Performance
management is a continuous process of identifying, measuring and developing the
performance of individuals and teams and aligning performance with the
strategic goals of the organization. Continuous process is where the
performance management is ongoing. It involves a never ending process of
setting goals and objectives, observing performance, and giving and receiving
ongoing coaching and feedback. Meanwhile , alignment with strategic goals is
about performance management requires the managers ensure that employees’
activities and output are congruent with the organization’s goals and,
consequently help the organization gain a competitive advantage. PM is
considered within the framework of ‘talent management’ which encompasses all
area of HR that have to do with on boarding, developing, evaluating, and
managing the workforce. PM is one of the areas connected to others such as
recruiting, staffing, career management, 360 degree assessment, development
management, retention management and workforce planning.There are advantages of
this system which are motivation to perform is increased, self-esteem is
increased, employee become more competent and etc. but there are also the
dangers of the performance management system is implemented poorly. This will
lead to increase in turnover, wasting time and money, damaged relationship
among individuals, emerging biases and so on. Actually, PM system is most
frequently used for salary administration, performance feedback, and the
identification of employee strengths and weaknesses. However, PM system can
serve multiple purpose which is strategic, administrative, informational,
developmental, organizational maintenance and documentational purposes. They
serve strategic purposes because they help link employee activities with the
organization’s mission and goals, they identify result and behaviors needed to
carry out strategy maximize the extent to which employee’s exhibit the desired
behavior and produce the desired result. The ideal PM system can lead to an
effective management that effect the whole organization. The examples of ideal
performance are congruent with the strategy; there is a clear link among
individual, unit, and organizational goals, the system also should be
practical; they do not require excessive time and resources and etc. We can see
that a PM system is the key factor used in determining whether an organization
can manage its human resources and talent effectively (Aguinis, 2009). PM
provides information on who should be trained in what area, which employees
should be rewarded, and what types of skills are lacking at the organization or
unit level. When implemented well, surely PM systems will provide critical
information that allows organization to make decision regarding their people
resource.
(406
words)
Herman
Aguinis,(2009), Performance Management,second edition. Upper saddle River, New
Jersey: Pearson Education