Change is occurring at an accelerating rate and this is the centre around which we will discuss performance management system. Traditionally the two concepts performance management and performance appraisals were treated as one and the same thing, however not the scenario is completely different. Performance Management is not just HRD technique, it is not just evaluating the performance of an employee once a year, it is the tool in the total performance management system. Earlier there was no need to check performance against goals set but with the changing business environment there is the emergence of a great need to have a performance management system.
Performance Management system is a n integrated system of linking business objectives / goals with Key Results Areas (KRA) of Managers, only then does it become a management tool. The system should be futuristic, the system should be communicated and explained to all heads and employees.
The performance system should be facilitative, aiming to help Managers toenhance their performance and leave some room for discretion. The system should encourage continous learning and development.
SWOT analysis is carried out, then goals are set, goals are set in such a manner that they coincide with the annual budget. In the setting of goals the managers also establishes the measures of what will indicate goal accomplishment. Goals are set so that the need for capital, material and human resources can be arranged at the same time.
the subordinates to perform, here each task manager will prepare his own performance and action plan. Important precaution is Think before you Act. In this process one can anticipate some events which were not thought of earlier. This is a smoke signal, take
through self appraisal system. The purpose is to assess performance against result areas and to find out the gaps in performance. Self appraisals should be conducted periodically as the time frame for each KRA may not be the same., this system helps the manager to control his own performance and it can result in better motivation.
they with analysis the same and review it with the employee. Review will be with reference to achievement or non achievement of KRA\u2019s. If there is non achievement cause analysis and action plan to overcome the problems will be taken and if need be KRA may be reset.
Top management should get a clear picture so that action plan will be given for execution, while suggesting changes they must take into consideration whether sound support system are available or not and how to reinforce the same, what training facilities should be provided, etc Suitable management action will guarantee sustainable performance.
The performance of the employee must be considered and this is done through performance appraisals, appraisals can be done in two ways, either by self appraisal or an appraisal being carried out by the superior / manager.
There is difference between performance management and appraisal, performance appraisal is the tool through which one will be able to manage and evaluate the performance of the employee.
1. a dynamic system which integrates the company\u2019s head to achieve its goals for profits and growth with the mangers need to contribute and develop himself. It is a demanding and rewarding style of managing business.
2. The superior and the subordinate managers of the organization jointly define its common goals, define each individuals major areas of responsibilities in term of the results expected of him and use these measures as guides for operating the unit and assessing the contribution of each of its members.
In MBO the superior and subordinate sit down together and set their goals jointly in such a way that there is harmony between the individuals goal and the goal / objective of the organization.
1. Better appraisals
2. Manager planning
3. Reward Links
4. Corporate Planning
5. Motivating Individuals
The system of MBO is a very effective system which can help in the growth and success of the organization but for it to succeed the MBO system must possess the following elements :
1. Objectives for positions
2. Joint Objective setting
3. Linking of objectives
4. Measurement and Control
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