Features, Amendments and Purpose of Performance Management System

This report delves into the features of a performance management system, encompassing goal setting, performance measurement, feedback mechanisms, and performance appraisals, highlighting key performance indicators (KPIs) and the monitoring of training and development. The analysis further examines potential amendments, such as incorporating 360-degree feedback and reward programs to enhance employee motivation and development. The report elucidates the system's purpose, which is to improve staff performance, specify roles and responsibilities, and establish a framework for measuring performance against job roles. It addresses the importance of record keeping and systematic procedures to enhance employee skills, knowledge, and overall organizational effectiveness. The report concludes with a list of references including books and journals.

Assessment Task 2- Role play

a) Introduction to features of performance management
system
 Goal setting and performance measurement processes
 It is the first feature of system in which goals are set and processes is defined. The goals
are based on operational and strategic plans. In this plan is categorised into many areas.
However, goals are set through a specific procedure. it is a systematic procedure of doing
ensuring that goals are attainable.

Formal and informal feedback
 This is another feature of system in which feedbacks are taken from peers, superiors,
managers, etc. that provide insight on performance of employee. The feedbacks taken is in
regard to both formal and informal feedback. In formal, there are certain criteria which is
followed. this include meetings, reviews, etc. of staff. On other hand, informal feedback is
only taken in case of things related to time, behaviour, etc. of employee

Performance appraisals
 In this feature there are several components are included in it. they are
mentioned below
 Performance metrics – the performance is measured through key performance indicators.
The KPI are critical areas in organisation. they are those areas which is most important to
business. It is calculated individually of each employee. The areas are financial measure,
behaviour, productivity, etc. there are many types of KPI’s like input, process and output.
They are most important element of measuring performance.

Monitoring training and development
 It is a feature of performance management system in which training and development of
employee is measured. Through this feature it will be easy to monitor training and
development programs and what employee have learned and gained skills from it. Also, it
is evaluated that the goals and objectives set are attained or not. Along with it, training
needs are determined and on basis of that things are changed. by measuring performance of
training, it can be clarified that what training is required.

Record keeping needs and requirements
 This feature of management system makes things easy to keep records of employees needs
and requirement
 Setting up the proper record keeping system within the business is really important as it
will help to work out the business in an effective manner. Through the process of record
keeping it helps in meeting the legal requirements and also helps in strengthening the
customer relationship as well as staff relationship. One of the basic needs of record
keeping is that it will help to monitor the progress of business as good record keeping can
whether a business is performing well or not.

b) Amendments made in current system
 360 feedback- This change can be included in performance management system. It is
because in current system there is no such criteria or factor taken into consideration.
Moreover, by including this in future development options can be broaden.
 Here, by taking 360 degree feedback it will be easy to measure employee performance. So,
on basis of that training can be provided to them. thus, this change will also play vital role
in performance management. the main thing this amendment will result in improving
employee training and development.

CONT..
 Reward as recognition programmes – this amendment is done in order to motivate
employees on basis of their performance. The rewards are only given to those employees
whose performance is high. Thus, the positive development option through this will be that
low performer employees will get encouraged to perform at high level.
 Furthermore, those who have performed high will like to undertake more challenging
goals. Therefore, with help of rewards performance management can be enhanced. In this
way, in future areas can be identified where rewards are given to staff on basis of their
performance.

c) What is purpose of system and
 It has been stated that necessary amendments are made to improve performance
management system. The main purpose for making alternation in system was to include
different elements that is useful in improving system performance. Also, it was done to
address those area or part that is essential to be included in system.
 With revisions in system it will be easy to measure staff performance and bring in some
changes. The problem that is addressed into it is to strengthen the system. Here, PDP is not
included in current system, so it will allow employee to improve their personal skills.
 Another problem is system does not include 360 degree feedback procedure. thus,
previously employee behaviour was not evaluated. Thus, only numeric data and
information was taken into consideration. So, by doing changes, the system can be
strengthened. Another problem is that previously employee job role and responsibility was
not included in performance.

How it can be attained
 Thus, the alterations made in it are related to enhancing employee performance. In this staff
whose performance is high can learn and gain high skills and knowledge. They can grow
and develop in their own area.
 Moreover, by specifying roles and responsibilities it will be easy to enhance individual
performance. Then, as per job roles higher criteria can be set to make motivate them. Apart
from it, alternation done will provide a new framework for organisation to measure
performance.
 By this the criteria that are not considered or been missed is included in it. This will be
highly beneficial in ensuring that all perspective or factors are entitled into performance
management. .

CONT..
 So, all staff performance was evaluated in same way. their job roles were ignored.
However, making changes in system will be useful in addressing this problem. The staff
performance will be evaluated with regard to their job role. In this way overall purpose
will be attained.
 The issue that is addressed is lack of proper system and procedure to measure performance.
It makes things easy and get it done in systematic way. By mentioning all things and
various criteria in evaluating performance, more development options are identified. it will
help in enhancing staff performance through their skills and abilities.

REFERENCES
 Books and journals
 Alon, A., Lavi, Y.Y. and Tabak, A., SAP SE, 2016. System and method for performance
management in a multi-tier computing environment. U.S. Patent 9,300,523.
 Anjomshoae, A., Hassan, A. and de Leeuw, S., 2017. Toward a dynamic balanced
scorecard model for humanitarian relief organizations’ performance management. Journal
of Humanitarian Logistics and Supply Chain Management, 7(2), pp.194-218.
 Bourne, M., Franco-Santos, M. and Pavlov, A., 2018. Performance measurement and
management: a system of systems perspective. International Journal of Production
Research, 56(8), pp.2788-2799.
 DeNisi, A.S. and Murphy, K.R., 2017. Performance appraisal and performance
management: 100 years of progress?. Journal of Applied Psychology, 102(3), p.421.