Performance Management
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TABLE OF CONTENTSACKNOWLEDGEMENT 2EXECUTIVE SUMMARY 3Literature Review 4Analysis of the Companies 7Comparison of the Companies 9Remuneration Reviews of the Companies 11Recommendations 14Conclusion 16APPENDIX1- CASE STUDY QUESTION 17LIST OF REFERENCES 19ACKNOWLEDGEMENTI take this opportunity to express my gratitude to all those who have supported me directly and indirectly towards the completion of this project. I am thankful to the well experienced and professional lecturer panel and non-academic staff of IPM in providing me a suitable environment and useful guidance for the completion of this project. Especially I would extend my gratitude to Mr. Priyantha Ranasinghe for his continuous support and academic guidance throughout the course duration. Last but not the least I would like to thank my friends and family for their continuous support which assisted me to complete the project successfully.EXECUTIVE SUMMARYThis report provides an analysis and evaluation of Pod’s analysis on three different companies X, Y and Z relating to Performance Management System. All these companies do not consist of a systematic and comprehensive Performance Management System. Failures to link a good reward system for the appraisals have been another weak point of the companies.Company X has failed to put in proper job descriptions that made the employee’s job harder as well as it had no Performance Management System and lacked in direction for the employees. Company Y consisted of an overly complicated Performance Management System that it made it harder to understand and lacked transparency. Company Z had failed to address poor performance due to weaknesses in its Performance Management System.
The continuous failures to harvest the expected performance levels of the companies were worrisome for the top management. Weaknesses in the managers and Human Resources department and lack of periodic appraisals in a systematic manner were the main causes for the problems in the three companies.Recommendations discussed include:Setting up a proper Human Resource departmentOrganizing Training and Development sessions on ‘Performance Management’Introducing simple and transparent Performance Management SystemIdentifying Key Performance Indicators and critical success factors according to each job roleIntroducing a good reward system to be linked to the Performance Management SystemIntroducing Management by Objectives, Balance Score Card and 360 Degree Feedback for performance appraisalLiterature ReviewPerformance Management: DefinitionPerformance Management is a continuous process of identifying, measuring and developing performance in organizations by linking each individual’s performance and objectives to the organisation’s overall mission and goals.It is considered as a continuous ongoing process of goal setting, coaching and feedback tracking. This systematic assessment of the performance is an objective examination. This process is used to receive employee feedback and encourage them further more.Responsibilities of human Resource Management in Performance Management SystemHelp manager to develop the Performance Management process Provide the required Performance Management skills for the line managersHelp to align organizational and individual and team objectivesDevelop the skills needed for the businessInitiate, conduct, close the process of Performance Management and remove the barriersLevels of Performance in an OrganizationPerformance is considered as the results from the inter-relationships between abilities, effort and task perception. Different levels of performance are:Individual PerformanceTeam PerformanceDepartmental PerformanceOrganizational PerformanceKey players in Performance ManagementThe organization is one of the main players. The performance management System must be aligned with organizational goals.The individual employees are the next key players whose motivation in fulfilling the organizational goals is very much important therefore satisfying their objectives must be prioritized.Performance management system bridges the task of accomplishing the organizational objectives (profits, market shares, shareholders expectations) and individual employee objectives (salary increases, promotions, job security and better benefits).[pic 1]