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This document or paper discussions the relationship between good performance management system and organizational improvement. Thus a good or effective performance management system will help improve the performance such as profitability of an organization.
This document or paper discussions the relationship between good performance management system and organizational improvement. Thus a good or effective performance management system will help improve the performance such as profitability of an organization.
This document or paper discussions the relationship between good performance management system and organizational improvement. Thus a good or effective performance management system will help improve the performance such as profitability of an organization.
Performance management is defined as A Strategies and integrated
approach to in creasing the effectiveness of organizations by improving the performance of the people who work in them and be developing the capabilities of teams and individual contributors (Armstrong and Baron, 1998). The main aim of performance management is to establish a culture in which individuals and groups take responsibility for the continuous improvement of business process, and of their own skills and contribution. Performance management systems should be established to achieve this aim. Performance management system can be used to communicate and reinforce the organizations strategies, values and rooms, and to integrate individual and corporate objectives. Additionally, it enables individuals to express their own view on what they should be doing, where they should be going and how they should be managed. Thus, it provides a means whereby expectations can be shared between managers and their staff. An effective or good performance management system should therefore develop employees understanding of what needs to be achieved, help them to improve corporate performance and reward them on the basis of their contribution. As a consequent performance management system can help managers to manage their division in so many ways. Firstly, performance management system helps managers to be teachers, counselors and friends as much or more than they are commanders, counselors and judges. Secondly, it enables line managers to trust people to use their own methods to achieve the managers own ends. Thirdly, it might help division manager to delegate on the basis of a positive will to trust and to enable and a willingness to be trusted and enabled. Last, but not the least, performance management system might help or enable the divisional manager to become post heroic leader who knows that every problem can be solved in such a way as to develop other peoples capacity to handle it.
However, to be able to achieve these, the divisional line manager should be
able to state clear, measurable and achievable objectives. Further more, he/she should be able to handle performance review meetings, in which he/she not only commend staff on their achievement, but also helps them to recognize where performance has been substandard and needs to be improved. In summary, there are various ways that performance management system might help managers in a division to manage their division. However, as I have mentioned above, the main ways are: it helps managers to be teachers, and be able to coach employees, help them to delegate on the basis of mutual commitment, enable line managers to solve problems by developing employees capabilities to handle them.