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Performance management is process organization adopt to assess its employee as an individual and member and improve the organizational effectiveness in accomplishment of agency mission and goal. It usually includes setting goals for employees to achieve it, rating the performance of the objectives and setting the outline for the future development activities and achieving objectives. In order to maintain that organization's competitive advantages as a manager some of the issues we need to be aware in an effective performance management system.
In sustainability report year 2007 a survey has been conducted and it shows that around 70% staffs across the country of South Africa have been trained in the performance management system in the revamp of the Performance management system and processes. In this survey it shows that performance management analysis is play an important role in nowadays in an organization. Through the training of the performance management, manager will know how to using can identify the currently performance and contribution of these employees and understand how the employees contribute to an organization to achieve its goal and objectives. Beside that the performance management system provided a transparency over performance in the workplace. It wills helps manager to conduct a comprehensive assessment of training needs of their employee and what kind of training should be provided to increase the productivity in an organization.
The diagram below is show the process of performance management
In order to achieve organizational goals, planning plays an important role in setting expectations and goals toward an organizations and individuals. a good planning will ensure the smooth running in an organization this is because employee will understanding the role they plays as employee in the company and organization's aim therefore it will increase the productivity of an organization. Employee performance plans should be flexible and adjustable according the work requirements in the critical time.
Consistent performance measurement means of monitoring wells, feedback, and made available to staff and their progress in achieving its objectives the Working Group, manager can review of the progress of employees in their performance of their elements and standards of comparison and the problem facing in the progress and provided an opportunity for ongoing monitoring and how to check the staff meeting predetermined criteria, and make unrealistic or problematic standards change. Ongoing of the process will identify the problem have been occur and solve the problem immediacy.
Manager should address and evaluated the employee situation whether they should provide the training, introducing new skills or higher level of responsibility, improve workflow, or other methods to their employee. Through training it will brings some benefit to an organization such as encourage employees to perform well, enhance employability and competitiveness and help employees keep up the changes in the workplace, such as the introduction of new technology. By implementation of the performance management process it provides an excellent opportunity to identify development needs and turn it into action in this ways the organization will successfully in future because they can easier because performance deficiencies became apparent and it can be solved immediacy.
To boost up the morale of employee, as a manager we need evaluate and appraise the worker's performance from time to time .this is because we can distribute job through the performance of employees. The employee's performance appraisal should be based on the work completed during the period beside that some reward such as granting within-grade pay increases should be given to the employee who performed well in an organization .in this way it will create a win-win situation within the staff and organization because it will increase the productivity and reduce the turnover of the organization.
Reward means recognizing the performance and contribution to the organization's mission by the employee whether it individual or as the member of the group. By giving the reward to employee in an organization it will motivate to the employee and they will help you create success in business in future. Normally the staff will get the monetary natures either it is cash or getting the bonus , beside that if the employee who performed well in an organization he or she should be promote to a higher position and greater responsibility, the positive reward will bring the company success in the future. Else it will bring the risk for the organization in future.
In effective organizations, managers and employees should practicing good performance management. Few component of performance management should be implements to ensure the organization maintaining the competitive advantages which is goal setting and the plan should be routine regular and change time to time according to demand .Progress of these employees to obtain feedback to measure and target. Even the higher standards are set, but we should be noted that the development needs to be taken to achieve their skills and how to improve employee's performance. Formal and informal reward should be given when employee achieve the organization's goal .so that by combine few component have been mentioned. It will bring our organization to the effective performance management.
Nowadays the external stakeholder show that they have increasing high expectation to expect accountants in the workplace. Performance management processes to ensure that accounting development and retention of necessary skills and knowledge. Similarly, individuals who have a greater focus on business organizations, individual performance and its business conduct. Such individuals seek further assurances from their accountants, the internal organization of the need to fundamentally sound financial control of the value chain. A strong performance management processes to enable enterprises to assess their level of skills held by accountants, and identify any gaps in an organization. Thus the better performance management process can help retain key employees. Beside those financial professionals will understand how they contribute to the Finance Division in an organization, which is contribute to the overall organisational strategy .For example Coca-Cola wanted an integrated solution to consolidate its financial statements, drive financial planning, and provide a comprehensive view of corporate financial performance across the enterprise. (Sources: www1.sap.com)