The Performance Management System The success of our organizations depends upon the people who are employed by these organizations.
Increasing their effectiveness is the function of a performance management system. It might even be said that the very survival of an organization depends on management's ability to effectively use a well desgined performance management system. A well designed performance management system hasy three primary functions: 1. Provides the organization with data for human resource planning and for administrative decision making. 2. Lets the individual know where he or she stands in the eyes of his/her supervisors.
3. Helps the individual to improve his or her job performance and increase productivity. At this time in our economic history, productivity improvement is one of the most critical national economic issues. We all realize that wage increases cannot be supported without real gains in productivity. Therefore, the third aim of a performance management system, improving performance and increasing productivity, is soon likely to be seen as the most important aim.
Two basic factors in a performance management system are related to improved performance and increased productivity. One is goal setting, the other is feedback. At their best, the activities and strategies of an ongoing performance management system will result in a positive work environment leading to greater productivity of the individual, the department and the organization. Feedback, regular communication, and coaching provide the foundations. Word Count: 231
