Performance Management System

Running head: PERFORMANCE MANAGEMENT SYSTEM
Performance Management System
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1PERFORMANCE MANAGEMENT SYSTEM
Performance Management System refers to systematic approach that helps in
measurement of performance of employees. It is indicative of a process that helps the
organization in aligning the mission and the goals with that of the available resources.
Performance Management encompasses the activities like the goal setting, feedback along
with the continuous progress review that helps in improving the performance of the
employees within an organization (Noe et al. 2017). The performance management in an
organization helps in the establishment of a flexible workforce that helps the employees in
being responsive to the needs of the management. It plays a crucial role in improving overall
performance of company that can be improved with the help of improvement of the
performance of the individuals. This essay discusses about the various components pertaining
to performance management system in an organization.
Performance Management System helps in the promotion of superior performance of
the employees by the communication of expectations to the employees. It helps in defining
the roles within the competence framework that helps in the establishment of benchmarks in
an organization (Van Dooren, Bouckaert and Halligan 2015). Performance Management
System is indicative of a strategic approach that helps in the delivering of the successful
results within an organization. It helps in the development of capabilities of teams along with
the individuals. Performance Management refers to the communication process that takes
place between supervisors along with employees in an organization. It helps in the
establishment of performance expectations that includes the results, actions along with the
behaviour of the employees. It helps in providing feedback to the employees that helps them
in diagnosing problems. The managing of the system performance along with aligning of the
objectives helps in the effective delivery of the strategic goals of an organization
(Buckingham and Goodall 2015). There are many people who argue the fact that there exists
co-relation in between performance management programme and the results of an

2PERFORMANCE MANAGEMENT SYSTEM
organization. The performance management system helps in optimizing the incentive plans
that encourages the employees of an organization. It helps in creating the transparency that
helps the employees in achieving the goals. The professional development programs in an
organization helps a business in achieving the objectives.
Performance Management System has various components like performance
planning, performance appraisal, feedback on performance, rewarding of the good
performance, performance improvement plans and the potential appraisal. Results of the
performance management are used for the purpose of development of employees and it helps
in improving the skills of the employees. Performance planning can be said to be a crucial
component pertaining to the process of performance management. It helps in forming basis in
relation to the performance appraisals in an organizations (Sharma, Sharma and Agarwal
2016). The performance planning is done in a joint manner by appraise along with reviewer
towards the beginning of performance session. It helps in closing the gap in between the
actual results and that of the desired results in an organization. At this stage, employees
decide regarding the targets along with the key performance areas that is performed across
the course of a year. The performance problem in an organization being identified can help in
the process of the performance planning in an organization.
The performance appraisals are held twice within a year within the framework of an
organization. It takes place in form of the annual review that is held towards end of financial
year. In the process of the performance appraisal, appraise offers that of the self- filled up
ratings with self-appraisal form. It helps an individual in describing his achievements across a
course of time in that of the quantifiable terms (Morden 2016). Final ratings are given by
appraiser after process of the self-appraisal that helps in measuring the achievements of
employees who are being appraised in an organization. The process of the review needs the