliable method to forecast how the market will evolve, however it is the formal consideration of the organization future course. Organizations will use strategic plans to pose the questions, how to excel, or "How can we beat or avoid competition?" (Bradford and Duncan, page 1). Administrative plans relate to the internal need and pressures on the design firm. Administrative plans are most concerned with the organization of a firm's resources; how they are obtained, what they will be used for, and how they will be used. These plans are critical to any firm, as they seek to show how the firm will go about doing what it wants to do.

Impact on employee and organization
The implementation of performance management system has many benefits for organizations. The implementation of these systems leads to the effectiveness of employees in an organization. The managers in most of the organizations have a hectic schedule and do not have enough time to interact with their subordinates. It hinders the training of subordinates given by managers and when the managers are not able to even give the feedback for subordinates. It is not possible to implement performance management system into the organization, if there are no frequent meetings of employees with their managers. Therefore, the consistent feedback given by managers to their juniors does not only enhance their performance, it is but also good for entire organization (Cardy, 2011).
The effective use of performance management system is useful for developing the employee's job skills by providing them proper training. In addition to this, it plays an important role in the development of an organization. While not only developing the skill set of the employees it can also motivate the staff.
While efforts made by the employees are awarded. Performance appraisals also motivate other staff members to perform the member to get the appraisals in their salary. It is basic...

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