Topic 3: HR Performance Management Systems

A performance management system, which is a combination of performance appraisal and development of employee, are the “Achilles’ heel” of human resources management. According to Amstrong (2006), employee performance management is the system that responsible for employee development by improving their capacity and commitment in working towards the achievement of meaningful shared objectives within an organization which motivated to the reach the business goal effectively and efficiently.

Besides that, Performance management system provide continuous support to organizations especially during taking important decisions about HR and also provide guides to organization how to align their business goals with their employee performance. Therefore, Performance management systems always focus on the relations between individual behavior and organization strategies and goals by defining performance that needed to achieve business goals. They combine traditional task analysis with strategies job analysis as goals and organizational strategies a part in the process.

Based on my understanding, an effective performance management system brings countless benefits for the organizations, which ultimately cascades to improve overall management performance. Firstly, it focuses on key objectives and priorities for the organization, aligning with the management by objectives and the organizational strategy as a whole.  Obviously people in the organization get clarity and shared vision and mission to put their efforts in the correct direction. This also ensures optimization of resource utilization, as people can avoid wastage of their effort pooling all these to the right direction.

Secondly, performance management acts as self-motivating for the employees as they get a clear picture about what they contribute to the organization and how their contributions relate to the organization’s success. Organization also provides the required support to the employees helping them to achieve the results. Thirdly, it allows organizations to monitor how their function as a whole, as it emphasizes on the achievement of targets assigned to the individuals. The monitoring process helps in identifying the performance gaps and thus acts as an important control device to intervene and improve. Fourthly, it helps organizations to align their important HR decisions like promotion, increment, transfer, training, manpower, etc.

In conclusion, I have learnt that the success of the performance management in an organization will depend on all the people involved in the process; the type of performance management system chosen, the implementation process and the rewards and recognition attach to the system will determine the motivational factors in the organization.

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Reference:

Bhattacharyya, D. (2011). Performance Management Systems and Strategies. New Delhi: Dorling Kindersley.