MN 7181 - Benefits of Performance Management

Benefits of Performance Management


Performance management could be identified as one of key aspect when it comes the human resource management and development in any organization. (Boudreau, 1998) The human resource could be considered as one of most challenging resource to manage where the level of motivation and the commitment could de differ from one person to another depending on many factors. However, the organizations are mainly focused over a specific set of goals and objectives which required to accomplish with the use of limited resources including the human capital (Adewoye & Obasan, 2012). Hence, the performance evaluation and management could be identified as a vital aspect for any organization which is focused over the sustainable growth and development in the long run. (Beausaert et al., 2011)

It is understood that the people should be motivated in order to support their highest level of commitment towards the accomplishment of the business goals and objectives. The motivational factors include both financial and non-financial factors (Anon, ND). However, every person should not be benefited in equal manner where there could be different level of performance based on the skills and capabilities of the people. Accordingly, a performance management system could be used to reward the employees in more logical manner in order to manage the equal distribution of rewards in an effective and efficient manner (Beauregard & Henry, 2009).

 Furthermore, it is identified that the performance management could use to identify the training and development needs of the people and to articulate the training and development strategy of the business with the effective alignment to the corporate level strategy (Boudreau, 1998). Furthermore, the individual employees will be motivated with the establishment of the higher level of competition through the performance management system and its transparency (Beausaert et al., 2011). This could make higher level of commitment towards the delivery of the job role as well as the personal development of the employees in an organization.

In summary, it is clear that the performance management is essential to support the effective people management strategy of an organization. Furthermore, the higher level of employee engagement could be expected with the transparent and formalized performance management system for an organization (Beausaert et al., 2011). Hence, it is recommended to have a formalized performance management system for every organization in order to drive the human capital in more effective and efficient manner. 

References

Adewoye, JO & Obasan, KA 2012, The Impact of Information Technology (IT) on Human Resource Management (HRM): Empirical evidence from Nigeria Banking Sector. Case Study of Selected Banks from Lagos State and Oyo State in South-West Nigeria. European Journal of Business and Management, 4(6), pp. 28-37.
Anon, ND, Human Resource Management (HRM) - Definition and Concept. [Online]
Available at: https://www.managementstudyguide.com/human-resource-management.htm

Beauregard, TA & Henry, LC 2009, Making the link between work-life balance practices and organizational performance. Human Resource Management Review, 19(1), pp. 9-22.
Beausaert, S, Segers, M & Gijselaers, WH 2011, The use of a personal development plan and the undertaking of learning activities, expertise-growth, flexibility and performance: the role of supporting assessment conditions. Human Resource Development International, 14(5), pp. 527-543.

Boudreau, JW 1998, Strategic Human Resource Management Measures: Key Linkages and the PeopleVantage Model. Journal of Human Resource Costing & Accounting, 3(2), pp. 21-40.



Comments

  1. Sameera Madhawa Thalakotune 8 January 2020 at 16:52

    Great job. The blog is really excellent. I am sure this blog helped many others who are eager to know about it. In short I would like to say the fundamental goal of performance management is to promote and improve employee effectiveness. It is a continuous process where managers and employees work together to plan, monitor and review an employee's work objectives or goals and his or her overall contribution to the organisation.

    ReplyDelete
  2. sanjaya8 January 2020 at 19:22

    Good article with good references too.
    Also performance assessments give managers an opportunity to recognize employees who have performed well during the year being evaluated. Recognizing employees for their achievements builds their morale and employees with high moral are more productive

    ReplyDelete
  3. Dr Amila Shashanka Ratnayake10 January 2020 at 01:14

    I find this as an article with rich content and good references. It would have been much nicer to attempt applying it to your trade. Please be mindful about the reference format and punctuation. We should not loose marks on that.

    ReplyDelete
  4. Janith Prabasha10 January 2020 at 12:38

    Well detailed explanation. I would like to narrow your attention towards the three theories which underpinned the performance management, Firstly, The Goal Theory (Latham and Locke, 1979) & it describes the four mechanisms that connect goals to performance outcomes. Secondly, The Control theory which focuses attention on feedback as a means of shaping behavior & finally The Cognitive Theory (Bandura, 1986) as what people believe they can or cannot do definitely impact on their performance.

    ReplyDelete
  5. Sajith Abeyrathne14 January 2020 at 20:46

    Performance Management is very very important all the organization. Clearly explained it's benefits through this article.

    ReplyDelete
  6. Mahesh Seelarathna16 January 2020 at 08:39

    Well explained article with good references. Performance is very important to the employees as well as the organization. And we should know the power of performance management because it has a very strengthen controlling power .

    ReplyDelete
  7. Sandeep Warakagoda17 January 2020 at 10:19

    Good article! Performance management is an essential thing in any organization! how the banking sector does this?

    ReplyDelete
  8. Chandana kumara17 January 2020 at 18:49

    Performance managemant is a very important tool that improves employee engagement through open communication. Nice topic and good article.

    ReplyDelete
  9. Lasitha Indrapala17 January 2020 at 21:14

    Effective performance management has become an integral aspect of HR management. thus motivated workforce also helps the organization reduce turnover rates and boost productivity significantly. the organization align its employees, resources, and systems to meet their strategic objectives

    ReplyDelete
  10. SOS Booster8 September 2021 at 02:33

    Great Article! Here are some creative Online employee engagement games for corporate companies through you can keep their remote workers engaged and excited.

    ReplyDelete

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