Performance Management

In: Social Issues

Submitted By musonda
Words 1655
Pages 7
Successful organizations know that to win in today’s competitive marketplace they must attract, develop, and retain talented and productive employees. The resource-based view of the organization emphasizes, in the words of Capelli and Crocker-Heifer (1996), that ‘distinctive human resource practices help to create unique competencies that differentiate products and services and, in turn, drive competitiveness’. Therefore, winning organizations get their competitive edge from a Performance Management System (PMS) that helps them hire talented people, place them in the right position, align their individual performance with the organization’s vision and strategic objectives, appraise them, develop their abilities, and reward performance commensurate with contributions to the organization’s success. However, organizations need to understand some of the human resource practices in order to maximize the benefits, such as Performance PMS. With reference to orthodox and radical criticisms, this essay will argue the extent to which PMS is more superior to performance appraisal in managing performance in a modern organization.

Performance management is a systematic process for improving organizational performance by developing the performance of individuals and teams. It is a means of getting better results by understanding and managing performance within an agreed framework of planned goals, standards, and competency requirements. (Armstrong 2009). The essential components or parts of an effective PMS include: Performance planning (includes employee goal setting / objective setting); Ongoing performance communication; Data gathering, observation and documentation; Performance appraisal meetings; Performance diagnosis and coaching (http://www.chillibreeze.com). Benefits of effective PMS include, improved productivity, improved employee motivation, retention of top…...

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