PM: The Role Of Performance Management In An Organization

Performance Management:

Armstrong (2009) defines PM as a process which contributes to effective management within an organisation in order to achieve high output. As a result, it is a strategic activity which relates to the day to day operations of an organisation in the context of HR policies, culture, style and communication systems. The nature of PM strategies depends on the organisational context and can vary in each organisation (Armstrong, 2009). According to recent literature PM is a systematic process for increasing an organisations overall performance through individuals and groups (Ahmad, 2012). This process is usually an agreed framework of planned goals, standards, and competency requirements with the aim of meeting an organisations

Nevertheless in recent years organisations have focused on the implementation of PM systems, while neglecting the impact PM has on the organisation (Collins, 2003). Notably, PM is an essential link to organisational performance and is a key human resource process in shaping management behaviour and facilitating a positive relationship between managers and employees (CIPD PM in action, 2009). Simply, PM is the process by which an organisation safeguards that managers ensure employees understand their role, organisational objective, have the skills and competencies to complete these tasks (CIPD, 2009). As a result the relationship between an individual and their manager is the most significant factor impacting an employee’s willingness to perform (CIPD, 2009). However, when this relationship is not effectively managed an employee may not achieve the organisational goal, thus negatively impact employees, and the organisations performance (Mosley, 2013). As a result, there is a shift in PM being perceived as a continuous process rather than the traditional annual/bi-annual event. Furthermore, this process is an ongoing process and must be driven by management rather than the HR department (Mosley,

Therefore, employee engagement is affected by many factors such as emotional, rational and other factors related to workplace (Markos, 2010). However, Gallup defines employee engagement as the involvement with and enthusiasm for work thus, creating a positive engaged employee (Dernovesk, 2008). Therefore, employee engagement is a positive attitude by the employee towards the organisation and its value. As a result, these employees are more aware of the business context and the work that needs to be achieved for organisational success. In addition, job satisfaction, employee retention and employee commitment as positive outcomes from an engaged workforce (Markos,