In this ever-changing world, it has now become imperative for top management of the organization to understand the significance of the Performance Management System. It comprises various vital HR functions like continuous progress review, real-time feedback, frequent communication, training employees for improving performance, recognizing good work, rewarding improved performance, goal-setting, etc. This is now not the sole responsibility of the HR Dept. anymore but should be considered as a key component in building a strong workforce essential for achieving business outcomes.
Constituents of Performance Management
Performance Management consist of two important elements:
That is how we ensure, organizations are able to succeed as an organization of tomorrow.
Performance Management facilitates the effective delivery of strategic and operational goals. Some of the tangible benefits that may accrue to any organization having the PMS are:
It is a well-articulated process that goes through various stages
Our team of PMS experts understands your purpose, goals, and objectives to set the stage for a Performance Management System.
We develop a system with a clear focus on Business requirements.
This stage involves orienting and training key stakeholders / PMS Champions.
Our team provides support and guidance for implementation of the System.
Hence, performance management system is used throughout the year to help enhance communication and documentation between employees and managers. It helps the organization to achieve the set goals and helps to improve the skills of all the employees.
Most people make the mistake of addressing performance management as performance appraisal. In reality, the performance management system is much bigger and of more value than a performance appraisal. The components of an effective performance management system include:
A performance appraisal is usually conducted annually, semi-annually or quarterly. It reviews an employee’s job performance and contribution to a company. Also, a performance appraisal evaluates an employee’s achievements, skills and growth, or lack thereof. Most companies use performance appraisals to give employees feedback and also to make increment, bonuses and termination decisions.