Performance Management System

Running head: PERFORMANCE MANAGEMENT SYSTEM
PERFORMANCE MANAGEMENT SYSTEM
Name of the Student
Name of the University
Author Note

PERFORMANCE MANAGEMENT SYSTEM1
Introduction
In this essay, the main aim of the discussion will be to evaluate the performance
management systems of Bright Ideas Company Limited, where the strengths and the
weaknesses of the performance management system will be identified and recommendations
will be provided in order to improve the system in the organization. Bright Ideas Company
Limited is a retail company from Trinidad and Tobago which is privately owned. It used to
sell lighting fixtures and household items. The age of the company is 12 years and it has its
presence in 7 locations throughout the country. The number of employees who are working in
the company are 200. Bright Ideas Company Limited is part of a group company and thus, it
is included to focus on the aim jointly. The human resource department of the group of
companies has focused to accomplish from the performance management system of the
organization, to make it clear of what is anticipated from the employees, identify the
improving as well as training needs for continuous growth of the employees working in the
group of companies, to possess a fair reward system, have a presence of career improvement
and generally convincing about the return on investment in the investment of human capital
of the organization.
Performance Management System
Performance management system can be termed as the formal and systematic
approaches to evaluate and, measure the performance of the employees of the organizations.
It is a process or way through which the companies coordinate the mission, goals and
objectives of the companies with the available resources like manpower and material and
systems in order to set the priorities of the companies. In other words, it is a system for
integration or unification of the management of the performances of the employees as well as
the business entities. Performance management system is a continuous system between the

PERFORMANCE MANAGEMENT SYSTEM2
employees and the management about agreement of the activities to be performed, the way or
process through which it will be measured within a fixed amount of time, with a focus to
achieve the goal set by the companies at both the employee and organizational level. The
strengths and weaknesses of the employees in context of job can be identified and evaluation
can be done basis on the identified factors. It also includes measurement, recording and
development of the workers of the organizations. The system of performance management
also supplies the opportunity for the companies to evaluate and take inventory of its human
resources. It also helps in providing the information so that vital decisions can be taken and
feedback can be provided for further improvement of the employees. It gives the management
the scope for holding proper communication with the employees, on order to clarify the
chances and to take part in the improvement of every employee of the companies. From the
point of view of the employer, it gives the opportunity or scope to discuss the performances
with the employees and career goals for the future perspectives. The main aim of the
performance management system is the development, involvement, communication,
assessment of the performances, identification of the training needs and providence of the
base for giving the reward to the employees of Bright Ideas Company Limited. There is
involvement of six formal meetings in the performance management system of the
organizations, with each meetings possessing a particular goal or aim. The steps are (Aguinis
2009):
 System inauguration
 Self-appraisal
 Classical Performance Review
 Merit or salary Review
 Developmental Plan
 Objective Setting