PERFORMANCE MANAGEMENT

Organizational Success, Performance Management and Motivation



Organizational Success, Performance Management and Motivation

Relationship between Organizational Success, Performance Management and Motivation

The two critical determinants of organizational success are motivation and performance management. Only if the employees are motivated will they perform well. Since the performance of the employees plays an immense deal on organizational success, it is essential to keep the employees motivated to enable them to perform well. Therefore, it can be clearly said that all three have a relationship with one another and organizational success cannot be achieved in the absence of performance management and motivation.

Relationship between Performance management and Reward

With reference to the level of performance that an employee has given, the organization makes the disbursement of the rewards. It is the duty of management to manage the performance of the employees. This is done by evaluating the performance of the employees against the benchmark they have been assigned to complete. When employees perform well and work more than their assigned benchmark, they should be rewarded by the company. However, these rewards can be monetary as well as non-monetary. Rewarding the employees is necessary because motivation is dependent on these rewards.

Research Outcomes

Purposes of performance management and their relationship to business objectives

Diagnoses of Organizational Problems

Performance appraisals immensely help in diagnosing the organizational problems. They do this by identifying the skills of the employees and their training needs. The evaluation helps them in differentiating the efficient performers from those who are not much efficient. Therefore, the performance approvals represent the beginning in the hiring process.

Employment decisions

Both legal as well as the formal organizational justification is provided by the performance appraisal. This further helps in making the employment decisions on which the promotion of the employees is based. The appraisals also help in making decisions for the poor performances and for those who need to be trained or transferred.

Components of performance management systems

The five main components of performance management system are mentioned below.

1.Performance planning - This forms the basis of performance appraisals and is done together with by the appraiser and the reviewer. Employees decide the targets and the areas that need improvement. After a mutual agreement between the two, the final decision is made.

2.Performance Appraisal and Reviewing - Mostly, organizations perform performance appraisals twice in a year. Employee is first made to do self-appraisal after which the appraiser provides the final ratings.

3.Feedback on the Performance, personal counselling and performance facilitation - After the performance management system, feedback and counselling is provided to the employee to make him aware about his strengths and weaknesses. This helps the employee in making improvements in his performance in the future.

4.Rewarding good performance - After the performance appraisal is conducted, employees should be rewarded with both monetary and non-monetary rewards. This is very important because the employee's motivation is dependent on the rewards.

5.Performance Improvement Plans - New goals and deadlines are set for the employees and he is asked to accomplish those objectives. The management clearly communicates the objectives to the ...