Performance Management Purposes and Definitions

feat Management Purposes and DefinitionsINTRODUCTIONManaging people in organisations is bonny more and more important nowadays so as to produce the best result and achieve competency. Therefore employees should be managed efficiently so as to add value in organisations. murder precaution is not new, despite the fact that nowadays more emphasis is being laid on it, curiously in the public sector. instruction execution management system is considered as a tool to an organisation.Performance management is a whole work system that begins when a job is defined as needed. It ends when an employee leaves your organisation. The mathematical operation management system is a process which increases competence, decreases cost and promotes quality.Performance management is a edge borrowed from the management literature. The term performance management was first used in the 1970s, but it did not become a recognised process until the later half of the 1980s (Armstrong index, 1998).It ha s been among the intimately important and tyrannical educations in the sphere of management in recent years.The meaning of performance management has evolved and continues to evolve. While in the sixties and seventies performance management was often equated to some form of merit-rating, in the eighties and nineties it has been linked to new management paradigms such as Management by Objectives, Performance Appraisal, Behaviourally Anchored Rating Scales and Performance-related Pay.The ultimate competitive asset of any organization is its people (Band et al., 1994), thus organizations should develop employee competencies in a manner aligned with the organizations business goals. This female genital organ be achieved with performance management systems (Moullin, 2003), which act as both behavioural change tool and enabler of reformd organizational performance through being instrumental in driving change.ORGANIZATION INDIVIDUALDefines mission, values, strategies and objectivesUn derstands and agrees objectivesDefine tasks, standards and performance measuresUnderstands and agrees tasks, standards and performance measuresMonitors organisational, aggroup and item-by-item performanceMonitors own performanceDevelops team and individual performanceDevelops own performanceFigure 1 The contribution of the organisation and the individual in performance managementPerformance management therefore aims to punctuate and encourage desired and valued behaviours (Risher, 2003), thus is a key tool of communication and motivation within organizations seeking a competitive edge through strategic change and control.Performance management then becomes a system for translating organizational intention and ambition into action and results delivering a strategic goal, such as behavioural change (Band et al., 1994).ReferencesBand, D.C., Scanlan, G. and Tustin, C.M. (1994), Beyond the bottom line gainsharing and organizational development, Personnel Review, Vol. 23 No. 8, pp. 17- 32.Moullin, M. (2003), Defining performance measurement, Perspectives on Performance, March, p. 3.Risher, H. (2003), Refocusing performance management for high performance, Compensation and Benefits Review, Vol. 35 No. 5, pp. 20-30.DEFINITION OF PMSFowler (1990) defines performance management as the organisation of work to achieve the best possible results. From this unanalyzable viewpoint, performance management is not a system or technique, it is the totality of the day-to-day activities of all managers.The (then) Institute of Personnel Management (1992) produced a similar commentaryA outline which relates to each activity of the organisation set in the consideration of its human resources policies, culture, style and communications systems. The nature of the strategy depends on the organisational context and can deviate from organisation to organisation.Storey and Sisson (1993) define performance management as an interlocking set of policies and practices which have as thei r focus the enhanced attainment of organisational objectives through a concentration on individual performance.Fletcher (1992) provides a more organisational definition of performance managementan approach to creating a sh atomic number 18d out vision of the map and aims of the organisation, helping each individual employee understand and recognise their part in contributing to them, and in so doing manage and enhance the performance of both individuals and the organisation.Performance management systems are defined asthe formal, information-based routines and procedures managers use to maintain or alter patterns in organizational activities (adapted from Simons, 2000).Reference Simons, R. (2000), Performance Measurement and Control Systems for Implementing system Text and Cases, Prentice-Hall, Upper Saddle River, NJ.Armstrong and Baron (1998)Performance management, in a human resource management (HRM) sense, is the process of delivering sustained success to organizations by mo dify capabilities of individuals and teams.Armstrong and Baron define performance management as a process which contributes to the effective management of individuals and teams in order to achieve high levels of organisational performance. As such, it establishes shared understanding about what is to be achieved and an approach to leading and developing people which will run across that it is achieved. They go on to stress that it is a strategy which relates to every activity of the organisation set in the context of its human resource policies, culture, style and communications systems. The nature of the strategy depends on the organisational context and can vary from organisation to organisation.In other words performance management should beStrategic it is about broader issues and longer-term goalsIntegrated it should link various aspects of the business, people management, and individuals and teams.It should incorporatePerformance improvement throughout the organisation, for individual, team and organisational effectivenessDevelopment unless there is continuous development of individuals and teams, performance will not improveManaging behaviour ensuring that individuals are boost to behave in a way that allows and fosters better working relationships.Armstrong and Baronstress that at its best performance management is a tool to ensure that managers manage effectively that they ensure the people or teams they manageknow and understand what is expected of themhave the skills and ability to deliver on these expectationsare back up by the organisation to develop the capacity to meet these expectations are given feedback on their performancehave the opportunity to discuss and contribute to individual and team aims and objectives.It is also about ensuring that managers themselves are aware of the impact of their own behaviour on the people they manage and are encouraged to identify and exhibit positive behaviours.PERFORMANCE MANAGEMENT AS AN INTEGRATING PROCESSPerformance management is concerned with the interrelated processes of work, management, development and punish. It can become a powerful combine force, ensuring that these processes are linked together properly as a fundamental part of the human resource management approach which should be practised by every manager in the organisation.CHARACTERISTICS OF PMSArmstrong and Baron (1998) define performance management by eliciting the characteristics of a performance management system, which are as followsIt communicates a vision of its objectives to all its employees.It sets departmental, unit, team, and individual performance targets that are related to wider objectives.It conducts a formal review of progress towards these targets.It uses the review process to identify training, development and reward outcomes.It evaluates the whole process in order to improve effectiveness.It defines a managerial structure to look after all the characteristics above, so that individual staff and managers are assigned specific responsibilities to manage the Performance Management System.Furthermore, a performance management system should have SMART objectives namely Specific, Measurable, Appropriate, Relevant and Timed.PURPOSES OF PMSArmstrong and Baron (1998, pp. 51-6), Williams (2002, pp. 219-24), Poister (2003, pp. 9-15) and others have noted that organisations introduce performance management and/or measurement for a variety of purposes which might include one or more of the side by side(p) 17 (the list below is not intended to be exhaustive)(1) to provide information on organisational effectiveness(2) to provide information on employees effectiveness(3) to improve organisational effectiveness(4) to improve employees effectiveness(5) to provide information on organisational efficiency(6) to provide information on employees efficiency(7) to improve organisational efficiency(8) to improve employees efficiency(9) to focus employees attention on areas deemed to be of g reatest priority(10) to improve employees levels of motivation(11) to link employees pay with perceptions of their performance(12) to improve the quality of employees training and development(13) to raise levels of employee accountability(14) to align employees objectives with those of the organisation as a whole(15) to improve customer service(16) to facilitate the implementation of an organisations mission and/or strategyand(17) to act as a lever of change in developing a more performance oriented culture.