The Impact of Performance Management on Employee performance

This analysis concluded that coaching, development and giving/receiving feedback is a learned and essential skill for all employees in the organization regardless of their position and hierarchy (Roberts, 2001). Performance management system, employee and manager training and development unconditionally necessary for improving their performances (Helm et al., 2007). Also performance management evidenced that it’s a strategic and integrated approach to deliver sustained success to organizations by improving the performance of the people who work in them and by developing the capabilities of teams and individual contributors (Armstrong and Baron, 2004). According to B.Braun Knowledge Center performance management as a tool to identify and develop the competencies in employees. Core competencies are the foundation for a common understanding of which skills employees need to solve problems and to complete tasks independently. B. Braun core competency model applies to all employees

Performance management system is most frequently used for salary administration, performance feedback and the identification of employee strengths and weaknesses. In general, however, performance management systems can serve the purposes of strategic, administrative, information, developmental, organizational maintenance, and documentation. (Gabris & Ihrke, 2001). Table 1.0 : Purposes served by a performance management system Source: Performance Management, (2005). Edingburgh Business School, Heriot-Watt University When a performance management system implemented in an organization there are various purposes served by that system such as strategic, administrative, information, developmental, organizational maintenance and documentation ( Aguinis, 2005). 1.       The rating distribution. Performance management will help the management to reward good performers and recognize their efforts, whereas it serves as a warning to poor performers to improve their performa

Organizations with strong performance management systems are 51% more likely to outperform their competitors on financial measures and 41% more likely to outperform their competitors on non-financial measures such as customer satisfaction, employee retention, and quality of products or services (Bernthal et al., 2003). According to DeCenzo and Robbins (2015), there are three renowned categories of performance management methods: 1. Absolute methods – they compare the work performance of the employees with the standards and requirements for qualified work adopted by the organization. These include: the critical incident rating, the checklist rating, the graphic rating scale. 2. Relative methods – the evaluated are compared with other employees. Most often comparison in group, comparison by pairs, point scales for grading the level of performance, and others are applied. 3. Management by objectives - when evaluating the performance, the results of the employee's work

Performance management is a process that looking to the future rather than dwelling on the  Past which benefits to the employees, managers and for the organization as well in many aspects (Armstrong, 2006). Good and effective performance management requires clear objectives and regular assessment of each individual's performance and this will helps to decide the training and development plans that employees need (Buchner,2007). Employee engagement is one of key area in performance management and high employee engagement is directly impacted by an intentional, well thought out performance management program (Whittington et al, 2017). When an organization can successfully create an environment of engagement where customers are equally engaged by employees on the front line, their outcome is even better and the organization experience a 240% boost in performance related business outcomes compared with an organization with neither engaged employees nor engaged customers (Gallup,

“A [negative] dynamics exists when managers sit down to give employees their annual review and salary increase. The employees focus on the extrinsic reward – a raise, higher rating – and learning shuts down…. We have an embarrassingly simple solution. Never have the [pay and feedback] conversations at the same time. Annual reviews happen in November, and pay discussions happen a month later.” This conversations was held during a calibration meeting at Google. Google understands that a compensation-focused employee is no good a listener of feedback, whether compensation expectations were not met, met, or exceeded (de Mello, 2016). According to Helm et al. (2007) performance management is vital to an organization’s performance for various reasons such as, 1. Performance management facilitates the organization to achieve its vision and business objective.  2. It  is  a  prerequisite  to  develop  a  performance  oriented  culture  within  the organization.  3. Performance m