Performance Management helps an organization to achieve its long and short term

goals vital to its success.

Introduction

Performance management is an on going process that articulates organizational vision and

objectives, identifies and installs organizational and individual performance standards in light of
these objectives and tasks corrective action to ensure accomplishment of these standards. It
can be defined as a strategic and integrated approach to delivering sustained success to
organizations by improving the performance of the people who work in them and by
developing the capabilities of teams and individual contribution. Organization with
performance management systems has clear plans objectives targets and standards of
performance.

Objective Performance Management

Performance management is a means of getting better results from the organization, teams and
individuals by understanding and managing performance within an agreed framework of
planned goals, standards and competence requirements .It is process for establishing shared
understanding about is to be achieved and an approach to managing and developing people in
a way that increases the probability that it will be achieve in the short and longer term. It is
owned and driven by line management.

Principle of Performance Management

The principles of performance management are as follows

 It translates corporate goals into individuals, team, department, and divisional goals.
 It helps to clarify corporate goals.
 It is a contentious and evolutionaryprocess, in which performance improves over time.
 It relies on consensus and cooperation rather than control.
 It encourages self –management of individuals’ performance.
 It requires a management style that is open and honest and encourages two – way
communication between superiors and subordinate.
 It requires continuous feedback.
 Feedback loops enable the experiences and knowledge gained on the job by individuals to
modify corporate objective.
 It measure and assesses all performance against jointly agreed goals.
 It should apply to all staff, and it is not primarily concerned with linking performance to
financial reward.

Performance management is an ongoing process

A sound performance management system is a planned, ongoing process, not an isolated or

one-time exercise. It is an integral part of an organization’s overall plan to complete and
succeed in the market place. Organizations with performance management systems have clear
plans, objectives, targets and standards of performance .They also strive to improve
performance through a variety of activities including continuous process improvement and total
quality management.

Performance management is an ongoing process to attain and enhance organizationalsuccess

.It contributes to the achievement of organizational objectives and is closely related to
organizational strategy. The performance management system and the largest human resource
practices are driven by overall organizational philosophy to take timely corrective action. The
performance management system also provides the necessary information on employee
performance.

Instead of vague and unattainable performance standards ,good performance management

system focus on specific time –bound and realistic performance goals that are accepted by
employees.

Performance related information must be collected, analyzed and communicated to all

concerned on a timely basis in order to improve organizational effectiveness. When
performance is below standards factor inhabiting high performance are identified and
separated for review and modification .In the case of employees who perform at or above
standards the review process should reinforce performance and attempt to improve it. Superior
performance should be related, wheneverfeasible, to the career and self – development of the
employee concerned .In general, organizations with superior performance management system
focus on improving future performance rather than dwelling on past mistakes.

The various procedure and system employed in performance monitoring and enhancement
should be well integrated .To maintain high performance levels, four activities are needed .
Performance planning support for high performance, Performancereview , and performance
Development

Performance Management is an integrated system

Performance Planning involves the identification of clear performance expectations that understood by
the employee.

Forecasting high performance is attempted through job design improved work condition and reward
system.

The performance review system ensure that performance deficiencies are identified on a timely ,basis
and that employees who perform at of above expectation are recognized on a consistent basis.

Performance development is attempt through a variety of training and coaching techniques and other
employee development and organizational improvement program.
Challenges facing the organization

Globalization and the push for productivity improvement:

International trade has always been critical to any prosperity and growth .Expanding
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globalization has been a mixed blessing , however .As customer are exposed to many product
and services , their expectation for better quality services and value increase.

Importance of Human Capital

Natural financial and

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technical resources alone do not provide competitive advantage to a
business in today ‘s knowledge –base economy. Today’s workforce can be divided into two
main categories ,information and non information work. Information work may be knowledge
workers .Knowledge worker have been the fastest growing type of work in
countries labor force in the last two decades or so.

Increasing computerized and Automation:

the developed
As in most developed countries ,computer have become an integral part of their life, changing
the way of work and life.

Computerized has accelerated the trend towards automation of many routine, receptive
,menial and unsafe job. Automation increase predictability in operation and improves
consistency in product quality.

Increase work force diversity:

Over the years ,the labor force participation rates for woman ,visible monitors and other
protected groups have been steadily increase.

To meet the needs of the new workforce ,radical alteration in word in work practice and
systems may be required. Increasing entry of woman and educated young people in the
workplace has necessitated fundamental change in leadership style and communication
practices. The arrival of an ethnically diverse workforce has resulted in employment equity and
social welfare.

Ever increasing legal requirement

Today’s manager must abide by an increasing array of laws and regulations. Performance base
job ascriptions may provide clearer guidelines for selecting employees for various positions.
Experience Human Resource Managers find some of the situation such as determining what
constitutes fair dismissal, need outside legal expertise.

Activities of organization with performance management systems

Organizations that have and integrated performance management system are likely to
implement several of the following activities:

 A clear mission statement understood by all employees.

 Continuous communication of organizational priorities, business plan progress.
 Presence of system focusing on quality improvement.
 Clear linkage between performance and reward.
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Focus on performance of members at all levels.
Existence of clear, continuously – reviewed performance standards.
Presence of system (e.g. Coaching, training) to foster high performance.
Emphasis on fostering good employee relation.

Larger performance and human resource department

The sub department of large performance management department may be established or a

specialist identified to provide the needed services as explain in below

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Match performance goals to organizational mission, objective, and strategy.
Conduct job analysis to clarify responsibilities.
Benchmark and improve performance standards, skills and competency.
  Recommend improvements to rise productivity ,quality and stakeholders satisfaction
and
 Carry out resources planning and succession planning

Work and compensation planning (Key responsibility- identifies and implements job and
reward –related changes to facilitate high performance.

 Link reward to performance and re-design reward system to improve motivational

properties.
 Design jobs to enhance employee performance and
 Improve of productivity and performance quality on a continuous basis.

Performance assessment :(Key responsibility –ensure systematic and valid assessment of

performance that provides timely feedback to all concern.

 Review the modify performance assessment tools, procedure and system.

 Assist and train line managers to validly assess performance of employee and work
teams and
 Store, analyze and predict performance levels of individuals and team.

Conclusion:Performance management is an ongoing process to attain and enhance

organizational success it is an integral part of organization’s overall plan to complete succeed in
the market place.it contribute to the achievement of organizational objectives and is closely
related to organizational strategy. Effective performance management systems aim to attain
both organizational and individual employee objectives. The focus of performance systems has
been only on improving employee performance. A popular human resource management text
defined it as the process collecting analyzing evaluating and communicating information
relative to individual’s job behavior results. Finally performance management helps and
organization to achieve it’s long and short term goals vital to its success.
Presidency University

Assignment III
On
Bangladesh studies
Course Code: HUM-205

Submitted to
Al Muhit Safet Hossain
Faculty, M.H. School of Business
Presidency University

Submitted by
Zannatul Ferdous
ID# 063051025

Date of Submission
12/10/2010