Performance Management System For the past five years, a medium-sized telecommunications company (annual revenues: $10 million) has handled its human resource needs in-house. Like many organizations...

Running Head: HUMAN RESOURCE MANAGEMENT                    1
HUMAN RESOURCE MANAGEMENT                            11
HUMAN RESOURCE MANAGEMENT
PERFORMANCE MANAGEMENT SYSTEM
Table of Contents
Introduction    4
Purposes of Performance Management System    4
Mechanism of Feedback:    4
Development:    4
Documentation:    5
Diagnosis of Organizational Problems:    5
Criteria for Effective Performance Management System    5
Validity:    5
Strategic Congruence:    5
Relevance:    6
Reliability:    6
Appropriacy:    6
Talent Management Issues    6
Recruitment and Retention:    6
Quality of Hire:    6
Reference Checking:    7
Leadership:    7
Technology:    7
Employee Turnover:    7
Training Needs and Developing Leadership    7
Recommendations for Maximization of Performance Management Systems    8
5A’s Approach    8
Feedback:    8
Personal Development:    8
Rewards and Recognitions:    9
Engagement:    9
One-on-One Performance Check-Ins:    9
Justification of the Recommendations    9
Conclusion    10
References    11
Introduction
A performance management system is the detailed way of analyzing performance by tracking and measuring the consistency of the performance of the employee. It is done in order to ensure that departments and employees of the organization are working effectively to help organization to achieve its strategic goals.
According to DeNisi and Murphy (2017), there are various performance management systems such as 360 reviews, grading, trait based appraisals and behavior based appraisals as well as management by objective appraisals. The selection and implementation of these systems is dependent on the roles, time, process and objectives of the organization. The technology-based systems are well integrated with these to increase the impact of the results.
Purposes of Performance Management System
The system consists of interconnected process like identification, encouragement, measurement, evaluation, improvement and reward in sequence so that objective of performance management can be achieved. Khemiri, Elbedoui-Maktouf, Grabot and Zouari (2017) stated that the purpose of the performance management system is to support the above while serving the two-fold aspect of it. Firstly, it is to help employees to recognize their optimum potential by improving their performance at work and secondly, by helping managers and employee to get detailed information regarding work efficiency. The following factors help in solving the two-fold purpose of performance management systems.
Mechanism of Feedback:
The goals are set mutually between employers and employees. The feedback helps in understanding the reasons of deviation from those goals in the form of performance.
Development:
It helps to identify training requirements of individual employees and set objectives for the same so that modification in behavioral approach can be made
Documentation:
As suggested by Van Thielen, Bauwens, Audenaert, Van Waeyenberg and Decramer (2018), a detailed documentation of key performance indicators need to be maintained and evaluated before taking decisions related to appraisal so that related legal aspects of employee performance do not get a miss
Diagnosis of Organizational Problems:
These systems help in identifying the knowledge, abilities and skills required for a particular job while hiring and related training needs.
Criteria for Effective Performance Management System
The idea of adopting criteria of effective performance management systems in business can be differed in view but this exhaustive list help in designing the system with much ease and effectively.
Validity:
The relevant portion of performance is assessed and measured at this level. It is also addressed as ‘content validity’. Fu, Hsieh and Wang (2019) believed that it helps to remove the grimy picture of performance evaluation by removing inappropriate aspects of performance. It helps in checking the overlapping between actual job and performance measures of that job. It lacks in removing the shortfalls in the system. For example, ensure high production in plant experienced personnel and working condition of machinery matters. If these two aspects are not available then validity of performance is not present.
Strategic Congruence:
It is that level where job performance is matched with organizational aims through performance management systems. For example if a company strives for innovation in all business processes then the performance systems will be designed in a manner that innovation is the key factor for evaluation. According to Iris and Lam (2019), the...