Discuss the following statements: Performance Management involves a range of activities, one of which is performance appraisal and feedback. For many years, researcher in the field of HRM and...

Performance Management
Performance Management
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Introduction
Performance management involves a range of activities, one of which is performance evaluation and feedback. Researchers in the field of human resource management and industrial organization psychology have used performance assessment as a measurement technique. The goal of performance measurement systems is to reliably and effectively measure the performance of individual employees. To do this, we need to understand the process of performance management. This paper includes a discussion of the components of the effective PMS.
Thesis: Many people mistake performance evaluation for performance management. In fact, performance management is a larger system that is more important to companies and managers than performance evaluation. An effective PMS includes several components that each organization must consider (Wang, Thornhill and Zhao, 2016).
Components of an effective performance management system
Any effective PMS includes following components:
Performance Planning: This is the key component of some PM process and forms the performance evaluation basis. The performance plan is completed by the evaluator and a reviewer at the starting of performance meeting. During this time, workers determined to implement goals and key performance areas for almost one year in performance budget, which was finalized after the consensus was reached between reporting officials and employees.
Performance appraisal and review: Assessments are usually conducted twice a year in an organization, at the end of the fiscal year in the form of a mid-term review and an annual review. In this progression, the evaluator first provides a self-filled rating in self-assessment form as well as describes his/her achievement over time in the quantifiable terms (Watts, 2013).
Response on the performance, followed by the performance promotion and personal counseling: counseling and feedback are significant in the process performance management. Employees receive open and transparent reaction and determine employee training or development needs (Schwartz, 2011).
Rewarding excellent performance: This is the very important part because it will verify the inspiration of the employee's work. At this stage, employees are rewarded for their public performance.
Performance Improvement Plan: At this stage, new goals are set for employees and new deadlines are reached to achieve them. Employees clearly understand the areas in which employees should improve, and also set a deadline for employees to display this improvement within the deadline. The plan was developed jointly by the evaluator and the appraiser and approved for mutual approval.
Potential assessment: Potential assessment is the basis for horizontal and vertical movement of employees. Potential assessments can be performed by implementing capability maps and various assessment techniques. Potential assessments provide important inputs for job rotation and succession planning.
The basic building blocks of the performance management include the following: Directional sharing means communicating the higher-level goals of the organization throughout the organization and turning those goals into viable sectoral goals. Goal consistency means developing a process that allows a few managers to see connection between worker objectives and departmental and organizational goals. Continuous performance monitoring means that using a...