Performance Management Process

Performance management
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Executive summary
The purpose of this report is to study different types of performance review processes and
principles implemented within an organization. Managers of an organization use tools like
Balanced Scorecard and 360-degree feedback to evaluate the performance of their organizations.
Furthermore, this paper will focus on the reasons why these performance appraisal techniques
can fail and how these processes can be improved strategically. Moreover, this paper will also
discuss some of the methods to eliminate the gap between employee performance and
organizational goals. Evaluation of the performances of the employees as well as the
organization is considered as to be vital for the desired growth of an organization throughout the
concerned market areas.
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Table of Contents
Introduction.................................................................................................................... 3
Performance review principles and processes..........................................................................3
Reasons behind the failure of performance review....................................................................4
Strategies to improve performance review processes.................................................................6
Recommendations............................................................................................................ 7
Conclusion..................................................................................................................... 8
References..................................................................................................................... 9
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Introduction
This paper will review the performance review principles and processes associated with the
concept of performance review. Performance review is conducted to increase the efficiency of
the employees of a firm. There are several methods used by the managers of companies to
evaluate and monitor the performance of their employees. Furthermore, this report will also
discuss the reasons why the processes of annual performance review fail and how they can be
strategically improved. Moreover, it will evaluate how the gap between the performance of the
employees and organizational expectations can be eliminated.
Performance review principles and processes
Employers and managers of an organization are responsible to plan, evaluate and monitor the
performance of their employees within an organization. This managerial action of continuous
evaluation of the performance of the employees is known as performance management. It is
conducted to improve organizational performance alongside improving the individual
performance of the employees. This practice also improves the performance of the line, strategic
and functional departments of the organization. It is a part of strategic human resource
management and performance appraisal processes and principles are an important component of
performance management. In the words of (Aguinis et al., 2011) managers continuously
communicate with both the employees and employers of the organizations to develop the
strategic objectives of the organization. The managers monitor the performance of their
employees with the help of performance management cycle. This cycle comprises of five stages;
planning, monitoring, developing, rating and performance appraisal. First, the managers develop
the organizational goals, which the employees of the organization have to follow. Then on an
individual level, the managers continuously monitor the performance of their employees. The
evaluation and monitoring are done with respect to some criteria set by the employees of an
organization. In this stage, the job competencies of the employees are evaluated as well as their
behavior.
Managers of a firm evaluate the efficiency and effectiveness of their employees and monitors
how their employees are going to achieve the organizational goals. They are responsible for the
personal and professional development of their employees. The final step of this cycle is
rewarding or performance appraisal or performance review. Individual performance of the
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