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Question: What are the purposes of Performance Management?Discuss the key problems/difficulties of Performance Appraisal/Review and how to overcome them.

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Question: What are the purposes of Performance Management? Discuss the key problems/difficulties of Performance Appraisal/Review and how to overcome them. 1. Introduction Performance management is optimistic but not blind. It can be defined separately as the process by which executives, managers and supervisors work to align employee performance with the firm's goals. (Ivancevich, 2001) An effective performance management process seeks to define excellent performance, uses measurements of performance and provides feedback tot employees as a group about their performance. Performance management is based on the stubborn belief that improvement is possible and, indeed, important to the betterment of human and organizational conditions. Performance appraisal can be defined as the activity used to determine the extent to which an employee performs work effectively. (Ivancevich, 2001) Performance appraisal is a critical component to the well being of an organization. In the following section, the purpose of performance management and the limitations of performance appraisal are discussed. 2. Purposes of Performance Management Performance management is a natural process of management. It aims to make the good better, share understanding about what is to be achieved, develop the capacity of people to achieve it, and provide the support and guidance people need to deliver high performance and achieve their full potential to the benefit of themselves and the organization. "Performance management is concerned with under-performers, but it does this positively by providing the means for people to improve their performance or make better use of their abilities." ...read more.


2.4.5 Training and Development Needs Poor performance may indicate weaknesses and the need for retraining. Likewise, good performance may indicate strengths and untapped potential that should be developed. Performance feedback also guides career decisions and helps develop career paths. 2.4.6 Motivation and Communication Improvement Whilst good performance results in rewards and bad performance are inhibited by punishment, employees could be motivated to work hard to reach job standard. The appraisal system also promotes an excellent opportunity for both parties to express their opinions related to job performance and overall work situation or problems. 2.4.7 Feedback to Human Resources Management Process Good or bad performance throughout the organization indicates how well the human resources functions are performing. For example, mistakes in manpower plans, staffing process deficiencies and job design errors. Many problems (including employees' personal problems) can be uncovered through appraisals, the human resources department may be able to take appropriate action or assistance to employees. 3. Problems/Difficulties of Performance Appraisal/Review By appraising staff, managers seek to improve present performance through identifying individual strengths and weaknesses, and future performance by identifying individuals for development. During the course of appraising staff, some problems may be incurred and thus lowering the effectiveness of performance appraisal. Difficulties of performance appraisal are listed as follows. 3.1 Difficult to find standards In order to appraising staff, standards or requirements should be pre-determined. ...read more.


Often this will also require the involvement of trade union representative. The scheme must also be seen to be applied to all staff, irrespective of status to ensure equity and acceptance. 4.4 Show Management Commitment Management must be serious in handling appraisal results. Employees who feel unfairly treated should be allowed the opportunity to state their case or appeal. Follow-up action, once promised, should be implemented or an explanation should be given for failure to do so. 5. Conclusion In conclusion, performance management is one of the principle tools executives, line managers, and employees are able to use to achieve their collective goals. So, human resources professionals today, who think strategically and acquire systems thinking, and who have a healthy respect and attitude with regard to all aspects f managing the performance of an organization and its employees, will become or continue to be very highly valued leaders within their organizations. Reference Armstrong, M. & Baron, A. (2005). Managing Performance: Performance Management in Action. Chartered Institute of Personnel and Development, London. Cleveland, J., Murphy, K. & Wiliams, R. (1989). "Multiple Uses of Performance Appraisal: Prevalence and Correlates", Journal of Applied Psychology, Vol. 74, pp.130-135. Institute of Personnel Management (1992). Performance Management in the UK: an analysis of the issues. London, IPM. Ivancevich, J. M., (2001). Human Resource Management, 8th Edition, McGraw-Hill, Irwin. Noe, R. A., Hollenbeck, J. R., Gerhart, B. & Wright, P. M. (2006). Human Resource Management: Gaining a Competitive Advantage, 5th Edition, McGraw-Hill, Irwin. ?? ?? ?? ?? 1 ...read more.

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