Performance Management: Implementing an Effective Performance Management System
Why Performance Management?
Performance management is the organized method that companies use to monitor the results of work activities, to measure and evaluate the performance of the employees, and to ensure that goals are met in an effective and efficient manner. According to Pulakos (2009), performance management is a key process that ensures that work gets done; and it is used by different organizations to communicate expectations and drive behavior towards achievement of important goals. For instance, ABC Company has offices in more than 50 countries across the globe and it employs over 40,000 employees from various cultural backgrounds, and it also deals with a diverse range of customers. It therefore needs to develop a performance management system that fosters an inclusive environment and channels different employees' talents and capabilities towards achievement of the organization's goals.
It is important to implement an effective performance system within an organization to avoid wasting the company's resources on performance management practices that do not work and at the same time ensure that performance management activities are aligned with the business needs of the organization (Stone, 2009). An effective system will identify the root areas of weakness, identify ways of improving them, and focus on individual as well as organizational growth, which will increase the...
ABM involves identifying and evaluating specific activities that will be carried out to ensure performance objectives are achieved and that the performance improvements translate to the desired business outcomes. For instance, to improve the performance of the employees, ABC Company's staff should participate in intercultural team building activities, learn the importance of cultural diversity, and attend workshops that will provide insight on the steps they need to take to ensure every employee feels included, regardless of their cultural background. ABM is beneficial to an organization because it supports excellence through the use of activities that compel the participants to understand how key performance indicators contribute to the success of the organization. It also guarantees performance improvement because it develops the skills of employees and contributes to their personal growth. Moreover, Stone (2009) states that performance centered frameworks and activity-based practices enable execution in the work setting, which is the 'secret sauce' to effective performance improvement.
Performance Management Theories and Practices Performance management is a continuous process by which an organization identifies, measures, and develops the performance of individuals. It aligns their performance, the resources and systems with the strategic goals of the organization. According to Leeuw and Berg (2011), companies that apply performance management practices generally perform better than those that do not. The course has covered important performance management theories and practices. One key lesson learnt,
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