6.Performance Management Cycle

Performance management (PM) issues those are central to many other elements of HRM such as recruitment, induction, training and development, reward management, through to capability procedures and termination (Boxall & Purcell,2008). PM aims directly to link together individual goals and organizational objectives in day -to-day management activity. Performance Management Systems, state that PM aims to make the good better, share understanding about what is to be achieved, develop the capacity of people to achieve it, and provide support and guidance people need to deliver high performance and achieve their full potential to the benefit of themselves and the organization according to Armstrong and Baron (2007,p.2).

The principal components of the performance management system

 

Measurement and rating system for performance review likely to be problems in terms of meaningfulness, objectivity, accuracy, validity and equity with setting SMART ( Specific, Measurable, Achievable, Realistic and Time-bound). Besides that, the problems of competencies, objective-setting can be measure with suitable rating systems. For example, evaluate employees using 360-Degree Performance Appraisal and upward review. There are a number of reasons why upward and 360-degree feedback as popular way to do evaluation.  First, it encourages self-awareness. Secondly, multi rater assessments provide greater validity, and therefore stand a better chance of acceptance. Third, information gathered can be used for strategic planning purposes. Fourth, it facilitates open communications as people become used to giving and receiving feedback. Next, it provides a framework for effective assessment and development of poor performers. (Mabey, 2001, IRS Employment Review 769a, 2003:Flechter, 2004, pp60-1:Bach,2005,p307)

Performance appraisal also most popular in HRM, however my knowledge are narrow in PM. Before this, I take performance appraisal topic as my task for past subject assignment. Now, I take this challenge PM topic to know more deeply of HRM functions. The important things I take from this topic is the role of technology in supporting performance is categories into 3 which is the web, third-party vendors and ERP providers. The web is online performance appraisal forms. In addition, administration and analysis of full-circle feedback or other types of customer input. It creation of self-paced learning program to help managers understand PMS and individual scorecards that cascade companywide balanced scorecards. Furthermore, a third-party vendor such administration of competency and skill databases to tracking completion of performance appraisals. Moreover, technology-driven databases of performance objectives and language to provide timely and meaningful feedback are available. Lastly, ERP providers manage and track performance management.

PMS seen as synonymous with ‘new’ ways of managing HR, revolve around four stages.  There are defining performance standards, reviewing and appraising performance, reinforcing performance standards, and supporting individuals to meet performance expectations. PMS also have to be designed to dealt with poor performance with in an appropriate way. So that, continuous monitoring to check the system is effectively aligning individual and corporate objectives, especially in times of rapid change according Bach, 2005.