HR Performance Management System

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.

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Herman Aguinis,(2009), Performance Management,second edition. Upper saddle River, New Jersey: Pearson Education