Impact of performance management of employees on organizational performance

 

Impact of performance management of employees on organizational performance





The Company performance system is to be composite with benefits, efficiency, and consumer constancy aligned with employee morale (Muhammad Said, 2021). In addition to this performance systems identified competent and powerful employees that thoroughly impact the organization’s performance. A performance management system is the best method to evaluate and analyze employees and will break the barriers to the planned goals in the organization.

It is a very important development of employees’ abilities. Overall development of employees is helpful to the flourished performance of employees and would also develop the organization (Abdul Hameed, 2011).,Also, it is mentioned that developed employees fully utilize their skills and efforts to achieve organizational goals.

Performance management system focuses performance level of employees. Finally, it is influenced to enhance organizational effectiveness. Performance management consists of a range of activities followed by the company targeting an employee or group of employees with the idea of enhancement of effectiveness (Dewettinck, 2022).

I work for a group company of a leading commercial bank and In early 2020 only a few employees are engaged in their duties and functions. Even though The company set up a budget proposal and many a target every year, which was not achieved. Revenue is not improving to the level and operation costs getting high. Also, the collection of debtors is at a very poor level. The effectiveness of employees is very low according to the management concerned.  Senior management decided to establish a performance appraisal system with a Key Performance Indicator(KPI) aligned with the 360-degree feedback method. The 360-degree assessment is a questionnaire-based process that collects structured feedback from a large number of experts(Mukhopadhyay, 2006).Sources of information about an individual or team’s behavior and style at work. to each one Observable behavior can be observed by individuals themselves, by managing staff, co-workers, their customers, and their bosses(Mukhopadhyay, 2006). The higher rank employees were rewarded and able to get extra bonuses also. At the same time, the organization is also turnaround increasing the profit substantially debt turnover ratio also increases very effectively.

Performance appraisal is a vital tool to train employees and enhance their development. Also, performance appraisal enables the identification of the training needs of employees. The company determines the training in line with organizational goals and strategies (Margaret Njeri Muriuki, 2021).

The performance management system gives many benefits to managing staff performance and development. Ultimately, that can benefit the company to increase productivity improvement of communication and other positive effects. Performance Management systems develop not only staff skills but also the development of organizational level (Mbae Margaret Tomno, 2018).

 When employees are recognized for having done a good job, they will feel better. Open the channel of communication between the relationship, and the manager to understand how to effectively manage employees and maintain performance (Michelle Govender, 2020). Employees will better understand their role in achieving the organization's goals and the manager's expectations, including the behavior they should demonstrate  (Michelle Govender, 2020).

With the new social and economic conditions, the current management theory is criticized. Furthermore, it criticizes the compatibility of performance measurement theory and practices with modern organizations (Maria Smith, 2017). It suggests that performance measurement and management in organizations increase fear and decrease trust, and it suggests that ``Improve the system and decrease employee engagement (Maria Smith, 2017).

 

References

Abdul Hameed, A. W. (2011). International Journal of Business and Social Science ,Vol. 2 No. 13,p 224. Employee Development and Its Affect on Employee Performance A Conceptual Framework.

Dewettinck, K. (2022). Vlerick Leuven Gent Working Paper Series 2007/31. Employee performance management systems in Belgian organisations, 5.

Margaret Njeri Muriuki, D. R. (2021). International Academic Journal of Human Resource and Business Administration3(10), 265-272. Performance appraisal and employee performance.

Maria Smith, U. S. (2017). International Journal of Operations and Production Management. Interplay between performance measurement and management, employee engagement and performance.

Mbae Margaret Tomno, D. J. (2018). IJARKE Business & Management Journal ,ISSN: 2617-4138 . The Role of Performance Management Systems on Employee Productivity.

Michelle Govender, M. H. (2020). SA Journal of Human Resource Management,ISSN: (Online) 2071-078X, (Print) 1683-7584. Performance management and employee engagement: A South African perspective.

Muhammad Said, D. I. (2021). International Journal of Business and Management Sciences,Volume 02(03), 2021 . THE IMPACT OF PERFORMANCE MANAGEMENT SYSTEM ON EMPLOYEE'S PERFORMANCE, 38,39.

Mukhopadhyay, K. (2006). Research Gate. “360 - Degree Appraisal” – A Performance Assessment Tool.

 



Comments

  1. Romeda WijewardeneDecember 2, 2022 at 1:01 AM

    Agreed Upul. Furthermore, the idea of PMSE (performance management system effectiveness) is also reliant on the context, which varies depending on the history, purpose, technology, people, and environment of the business (Broadbent & Laughlin, 2009). It is crucial to recognize that companies in developing countries have different organizational structures, cultures, and performance than those in developed nations, which may have a variety of implications on PMSE (Audenaert et al., 2019; Brinkerhoff & Brinkerhoff, 2015).

    ReplyDelete
  2. Upul Samantha Kumarasiri December 9, 2022 at 12:28 AM

    Further I would like to comment about performance Management Effectiveness,Performance Management System Effectiveness (PMSE) is a measure of the fit between an individual's and the organization's goals. An effective PMS implementation process requires employees to willingly accept and participate effectively in the goal setting process.

    ReplyDelete

Post a Comment

Popular posts from this blog

The Role of the Reward and Recognition System in Enhancing Employee and Organizational Performance

Image
  The Role of the Reward and Recognition System in Enhancing Employee and Organizational Performance The reward management system is the main function of personnel management and a strategic partner of enterprise management. Besides, it plays an important role in employee performance  (Güngör, 20211) . The reward system includes the organization's policies, processes, and practices for rewarding employees based on their contributions(Güngör, 20211). The rewards strategy provides the motivation to design and operate the rewards system in order to achieve three main objectives such as performance, competitiveness, and fairness  (ARMSTRONG, 2014) . The reward means something that externally or intrinsically enhances, maintains, and improves the attitude of employees in an organization  (Tze San Ong, 2012) . The reward system must be aligned with the company's strategy, business environment, and culture. Group-based reward systems effectively improve the performance...
Read more

Impact of Organizational Culture on Performance

Image
  Impact of Organizational Culture on Performance Organization Culture Organizational culture is the system that the organization believes in and values. Organizational culture can overcome environmental challenges by working together to solve them  (Fitri Rahmadani Lubis, 2019) . According to  (Brian T. Gregory, 2009) Organizational culture is defined as a set of beliefs, values, and assumptions that are shared by members of an organization.  (Torvald Øgaard, 2005) describe there are levels of organizational culture: (i) basic underlying assumptions; (ii) values; and (iii) artifacts and behavior. Culture, coupled with business strategy, is a valuable resource as it contributes to both efficiency and effectiveness  (Finnegan, 2010) . As per  (ZHANG Mian, 2008) Organizational culture is built up gradually through organizational development. According to (ZHANG Mian, 2008) organizational culture functions in two ways: internal integration and externa...
Read more

THE INFLUENCE OF RECRUITMENT AND SELECTION ON ORGANIZATIONAL PERFORMANCE

Image
  THE INFLUENCE OF RECRUITMENT AND SELECTION ON ORGANIZATIONAL PERFORMANCE Recruiting is the process of finding and hiring people with the organization’s needs. Selection is the part of the hiring process that determines which applicants or candidates should be appointed to the job(ARMSTRONG, 2014). Recruitment is the process of finding and catching qualified or suitable applicants to fill vacancies  (Pshdar Abdalla Hamza, 2021) . According to  (Gamage, 2014) The main purpose of recruitment is to create a pool of suitably qualified candidates so that the best candidates for the organization can be selected by attracting more and more employees to apply to the organization. Employee recruitment and selection have been greatly affected by the emergence of technology  (Nikolaou, 2021) . According to (Nikolaou, 2021) Recruitment should also be aligned with the strategic goals of the organization. Therefore, especially today, it should include all technology-related act...
Read more