PERFORMANCE MANAGEMENT SYSTEM

For our information, performance management system is not performance appraisal. Actually, performance management is a much bigger system and is much valuable to managers and companies and also to employees than performance appraisal.

Performance management is the process of involving employees in accomplishing your agency’s mission and goals. Employee performance management includes planning work and setting goals, monitoring performance, developing capacity, reviewing performance and rewarding the good work.

According to Robert Bacal, performance management system is an on-going communication process, undertaken in partnership, between an employee and his or her immediate supervisor that involves establishing clear expectations and understanding about the essential job functions that the employee is expected to do, how the employee’s job contributes to the goals of the organization, how job performance will be measured and identifying barriers to performance and removing them.

There are some purposes to do the performance management system. Firstly, to help the employees to understand what they should be doing and how well they should be doing it, when it’s done well, it allows employees to consult with their managers less frequently. They make less mistakes, since they are clear about their jobs and authority levels, and they can make more decisions on their own.

Besides that, performance management is a good tool to prevent problems from occurring during the year. Goal setting and communication about performance all year long is helps to identify the barriers to performance before they impact on performance. However, most people think that performance management is involves looking backwards because they were focus on the performance appraisal.

In performance management system, there are five stages of performance management. It is starting with plan, monitor, develop, review and reward.

Performance management systems also have some benefits. There are improved productivity which is in improvement in both the way people work and the outcomes they produce, improved employee morale which is resulting from on-time performance appraisals and rewards commensurate with employee contributions, retention of top performers which is employees who feel accomplished in their work become loyal employees and also increased profitability which is loyal employees deliver the higher levels of service that result in customer loyalty.

For overall, we can say that performance management system can be regarded as a proactive system of managing employee performance for driving the individuals and the organizations toward desired performance and results.