Performance Management Loses Its Value If It Isn't Connected To Other Organizational Functions. Strategic Planning and Performance Management Are Intimately Linked Together

Performance Management Loses Its Value If It Isn't Connected To Other Organizational Functions. Strategic Planning and Performance Management Are Intimately Linked Together

Introduction

Effective performance management requires more than formal reports and annual evaluations. A full evaluation process includes everyday informal interactions between supervisors and employees, as well as formalized personal interviews.

Performance management is the monitoring and assessing of the performance of the staff and the employees; therefore, it should be made sure that the management is careful while reviewing the performances. Performance management actually improves productivity and profits, but unfortunately many organizations do not understand the process and often reduced to a mere administrative formality that has little value (Mayer, 1999). A positive feedback indicates a good performance. This feedback should be provided in a timely manner, and it must be specific and frequent. Recognizing effective performance is a valuable source of motivation.

Discussion and Analysis

The performance management also allows organizations to better communicate their common and operational goals. Indeed, when the performance reached its highest level, the company can benefit from a range of benefits such as increased income of the organization, improved interpersonal relationships between members and simplifying tasks in implementing a control system. The performance management system in the organization must sure that the employees are well aware of it so that they can improve their performance and can work in the same manner. The key factors that impact the performance of the employees are employee motivation, performance, engagement in decision making, employee absenteeism, employee morale etc (Lawler, 2001).

Performance management has very different interpretations and applications. A very large proportion of organizations in the cultural sector do not manage employee performance in a systematic way for all sorts of reasons. Organizations should manage employee performance with a system of continuous feedback based on regular and effective communication between managers and staff with minimal bureaucracy. The concept of performance management can be applied to many and almost businesses. The concept is helpful in assessing and evaluating the performance of the employees' working any organization. The performance management system should be first introduced in the organization and the employees should be made aware of it prior to assessing and evaluating their performance (Roberts, 2003).

This concept is very helpful in the business field as it helps the employers ...