1

Running head: PERFORMANCE MANAGEMENT

Present with conceptual reviews to confirm performance management as an effective tool for strategic

planning and implementation in an organization. Also establish the functional linkage between

performance management, employee training and development, and organizational productivity. Please

try to limit your work within 800 words. 

Performance Management

Sarthak Aryal

BUS 362 – Performance Management

Professor Rajiv Sharma

Westcliff University

February 1, 2020
 2
PERFORMANCE MANAGEMENT

Abstract

This paper explains the core function of performance management, and how it contributes to

the strategic planning of an organization. Furthermore, this paper also discusses some important

linkage performance management maintains with such as employee training and development,

and organizational productivity. This paper established the fact that implementation of an

efficient performance management system enables to recognize proper training and development

areas and implement it. Also, it helps in measuring and improving the performance of individual

employees which certainly results in increased organizational productivity.

Keywords: performance management, productivity, strategic planning.

 3
PERFORMANCE MANAGEMENT

Performance Management

Performance management involves tracking the performance of an employee compared

against his/her expected goals[ CITATION Tay99 \l 1033 ]. Performance of an employee can be

measured through various ways. One could observe an employee directly over a period of time

and draw a conclusion based on the employee’s efforts and results. Or, a manager could

frequently check-in and collect feedbacks from the employee to make a conclusion of the

employee’s performance. Feedbacks, observations, appraisals, are some of the common ways to

measure employee performance.

Strategic Planning

Every company has a specific objective which it desires to fulfill over a specified period

of time. To meet these goals, organizations plans and launches various business strategies to

meet the goals. To ensure these goals are meet, the company needs to evaluate whether the

desired results are achieved or not. In order to do, monitoring employee performance is

paramount[ CITATION Agu13 \l 1033 ].

For instance, a company wishes to expand its sales-volume by 20% in the next five years.

As a result, it expands its sales division, and assigns a specific minimum number of units to be

sold by each of these sales representatives. In order to achieve the strategic goal, the sales

employee must perform well. Now, the management must closely monitor the performance level

of each employees, and ensure that they are meeting their target. From this scenario, one could

learn the emphasis of performance management over strategic planning.

 4
PERFORMANCE MANAGEMENT
Employee performance plays a vital role in the achievement of strategic goals. If

performance metrics are not set within the organization, employees might feel a bit unmotivated

towards performing their tasks. However, setting goals and having must meet them will increase

the motivation level of the employees when it’s about getting the work done. Performance

management is all about setting goals and achieving them on an employee level. Since, the

contribution of employees heavily relies for the success of company’s strategic plan; it

establishes a strong relationship between the functions of performance management and strategic

planning.

Employee Training and Development

One of the function of the HR department within any organization is to provide employee

training and development opportunities. Providing such opportunities to the employees will

improve the performance of the employees and make them an essential team-player and enhance

their leadership skills[ CITATION Bou001 \l 1033 ]. It is because through these opportunities, an

employee can attain new skills, expand their knowledge, and enhance their decision making

abilities. With the help of an effective performance management system, companies can be

aware of specific areas which requires more attention, and provide employee training on such

areas.

For instance, if the HR department finds out that the junior managers are performing

exceptionally when it comes to delegating and supervising the tasks. But, they are quite under-

performing when it comes to negotiating with clients. A proper performance analysis will help

the organization realize that their junior managers require a proper training in improving their

negotiation skills. After providing the training, the organization will bolster the confidence and

skill-sets of those junior-managers, who will eventually improve the performance.

 5
PERFORMANCE MANAGEMENT
Another aspect of providing training and development opportunities is that it helps

organizations to retain its employees, and keep them motivated[ CITATION Eln13 \l 1033 ].

When employees get proper training and development opportunities, they remain motivate to

improve their performance. Hence, performance management and employee and training are

quite inter-related.

Organizational Productivity

Also, performance management has an impact on the organizational

productivity[ CITATION DeN06 \l 1033 ]. The productivity of an organization depends upon the

productivity levels of its employees. Since, employee performance level determines the

productivity level of an employee, it would be a no brainer to state that organizational

productivity and performance management are closely related.

For instance, a company employing 100 employees implements a new Performance

Management Information System (PMIS) to improve its performance management system. Over

the course of an year, it has been found that 20 of the employees are performing very well, and

the company rewards them. It is also found that 60 of the employees have shown significant

progress in their performance-level as they received proper training and development

opportunities over the year. However, the rest of the 20 employees have consistently

underperformed. As a result, the company sacks these under-performing employees and hires

new talents. Furthermore, the company rewards the top-performing employees which helps

motivate all of the new and existing employees.

As a result, the company could get rid of employees being counter-productive, and was

able to retain productive employees. This evaluation could not have been possible without proper
 6
PERFORMANCE MANAGEMENT
integration of a performance management system. Hence, effective performance management

will result in increased organizational productivity.

Conclusions

Performance management is an essential function of the HR department which involves

identifying employee goals and ensure they align with the organizational goals.Hence, it can be

stated that performance management assists with the strategic planning of an organization,

employee training and development, and increases the organizational productivity.

 7
PERFORMANCE MANAGEMENT

ALA (P) – Personalized CLO

Article Tilte – Understanding Employee and Workplace Performance

This paper makes us readers understand that while performance management focuses on

managing the performance level of individual employees, it eventually contributes to the high

performance level of the whole organization. This paper talks about the two important functions

of performance management which are understanding[ CITATION Bou00 \l 1033 ]:

a) Factors which improves employee performance.

b) Causes that leads to poor employee performance.

Having the knowledge of these two elements will allow the company to fix the

productivity level of its employees and the whole organization as well. Furthermore, after

understanding the causes which leads to poor employee performance, the management can

provide training and development opportunities to fix that specific cause hindering employee

performance.
 8
PERFORMANCE MANAGEMENT

References

Aguinis, H. (2013). Performance management. Upper Saddle River, NJ: Pearson Prentice Hall.

Boud, D. (2000). Understanding Employee and Workplace Performance. Performance

Improvement, 39(10), 111-123.

Boud, D., Garrick, J., & Greenfield, K. (2000). Understanding learning at work. Performance

Improvement, 39(10), 45-47.

DeNisi, A. D., & Pritchard, R. D. (2006). Performance appraisal, performance management and

improving individual performance: A motivational framework. Management and

Organization Review, 2(2), 253-277.

Elnaga, A., & Imran, A. (2013). The effect of training on employee performance. European

journal of Business and Management, 5(4), 137-147.

Taylor, P. J., & Pierce, J. L. (1999). Effects of introducing a performance management system on

employees' subsequent attitudes and effort. Public personnel management, 28(3), 423-

452.