Question

Write an essay of 500+ words on the topic ‘Performance Management and Excellence’. [8 Marks]

Answer 1

Performance Management:

A performance management is a process through which an employee is measured on his key responsibility areas. Every organization clearly defines the responsibility areas to the employees at the beginning of the year and expects the results at the end of the year.

Example: For a Sales employee the target is set at the beginning of the year and his manager gives feedback throughout the year and then finally measures the achieved percentage against target to know the employees performance.

Performance Management System should be as explained below:

a. Performance management system should identify the performance rating of an employee.

b. Identify the potential as that determine on the future performance of the employees and organization growth.

c. The performance management system will identify who are the top talents in an organization.

d. It identifies the successors for any role.

e. It focus to come up with development plan for employees

f. It determines to know the percentage of non-performers.

The elements of effective performance management:

Setting objectives/KPIs: one of the core element of performance management is to set the end goal/objective which needs to be achieved. When the organization clarifies what it needs from the team then team members would be clear on the expectation from their side.

Evaluation: A good performance management system has to have systematic ways to measure the success of any program or project conducted by organizations. It can be done through collecting information through feedback method and can be seen through improvement in work performance or through reduction in cost etc.

Reliability: Reliability and validity are two important elements of performance management system. Reliability is defined as a process which goes through an extent in which the assessment is strong and does not change values or findings throughout the procedure. Validity can be considered as the depth of belief in a particular direction. It is to know the genuinely and strength in a procedure or the durability of a product.

Communicating: The purpose of program or a goal has to be explained and communicated to employees. Next step would be to train on the subject and motivate the employees to achieve the same

Assessment: The final step would be to assess the outcome of the program or performance. Finally the feedback on performance/program to be communicated to the concern for improvement