Question

Performance Management: Determine the elements of an effective performance management system, and explain how well the employer’s system meets organizational needs.

Answer 1

Perfoemance management system is a process to evaluate or measure the performance of employees in achieveing the goal of the companies. performance managemet is the creation of that work environment in which employees can perform at best oh their abilities. it is a continuous process to onitor or evaluate the employees contribution to the organization and employees' work objectives. it begines when a job is defined and ends when employee leaves the company.

Elements of effective performance management system

there are basically five elements of a perfomance management system which makes it effective. if performance management system does notbhave these elements then it will not encourage success and nurture the true sense of worth for your employees at work.

1. planning and setting of target:- any performance management system can not be effective if there is no clear goal setting. goals must be set. the means by which the goals should be evaluated must be specified. specific time frame must be outlined for the attainment of that goals. there are many types of goals which is to be set such as job description goals, behavioural goals, project goals, stretch goals etc. goals should be smart (specific, measurable, attainable, relevant and time bounded).

2. Monitoring:- it is the basic element of performance management system. there are meny monitoring elements are present for measuring the performance. organization should be aware of all the tools and techniques which can be used for the evaluation of best performance management which are present in the market which can help to track the performance easily and quickly. there should be means by which employees themselves can track their performance. it will give ownership to employees for their own development.

3. development and improvement:- performance management system is effective if it strives for more. so after monitoring the performance of employees periodically and through a number of ways, organization should encourage their employees for further improvement and development. if an employee is almost nearest to his goal the organization will not stop there. infact, performance manager should encourage employees to go beyond their defined goals. performance manager should find the ways to stretch the capacity of employes and then should communicates thet ways to employees for increasing the potential of employees.

4. periodic rating:- it is necessary for performance manager to provide periodic rating in between the goal setting and the evaluation of that target. performance manager should provide feedback to the employees for the realization of employees ao that they can know wheather they are on the right track to attain the goals or not. sometimes there are the situation whwer employees did not realize till the last minute wheathet the will be successful or not in attaing that what they have been asked to attain. performance manager outlined the cut off time for the attainment of gaols but to be more successful in performance management system he should provide periodic rating to their employees.

5. rewards and compensation:- this is the major element which makes performance management system more effective. employees should be recognized and appreciated in order to motivate a good employee to continue to achieve and to be successful. performance manager should find the ways to reward and to offer compensation to the employees who are successful to attain the goal which is to be set by the organization for them. it will increase the morale of that employees and motivate the others employees too who are just nearest to attain the goal.

if the employer' system is perfect and applicable then organizational need will be ameet easily. performance managemnet system should be unbiased, able to motivate the employees, give consideration to the need of the employees. if employer makes his system like this then employees become more dedicated to the organization and become the fundamental of meeting the needs of the organization.