Salam and good morning to you all.
Today, I’m very excited because I learn about performance management system. For me, this topic is very interesting because I can know with detail about the performance management system. According by Neely et al. (1995) performance management system (PMS) defined as “a set of metrics used to quantify both the efficiency and effectiveness of actions”.
In my opinion, performance management is a continuous process of identifying, measuring, and developing the performance of individuals and teams and aligning performance with the strategic goals of the organization.
Examples of the performance management system are Performance Plans - KPI & Competency Library, A Coaching system, A Performance review form Linkage to relevant HR systems.
In addition, there are five stages of performance management namely:
> Plan
> Monitor
> Develop
> Review
> Reward
After I learn about this system, there are several advantages such as motivation to perform is increased. After the employer receiving feedback about one’s performance, that means they can increase the motivation for future performance. The knowledge is about how one is doing and recognition about one’s past successes provides the fuel for future accomplishments.
Besides that, this system also can made the organizational goals are clear. The goals of the unit and the organization are made clear and the employee understands the link between what the employee does and organizational success. This is a contribution to the communication of what the unit and the organization are all about and how organizational goals cascade down to the unit and the individual employee. That means this system can help improve employee acceptance of these wider goals such as organizational level and unit level.
But, for me this system also has the disadvantage namely increased turnover. When I look, if the process is not seen as fair, the employees may become upset and leave the organization. That means, they can leave physically (quit) or with draw psychologically such as minimize their effort until they are able to find a job elsewhere. Other than that, this system wasted time and money because these resources are wasted when systems are poorly designed and implemented. In addition, this system also unclear ratings system because of poor communication, employees may not know how their ratings are generated and how the ratings are translated into rewards.
In conclusion, I think this system is a key factor used in determining whether an organization can manage its human resources and talent effectively. This system provides information on who should be trained and in what area, which employees should be rewarded and what type of skills are lacking at the organization or unit level.
REFERENCES:
1. M.A. Norhayati & A.K. Siti-Nabiha, A case study of the performance system in a Malaysian government linked company, Journal of Accounting & Organizational Change. Vol. 5 No. 2, 2009. pp. 243-276 Emerald Group Publishing Limited
2. Herman Aguinis (2009), Performance Management Second Edition, Pearson International Edition
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