Introduction

The purpose of a performance management system is to identify, measure, and develop the individual performance of employees and the performance of the team as a whole. Once an organization develops a strategic set of goals and vision, performance management systems help employees align their individual goals with that of the organization. Performance management systems give organizations and their employee’s opportunities for transparent communication and feedback on a regular ongoing basis. Direct face-to-face feedback will give organizations an increase in effectiveness among competition. Speaking of face-to-face communication, Youngman said, “The more filters it has to go through to get to everyone, the more likelihood of distortion” (2009, p. 13). The employees, management, and organization all contribute to a successful performance management system.

Strategy

A strategic thought process must be discussed and understood for a performance management long-term vision. This is done by companies reviewing the performance and productivity of the workforce and how effectively the company defines their goals and objectives to its employees (Bhalla & Giri, 2014). A strategic first step must be taken in order to maximize effective of the system. Without a strategy it will be very hard to get anything accomplished in an efficient and productive way (Aguinis, 2013). Overlap between systems may occur in the administrative process. This is one area where organizations aren’t placing enough emphasis on, in turn leading to the same mundane processes across systems. Reviews, on-going feedback and assessments are important aspects to the transparent communication process. As systems are changed or newly appointed, overlap may occur due to a lack of priority in improving systems.

Advantages And Positive Outcomes

The positive outcomes will range from identifying, measuring, and developing organizational outcomes. Some of the positive outcomes will become to shine through on behalf of the managers and employees together, as supervisors’ views of performance become clearer. Managers are able to gain important insight and information about their employees and thoughts. Management is able to decipher between the good and poor performers, as results are visible and communicated through consistent transparent face-to-face communication. Employees are able to take the performance feedback that is consistently being shared and become more competent in their current and future roles within the organization, if that were the case (2013).

Positive outcomes for employees consist of clearing being able to identify job description and expectations, in turn leading to a simple ability to determine whether the employee is being successful or not. When employees understand their role and importance in the workplace, engagement and morale rise. Self-esteem and motivation to

perform the job to the best of each individual ability becomes a part of the employee culture and climate, in turn helping the organization rise to higher levels of profitability. When a culture of employee success is in place, the development and retention of high-quality employees becomes more likely.

Disadvantages And Negative Outcomes

Potential disadvantages and negative outcomes are the lack of cooperation and desire for consistent feedback. This becomes an issue when employees and managers are unable to take constructive criticism or feedback, leading to anger, resentment, or delusion in the workplace. While employees and management have the potential to impact the organization at a highly effective rate, they also have the ability to hurt the organization at the same pace. Articles educating the population about what makes an individual successful have often pointed to the ability to accept feedback. We often say we welcome feedback, but ensuing thoughts and actions point to that not being true. Negative outcomes could include disagreement over the benefit and reward packages offered, causing a negative impact on employee engagement. Negative responses to the performance management system will do the exact opposite of the intended purpose.

Conclusion

Performance management systems are a key component to sustainable success within an organization and must be implemented with care and consistency. Organizations must have a mission and purpose in place before they can implement a performance management system. After this is done, a strategic purpose can begin to be implemented to lead the organization towards profitability and success in their performance management endeavors.

PERFORMANCE MANAGEMENT AT NETWORK SOLUTIONS, INC.

References

Youngman, P. (2009). navigating the rough seas of performance management. Human Resources Magazine, 14(5), 12-13.

Chapter 1 PowerPoint slides in Performance Management: Performance Management and Reward Systems in Context