The mandate to operate at an optimal performance level and meet financial and organizational expectations are transforming the way organizations do business. This evolution is driving higher standards of competence in day-to-day operations and adding new pressure to increase stakeholder value. In today’s rapid-paced business climate, the agility with which a company manages performance can determine market position and company profitability.
Defining Performance Management
Performance management is the integrated process of defining, assessing, and reinforcing employee work behaviors and outcomes (Cummings and Worley 2005). Performance management focuses on understanding, optimizing, and aligning …show more content…
Three new thoughts are intended in this policy rec¬ommendation. First, because development is different for everyone, there should be individual development plans. While there may always be areas of growth or development common to many at the same time, these ought not to be the sum total of the people develop¬ing process taking place. It is often an easy excuse for supervisors point to plant–wide or company–wide “people” programs as a way of absolving themselves of their people developing responsibility.
The second operable word in this policy state¬ment is review. The supervisor is required to follow up on the people development plans. They are not to be spoken of enthusiastically for a brief period and then forgotten. If documented on company forms, they ought not to be forwarded to some staff office as though float¬ing off into never–never land. They require monitoring so that progress can be checked periodically.
Third, individual plans should be reviewed at least annually. This is an attempt to offer some time frame for periodic review, so as not to make the task too time–consuming. Furthermore, a lot can happen in twelve months, so that this time span is not too soon for considering new situations that might warrant chang¬ing or updating the plan.