Performance Management System Free Essays

Contents 1. Performance management on the benefits of a company or organization. 2. We will write a custom essay sample on Performance Management System or any similar topic only for you Order Now Examples and behavior of Performance management. 3. Performance Management Systems 4. Human Capital and Strategic Planning 5. Recommendations Performance management on the benefits of a company or organization. Successful organizations know that to win in today’s competitive marketplace they must attract, develop, and retain a talented and productive staff. Winning organizations get their competitive edge from a performance management system that communicates the organization’s vision and values, aligns individual and team performance goals with the organization’s strategic objectives, outlines career development paths for each team member, and provides ongoing feedback for staff development. We will guide you through the development of your Competency Based Performance Management System, customizing the program to reflect the unique needs of your organization. A Senior Consultant will work with your leadership team to develop a model that will maximize employee input, buy-in and utilization of the new review process. Performance management system training is a process that uses your employees to their full potential, developing the talents of the existing workforce as a cost-effective way to increase the bottom line. These systematic training programs ensure the goals of your company are consistently met by each individual employee. Performance management helps evaluate each employee to see if he is in the right position, and a continued training program develops his skills to their highest level. Having a common goal among employees and management is what makes a company successful. Performance management system training teaches and develops these common goals. When you train your employees effectively, they know what is expected of them and need less monitoring. Employee morale is boosted when each employee feels she is adequately qualified for her job position. Positive morale has proven to increase productivity, which ultimately means higher profits for the business. Performance management includes employee appraisals as a necessary first step. Discerning how your employees currently perform helps you determine how you would like them to perform. You can then set the goals necessary to bridge that gap. You will create a checklist of what you want to assess in each employee, establish a deadline for completing the appraisals and determine how you will go about the evaluation. Performance management is all about motivating employees to do better, so these appraisals are an opportunity for supervisor and staff to mutually agree on goals that will help them succeed. Examples and behavior of Performance management. A management system is the framework of processes and procedures used to ensure that an organization can fulfill all tasks required to achieve its objectives. For instance, an environmental management system enables organizations to improve their environmental performance through a process of continuous improvement. An oversimplification is â€Å"Plan, Do, Check, Act†. A more complete system would include accountability (an assignment of personal responsibility) and a schedule for activities to be completed, as well as auditing tools to implement corrective actions in addition to scheduled activities, creating an upward spiral of continuous improvement. Also as in the aforementioned management system, an occupational health and safety management system enables an organization to control its occupational health and safety risks and to improve its performance by means of continuous improvement. A management system is a proven framework for managing and continually improving your organization’s policies, procedures and processes. The best businesses work as complete units with a shared vision. This may encompass information sharing, benchmarking, team working and working to the highest quality and environmental principles. A management system helps your organization to achieve these goals through a number of strategies, including process optimization, management focus and disciplined management thinking. Performance Management Systems Performance management is a discipline that aims at promoting organizational performance by managing the human capital of an organization. The know-how, skills and capabilities that inherent and used by workers in an organization are referred to as human capital. Human capital is an integral asset of any business, company or organization and many of them have concentrated their investments of human capital. Why are organizations interested in the development management and promotion of human capital? Is human capital becoming more and more relevant to organizations? Studies have indicated that there is a huge overt and covert influence of human capital on the performance of any organization and business and there has been intensive research on human capital as a factor in business and organizational performance. This is why organizations are increasingly empowering their human resource departments which deal with the human capital. It has been proved by various studies that any practice that promotes or enhances human capital influences organizational performance directly by molding organizational behavior and attitudes. Human capital also creates structural and operational focal points that improve efficiency. According to most business executives, people are the most integral assets in any organization because they are the ones that make the rest of the assets to function. They have proved that investment in people often lead to improved revenue and profit margins. However the problem that arises from this assertion is that human capital as an asset is not tangible. This means that is cannot be in any way captured in financial results and statement. This puts a challenge on the business executives to empirically prove that investments in the human capital adds positive value to an organization that results to the growth of the organization and additional, value to the shareholders. There are some indicators that can measure the effectiveness of human capital in a business. They include the image of the organization, popularity with headhunters, experience, satisfaction and loyalty but these signals are not efficient because they do not put a real estimate on the added value to the company. In simple terms, the influence of human capital on the growth of a business is something that cannot be easily documented quantitatively. This is what challenges business executives in their attempt to claim that people are the most important asset in any business. This complicates their quest for the organizations to allow more funding to enhance and promote the human capital they claim is the most integral asset. The human resource management departments in organizations in Australia have realized that human capital needs additional support for the organizations to grow in terms of market share, competitive advantage and revenue base. The emphasis on human capital by businesses and organizations in Australia is based not only on conventional ideals of human capital but also on the contemporary knowledge and information based world of organizations. in a society which is becoming revolutionized by technology, the concept of human capital cannot remain static. For businesses to remain competitive and productive in this digital age, the workforce must therefore be equipped with the relevant skills to keep them at par with the dynamics of technology. This will ensure that things to do with on job training must be emphasized. Additional financial capital needs to be channeled towards the human resource departments to facilitate the training of the workforce. Human Capital and Strategic Planning Strategic decision making must precede the HR functions of the organizations because it is the strategic decisions made that will determine how the strategic functions will be carried out. An organization must therefore identify its missions and visions which must be articulated to all the shareholders. Clear visions and missions are very fundamental for the development of HR strategies because they have to be relevant with the literacy levels and the competencies of the employees who will have to face the challenge of delivering it. One of the problems faced by organizations is the development of unrealistic strategic plans that completely destabilize the HR functions. This is because at times there is absence of leadership competence that does not understand that there is an umbilical cord that connects the strategies with their relevance to the people who will be supposed to execute it. This is why the HR department must also be part of the strategic decision making process and the best way of helping in the making of the strategic decisions is by using its competencies model where the competencies of the already existing employees are factored in such that while most of the visions and missions being planned will be planned around the competencies and the creativity levels of the existing employees. This will minimize the need to make a complete overhaul or a reengineering that would be occasioned by strategic decisions that do not factor in the competencies of the employees. Where the strategic decisions go beyond the competencies of the existing HR, external recruitment would be the most appropriate HR function otherwise, internal promotions based on competencies and performance would be the most viable option as long as the competencies and the performance of the existing HR is factored in during the strategic decision making process (Bradford, 2000). The strategic plans can be easily realized using a HR team that is already acquainted with the practices of the organization meaning that the internal promotions would be the most viable HR practice especially when recruiting for middle level and top management positions. The use of the correct HR practices will enable an organization to adopt a holistic approach that will enable it to capitalize on the competitive market trends avoiding internal divisions and personal agendas that end up blocking the path to the realization of the strategic plans. Recommendations There are a few recommendations that will made that will help in the improvement of performance management systems 1. Firms should invest more in human capital because it is the single most important economic resource of any organization 2. The human capital should be availed with the necessary resources for them to be able to give firms a competitive advantage 3. Human capital should be included in the strategic decisions of a firm because they are the ones who will work on the strategies 4. A collective culture in should be enhanced in firms in order to give the human capital the correct working environment 5. There should be management and leadership styles that support and motivate the human capital to enhance its performance How to cite Performance Management System, Essay examples