Should one measure performance or mere activities of employees? Is the one who do silent work but does not show of himself/herself or the one who puts up a show but hardly performs to be recognized and rewarded? This and other related questions are well addressed by performance management system.
Performance of employees directly and exponentially affects the organizational effectiveness or performance. Hence employee performance needs to be accurately assessed and improved periodically. Performance Management System plays a crucial role in that process.
Effective performance management involves far more than simply assessing the performance of employees. Effective performance management involves providing meaningful feedback, collaborating with workers to solve performance problems, and developing improved level of performance. Managing performance requires understanding of factors that influence performance from ability and motivation to factors external to the employees. Performance Management should involve the manager in diagnosing the sources of performance difficulties and in helping to find the solutions to those problems. A manager also needs to understand the various options that might be employed as potential means to improve performance. Effective performance management requires far more than simply completing the annual appraisal form.