Essay on Performance Management

Running Head: Performance Management 0
Performance Management
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Essay on performance management 1
Performance management is an essential practice for human resource management,
which is necessary in order to achieve its goals and objectives. Performance management
refers as a process which constantly identify, measure and develop the performance and
productivity of the organization because the performance of all the members of the
organization impact the overall missions and goals of the organization. In other words,
performance management can be defined as a process of communication between
employer and employee which occurs from time to time in a year and it help the
organization in achieving the organizational strategic objectives (Schlafke, Silvi and Moller,
2012). The process of communication involves clarifying expectations of organizational
performance, identifying the goals, setting objectives to achieve the goals, providing
feedbacks from employees and reviewing results of final performance of their employees.
Performance management ensures that employees are well aware about their key
responsibilities, aware of level of their performance which is expected by the company,
they have opportunities for various training and development programs which helps in
increasing the performance and productivity of the organization, get feedback on the
performance of their employees and implement of rewards system for enhancing the
productivity of their employees (Brudan, 2010). Performance management helps the
organization in various ways such as high employee empowerment, development of
performance of employees, creating various strategies for development of the
organization, help in maintain effective organizational culture, increase value of
organization, improving its performance in the market, better decision making, improving
the performance of lower level of management and achieve organizational goals and
objectives. This essay is related to the components of performance management and
methods from which organization can measure the performance of their employees
(Kagaari, Munene and Ntayi, 2010).
Components of effective performance management system –
There are various components of effective performance management system such as
performance planning, performance appraisal, feedback, rewarding the employees for
good performance, plans for improvement of performance and potential appraisal, which
helps the organization in increasing their performance, productivity and achieving its goals
and objectives (Fryer, Antony and Ogden, 2009).
1. Management involvement – It is the first components of effective performance
management system. According to this, manager are responsible for setting up the

Essay on performance management 2
expectations of performance of individuals as well as the overall organization,
providing feedbacks to their employees related to their performance towards the
organization and giving rewards and recognition to the best performer for their best
performance, so it helps the company in enhancing the productivity of their
employees towards the organization (Ashdown, 2018).
2. Performance planning – Performance planning is an important component of
effective performance management system which create the basis of performance
management system. Both the employer and the employee plan their performance
at the starting point of their work session. With the mutual agreement between the
employer and employee, KRA’ and budget for performance are decided.
3. Performance appraisal and reviewing – Organizations generally have either semi-
annual review or annual review in which they reviewing the performance of their
employees on the basis of at want extent they achieve their targets effectively and
efficiently and in what time they complete their targets then organization appraised
the best employee. This process also include self-review of their employees for their
performance towards the organization (Barth and Beer, 2017).
4. Performance feedback – This is also important component of performance
management system in which there is communication session between employer
and employee. The employer give feedback to their employees and tell them about
their performance, area where they can improve their performance, how they can
improve their performance, employee’s level of contribution towards the overall
performance of organization and expected performance achievement from them by
the organization. The employer need to adopt all necessary steps to ensure that the
employees able to meet their target by effective guidance by them, developing
various training programs for increasing the productivity and performance of their
employees (Canonico, et al, 2015).
5. Rewarding good performance – The next step of the process of performance
management system is to rewarding or recognizing the employees for good
performance for enhancing motivation of the employees towards their work and it
also helps in increasing the performance and productivity of the organization. This
stage is sensitive for every employee because it directly influence on achievement
orientation and self-esteem need, it help the employees in fulfilling the need for
affection.
6. Performance Improvement Plans – After rewarding employees for their best
performance then next step of performance management process is to plans for