Performance Management and its relationships to business objectives.
Performance management’s primary objective is to drive improvement by collectively developing the ability of individuals to excel the expectations & achieve their full potential to fulfill the enterprise set goals and objectives. It’s a cohesive relationship between workforce and performance; performance of individual to profit and goal achievement. Performance management is a technique to ensure that individual works collectively towards organizational goals.
In short performance management is a recurring method, to achieve full potential of individual, group or group of workers working towards achieving organizational goals.
The Performance Management Practise is very vital to an organization in context to people & workforce development. Performance management is a system which tends to achieve the below:
It empowers individual’s understanding of their expected results in terms of output and their contribution towards the organizational goal.
It helps understanding and estimating their individual need to develop skills to achieve the set targets.
It helps to keep the individual motived and work more efficiently towards goal achievement.
It strengthens a productive working association between a manager and member of different groups.
The main purpose of performance management is execution of business objectives and to increase the overall strength of the employees.
Execution of Objectives: for an organization to survive and grow it should always focus on executing the objective set by the management. Its management’s primary job to communicate clearly within the organization’s hierarchy about its set objectives and what is expected from individual and groups as a whole. Once all set it becomes necessary to supervise, measure, appraise, & action constantly to keep the objective on track towards organization goals.
Strengthen the employee: once the employee knows what’s expected from him/her it’s the later process that monitor and motivate whenever and wherever required to achieve set goals. It strengthens employees by motivation and reward from time to time. For individual & groups not preforming at par are boosted with career development and skill training to uplift their standard and performance level.
Overall the performance management process is designed to achieve the organizational goal by understanding the needs of the employee and develop, train, enhance their skills to perform more efficiently and to have greater level of job satisfaction within them.
The Three components of performance management system?
Performance management system lays specific standards and expectation from employee within the organization. Its removes any bias from managerial point of view. Each individual is evaluated on performance basis and rewarded accordingly. It completely based on performance to set goals basis.
To have an effective performance management system it should necessarily include the below:
Clear cut goals and objectives and what is expected from individual and groups.
Constant performance supervision and evaluation & to discuss results enabling to take corrective measure to improve & rewards and appreciation for groups/individuals for exceptional performance.
Skills development to perform task & on job training sessions for under performer’s.
Relationship between motivation and performance management, and two main motivational theories.
Motivation is behaviour where any individual feels more confident and try to work more efficiently on assignment where he has been appreciated for any work done. By this it becomes clear that motivation and performance management go hand in hand. A highly motivated employee outperforms; more the employee is motivated the better the performance, which in result helps the organization to achieve its set goals.
Below are the theories, which briefly explains