Performance management aims to improve organizational, functional, unit and individual performance by linking the objectives of each (Stone 2006). It involves balancing the performance expectations of an organization with those of its employees, and can be achieved by ensuring that individual objectives are lined to organizational goals so that the performance of individual employee is directly proportional to business results.
This essay will argue that performance management enables organizations to achieve a high level of performance through proper planning, assisting employees in their performance and reviewing the performance for necessary improvements (Tovey, 2001).
The first stage in managing performance requires a manager to think carefully about the future and develop strategies and actions to deal with it. Planning encompasses defining the organization’s objective or goals establishing an overall strategy for achieving these goals, and developing a comprehensive hierarchy of plans to integrate and coordinate activities (Tovey, 2001).
Some organizations may not devote enough time for planning because things rapidly change especially in technology industry, but according to a research made by Tovey, Japanese found that more time spent in planning reduced mistakes and increased quality and productivity, thus increasing overall organizational performance. Some of the important examples why managers should plan would be to enable action planning, identify resources required, monitor and evaluate performance and reduce uncertainty (Tovey, 2001).
After setting up agreed performance or objectives, managers and staff should work together to ensure that they are performing to the best interest of achieving those objectives.
Managers view performance appraisals as a time-consuming chore while employees look at it with trepidation but it is still believed that the flaw is in the mindset of the managers, not in the tools. Performance...