What is a performance management system? What is the purpose of a performance management system?
These are the questions that often come out in essay examination for students studying human resource management.
Introduction to the performance management system
A performance management system is designed to help the manager assess the work performance of his staff. While the manager may think that he knows the work performance of his staff, he needs to have a systematic method to differentiate the good performers from the bad performers.
A performance management system
The manager cannot just say that Employee A is a good worker. He needs to justifyhow good the employee is, and what are the weaknesses.
That is why a performance management system must be specific, measurable, attainable, realistic and timely.
The performance management system must be specific, since it is design to measure work performance.
For example, customer service is one aspect of work performance. The performance management system must specifically state what is good customer service, and what is bad customer service.
The performance management system must be measurable. A scale of one to five is commonly use. In this way, the manager can differentiate the top performer from the average performer.
The performance management system must be attainable. It must not set impossible standard for the employees.
For example, penalizing employees for coming a minute late for work is obviously not workable.
Even those employees with good attendance may be late a couple of times per year.
Theperformance management system must be realistic. Nobody is able to administer the employee appraisal every day. That is unrealistic. Most companies administer the employee appraisal once a year, or twice a year as part of performance management.
That is realistic, due to time constraint and resource constraint.
The performance management system must be timely. If the performance appraisal form is 1000 pages long, the manager will have a hard time doing staff appraisal. That is why the timeliness comes in.
The performance management system should not waste the valuable time of the management in assessing each and every employee.
Conclusion to the performance management system
A performance management system is a must in the corporate world. A proper record must be kept to monitor the work performance, so that rewards are given to deserving staff. Training is given to help employees perform better.
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