PERFORMANCE MANAGEMENT SYSTEM | PMSN01B

ACTIVITY 1
UMANDAP, RONNIE JR. Q.
MA201

People working in the operations of a business entity are often regarded as one of the
most important elements to progress. Their productivity and efficiency dictate the path an
organization will conquer. For a company to ensure that their workforce is complying with the
strategic goals and are aligned with the workplace standards, the concept of performance
management system will take place. As per the discussion, performance management system is a
continuous process of identifying, measuring, and developing performance of individual
employee and teams and aligning performance with the strategic goals of the enterprise. This
continuous process includes goalsetting and communication as well as observation and
evaluation for the entity to be able to build competitive employees.
Performance appraisal on the other hand is a more specific component under performance
management. It is concerned with mere assessment of employee performance based on how they
have performed in an immediate task. In this manner, the company will try to determine possible
strengths and points to be improved according to the past activities done contrary to the focus of
the broader performance management: prepare human resources for future operations and
objectives achievement.
Employee performance management varies from an entity to another but a well
implemented one is characterized of a strategic, reliable, meaningful, and thorough among
others. Through performance management, there will be a mutual benefit between the entity and
its employees. Proper salary administration, performance recognition and established
communication causes motivated, goal-oriented, esteemed, and competitive workforce, factors
that are essential to attain changes, simplified jobs, and economic inflow.
Performance evaluation is one of the most prominent and widely used examples of
performance management. It is a combination of determining, assessing, and evaluating
performance in each time frame, for example, quarterly. It is often used as one of the
determinants if an employee will be renewed or terminated, termed as the controlling power of
an entity. However, this requires thorough analysis and consideration since this method is subject
to abuse of power and influence.
Meanwhile, performance management systems being implemented in the field are not
always as ideal as how they are defined in theories. There will always be factors that will
interfere with proper implementation and this poor management might lead to disadvantages of
both employees and the entity. Poorly implemented performance management system is prone to
lead increased employee dissatisfaction and turnover, wasted resources such as time and money,
decreased motivation to perform tasks and