Performance Management Systems

Performance Management Systems
PERFORMANCE MANAGEMENT
FOR HUMAN RESOURCES – 957785
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Performance Management Systems
Table of ContentsIntroduction.......................................................................................................................3
Performance Management..........................................................................................................3
Components of an Effective Performance Management System........................................3
Planning and Expectation Setting.................................................................................................3
Performance Appraisal and Reviewing.........................................................................................4
Performance Rewards..................................................................................................................5
Performance Improvement Planning...........................................................................................5
Potential Appraisal.......................................................................................................................6
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Performance Management Systems
Introduction
Performance Management
Performance management system is a planned approach that helps business organizations in
formulating performance objectives for their employees, measuring their performance levels
and in identifying gaps between actual performance levels and expected performance levels
(Van Dooren, et al., 2015). Performance management systems are proving to be a great tool
for human resource managers in optimising the performance levels of individuals. Not only
do they make the workplace environment more competitive and performance oriented, but
also assist business organisations in increasing their overall productivity and efficiency
(Buckingham & Goodall, 2015). Therefore, performance management has become one of the
most important core-functions in human resource management in the contemporary business
world.
A lot of research is being done in the field of performance management systems in order to
validate their effectiveness. Performance appraisal has been considered as a measurement
technique by most of the human resource personnel in the past few decades. Therefore, in this
report, we will discuss certain important components of a performance management system
that make it effective.
Components of an Effective Performance Management System
Performance management systems can have a huge impact on the overall productivity and
efficiency of a company but a dysfunctional performance management system can prove to
be determinantal to the market position of a company. Therefore, it is important that human
resource managers keep in mind certain key elements that can make a performance
management system effective, so that it can measure and promote the right behaviour
amongst the employees. Some important components of an effective performance
management system are discussed below:
Planning and Expectation Setting
The first and the most important component of a performance management system is the
planning of performance objectives, goals and expectations. A number of times, business
organisations have been found to have set wrong performance objectives or goals, which
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