Performance is the driver of organization growth. A sound performance management system is desirable in an organization because, through it, the company can improve the performance of its teams and staff, and this will result in an overall high score for the company. It is through a sound performance management system in the organization that employees get a chance to set goals, and also ensure that their personal goals are in line with the objectives or the goals set by the company. It is also through the performance management that an organization finds it easy to build a cohesive team that is bound together by a sound system of communication, team goals, and culture that work for the effectiveness of the organization in the industry. Lastly, it is through the use of a better performance management system also that an organization relies on while facilitating a cordial and harmonious relationship between individual employees and the line managers based on trust and empowerment. In this manner, an organization needs to understand the best way possible to incorporate performance management and ensure that it is workable to achieve the benefits that come with it when it perfectly integrates into the system.
According to Armstrong (2009) , an organization needs to understand the need to have a workable performance management system before deciding to incorporate it into the organization. In the current competitive and dynamic business world, an organization needs a workable performance management system because it creates a culture of better communication. With better communication in the organization, the workflow becomes easy; there are proper relationship development and better goal setting for both organization and individual employees. Furthermore, a performance management system is sound because it is a way through which leaning is enhanced within the organization as staffs interact, form teams, and also enhance group performance. In this way, the organization becomes cohesive, and this is good for image and performance. An organization also needs better performance management as a way to empower the employees ( Arnaboldi, Lapsley & Steccolini, 2015).
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From the video lesson, there are critical tenets that a management team must first develop a way to incorporate a workable performance management system in the organization. These are vital areas that closely link to different prerequisites of the performance management system in the workplace. The first is skills. It is the skills that allow the management to understand the employees and know what is necessary for a better performance management system in the workplace. Skills and experience intermarry with education and knowledge to create a situation where the management understands the needs of the performance management system in the organization and also understands the path they have to follow to ensure that it incorporates and workable in the company ( Rajnoha & Lesníková, 2016). Proper integration of performance management system in the organization calls for not only passion, but also the time to understand the organization's needs and the best way that not only the management understand the benefit of performance management in the company, but also the workers. Note that passion moves people to make sacrifices to ensure that they achieve what they want. Therefore, passion will be the driver to ensure that there performance both at the managerial and the workers' level.
There are many ways through which the organization enhances and integrates performance management. The first way is to identify the areas where performance is necessary. As this happens, there is a joint performance assessment within the organization where there are the use of standard evaluation assessment, the need assessment, and also performance assessment questionnaires, which the organization uses to understand areas where workers’ weaknesses lie. Such assessment also reveals the need to retrain the individuals whose performance is not up to the standard set by the organization management. The result of the performance assessment helps the organization to set up a performance plan. The organization's performance management plan is at different levels. There are individual performance plans, managerial performance management plans, and department plans. Note that, these levels or subsections have their framework for performance mismanagement system and plans. However, all the smart objectives for the performance management plan must align with the organization's performance management plan. The objective set by each individual, teams and also departments is critical in establishing a framework through which the organization will use to create a performance management system that will propel the organization to its desired direction ( Schleicher et al., 2018).
The next step is to understand the key performance indicators as well as understanding the key behaviors that can be key to performance enhancement. Such indicators, both behavioral and measurable, are crucial to understanding the best ways to handle performance issues in the company. The organization also conduct monthly and annual review of performance to recognize areas where improvement is necessary as well as understanding the scope of performance improvement in such areas. Through understanding the performance indicators, the company can realize staff that needs training. The training to enhance performance is for those who have weaknesses. The organization conduct such in many ways. Majorly, drafting training programs for both on-site training and other modes of training, such as conferences, are ways through which the company uses to enhance performance. With training, people can understand new ways of handling task, further information on a different aspect of the organization, and this help in boosting performance.
Enhancing the culture of teamwork is another means the organization uses to improve performance in the company. The company assigns most of the tasks in groups or teams. The teams are supposed to come up with uniform objectives that are supposed to unify them together towards achieving the goal ( Schleicher et al., 2018). The organization on the team performance to create an environment where staffs help each other’s to accomplish a task. From the video lesson.Commitment and contribution are prerequisites for performance. The aim of using teamwork is to ensure that each individual can assess the level of contribution and become part of the team that accomplishes a task. Through enhancing teamwork, the organization can commit each staff into a team where they can learn and enhance communication skills and interpersonal relationships, all of which are essential in the performance of the organization.
Another means of enhancing performance management and also incorporating it in the organization is the reward. The company has a reward system that improves both intrinsic and extrinsic rewards. Intrinsic reward is critical because they come from within the employee. Intrinsic motivation comes from job satisfaction and performance. In this sense, there are many strategies that a company can use to ensure that they invoke intrinsic motivation from the workers. Identifying the staffs’ weaknesses through analyzing the behavioral performing indicators, and training them to overcome such weaknesses is what the does to ensure that the employees become self-motivated to perform better. After that, they reward them by recognizing their achievements, promoting them to the next level, giving them incentives such as increased compensation package, and also giving them better roles and challenges to help them perform better. Motivation, therefore, is a performance tool the company uses mostly for the weak employees who have the potential of improving and becoming better. Managers use it for teams that have done better and have set the pace and example for other teams to follow in the company.
The benefits
A sound performance management system in the organization is beneficial in many ways. First, the company can understand the areas where they need to improve. For instance, a sound system helps the organization identify performance indicators and establish areas where there is a need to improve the organization's operation. These include the department and individual level. These are critical areas where the organization must remain vigilant, assess them, and ensure that they are improved for overall performance. Through the use of a performance management system, the organization is in a position to identify these areas and come up with strategies that can help it improve on them. Also, the employees always need to understand how they perform in the organization. When they perform better, the employees get self- motivation, a factor that helps them to have passion, commitment, and contribute more to the organization by sharpening their performance. In this manner, performance management helps the organization collect data from the employees and give them feedback from which they work together to improve the performance ( Buckingham & Goodall, 2015).
It also through having proper performance management in the organization that they can identify excellent performance and bad performers and also document those need rewards and promotions. Note that rewarding employees is a system that the organization relies on as a way to improve the employees' performance. In this manner, it is the best way from which the employer gets an opportunity to select those to be rewarded and those who need promotion into a leadership role. The firm makes such selection from the performance review results. An organization also benefits from retaining more employees when there is a workable performance management system. Note that, an organization that can motivate workers and gets the best out of the places the workers' development as their priority. In this sense, such a culture is critical in retaining and also attracting more workers to the organization. Employees' retention in the organization also lies in performance. When employees perform better, they feel part of the organization, and they feel a sense of ownership on every achievement in the company. In this sense, it is difficult for them to quit their jobs as they feel total satisfaction with the jobs. Lastly, proper performance management also helps with planning for both the staff, the department, and even the entire organization. With performance management, there is a chain of planning that begins with the staff, teams, and departments. In all these sections, the aim is to come up with objectives that will contribute to achieving the primary goal of the company. In this manner, the performance management system orients staffs’ goals to that of organization, and this makes it easy for the organization to achieve its set target.
In conclusion, with the intense competition in the dynamic business environment, the organization is relying on performance management to bail them out. Besides, with an integration of a sound performance management system in the organization, it becomes possible to create a team that is focused, cohesive, and target-oriented, and this is what makes it necessary for an organization to achieve its goals in the business environment.
References
Armstrong, M. (2009). Armstrong's handbook of performance management: an evidence-based guide to delivering high performance . Kogan Page Publishers.
Arnaboldi, M., Lapsley, I., & Steccolini, I. (2015). Performance management in the public sector: The ultimate challenge. Financial Accountability & Management , 31 (1), 1-22.
Buckingham, M., & Goodall, A. (2015). Reinventing performance management. Harvard Business Review , 93 (4), 40-50.
Rajnoha, R., & Lesníková, P. (2016). Strategic performance management system and corporate sustainability concept-specific parametres in Slovak Enterprises. Journal of Competitiveness .
Schleicher, D. J., Baumann, H. M., Sullivan, D. W., Levy, P. E., Hargrove, D. C., & Barros-Rivera, B. A. (2018). Putting the system into performance management systems: A review and agenda for performance management research. Journal of Management , 44 (6), 2209-2245.
