Performance Management – Definition, Principles, Features and Scope

 

Definition of Performance Management

Performance management is a way of dealing with human beings for innovation aim focus, productiveness and satisfaction. It is an aim congruent win-win strategy. It’s most important goal is to make certain fulfillment to mission groups who trust in its method, its method and implementation with sincerity and commitment. Success is contemplated in organizations’ backside line in phrases of reaching its deliberate goals and limitless spiral, which hyperlinks numerous procedures along with overall performance planning; dealing with overall performance in the course of the year, taking inventory of manages overall performance and potential. Also it consists of spotting and profitable fulfillment on the stop of the year. Performance management links this method in any such manner that an individual manages overall performance is constantly orientated toward reaching organizational goals.

Performance management creates superb aim orientated challenge motivation and pursuits at lowering intra organizational conflict. It is found out that agencies couldn't achieve success in the event that they do now no longer have an excellent overall performance control device. Each supervisor wishes to plan his/her very own device of coping with overall performance. While a few norms of overall performance control are specific others aren't so clean even to the managers. It is stated that requirements or expectancies that outline proper overall performance can be commonly understood however are not often specific and the overall purpose of performance management is to ensure that the subsystems of an organization are aligned and complement each other in an optimal fashion to achieve the results desired by the organization (Biron, Farndale, & Paauwe, 2011). Therefore, performance management should be integrated in two senses—vertical and horizontal. Vertical integration implies the align[1]ment of corporate, team, and individual objectives while horizontal integration implies the alignment of different human resource management (HRM) activities to produce a coherent approach in managing people (Biron et al., 2011 ; McAdam, Hazlett, & Casey, 2005 ).

According to Armstrong, ‘Performance management is a means of getting better results from the organizations, teams and individuals by understanding and managing performance within the agreed framework of planned goals and competency requirements.’ It is a process for establishing shared understanding about what is to be achieved and an approach to managing and developing people.

Performance management is a strategic and included technique in turning in sustained achievement to corporations via way of means of enhancing overall performance of humans via way of means of growing the skills of groups and individuals. Performance control is a strategic device due to the fact that it's far worried with success of long-time period organizational desires and powerful functioning of corporations in its outside environment and performance management outcomes 4 kind of integrations namely, vertical, functional, human useful resource and desires.

1. Vertical Integration — aligning goals at organizational, individual and crew stages and integrating them for powerful performance. The people and groups agree upon to a talk to paintings inside the vast framework of organizational dreams and values.
2. Functional Integration — it deals with focusing several functional energies, plans, policies and strategies onto tasks in different levels and parts of the organization.
3. Human resource Integration — this guarantees powerful integration of various subsystems of HRM to gain organizational desires with best performance. These subsystems encompass human’s management, undertaking monitoring, activity design, motivation, appraisal and reward systems, and training and empowerment.
4. Goal integration — it focuses on arriving at congruence between the needs, aspirations and goals of the managers with that of the goals and objectives of the organization.

Principles of Performance Management

In commerce and industry business performance management (BPM) is a well accepted discipline that enables strategy to be executed in ways to meet organizational objectives (Becher, 2005; Clayton, 2005). However, the implementation of BPM within the Not-for-Profit organisations such as local government, health services or education is not so well understood (Rees and Gardner,2003) and quality and effectiveness of performance management is a reality in organizations only when certain basic and fundamental tenets/ principles or practices of management are followed. These include:

1.  Transparency — decisions relating to performance improvement and measurement such as planning, work allocation, guidance and counseling and monitoring, performance review etc., should be effectively communicated to the managers and other members in the organization.

2.      Employee development and empowerment — effective participation of employees/ managers (individuals and teams) in the decision — making process and treating them as partners in the enterprise. Recognizing employees/ managers of their merit, talent and capabilities, rewarding and giving more authority and responsibility etc., come under the umbrella this principle.

3.    Values — a fair treatment and ensuring due satisfaction to the stakeholders of the organization, empathy and trust and treating people as human beings rather than as mere employees form the basic foundation, apart from others.

4.   Congenial work environment — the management needs to create a conducive and congenial work culture and climate that would help people to share their experience knowledge and information to fulfill the manager’s aspirations and achieve organizational goals. The managers/ employees should be well informed about the organizational mission, objectives, values and the framework for managing and developing individuals and teams for better performance.

5.  External environment — effective and contextual management of external environment to overcome the obstacles and impediments in the way of effective managerial performance.

Features of Performance Management

Performance management is a complex concept that encompasses different dimensions of the organization and the people. The mission, the objectives and the goals of the organization should be well designed. Performance planning, development and reward systems enable the managers to realize their true potential in order to contribute for organizational growth and development. The manager’s performance and quality is a function of several prerequisites that managers need to take care of. The following constitute the prerequisites /characteristics to ensure effective practice of Performance management:

1.      Clarity of organizational

2.      Evaluation 

3.      Cooperation but not

4.      Self-management teams 

5.      Leadership development 

6.      System of feedback 

There must be a system that would help to monitor and measure all performance against the set standards and the managers need to be informed of their shortcomings. The evaluation system should be made transparent so as to repose manager’s faith in the system.

Scope of Performance Management

The Performance management should conform to broad organizational framework. It should provide for managers and managers shared experiences, knowledge and vision. It encompasses all formal and informal measures and procedures adopted by organizations to increase corporate, team and individual effectiveness. Managers/ employees should be enabled continuously to develop knowledge, skill and capabilities. Performance management has got to be understood in totality of the organization but not in various parts.

References

Becher, J.D., 2005, “Bridging the Gap between Strategy and Execution”, Business Performance Management, March, pp 11-17.

Biron , M. , Farndale , E. , & Paauwe , J. ( 2011 ). Performance management effectiveness: Lessons from world-leading firms. The International Journal of Human Resource Management, 22 ( 6 ), 1294 – 1311 .

McAdam , R. , Hazlett S.-A ., & Casey , C. ( 2005 ). Performance management in the UK public sector: Addressing multiple stakeholder complexity. International Journal of Public Sector Management, 18 (3), 256 – 273.

Rees, P. and Gardner, H 2003, “Best Value, Partnerships and Relationship Marketing in Local Government”, International Journal of Non Profit and Voluntary Sector Marketing, v.8, Iss.2, pp. 143-152.