Performance Management: Overview, Definition, Framework, Characteristics, and Practices

RUNNING HEAD: PERFORMANCE MANAGEMENT
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Performance
Management
Report
Student Name
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Performance Management
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2.1 Overview of Performance management system
Performance management system is an approach to evaluate the
performance of employees in an organization. It is a process by which the
organization set their priorities and aligns their goals, objectives and mission
with the available resources that are man, material and capital. This process
helps in identifying the skills, knowledge and competency gaps which can be
further improved by giving , trainings, guidance, mentoring and coaching to
the teams or employees at higher to lower levels and roles (Noe, et al., 2017).
It improves the final outcome or performance through an efficient channel
which reduces the conflicts and grievances between employees and teams.
Because each employee is clear about their goals and role and put their best
to attain the performance as per set standards (Buckingham & Goodall, 2015).
Performance management system is useful to align the goals of organization
with the employee’s individual goals so that overall performance of the
organization will be improved. The system is a tool to make effective
communication with the employees and to inform them about their roles,
responsibilities, key result areas and key performance areas.
This report consists of the meaning and characteristics of the performance
management system and the system or process of for managing the
performance in an organization. Furthermore, report includes the analysis of
the performance management practices in the world and in Malaysia.
2.2 Definition of Performance management system
According to Armstrong “Performance management system is a process
which helps in effective management of the teams and individuals in order to
attain the organizational goals and improve overall organizational
performance” (Armstrong, 2009).

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Briscoe define the “performance management as the system by which an
organization set their goals, assign the work and evaluate the work of
employees, determine performance standard for the employees and provide
feedback totem on the basis of their work and knowing the training and
development needs and then according to the performance provide rewards
and recognition” (Tarique, et al., 2015).
According to Adler “performance management involves activities that
organization applies in the objective of ensuring its goals and achieved
efficiently and consistently. The scope of performance management changes
and can be applied at different organizational levels that includes
employees, processes and departments. The primary aim of the performance
management system is to make sure that each strategy of the organization
will implement in order to achieve the organizational goals (Brewster, et al.,
2016).
Most of the organizations focus on the performance appraisal rather than
focusing on aligning the individual goals with the organizational goals, but
performance appraisals are not the performance management it is part of
the performance management framework and the process of performance
management is incomplete without the performance appraisal. Performance
management system is the process that includes continuous measuring,
recognizing and improving the team and individual performance in the
organization and interlinking the performance of employees with the
organization strategic goals.
2.3 Framework
Performance management system is a process of planning the performance
of the employees and at the end appraises the actual performance with the
planned one. This helps in knowing whether the employees achieve their set
targets or the planned performance or not and if not then reason behind the

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deviation between actual performance and plan performance is identified
(Mone & London, 2018).
Performance Planning: Performance planning is setting up the standard of
the employees according to their roles and abilities. The performance
planning is the first step in performance management system through that
proper plan is formulated for each individual for a particular time period
according to the organizational goals and then employees put efforts
towards achieving their goals. Performance planning is important for defining
the expectations, results to be attained and the knowledge, expertise and
skills required to accomplish these results (Budworth, et al., 2015).
Figure 1: Performance Management Framework
Source: (Barth & Beer, 2017)
Coaching and Feedback: After performance planning next step is
performance assessment and giving feedback to the employees as per theirFramework
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