What Is The Importance Of Performance Management System

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An extant research on Review of Literature on Performance Management indicates that it is a complete logical move- toward to ensure a link between efforts to individual employees with vision, mission and goals of the organization, to achieve excellence in organization on one side and contentment and growth of employees on the other side. Therefore the performance management system is an important instrument to facilitate organization to accomplish its goal. Both Individual skills and contributions and organizational objective measurement is needed to develop the important element of the organization, which is human capital. Employees are the critical factor in performance management system, where glowing designed model of system will result…show more content…
• Develop clear job descriptions. • Select appropriate people with an appropriate selection process. • Negotiate requirements and accomplishments in terms of performance standards, outcomes, and measures. • Provide effective orientation, education, and training. • Provide ongoing coaching and feedback. • Design effective compensation and recognition systems that reward people for their contributions. • Provide promotional/career development opportunities for staff. • Assist with exit interviews to understand why valued employees leave the organization. Improvement in performance can come from two sources: (1) technological changes such as higher investment per worker in capital goods and technological improvements in capital goods or (2) changing human behavior in organizations. Whereas increased mechanization technological change, and increased investment per worker in capital goods can all contribute to improved productivity, it is changes in human behavior which result in higher…show more content…
Performance management (PM) is an organizational system that contains all aspects of employee performance. In global performance management (GPM), the focus is on employees in multinational companies (MNCs) and on how PM is practiced in individual countries. The aim of the paper was to review and bring together the research on advances in the field of GPM as an IHRM practice, to explore the field, discover the main issues and link them to organizational strategy and individual benefits. The important papers and books mentioned above were found to have commented on the field of PM between 1982 and 2009. During this period, the perspective has shifted from looking at the more technical appraisal to a more extended and integrated PM process in MNCs. For a global company, PM is a tool for managing performance and motivating employees to act in accordance with the strategy, vision and values of the company, in time leading to better performance for the company and possible growth. In identifying the five perspectives, the author found that an expanded view of the PM process is relevant to users. According to Claus and Briscoe (2009), it is difficult to generalize from the studies about global
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