Importance of Performance Management System in Human Resource

Running head: PERFORMANCE MANAGEMENT
Perform
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Manage
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Human
Resource

PERFORMANCE MANAGEMENT 1
Performance Management
The intent of this essay is to discuss the concept of an effective performance management
system and its components. In addition, the essay is highlighting the different major aspects
of the performance management system in the context of human resource. Effective
performance management is essential for every business. Through the informal and formal
procedures, it supports businesses in aligning their workforce, systems, and resources in order
to meet their strategic objectives. It operates as the dashboard to provide the warning of the
issues and enabling managers to understand when they should have to make the adjustments
in order to maintain the track of the business operations. Businesses that get the right
performance management become challenging competitive machines (Buller and McEvoy,
2012).
Performance Management System
Performance Management System is said to be the organized approach that is utilized to
evaluate the employee’s performance. It is a procedure by which the business line up its
objectives, goals, and mission with accessible resources such as material, manpower, etc.,
systems and priorities (Kehoe and Wright, 2013). The framework of execution administration
is a continuous procedure of describing and assigning the activity parts and responsibilities,
execution needs, objectives, and set their requirements between boss (administrator) and
subordinates (workers). It united association, office, and representative shared goals and aims
which are lined up with the assets and frameworks. It is said to be the channel of offering
clarity regarding the objectives and enhance the procedures of the businesses by a number of
mechanism and methods.

PERFORMANCE MANAGEMENT 2
The knowledge, skills, and competency gaps are also recognized by this procedure which
could be enhanced by offering direction, training, mentoring, and coaching to the workforce
or team members at diverse designations and levels. It works to adjust the outcomes by a
proper channel and procedure which decreased the struggles and criticisms among employees
or team members. Because every person is very much clear regarding the expectations of his/
her part and put their exertions in order to meet the standards of the performance (Gruman
and Saks, 2011).
Components of Performance Management Systems
Performance Planning – It is said to be one of the first vital constituents of any of the
procedure of the performance management system that creates the base of the performance
appraisals. Performance planning is mostly done jointly by the appraiser as well as a reviewer
at the starting of the performance session.
Performance Appraisal and Revising - The appraisals are commonly done two times in a year
in all the businesses. In this procedure, appraise is the one who provides the ratings that are
filled by him in the form of self-appraisal and also elaborates his/her accomplishments in a
specified period in measurable terms (Markos and Sridevi, 2010).
Performance Feedback monitored by personal analysis and performance assistance –
Counselling and Feedback is given major priority in the procedure of performance
management. Through this, the workforce gain awareness from the evaluator regarding the
areas of enhancement and also how much the worker is contributing and meeting the
expectations of the organization. At this stage, the workforce gains actual and open feedback.
Rewarding Performance - It is one of the most critical components because it defines the
work motivation of the worker. At this stage, the worker is renowned for his/her good