Assessing Performance Management Output Enhancement Models

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Eemployees are the most important factor of running your business smoothly and efficiently that's why, keeping in mind the crucial role of your employees, a recent trend known as Performance Management has come into practice. Using performance management, you can ensure that your employees not only fulfill their responsibilities, but do so to the best of their abilities and up to your expectations.

Performance management allows you to tap the full potential of your staff. In short, it can be described as a comprehensive process starting from monitoring and developing the desired traits to rating their progress and rewarding them for their achievements.

Performance management gives you the tools to install the desired qualities in your employees in order to get the job done. Development is not limited to only individuals in your workplace, but also addresses the performance of the team as a whole. All around employee development not only ensures the personal and professional growth of your employees, but also the expansion and improvement of your business.

Evaluating and rating the performance of your employees on an individual basis is essential. This gives them a clear picture of where they presently stand, areas that they need to work on and what they are good at. This way, they can focus more on their weaknesses and work to strengthen those areas.

Rewarding and appreciating your employees' efforts ensures that their level of their performance and consequently the performance of your business is not compromised. It ensures optimum productivity, performance and maximum profitability.

Rewarding your staff for a job well done not only enhance their performance but also serves as a tool to keep them motivated. Therefore, performance management is an effective system that allows you to achieve the financial goals of your small business.


Performance management is a relatively new concept to the field of management. Performance management is a way of systematically managing people for innovation, goal focus, productivity and satisfaction. It is a goal congruent win- win strategy. Its main objective is to ensure success. i.e., all task teams who believe in its process, its approach and implementation with sincerity and commitment. The success is reflected in organizations' bottom line in terms of achieving its planned goals. (Dutta.N, 2008)

It is an endless spiral, which links several processes such as performance planning, managing performance throughout the year, and taking stock of performance and potential. Also it includes recognizing and rewarding success at the end of the year.(Dutta.N, 2008).Performance Management links these processes in such a way that an individual performance is always oriented towards achieving organizational goals. It creates positive goal oriented task motivation and aims at reducing intra-organizational conflict.

It is realized that organisations could not be successful if they do not have a good performance management system. Each manager needs to devise his/her own system of managing performance. While some norms of performance management are explicit others are not so clear even to the managers. It is said that standards or expectations that define good performance may be generally understood but are rarely specific. It is a holistic, largely participatory and goal congruent process of managing and supervising managers at work. It is understood as a systematic, organized approach to managing and rewarding performance by generating and sustaining positive employee motivation. It is neither the well-known system of performance appraisal nor the well talked about system of MBO. Its salient dimensions include performance standards- representing organizational goals and objectives, recognition and reward. (McNamara. C 2008)

Performance Management is a means of getting better results from the organisations, teams and individuals by understanding and managing performance within the agreed framework of planned goals and competency requirements. (Peoples management) It is a process for establishing shared understanding about what is to be achieved and an approach to managing and developing people. (Armstrong)

Project Management is a strategic and integrated approach in delivering sustained success to organisations by improving performance of people by developing the capabilities of teams and individuals. These experts consider it as a strategic tool since it is concerned with achievement of long-term organizational goals and effective functioning of organisations in its external environment. (Armstrong and Baron)

Typical concerns expressed about performance management are that it seems extraordinarily difficult and often unreliable to measure phenomena as complex as performance. People point out that today's organizations are rapidly changing, thus results and measures quickly become obsolete. They add that translating human desires and interactions to measurements is impersonal and even heavy handed. (Mirani .Z, 2004)


Performance management output enhancement model

Explanation of the model

After reading different authors we found that reward and training are the two most important elements of performance management. If an organization uses performance management system and finds out that it has discrepancies, according to our model it should straight away see two main elements

Does the employees needs training

Are the employees satisfied with their reward system

Does the employees needs training

If an organization finds that an employee is not performing well and not giving what he/she should give, then employee's needs training. Trainings enhance the employee skills, knowledge and experience which is essential in today's rapidly changing workplace. In order for the organization to remain competitive and to retain its reputation for excellence, employees should have up-to-the-minute information and the ability to use new technologies, adapt to organizational change, work in flatter organizations in which cross-functional skills and knowledge are required, and work effectively in teams and other collaborative situations. Employees, too, recognize that it is essential for them to continue to get trained so that they will be effective in their current jobs and able to move into other positions or accept new responsibilities as circumstances demand.

Are the employees satisfied with their reward system?

Sometimes employees do not perform because they feel that they are not being rewarded for the effort they are putting in. Performance management system helps in finding out that are your employees is satisfied with their rewarding or not. Employee performance basically depends on how reward is linked to performance and how an employee perceives this linkage. If an employee perceive that reward is contingent on performance he/she will put maximum. Rewards of both types, financial and non-financial, should be taken between encouraging and rewarding individual initiative and growth and stimulating full contributions to success. Innovative non-financial rewards for responsible behavior may include the authority to select new members of the group, make recommendations regarding a new supervisor, or propose discipline for other employees.

If things does not get on proper track by identifying problems in these two areas then comes another element and that is of recruitment. Recruitment is the last option which is not considered as the main study area. If comes into play if & only when there are no other ways to rectify the problems. Recruitment may take in two ways.

Directly after performance management system

After Training sessions

Directly after performance management system

When you apply performance management system and find out that you employee is not competent at that stage you try to get rid of him/her and you recruit a new employee with better skills and who is more competent. Selection is done on the basis of job description and if that candidate falls into the category he/she gets selected.

After Training sessions

Sometimes employees even after trainings do not overcome their shortcomings. So when they don't overcome the problems the management has to take a step and get rid of them because they affect the outcome of the organization. When management takes step of getting rid of them again the process of recruitment comes into play.


By our study we came to know that by the help of Performance management system helps people will better understand how they can contribute and develop as employees within the organization. They become better engaged in their work by understanding the organization's mission, the expectations for their work, and what they can gain from the performance management. This in turn benefits recruitment, hiring, and retention of the employee and creates a team atmosphere where ideas are valued and acted upon.

As with any large and complex organization it is important that the following issues be considered when implementing a performance management system. There must be accountability at all levels, or the buying and trust that are needed and perhaps most importantly, appropriate resources are required to implement and maintain an effective performance management system and invest in professional development.

It will take bold leadership to drive an effective performance management system. By committing to its employees, they will, in turn, give much more to the organization.


After creating the model and studying different views we recommend adopting a performance management system based on below listed guiding principles

Develop and implement performance management system guidelines.

Establish organizations wide core competencies to select employees, measure their performance, and identify growth and development opportunities.

Determine the set of necessary skills for Human Resource expertise within each department, and unit.

Provide an appraisal form that can be used across the organizations and tailored by units.

Consider technology-based tools to facilitate delivery of the system and monitor reporting.

Leaders must buy into the system to effectively 'lead' the system.

Continue senior leadership performance review process.

Leaders must value the work of their human resource staff and supervisors and allow time for them to do the necessary work for the performance management process to be successful.

Adequately train supervisors in areas including, but not limited to, general talent management, performance management guidelines, conflict resolution, coaching and feedback, et cetera.

Support and value the time that it takes to effectively conduct performance management and coach employees

Value employees' contributions through active recognition and other appropriate efforts.

Foster an environment of two-way communications.

Employees need clear expectations, continuous communication and feedback to be effective 'contributors' to the system.

Train employees on the benefits of the performance management process.

Empower employees to be active participants in the performance management process.

Provide time and money so employees can utilize professional development opportunities to improve their skills and develop in new areas.