Performance Management Process

Performance
Management
Process

PERFOMANCE MANAGEMENT PROCESS 1
Introduction
Effective performance management is a procedure of motivating the employee to
improve performance by setting the goals and objectives which are aligned in the
organization to achieve goals (Gruman, 2011). The process planned to accomplish the
goals by reviewing and evaluating the performance, assessing the progress, and also
developing the skills, knowledge, and ability of employees of the company (Mone,
2018).
There are many activities this process includes, and performance appraisal is one of
them. This strategy involves formal review once or twice in a year whereby an
employee’s last 6-12 month performance is assessed and decides the future target and
goals. This report will analyze the overall process of performance management, also the
components to measure the performance of organizations and their staff.
Performance management cycle and performance appraisal
While discussing performance management, performance appraisal is a major aspect of
the performance management process. One of the best definitions of performance
management is to measure the staffs and organizational performance with the objective
of making their performance effective in order to achieve success for both of them.
Performance appraisal program utilized to identify the skill and abilities for his
development and growth. It is aimed at determining the worth of the employee to the
organization. However many companies consider this process useless as a yearly event
and some critics also measured it useless and argued for the eliminations of this
system, as they believe that many principals fail to deliver effective employee

PERFOMANCE MANAGEMENT PROCESS 2
performance. But some research states that organizations with these yearly activities
have better results, and some company has also changed their performance
management system according to the company’s modern need (Towler, 2018).
An organization like Google has involved changes in the performance measurement
system through abandoning traditional yearly performance reviews and focusing on
having a conversation with employees. However, there is no practical research
evidence these new industry patterns work and specialists have prompted HR experts
to stick to sound psychological rules that educate successful evaluation frameworks.
These psychological standards incorporate the requirement for criticism on execution
and the capacity to have a voice all the while (Towler, 2018).
Performance management process contains different levels such as planning,
execution, tracking, and then review and rewards. It involves the outcome achieved
through the overall contribution of the organization and its employee (Franco‐Santos,
2018).
The first level of the performance management process is “planning”. Planning must
include all the objectives and goals for the personal development plan. It also involves
agreeing on objectives and goals, a PDP (personal development plan) , reviewing the
job requirements and updating the job profile according to skills. Many organizations
utilize this planning stage once in a year (Juneja, 2018). However, the business
environment becoming fast moving that is why many organization familiarizing short
process and setting short term objectives for every three months.