TOPIC 5: PERFORMANCE MANAGEMENT 1. What is performance management
Performance Management is the “Processes that seek to integrate the key elements of organisational strategy & goals with employee inputs and outputs” (Robinson, 2006).
Armstrong M. (2010) defines this concept clearer as a strategy approach taking place in a number of dimension and emphasizes “It has to take account of the needs of multiple stakeholders. It is the prime responsibility of top management who plan, organize, monitor and control activities and provide leadership to achieve strategic objectives and satisfy the needs and requirements of stakeholders.”
Gheorghe and Hack (2007) make it more concise as saying that performance management is simply running the entire business as one entity. They insist that “It is a continuous cycle of planning, executing, measuring results and planning the next actions. In the context of a larger strategic initiative, that means continuous improvement”. 2. The importance of Performance Management
Performance Management helps to increase organisational effectiveness by obtaining better performance from people, getting them to work well together, improving organisational processes such as the formulation and implementation of strategy and the achievement of high quality and levels of customer service, and facilitating the management of change. (Coens and Jenkins, 2002).
According to CPID, Performance management has a significant role to play in enhancing organisational performance by: * ensuring everyone understands their contribution to organisational goals and objectives * ensuring each individuals understanding what is expected of them and has the skills and support to achieve this * Driving engagement * Ensuring effective communication throughout the organisation and linking of objectives * Enhancing the