Benefits of Performance Management

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, 2013).

Figure 1.0: Impact of employee engagement in performance management

Source: (Gallup, 2013)

According to Russell and Russell (2009) and Mattone (2013) both employees and organizations are benefits due to the cause of well managed performances as follows.

·         Employees understand the importance of their contribution towards organizational goals and objectives.

·        Each employee understands what is expected from them and ascertaining whether the employees possess the skills required to perform a job

·         Ensuring proper alignment of objectives and helping in communication throughout the organization

·         Helps in a cordial relationship between an individual employee and the manager based on trust.

·         It also provides scope and opportunity for incentives, rewards, performance and career development.

·    Based on the output of the employees performance management system helps to discover the training and development needs for the employees.

·         It helps in strengthening the bond between management and subordinates.

As a multinational B.Braun Group, one of top employers who experiences the benefits of performance management continuously. Organization’s clear objective is the further development of earnings and continuing to grow together with the commitment of all employees. As of 31^st December 2018, the B. Braun Group had 63,751 employees. This is up 3.5 percent from the previous year (61,583 employees). This number increased again during the year 2019 to 64,585 which proved that organization is successful in terms of performance management. It’s not surprising that continuous annual growth in the organization as they as they aligned to the effective performance management guideline worldwide and supports each and individual to benefits the growth every year.

Figure 2.0: Sales Growth – B.Braun Group

Source: Group Management Report, 2019 (B.Braun Inc.)

Earnings - B. Braun Group’s sales growth In FY 2019, B. Braun Group sales totaled € 7,471.3 million (previous year: € 6,908.1 million), increasing sales 8.2% over the previous year (6.7% at constant exchange rates).

References

·         Armstrong, M. (2006) Performance management: key strategies and practical guidelines .3rd ed. London and Philadelphia, Kogan Page

·         B.Braun, Inc. (2019). GROUP MANAGEMENT REPORT

·         Buchner, T., W. (2007). Performance management theory: A look from the performer's perspective with implications for HRD. Human Resource Development International.

·         Gallup, Inc. (2013), The State of the American Workplace: Employee Engagement Insights for U.S. Business Leaders.

·         Mattone, J., (2013). Powerful Performance Management. 1st ed. New York: Amacom

·         Russell, J. and Russell, L., (2009). Ultimate Performance Management: Training to Transform Performance Reviews into Performance Partnerships. 1st ed. USA: ASTD Press. 

·         Whittington, J.,L., Meskelis, S., Asare, E., & Beldona, S. (2017).Enhancing employee engagement: An evidence based approach. 1st ed. London, Palgrave Macmillan.