Premium Essay

Performance Management: Its Definition and Benefits for Organizations and Its Employees

In:

Submitted By Jledwards968
Words 1312
Pages 6
Performance Management:
Its Definition and Benefits for Organizations and Its Employees
Jelissa Edwards

Management 0100
Sasha Chatar
October 24, 2014

Performance management is understood to be an ongoing process that manages employees and staff performance in alignment with the organization’s overall goals and performance. It is also understood that the aim is to help employees and staff members understand how their skills and efforts contribute to the organization. The management of performance within an organization can be of benefit to the organization and its employees in various ways. It can provide clear accountability and improve productivity for organizations as well as removing doubt by providing a clear understanding of expectations and motivating employees. THE DEFINITION OF PERFORMANCE MANAGEMENT

Michael Armstrong, former Chief Examiner of the Chartered Institute of Personal
Development (CIPD), defines performance management as “a systematic process for improving organizational performance by developing the performance of individuals and teams. It is a means of getting better results from the organization, teams and individuals by understanding and managing performance within an agreed framework of planned goals, standards and competence requirements.”1
PERFORMANCE MANAGEMENT BENFITS FOR ORGANIZATIONS AND EMPLOYEES
Organization Benefits

Performance management is carried out through the use of performance assessments— also known as performance appraisals—that are used by managers to formally assess and rate

1

Michael Armstrong, Performance Management: Key Strategies and Practical Guidelines (London: Kogan
Page Limited, 2006), 1.

1

individuals within the organization. 2 In addition, the role of appraisers when carrying out performance assessments is to give appraisees feedback based on factual evidence that

Similar Documents

Premium Essay

שייכות במסגרת העבודה מחקר

...org/ijbm International Journal of Business and Management Vol. 5, No. 12; December 2010 Employee Engagement: The Key to Improving Performance Solomon Markos (Corresponding author) PhD Scholar, Department of Commerce and Management Studies, Andhra University Waltair, Visakhapatnam-530 003, Andhra Pradesh, India Tel: 91-996-664-1683 E-mail: solomonmarkos5@yahoo.com M. Sandhya Sridevi Professor, Department of Commerce and Management Studies, Andhra University Waltair, Visakhapatnam-530 003, Andhra Pradesh, India Tel: 91-984-884-2230 Abstract Employee engagement is a vast construct that touches almost all parts of human resource management facets we know hitherto. If every part of human resources is not addressed in appropriate manner, employees fail to fully engage themselves in their job in the response to such kind of mismanagement. The construct employee engagement is built on the foundation of earlier concepts like job satisfaction, employee commitment and Organizational citizenship behaviour. Though it is related to and encompasses these concepts, employee engagement is broader in scope. Employee engagement is stronger predictor of positive organizational performance clearly showing the two-way relationship between employer and employee compared to the three earlier constructs: job satisfaction, employee commitment and organizational citizenship behaviour. Engaged employees are emotionally attached to their organization and highly involved in their job with a great enthusiasm...

Words: 5173 - Pages: 21

Premium Essay

Strategic Management

...MANAGENT 1.0 Introduction This chapter introduces the concept of strategic management and provides an overview of strategic management. This chapter is divided into six sections. The first section explains the evolution of the strategic management concept. This is followed by the second section on definition of strategic management. The third section describes the context in which strategic management takes place. This is followed by the fourth section which covers the scope of strategic management. The fifth section shows some of the benefits of strategic management for organizations. Finally the sixth section describes the process of strategic management. Upon the completion of this chapter you should be able to: 1. understand the concept of strategic management 2. know the brief history of the strategic management concept 3. understand the definition of strategic management 4. know the context in which strategic management occurs 5. comprehend the scope of strategic management 6. describe the benefit of strategic management 7. know the strategic management process 1.1 Introduction to the Strategic Management Concept Strategic management is a concept that originated from the military field. The concept of strategic management was first applied in ancient battles. The period around 500 B.C. saw numerous battles that took place Greece and China. The early written record on strategic management can be traced back during this warring period. The term strategy is...

Words: 4525 - Pages: 19

Premium Essay

Training and Employees Performance

...Employee Performance A Case Study on 2 Small Organizations in Jordan Aburamadan J. Al-Odat J. ABSTRACT Purpose: The purpose of this paper is to investigate the effects of employee training on employee performance in small organizations. The study seeks to focus on the employee training-performance relationship. Design/Methodology: A literature review on employee training and employee performance provides the basis for the research model and hypotheses. A self-completion questionnaire survey, involving 96 respondents from two small organizations was used to gather data. Findings: Findings indicate a positive relationship between training and employee performance. Also the findings show a lack of training in employees in these 2 small organizations. Research limitations/implications: The sample was limited to two organizations in Jordan. It may not be appropriate to generalize the findings across other populations or settings, lack in budget and time. Article Type: Research paper Keyword(s): Small Organizations; Employee Training; Employee Performance. THEORETICAL FRAMEWORK In this part of the research, we will show what variables are involved in the research, what our hypothesis, and a model to show the relationship between the variables. A- The Variables This research will discuss 2 main variables which are: 1- Employee Training & Development, which is recognized as an independent variable since it is the variable which affects performance. 2- Employee Performance, which...

Words: 3626 - Pages: 15

Premium Essay

Human Resources Management

...great CEOs who understand this concept have realized that helping employees work at most favorable level will enable the company grow profitably. And thus, best performing organizations have strengthened the high performance through maintaining personal accountability to the employees. Hence, the HRM of the mentioned in the case need to adopt this strategy to improve its performance for a competitive advantage against other organizations undergoing the same hardship. Attracting the right people to the organization For instance, organizational culture is a collective interaction of environments, experience, behaviors and coworkers that are consistently supported and demonstrated in an organization. Hence, this company needs to attract the right people who will embrace and work within the culture of the company that will lead to improvement of its hardship, financial performance and gain competitive advantage over its competitors who have not adopted the system. (Meehan, Gadiesh & Hori, 2006). Moreover, the company can improve its hardship and gain competitive advantage over its competitors by cultivating and building a performance culture through good leadership of rewarding the behaviors, practices and words that are more similar with the organization`s mission. This practice will improve employee performance and consequently lead to better performance of the company. Moreover, HRM of poor performing organization as in the case need to construct a long-term planning as this will...

Words: 1217 - Pages: 5

Premium Essay

Managerial Thought

...The Core of Management Thought and Practice “The Concept of Rationality in Decision Making” Rationality is a thinking process that employs logical, objective, and systematic methods in reaching a conclusion or solving a problem. It is the brain that works in order for the people to think more critically and it can consume more energy. Before you make a decision there are certain steps or methods that should be followed to come up with a right decision. A certain comprehensive process should be followed to limit faults. However, there are situations that people prefer to follow their intuitions which are too risky in making logical decisions. In order to maintain a rational way of thinking, ponder before making a decision. Try to test first the possibilities that would happen if you will choose the decision. Weigh its advantages and disadvantages in order to test what would benefit you more. Never trust your instincts. Given the definition and explanation of rationality, we can relate it to managers who are responsible in making a decision in a company. The most crucial and interesting job of a manager is decision making. When they decide managers prioritize the welfare of the company than their personal interest. Is Management a Science or Not? One of the continuing questions in the field of management is whether it is really considered a science or not. Many management gurus were explaining why they consider management as a science or how it is insufficient...

Words: 2194 - Pages: 9

Premium Essay

Differing Perspectives on Quality

...not one of Garvin’s “definitions” of quality? a. transcendent b. value-based c. manufacturing-based d. user-based e. cost-based ANSWER: e; DIFFICULTY: moderate 2. According to Garvin’s __________ definition of quality, quality is conformance to the design specifications. a. transcendent b. manufacturing-based c. user-based d. product-based e. value-based ANSWER: b; DIFFICULTY: moderate 3. According to Garvin’s __________ definition of quality, quality is found in the components and attributes of a product. a. manufacturing-based b. value-based c. user-based d. transcendent e. product-based ANSWER: e; DIFFICULTY: moderate 4. Garvin’s __________ definition of quality states that if the customer is satisfied, the product has good quality. a. product-based b. user-based c. value-based d. manufacturing-based e. transcendent ANSWER: b; DIFFICULTY: moderate 5. Which of the following choices correctly matches one of Garvin’s definitions of quality with its explanation? a. manufacturing-based definition— quality is found in the components and attributes of a product b. value-based definition— if the product is perceived as providing good value for the price, it has good quality c. user-based definition— if the product conforms to design specifications, it has good quality d. product-based definition— quality is something...

Words: 4418 - Pages: 18

Premium Essay

Human Resource Management

...When an organization encounters extreme turnover, the organization will suffered in terms of brain drain that is considered as the loss of skills, power, and human resource. However organizations that have little turnover will achieve their objectives. There are two types of turnover, that this essay will focus on as well as the causes and ways that can be used to counter both turnovers. Firstly, turnover refers to leaving the organization because of employees not being happy with their employer’s decision or attitude, which creates job dissatisfaction occurring from negative treatment. Involuntary turnover occurs when the organization causes depression or dissatisfaction by terminating employees, in simple terms “turnover initiated by an employer (organization)” (Noe, et al., 2011). Voluntary turnover refer to employees reaction against bad situation offered by the organization or in other words, “turnover initiated by individual employee” (Noe, et al., 2011). These two turnovers lead the organization into “brain drain” in terms of human resources and negative publicity. Secondly, involuntary turnover is used by the organization for reasonable reasons to encounter the change and also to avoid harassment and other activities that can put the organization into serious issues in the future. Noe (et at, 2011) stated two causes of this kind of turnover which is “drug use” and “downturn”. Employee who use drug but not only drug, harassment activities within the organization has a...

Words: 1432 - Pages: 6

Premium Essay

Student

...Task 1 Human resource management is one of the most important divisions in an organization because it is the base of the organization and enables the organization to achieve their goals by attracting the right pool of employees and to train, develop, control, and manage them. Human resource management is the utilization of employees to achieve the organization goals, it can be very critical because the managers reach the company’s objective through those employees. Human resource management is always linked to the term “art and science” because human resource management is considered as the art of managing employees and people by using creative and innovative approaches, and science because of the application of the theory that is required. The definition of Human resource management can be broken down into two definitions * The process of managing people according to the organization structures and goal * Human resource management encompasses managing employees from a macro perspective within the organization which includes * Collective relation between management and employees * The objective and outcomes of human recourse functions * Encouraging employees ideas and participation * Concluding both definitions * Personnel management is essentially “workforce centered” * Human resource management is essentially “resource centered”. (Managementstudyguide, 2013) The organization needs both the workforce and the resource...

Words: 1409 - Pages: 6

Premium Essay

Concepts of Human Resource Management

...RESOURCE MANAGEMENT – MBA MENTOR Human resource management means management of people at work. HRM is the process which binds people with organizations and helps both people and organization to achieve each others goal. Various policies, processes and practices are designed to help both employees and organization’s to achieve their goal. Human resource management is branch of management that deals with people at work, it is concerned with the human dimensions of management of the organization. As organization consists of people, therefore acquiring them, developing their skills, providing them motivation in order to attain higher goal and ensuring that the level of commitment is maintained are the important activities. Human resource constitutes of all the management decisions responsible for relationship between organization and employees. HRM is the field of management which plans, organizes, controls the functions of procurement, development, maintenance and utilization of the work force so that. 1. Organization goals can be accomplished. 2. Objectives of human resources can be accomplished 3. Objectives of society can be accomplished. According to Flippo, Human Resource Management is: "The planning, organizing, directing and controlling of the procurement, development, compensation, integration, maintenance and reproduction of human resources to the end that individual, organizational and societal objectives are accomplished" Human resource management can be...

Words: 1248 - Pages: 5

Premium Essay

Hrm Essay

...requires an organization to continually grow and improve in order to survive in the hugely competitive business climate that exists today. As a result, it is important that a firm knows how to make effective use of all its resources and thus achieve competitive advantage against its competitors. One resource in particular proves to be immeasurable in terms of importance and can be considered a company’s greatest asset - the human resource. Focusing on company structure and culture, acknowledging the role these factors – amongst others – play in attracting, driving and retaining skilled and hardworking employees can make a huge difference for a company’s bottom line ('A treasure too valuable to waste', 2010). Being able to identify promising individuals and differentiating potentials when hiring or promoting staff, establish adaptable organizational structures that encourage work-life balance, promote diversity and inspire employees is an invaluable management skill that allows firms to efficiently make use of its human resources. This type of management is otherwise known as Human Resource Management (HRM) ('A treasure too valuable to waste', 2010). This essay aims to discuss how HRM can be used to increase employee commitment and organisational performance through the use of different human resource management models. The definition of HRM will be further discussed and the different models that firms may use to achieve objectives. Furthermore, the mentioned benefits of HRM will...

Words: 1576 - Pages: 7

Premium Essay

Bongga

...objectives of the study, significance of the study, limitation of the study, scope of the study and assumptions. Job performance is influenced by many factors. According to Kreitner and Kinicki (2007), performance management is continuous cycle of improving job performance with goal setting, feedback and coaching, and rewards and positive reinforcement. In this study the focus is given to financial compensation. A research will be conducted at supermarkets in San Jose Del Monte to see how financial compensation affects job performance of the employees. The question that has prompted this research is what degrees at which the salary, bonuses, benefits and commissions collectively or individually have influence on employee performance? Job performance is a measure of compensation but it is only one part of it. Compensation generally is a key factor in productivity, organizational effectiveness as well as in the well being of people. The way people are compensated is an aspect of the organizations in different parts of the world; manage the disjuncture between life at work and life outside work. Financial compensation schemes based on pay are often developed in individualistic cultures, where the relationship with employees is seen as instrumental and contractual. This may be based on the achievement motive perspective ( McClelland, 1985). More sophisticated human resource management systems in many western countries emphasize a wider spectrum of incentives based on the design of jobs, levels...

Words: 1450 - Pages: 6

Premium Essay

Converse

...objectives of the organization. The company’s values, commitments, and objectives are embedded in every HR policy and practice and the company’s commitment to quality, flexibility and to its customers are communicated verbally to the employees and are also communicated through the HR policies and practices of the company. For example in order to promote consumer-centric approach, flexibility, and quality among employees, the performance management system was designed to measure the behaviors and results that support the company’s goals and objectives. The change initiative was developed because Autoliv wanted to become more flexible, consumer-oriented and as a part of the company’s commitment to quality. The company wanted to invigorate its capabilities through the changes in HR policies and practices. The design and implementation of changes at Autoliv is still the responsibility of the top management. The CEO of Autoliv is the change leader that creates an appealing vision of the future and then develop a logical strategy for making it a reality. The CEO as the change leader also motivates people to pursue the vision. The company introduced a cultural change which focused on the human side of the organization with particular emphasis on HR policies and practices. In the cultural change process, the company endeavored to change how things are done at Autoliv and sought to promote and reinforce the behaviors and results that are valued by the organization. The direction for...

Words: 1248 - Pages: 5

Premium Essay

Human Resource Practise Efficiency Impact of Implementation Hrms in Tenaga Nasional Berhad (Tnb)

...NASIONAL BERHAD (TNB) -THE CASE STUDY- Abstract Although there is no official link connecting organizational performance and HR practices, there is still that link. It does not matter the lack of a physical connection, so as long as the connection does exist. Firstly, managing people the right way helps any organization achieve improved performance over time. When organizations manage their people well, the organization's performance itself will also improve over time. But if organization wants a more tangible basis for measuring HR performance and efficiency, then here are some commonly used metrics for that purpose. HR management starts with selection and recruitment. When a company has vacant positions, it will look for applicants for that position, in the hopes of finding the best one to suit the job. The measurement dimension to look out for here then is the level of sophistication that the processes of recruitment are at. Are the selection and application processes up to par? Do they come with appropriate psychometric tests? Does the department make use of clear criteria when it comes to selecting qualified people from its pool of applicants? Are the interviews as structured as they should be? The next process to look into is induction and training. Induction is the process of officially introducing newly hired employees into the company or the organization. Metrics here would still pertain to the sophistication of the processes being used. A relevant metric here would...

Words: 7392 - Pages: 30

Premium Essay

Employee Development and Retention

...Employee Development and Retention Stephen P. Czerniak University of Phoenix, Troy Learning Center HRM 565 Human Resources Management Instructor: Charles A. Zajac Group ID: TRGRAD26 Assignment Due: Workshop 5 October 3, 2006 Employee Development and Retention (1400 – 1750 words) Career Planning One believes that they are employed in a job and pursuing a career. Most employees do not pursue the concept much past that. Byars (2004) describes a job as a: “Group of positions that are identical with respect to their major or significant tasks and responsibilities and sufficiently alike to justify their being covered by a single analysis. One or many persons may be employed in the same job” (p. 440). The word “position” describes what most of think of when one uses the word “job” as a “collection of tasks and responsibilities constituting the total work assignment of a single employee. There are as many positions as there are employees in the organization” (Byars, 2004, p. 443). Some firms go so far as to use the phrase job description and position description to describe the job performed by an employee in a particular position. ***In this century, shouldn’t the employer more accurately describe the concept of “work” due to the internet, intranet and the ability to telecommunicate?*** Whether one is employed by the same firm or changes employers, one typically holds several positions during their career which is “a sequence of positions occupied by...

Words: 2033 - Pages: 9

Premium Essay

Guest’s Model of Hrm

...strict and assumes only reason employees work is to acquire financial benefits. On the other hand, the Soft approach encourages commitment to the organization by focusing on workers concerns. A manager employing the Soft HRM approach is more compassionate, trust the employees more, and gather opinion and take it on board with the belief that workers come to work with the intention to impress and progress. Guest acknowledges the difference between these two approaches and incorporates both of them in an ideal model. Guest’s Model seeks commitment to organizational goals through strategic management of an organization. Guest’s Model focuses on the individual needs rather than the combined workforce which enables organizations to develop power and flexibility. Difference between HRM & Personnel Practices According to Storey’s Definition of HRM human capability and commitment is what differentiates organizations. Moreover, HRM needs to be implemented into the organizational strategy and needs to be integrated into the management functions because these will assist organization to achieve its goals properly. Storey’s Definition of HRM identifies the following points of difference between Personnel, IR Practices & HRM Practices: • Personnel aim at careful delineation of written contracts whereas HRM try to go beyond the contract. • Personnel prioritizes devising clear rules whereas HRM pursues a can do outlook. • Personnel guide to management action is based on procedures...

Words: 555 - Pages: 3