Comprehensive Analysis of Performance Management in HR Systems

This essay delves into the intricacies of performance management within the Human Resources (HR) context. It defines performance management as a continuous communication process between employees and supervisors, aimed at aligning individual efforts with organizational goals. The essay outlines the key steps involved in the performance management process, including evaluating current procedures, setting performance expectations, continuous monitoring, performance evaluation, and setting new objectives. It identifies and discusses the critical components of an effective performance management system, such as performance planning, ongoing communication, data gathering, documentation, observation, performance appraisal meetings, and coaching. The essay further examines various methods for measuring employee performance, including employee performance standards, graphic rating scales, and management by objectives. It emphasizes the importance of these methods in providing accurate and fair assessments. The essay concludes by highlighting the significance of a well-structured performance management system in fostering employee development, enhancing organizational effectiveness, and contributing to long-term success. The essay also references several academic sources to support the claims.

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Performance management for HR
System04116
5/2/2019

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This essay discusses about the performance management system of HR. Performance
management is the continuous communication process between an employee and supervisors
that occurs throughout the year with the purpose of accomplishing the strategic goals of the
organization. It creates an environment of work or setting in which individuals are competent to
perform or work to the greatest of their capabilities (Deb, 2009). In this essay, the process of
performance management system will be discussed that helps to identify the performance of
employees within the organization and manage those performances to achieve the goals. the
process consists of evaluating present performance appraisal procedure, recognize organizational
objectives, fix expectations of performance, checking and developing performance all over the
year, evaluation of performance and fixing of new outlooks of performance for next year.
Furthermore, the components of an effective performance management system is identified and
discussed. The components such as; planning of performance, continuous performance
communication, gathering of data, documentation, observation, meetings for performance
appraisal, diagnosis and coaching for performance. All these will be discussed or analyzed
further.
Performance management is the process of making and setting the environment for work in
which employees of an organization can perform or work to the greatest of their competences.
Performance management is a complete work system which begins when a job is defined as
required. It ends at the time people leave company (Vitez, 2019). It provides feedback,
documentation and accountability for performance results. It assists people or employees of an
organization to channel their talents towards the goals of an organization (Cardy, 2015).
The performance management process followed to identify the performance of the teams within
the organization. The first step is to defining the objectives or purpose clearly for current
employees in order to make connect all the teams to achieve the target of the company. The
second step is to planning for performance which includes following attributes such as results,
behaviors and development plan. The third step is to execute the performance because the
complete exercise of creating management of performance systems and making up standards will
rely on it. The fourth step is to measure the performance of both employee and the organization
against their goals. The process comprise to extent of targets of employees, behaviors or attitude
and achievements during the cycle of performance appraisal. The fifth step is review the

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performance where the managers and employees exchange feedbacks of performance and review
performances against given objectives or goals to the employees (Debrincat, 2014). They also
discuss about the development or growth plans, training to workforces for improving the skills
and understanding, also improve the next year targets and goals and expectations of the
organization’s manager and employees both. The last step is to renew and reconstruct the
performance in such as way it should be align with the next year organization’s goals, mission,
and objectives and connect with the department goals. it is important as the external environment
of the organization like customers, markets, suppliers, competitors etc. are also revolved and all
these subsequent variations has to perquisites for the planning of performance and setting with
organization’s strategic objectives (Cundle, 2019).
The different method is used to measure the performance within the organization such as
employee performance standard, management by objective, graphic ranking scales and forced
rating of employees. An employee performance standards; the measurement of performance of
employee determined the compensation, opportunities for advancement or status of employee.
For this reason, programs for performance management comprise of methods which assist
accurate and fair performance assessment of employee (Islami, Et al, 2018). To help with
measuring the performance of employee, organizations create standards of performance. It
outlines what it takes for workforces to enhance the expectations of performance of company.
The graphic rating scale; it is perfect for production based work environments and for other
organization which move at a fast pace. These graphic ranking scales comprise of the list of
responsibilities of job, principles of performance and the scale which mostly from 1-5 for rating
the performance of person. This technique for measure of performance of workforce needs
preparations but it can be completely rapidly. Management by objectives; it is beneficial for
measure the employee’s performance in supervisory and managerial positions (Mayhew, 2019).
It begins with identifying goals of the employees and at this phase the employee and their
managers list necessary means to attain the objectives. During the period of evaluation, an
employee and a manager meet from time to time and quarterly is better to discuss the progress of
an employee and to reorganize aim for that the employee requires extra resources and time to
accomplish. The performance of the employee is evaluated by how many goals of them they
completed within the time frame designed. Employee’s Forced ranking; it measure the
performance of employee against those of employee’s peers in place of comparing the present

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evaluation period of employees against their own previous performance. Hence forced ranking
method is used to create the competitive environment for work. All these method are best to use
for measuring the performance of the workforces within the organization (Julnes, 2017).
The components of performance management system help to identify the performance of the
workforces in the effective and efficient manner within an organization. There are various
components for the effective performance management system such as performance
development or planning; it is a primary component of procedure of performance management
that forms the base of appraisals of performance (Moore, 2019). The planning or performance is
mutually done by an appraisee and reviewee in the start of the performance session. Throughout
this time, the workforces decide on the objectives and the areas of important performance that
can be performed within the budget of performance over the year which is confirmed after the
joint contract between the employee and the manager. Performance reviewing and appraisal; the
appraisal is generally did two times in a year within the company in the form of annual
appraisals and mid appraisals that is held in the end of a financial year. In this procedure,
appraise offer the ratings which is self-filled up in the quantifiable terms (Mone, Et al, 2018).
After self-filled up ratings, the final rankings are given by the evaluator for the assessable and
quantifiable successes of the employee being assessed. The whole review procedure seeks an
active contribution of both appraiser and employee for evaluating the results of loopholes in
performance and the ways of overcoming it. The response on the performance which is
monitored by individual counselling and performance simplification; it gives a lot of significance
in the process of management of performance. At this stage, an employee gets attentiveness from
the evaluator about the improvement areas and facts on whether employee is contributing the
performance at estimated level or not. An employee get an open and clear response and with this
the development and training requires of an employee is also evaluated. The evaluator takes on
all the possible action to ensure individual counselling and guidance, representing and mentoring
the employees in programmes of training which develop the capabilities and increase the whole
productivity. Rewarding better performance; it is important components because it determine the
motivation of work of employee. At this phase, an employee is openly recognized for better
performance and is remunerated. Thus this phase is subtle for the employee as it might have
straight impact on the self-confidence and alignment of achievement (Fagnani, 2019). Any
influence duly accepted by the organization assists the employee in supervising with the

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letdowns effectively and satisfied the requirement for affection. A development plans for
performance; in this phase, new target sets are established for an employee and fresh time limit is
given for achieving their goals. An employee is communicated appropriately about zones in
which they are expected to progress and a definite deadline is also given within that the
employees have to show improvement. This performance development plan is mutually created
by appraisee and appraiser and is equally approved. The Possible appraisal; it creates a base for
adjacent and upright both movement of workforces. By applying ability mapping and many
techniques of measurement, possible appraisal is executed. Possible appraisal gives vital
contributions for progression planning and rotation of job (Buckingham, Et al, 2015).
From the above study it is concluded that performance management system is very effective for
every organization as it enables the organization to fulfill the expectations of them for long
period. An organization follows the procedure of performance management to identify the
performance of workforces within the organization and provides guidance to employees to
improve their performance and effectively work towards the accomplishment of the goals.
Various methods are followed for the measurement of performance which develops the
specialized skills in the long run. As a result it will permit the personnel to contribute towards the
long period success of the organization by considered the components and suitable methods to
increase the quality of results achieved. Appraisal system that an organization used will allow it
to be clear and unbiased to all their employees to motivate them to attain the better outcomes in
its particular organizations.

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References
Buckingham, M. and Goodall, A. (2015) Reinventing performance management. Harvard
Business Review, 93(4), pp.40-50.
Cardy, R. (2015) Performance management: concepts, skills and exercise. 2nd ed. New York:
Routledge.
Cundle, H. (2019) What are some components of an effective performance management system?
[Online]. Available from: https://smallbusiness.chron.com/components-effective-performance-
management-sys)tem-67632.html [Accessed: 02/05/2019]
Deb, T. (2009) Performance management system. New Delhi: global vision publishing.
Debrincat, G. (2014) The effectiveness of performance appraisal system: employee relations and
human resource management. Hamburg: Anchor academic publishing.
Fagnani, S. (2019) What are the characteristics and components of a highly effective
performance evaluation? [Online]. Available from:
https://smallbusiness.chron.com/characteristics-components-highly-effective-performance-
evaluation-10644.html [Accessed: 02/05/2019]
Islami, X., Mulolli, E. and Mustafa, N. (2018) Using Management by Objectives as a
performance appraisal tool for employee satisfaction. Future Business Journal, 4(1), pp.94-108.
Julnes, P. (2017) Performance-based management systems: Effective implementation and
maintenance. UK: Routledge.
Mayhew, R. (2019) The three types of methods used to measure performance. [Online].
Available from: https://smallbusiness.chron.com/three-types-methods-used-measure-
performance-23612.html [Accessed: 02/05/2019]
Mone, E. and London, M. (2018) Employee engagement through effective performance
management: A practical guide for managers. UK: Routledge.

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Moore, M. (2019) Employee performance appraisal. [Online]. Available from:
https://smallbusiness.chron.com/employee-performance-appraisal-1962.html [Accessed:
02/05/2019]
Vitez, O. (2019) About performance management systems. [Online]. Available from:
https://smallbusiness.chron.com/performance-management-systems-43401.html [Accessed:
02/05/2019]