Performance management



Introduction1

Discussion1

Performance Management1

Performance management process2

Performance Appraisal2

Motivational aspect of performance appraisal3

Organizational climate and organizational commitment4

Trust and Confidence in the PA system4

Performance Appraisal role and importance5

Setting Targets7

Appraisals Controversy7

Factors affecting performance appraisal8

Pay10

Promotion11

Conclusion11

References13

Performance management

Introduction

The paper will be based on understanding the theory and practice of performance management system and it will also discuss the factors which take into account for developing performance appraisal system. Furthermore, the paper would also discuss the factors which affect performance appraisal and the controversies related to it. In addition, the paper will also discuss the importance of performance appraisal for organization and how does it impact employee's performance.

Discussion

Performance Management

It is considered as a systematic process which involves an organization to involve its employees as members and individuals of a group which help in improving organizational effectiveness and accomplishing developed goals and objectives. Performance management is considered as a combination of human resource system and management which is designed to enable employee to perform their work effectively and in high quality (Taylor, 2006). This helps to improve their abilities and skills and to work to support the strategic goals and objectives of the company. It is considered as a continuous process which starts with performance planning and develops through employee development and performance appraisal.

Performance management process

Performance management system is based on as series of activities which occur at different points in the performance management cycle. It is considered as the series of activities and steps which occur at different points when the employee performance is evaluated and provided feedback. The steps of performance management are as follows:

Performance planning

Monitoring and Observation

Appraisal and Rating

Communication and feedback

Individual development

Recognition and reward (Marsden, 2004)

It is noted that these steps of performance cycle are not considered as progressive process. One of the most important process of performance management is that its process is followed in an order once in a year. It is the responsibility of the managers to perform this process.

Performance Appraisal

Performance appraisal is defined as the process when the employees are evaluated on the basis of their performance. These appraisals are related to corporate goals as employees achieve these goals which benefit the organizational performance. The result of performance appraisals are used to offer career counselling, recognize training and development opportunities, change rates of pay and provide information for discipline and discharge decisions. PA is considered to be a part of a broader approach known as performance management. Bach (2005) states that human resource management (HRM) is currently focused on employee monitoring and under this approach appraisals are adopted as a cost cutting tool.

Motivational aspect of performance appraisal

Early research commonly assumed that managers aimed to rate employee performance accurately, and that accuracy in performance ratings was a function of the manager's cognitive capability. However, Deery, Iverson, Walsh (2002)argue that rather than being incapable of rating accurately, inaccuracies in ratings were likely to be due to the manager's motivation to provide accurate ratings. A number of situational and personal factors contribute to a manager's motivation (Williams, 2002)Recent studies have found that a ...