KMGT 617: Strategic Impact & Analysis of Performance Management

This essay analyzes the strategic impact of performance management systems in organizations, addressing why organizations implement these systems and the potential issues of not having a formal system. It examines the positive and negative impacts on the organization and its staff, considering the implications for staff, leaders, and business outcomes. The essay emphasizes the importance of setting clear expectations, observing employee performance, assessing skills and efforts, and reviewing results to encourage efficient work. It references Armstrong and Clardy, highlighting the role of performance management in assessing organizational strengths and weaknesses, understanding employee needs, and achieving company goals.

HUMAN RESOURCE MANAGEMENT
HUMAN RESOURCE MANAGEMENT
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Contents
The strategic impact of performance management systems in an organisation:.............................3
1. Why do organisations implement performance management systems?......................................3
2. What would be some potential issues with not having a formal performance management
system in place? How might this have a negative – or positive – impact on the organisation and
its staff?............................................................................................................................................3
3. Consider the potential implications of performance management for staff, for leaders and for
business outcomes:..........................................................................................................................4
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The strategic impact of performance management systems in an organization:
1. Why do organizations implement performance management systems?
Performance management is of the most important objectives for an organization’s growth. By
this system, we not only understand about the growth and prospects of that organization but also
about employee’s performance within organization. With the help of this process self assessment
would become easy for the employees (Armstrong 2009). By the help of performance
management system, we easily can get an idea about how many products are sold from that
particular organization. With the help of this performance management process, managerial
bodies and authorities can assess skills, talents, abilities and knowledge of the employees of a
particular organization and also can understand how to use their efficiencies and competencies in
the right path. With the help of this process leaders and supervisors can encourage their well
competent employees to think innovatively for the sake of their respective organization. To
implying this process an organization can easily identify the exact social, economic and
commercial position and reputation of that organization on the global market scenario. Thus we
can clearly state that this strategic performance management is a very important factor for
measuring the commercial, social state of that organization and their employees (Armstrong and
Baron 2005).
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2. What would be some potential issues with not having a formal performance management
system in place? How might this have a negative – or positive – impact on the organisation
and its staff?
In some organization, we can find that they do not follow any kind of strategic performance
management process. Performance management is very much beneficial for a company's
goodwill and growth. Without performance management process a company can never assess
their pros and cons. This has not only helped them to assess their economic and commercial
status it also helped them to assess the inside environment of that particular company. We always
can assume the demands of the employees with the help of this process (Clardy 2013). With the
help of this process a leader or supervisor can understand how much support, involvement and
co-operation does their team need for the sake of the growth of their company. With the help of
this process, the company can set its aim and target. They might set a clear mission and vision
both. With the help of this process, a company can identify a clear objective which they need to
conquer for their betterment. Thus without the implementation of the performance management a
company can never achieve their goals and employees also can never modify and upgrade
themselves.
3. Consider the potential implications of performance management for staff, for leaders
and for business outcomes:
The performance management process must be implied very strategically in an organization.
Here we are discussing the employee development using this strategic implementation of
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performance management (Stalinski and Downey 2012). There are four different steps must be
followed to get an expected outcome.
 At first, the authorities or leaders must set an expectation for their employees. In such a
case, an efficient leader is needed. The leader must be very friendly and approachable and
also he must be very rigid at their position. With the help of their leaders, the team
members can understand their objectives and their responsibilities also.
 After that, the leaders and supervisors must observe their performances, approaches and
attitudes also towards their works.
 After that observation leaders need to do a brief assessment of their team members
according to their performances. In this case, their skills, eligibility and their efforts are
counted.
 Lastly, the leaders must review their results according to their performances. In that case,
each and every employee must get an appraisal letter for their respective authorities. This
will encourage them to work more efficiently.
References:
.
Armstrong, M., 2009. Armstrong's handbook of performance management: An evidence-based
guide to delivering high performance. Kogan Page Publishers.
Armstrong, M. and Baron, A., 2005. Managing performance: performance management in
action. CIPD publishing.
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Clardy, A., 2013. A general framework for performance management systems: Structure, design,
and analysis. Performance Improvement, 52(2), pp.5-15.
Stalinski, S. and Downey, M., 2012. Moving from performance management to managing
performance: A systemic approach. People and Strategy, 35(1), p.38.
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