Performance management; to different populace, holds various connotations. To few, it is just the procedure of gathering information regarding performance, whereas others consider it to be a tag provided to self-evaluation. In actuality, performance management is the action taken as a response to performance in a certain task being carried out, or a service being provided in order to improve the result. An improvement in the result does imply an increase in either the quality or quantity or both of the services being rendered; but it does not always denote an increase in input levels. The resources being endowed might still be the same as before; it is only so that they are allocated and utilized more efficiently than they were previously.
The process of performance management involves gathering and then evaluating information related to performance, and taking measures consequently. On an individual level, it might only consist of personal assessment. However, on a bigger level; such as in a organisation, it would involve effective communication amongst workers, developing a strong ideology of joint effort, continually monitoring the staff’s progress and performance and continually modifying performance management policy to make possible further improvement in the result based off of the feedback acquired from daily noticing performance levels. Performance management does not always, however, guarantee betterment in outcome.
The enhancement in outcome by efficient allocation of resources determined by expansively observing performance and determining possible weak links in a corporation’s production methods and structure is the true reason of performance management and its desired result, not a pre-ordained effect. Performance management unaccompanied does not result in betterment of outcome; it desires development in certain activities that could be made extra effective through better administration of its inputs. Innovation and originality are vital for the organizational restructuring or process redesigning needed for strengthening the shortfalls highlighted by performance management. Only once all this is done can improvement in outcome be assured.
The implementation of performance management can be done in a variety of ways. One can start by highlighting areas that have need of better performance and rectifying it however possible from the top of a companies hierarchical structure or vice versa. The performance management information gathering; using the standardized or flexible method, can either be focused on certain aspects of a business or be a detailed and comprehensive performance-related accounts of all activities. No matter how performance management might be implemented, it uses facts and data collected to validate the requirement, and pave the way, for improvement.
Performance management might have differing uses in different corporations. It might even be implemented differently, depending on an organisations structure and its requirements. However, there are a few key traits that all organizations who apply performance management successfully do have in common. Said organizations efficiently manage performance data and handle it accordingly, which gives them a profound understanding of the companies weaknesses and strengths. Furthermore, they have strong leadership which consequently breeds a getting things done attitude within the company. Employees are highly motivated as well, as job descriptions are clearly defined and there is clarity over performance related rewards and sanctions.