Performance management system
Integrating training, development and Individual/organizational learning strategies with performance
management.
Most of the traditional Performance management system are for the purpose of facilitating pay
increment through evaluating employees� performance. In today�s competitive business world,
whereby organization is rushing for talent in the tight crunching market, performance management
system serve more functions than before. Other than knowing how well an employee perform so that
organization able to decide how valuable an employee is in order to pay what it is thought to be
reasonable, performance management system play important strategic role in winning their
competitors. This can be done through by identifying organization and individual strength and
weakness using PMS evaluation. With this information organization can progress and improve with
their results through their development plan. The other purpose of understanding the performance of
individual employee is to reward and retain talent so that organization are able to have a strong pool
of talent consistently to ensure business sustainability.
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Aguinis, H. (2012) Performance management, 3rd ed. Upper Saddle River, NJ: Pearson Prentice Hall.
�Chapter 8, �Performance management and employee development�
Performance management system
This collaboration is spot on by pointing out that nowadays, as a result of a very
competitive business world, performance management systems in organizations have several
other purposes besides just facilitating pay increment. The author of this collaboration reveals
that performance management systems help to determine how well a given staff member is
doing to establish how valuable an employee is so as to compensate him/her accordingly. A
performance management system also helps to reward and retain talent as this will enable the
company to continually have a sufficient number of competent staffs to ensure business
sustainability. In essence, the aim of performance management systems is to develop people
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with the needed competencies and commitment for working toward the shared goals in an
organizational framework (Ahmed & Kaushik, 2011).
Performance management system has a number of functions since they are designed
to improve both organizational and individual performance through identifying performance
requirements, giving feedback regularly, and helping the staff members in their career
development. On the whole, the practice of performance management helps to drive decisions
with regard to performance, transfers, promotions, remunerations, terminations, disciplinary
procedures, as well as development needs in a business organization (Aguinis, 2012).
The collaboration is also accurate in stating that performance appraisal is a vital part
of performance management as it helps to link the goals of the company with the staff
member’s personal career advancement goal thereby helping to increase employee job
satisfaction and motivation. Armstrong and Baron (2004) stated that performance appraisal is
usually included in performance management systems; performance appraisal in many
companies is actually part of an overall performance management system. The performance
appraisal occurs periodically and becomes the foundation for making remedial actions and
setting further targets (Armstrong & Baron, 2004). An effective performance management
system ensures that staff members have the knowledge as well as skills needed to deliver
what is expected of them by executing development plans, as well as learning and
development activities.
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References
Aguinis, H. (2012). Performance management, 3rd ed. Upper Saddle River, NJ: Pearson
Prentice Hall.
Ahmed, P, & Kaushik, M (2011). ‘Career Planning – An Imperative for Employee
Performance Management System’, International Journal Of Business Insights &
Transformation, 4, 2, pp. 102-109, Business Source Complete, EBSCOhost,
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Armstrong, A., & Baron, A. (2004). Managing performance: performance management in
action, 2nd ed. London: CIPD.
