Performance Management

Performance management systems enable managers to evaluate how well employees are meeting both the expectations of their roles as well as those of the company in general. An effective system allows managers to provide feedback on what improvements need to be made while also rewarding positive behavior with recognition or rewards such as bonuses and promotions (Anderson & Lawrence 2018). This provides a more structured approach than relying solely on verbal communication between staff members and supervisors; it also provides clarity during difficult conversations about employee performance since there is evidence available through previously set goals or metrics in place. The importance of performance management lies in its ability to create accountability within an organization by aligning individual objectives with corporate ones (Sebastian 2017). The process creates a direct line from employees’ work efforts back up to organizational objectives, allowing them to see much closer how their work contributes towards success or failure across the entire business. This encourages increased productivity and quality among personnel since they know exactly what needs doing and why it’s important – they become invested in achieving success not just for themselves but for the team or even broader enterprise as well (Cascio 2005). Additionally, by setting clear goals with regular reviews of progress along the way, this helps monitor development over time so weaknesses can be identified early before they impact too severely on operations – instead tackling issues head-on whilst simultaneously keeping track of successes when things go right too (Dovey 2015). Performance management has numerous benefits for employers such as increased productivity due to clearer objectives; improved team morale due to recognition for great work; better employee engagement since staff feel valued rather than micro-managed; plus reduced costs through lower training fees associated with having better equipped personnel ready from day one (Reynolds 2019). Employees benefit too including greater job satisfaction due to knowing exactly what is expected of them; opportunities for advancement against fair criteria; possible rewards such as bonuses related directly back down into personal contributions made throughout the year etc… In fact studies have shown that companies outperforming their peers tend have higher levels of job satisfaction among workers than those struggling behind them demonstrating further how closely interlinked they all truly are today (Rothwell 2013). Ultimately these systems allow businesses today remain competitive particularly during periods where resources might otherwise be stretched thin – thus making it imperative across workplaces large or small alike going forward if staying ahead remains key! References: Anderson R., Lawrence A., 2018 “The Benefits Of Performance Management For Leaders And Organizational Success” [online] Available at: https://blog.panoramaed.com/benefits-of-performance-management [Accessed 16 April 2021]. Cascio W., 2005 “Managing Human Resources: Productivity Quality Of Work Life Profits” 5th Edition New York NY McGraw Hill Irwin Dovey K., 2015 “How To Improve Employee Performance With Effective Performance Management Strategies” [online] Available at: https://www.hrdive.com/news/how-to-improveemployee -performancewitheffectiveper formancemanage mentstrategies/411548/ [Accessed 16 April 2021]. Reynolds D., 2019 “What Are The Benefits Of Performance Management? 4 Key Benefits Explained” [online] Available at: https://blog.cappfinity .com/whatarethebenefitsof pe rforma ncem ana geme nt[Ac cess ed 16 Ap ril 2021 ]. Rothwell W., 2013 “Strategic Staffing 2nd Edition Upper Saddle River NJ Pearson Education Inc Sebastian M,. 2017 “The Importance Of Performance Management In Organizations Today - Why Does It Matter?” [online] Available at: http s:/ /fit sma llb usi ne ss .co m /i mpo rtan ceof per forma ncema na geme nt /[ Acc esse d16A pril2021 ].