Performance Management

Performance Management
MANAGING HUMAN CAPITAL
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Performance Management
Table of Contents
Performance Management................................................................................................3
Features of Best Practices in Performance Management....................................................3
Integrating Human Resource Development With Performance Management Function......4
Issues Surrounding Underperformers And High Performers................................................5
Reward Management Strategy..........................................................................................6
HR Strategies and Firm’s Corporate Strategy.....................................................................6
Conclusion.........................................................................................................................7
Bibliography......................................................................................................................8
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Performance Management
Case Background
NAB Bank has recently hired a marketing representative who is 31 years old and has been
demonstrating excellent performance in his job. As a result, the human resource management
department is seeking an expert advice on how it can strengthen its overall performance
management system and deal with high performing people in a better way so that they remain
motivated and engaged in their jobs.
Performance Management
Performance management is one of the most important core functions of human resource
managers that helps business organizations in optimising the performance of their workforce.
It allows them to create a performance oriented environment in the workplace, deal with
underperforming employees and rewarding employees who are able to achieve their
performance objectives (Van Dooren, et al., 2015). Performance management can provide a
great help to a company in strengthening its human resource management policies and
practices.
Features of Best Practices in Performance Management
An effective performance management system can do wonders for a business organisation. It
can not only improve the productivity of a company but can also help it in improving job
attributes, such as job satisfaction, motivation, organisational and job commitment, etc. of its
employees. On the other hand, a dysfunctional performance management system can prove to
be a disaster for business organizations. It can negatively affect the performance of the
employees and can hit their morale and motivation levels beyond expectations. Therefore, it
is important that performance management systems include best practices, which have the
follow features:
Goal-setting  Goal setting should be carefully done in a performance management system.
The employees should be involved in deciding their performance objectives and only those
goals should be established which are specific, achievable, measurable, time-bound and
relatable (Kerzner, 2018).
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