Performance Management in Business Operations Analysis

This report provides a detailed analysis of performance management within a business context. It defines performance management as an ongoing process aimed at aligning activities with organizational goals, focusing on overall performance across various levels. The report explores the impact of su...Read More

HUMAN RESOURCES
AND BUSINESS
MANAGEMENT

TABLE OF CONTENT
 Performance management
 Impact of successful performance management on the operation of the business
 Key features of a performance management system
 Consequences for staff resulting from a performance management review
 Effectiveness of performance management systems in a business
 Conclusion

Performance management
 Performance management can be defined as
an ongoing process that helps in ensuring that
set of activities can meet organizational goals
and objectives and an effective and efficient
manner.
 Performance management mainly focuses on
overall performance of an organization, their
employees, departments etc.
 Performance management process mostly
includes translating desired goals in terms of
results that are themselves described in terms
of quality, quantity, cost and timeliness.

Impact of successful performance management on the
operation of the business
 Performance management is a kind of concept that lay emphasis on continuous
improvement of employee’s overall performance which further impacts overall
productivity of an organization that helps them in long run.
 Successful performance management of employees is quite helpful for an organization
to achieve their desired objectives. In order to increase overall productivity of a
business successful performance management is quite important.

Continue…
 Successful performance management can help an
organization to monitor employee’s performance,
analyze and provide feedback so that they can bring
improvement within their performance for
successful accomplishment of business operations.
 Successful PM is one of the main factor that human
resource management of an organization should
focus on, so that they can compare their employee’s
actual performance with desired performance.
 On the basis of this comparison they can judge their
employees and categorize them within over
performed, satisfactory or under performance
employee.

Key features of a performance
management system
Performance management system includes various kinds of human resource related
functions such as: performance review, setting goals, feedbacks, rewards, compensation
and many more. This helps HR managers to motivate their employees and explain
organization’s expectation from them so that they can work on it.
Some of the most common key features of performance management system are
as follows:
 Setting clear objectives and goals:
 HR managers are required to define performance objectives and plan clearly in order to
develop their employees interest within it.
 This helps them to manage and explain their employees to fulfil their goals and objectives.

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 Communication and real time feedback provision:
 Performance management system helps in creating a culture for effective communication
about team training, objectives and many more.
 Effective communication and providing employees with real time feedback not only
motivates workers, but also provide opportunity to improve themselves.
 Performance review:
 An ideal performance management system helps an organization to align their employees
with business mission and vision and in order to align everyone with company’s aim and
objectives performance of review of both employees and managers are done so that area or
scope of improvement can be identified.

Consequences for staff resulting from a performance
management review
 Performance management system has various consequences of staff members of an
organization.
 An effective and successful performance management system can motivate the
employees and boost their overall performance.
 But ineffective performance management system can increase workload, pressure on
employees and can even demotivate them. Some common consequences for staff
members from performance management review are as follows:
 Performance management review can help the staff members to learn to take their
responsibilities and take the ownership of performance issues as it works as an opportunity for
them to move forward within their career path.
 Performance management review helps the staff members to learn and work within team more
appropriately. They learn to bring improvement within their work and others in a better
manner. It not only encourages staff members to bring improvement within themselves and
their work but helps them to encourage others in order to accomplish their goals and
objectives in a better manner.

Effectiveness of performance management systems in a
business
 Performance management system plays a vital role in success of a business and is quite
effective.
 PMS can help Thomas Owen Ltd to identify issues faced by them or areas that are
required to be improved in a better manner.
 It further helps them to analyse and review whether improvement or progress has been
made within their business or not.
 Proper PMS can lead a business organization to sustain within the market in which they
operate and gain competitive advantage.
 It can also help a business organization to positively control their staff members and
focus on training & development of their employees to accomplish their main goals and
objectives.

Conclusion
 From the above presentation it has been concluded
that performance management system plays a vital
role within an organization that helps them to
achieve desired goals and objectives and further
helps them in accomplishing their overall business
operations successfully.
 Effective performance management system not
only helps an organization to sustain within the
market in which they operate but also helps them
to gain competitive advantage.

REFERENCES
 Kokina, J., Pachamanova, D. and Corbett, A., 2017. The role of data visualization and
analytics in performance management: Guiding entrepreneurial growth
decisions. Journal of Accounting Education. 38. pp.50-62.
 Mononen, P. and Leviäkangas, P., 2016. Transport safety agency's success indicators–
How well does a performance management system perform?. Transport Policy. 45.
pp.230-239.
 Sharma, N.P., Sharma, T. and Agarwal, M.N., 2016. Measuring employee perception of
performance management system effectiveness. Employee Relations.
 Sutheewasinnon, P., Hoque, Z. and Nyamori, R.O., 2016. Development of a
performance management system in the Thailand public sector: Isomorphism and the
role and strategies of institutional entrepreneurs. Critical Perspectives on
Accounting. 40. pp.26-44.