Answer to Question #178489 in Economics for Nerisha Deeplal

Question

Performance Management

•    Discuss the three factors that important in understanding an individual’s contribution towards the organisation’s performance.  
• Identify and discuss one of the various tools used for performance management.   

Answer 1

Performance management is a complex role. Some people have difficulty assessing performance. Performance management is about motivation and partnership. When these prospects are communicated to your employees and they learn to see that way, performance management becomes a powerful tool that can help your team become more successful.

Performance management is sometimes mistaken for human resources and a personnel system, but it is very different when it comes to performance. Performance management includes the methodologies, processes, software, and systems that govern the performance of an organization, while human resource planning only takes care of the job responsibilities of individual employees and the execution of work.

The benefits of performance management extend to broader cross-functional participation in decision making and calculated risk, providing greater transparency with accurate and up-to-date information for the implementation of an organization's strategy.

Performance management encompasses many management roles, which shows that you need to be a communicator, leader, and employee. Each person in the team must understand exactly their responsibilities and what are the expectations of them, and how to work accordingly to achieve the goals.

Scope and use

Many organizations move from one improvement program to another, hoping that one of them will deliver such a big, elusive result. Most managers recognize that leverage for improvement rarely leads to long-term sustainable change. The key to improvement is the seamless integration and balancing of multiple programs. You cannot break the chain simply by implementing one improvement program and eliminating other programs and initiatives.

There must be a strong connection between the problems and the strategy of the organization. The way an organization manages performance can depend on its history, goals, mission, vision, strategic priorities, and the various challenges it faces in its economic, political, demographic, and technological environment.

Performance management is not free. Simplified a little, performance management exists only to help an organization implement its strategy in the best possible way to help the organization survive and compete in the marketplace.

Performance management has no endpoint. Sometimes busy, hardworking managers feel that this is why we do the assessment with the staff and conduct the assessment process. Strong and improving individual performance and excellent performance management on the part of all leaders who are responsible for maintaining their team are essential to achieving the goals of an organization.

Research has shown that the vast majority of people want to do excellent work. When managers are adept at managing their teams and individual actions, it motivates people to take pride in what they do. While this is a great generalization, it looks like most people really want to do a good job, which makes our leadership in performance management an opportunity in real-time.