ASSIGNMENT

SUBMITTED BY:
MOHAMMED YASIR KV
ROLLNO:29
S3 MBA
PERFORMANCE MANAGEMENT
 Performance Management
Performance Management is continuous and systematic approaches
ensure to achieve organizational business goals by streamlining the
employee performance and efforts to match the set goals efficiently. 
Performance Management builds a communication system between
Manager and an employee that occurs throughout the year, in support of
accomplishing the strategic objectives of the organization. Performance
management is an important aspect in HRM. It is used to create a work
environment where people are motivated to provide their best
performance and does the quality work.
In the existing business scenario, the role of Performance Management
in HRM is very huge and important.  The Performance Management
compiles all the functions such as Goal Setting, regular performance
review in accordance with the set goals, set instant communication
amongst the team member for coaching,  provide performance feedback
and its report for creating better employee training and development
programs and finally connect performance with reward and recognition.
The performance management is defined as an ongoing process of
identifying, measuring and developing the performance of the
employees in the organization.  Its main objective is to focus to
employee performance and direct their efforts towards achieving the
business goal of the organization.
Objectives of Performance Management
The overall objective of performance management is to improve the
ability and competence of individuals to exceed the expectations of the
organization and to operate in a manner that effectively and efficiently
achieves the strategic objectives of the business. Performance
management aims to ensure not only business development, but also
self-development through organizational support and advice to
executives and managers.

The overall goal of performance management is to create a high

performance culture in which individuals and teams take responsibility
for the continuous improvement of business processes and their own
skills and contributions within a framework set by effective
management. Its main objective is to focus people on the right things by
achieving clear objectives.

The 5 main objectives of the performance management system are

as follows:

1. Setting and Defining Goals  

Goal setting is the most profitable way for initiating better performance
among employees. It has been constantly demonstrated that effective
goal setting .Goal setting has always been one of the most effective and
consistent methods used to improve performance among employees.
Efficient performance management techniques and systems will always
place goal setting as one of its most critical requirements. As a manager,
 it is your responsibility to set goals that are mutually beneficial for both
employee performance and business performance. 

Setting and defining clear goals yields several key benefits, including:

 Allowing employees to focus on what’s important. 

 Aligning individual objectives with business objectives. 

 Optimizing employees’ individual performance. 
 Identifying the key result areas and work upon improving them.  

2. Setting Expectations for Managers and Employees

 An efficient performance management system should set expectations

right for each employee managers and employees. As a manager it’s
crucial that you place manageable expectations from their employee.
Alongside distinct goals, a strong performance management system
seeks to establish clear expectations from managers and employees
alike. As a manager, setting manageable expectations for your employee
is critical – don’t expect a poor performer to start yielding great results
from the get-go, or an excelling performer to stay consistently at the top
every week. Similarly, holding managers to unmanageable standards
runs the risk of bringing in poor management decisions. Only
when employees (and managers) have a clear understanding of their
own roles, responsibilities, and accountabilities, that they are likely to be
more consistent in their results and productive in their work efforts.  

In order to set expectations that yield solid results, try to follow this

succession of stages for expectation setting:
 Define the expectations in clear terms. Let your employees know
exactly what is expected from them and provide clarification when
needed. 
 Explain how the expectations established will help in fulfilling the
overall business objectives; draw the line of sight between their
contribution and the business achieving those objectives. 
 Document the expectations.  Establish
a process that clearly defines and measures what to do and who is
responsible for each task. 

3. Establishing Effective Communication

Good communication practices result in employees who
are engaged and happy. It also ensures a smooth alignment of individual
objectives with business objectives

Especially today, when so many workplace dynamics are shifting to

meet new demands or to respond to external circumstances,
communication is essential.  When an organization has a culture
dedicated to strong, effective communication, it results in a workforce
that is engaged and has aligned its individual objectives with the overall
business objectives. Part of effective communication involves
transparency – team members should have a clear understanding of what
other active projects their teammates are engaged in.  A team that lacks
communication, ultimately lacks the synergy that is required for any
high performing team.
 4. Setting Performance Standards

 Arguably one of the most critical objectives of performance management,

setting performance standards for employees can make or break the results
of your performance management system. Any good performance
management system should always have a set of performance standards,
and performance plans, that streamline employee performance evaluation
and improvement. It is impossible to identify reasons for failures in an
individual’s performance without a performance management system.
Performance management systems highlight gaps in contribution, while
bringing attention to the areas that note progress.  
One of the greatest objectives of performance management is to identify
the strengths and opportunity areas of your organization, which become
more evident and therefore easier to identify and improve upon with the
established performance standards to measure against. 

5. Establishing Individual Training and Performance Plans

 
The final and essential objective of performance management deals
with individual development – that is, to identify the training and
development needs of employees, and implement a well-
designed development plan.

Establishing personal development plans helps employees acquire

the necessary knowledge and skills to advance in their individual careers.
A well-executed performance plan builds improved competency and
value add to one’s position, and ultimately organizational value. 
To create an effective employee performance plan, that fosters
individual career development, follow these steps: 

 Identify the position-specific skills, training, or

courses required to optimize success. 
 Establish a training plan and budget. 
 Determine how the new training skills can be applied in key
result areas and prioritize based on their necessity. 

Objectives of Performance Management – Summary  

A well-designed performance management can
system drive strong business results. However, the only way to achieve
success in your system, is to have a thorough understanding of the
key objectives of performance management itself. 

The overall objectives of performance management are: 

 To align and build individual objectives along

with the organizational objectives of the company. 
 To enhance the skills and personal development of employees,
largely with the help of managers and leaders. 
 To encourage work and working systems that help all employees in
fulfilling their business goals.