Fundamentals of a Performance System

EXECUTIVE SUMMARY

This report aims to cover the purpose of performance management systems and the relationship performance management systems must have to business objectives. The report will also cover an evaluation of at least three components of performance management systems. An evaluation of the relationship between motivation and performance management

This report will also consider at least two motivational theories, as well as a description and evaluation of at least three components of a total reward system in relation to performance management. One of these components will be non financial.

This report will also explain how managing performance is a critical element in the success of a business and explore the idea that an effective performance management system is based on certain concepts, some of which are (1)employees need to understand their roles clearly, (2) performance may be managed, (3) there is also a direct relationship between performance and rewards and employee involvement is critical to performance development, (5) performance expectations must be set in advance and there must be agreement, (6) performance management requires on-going coaching, feedback and planning and it can also be a positive experience.

INTRODUCTION

Strong performance management plays a very key role in managing companies and assisting a business in its objectives and goals.

What I aim to achieve in this report is to discuss the principles and aspects of performance management and detail several challenges that are presented when implementing a performance management system, or making adjustments to a system that is already in place.

The achievement of organizational goals requires a sensible balance between managerial commitment to the strategic interests of a business and to the human interests of its everyday operation at every level. Indeed research and experiential will tend to demonstrate that there is a symbiotic relationship between these aspects of organizational orientation which suggests that effective strategy must consider the implications of the experience of the personnel who will implement the said strategy. Therefore what this report will also do is to evaluate whether an organization’s performance success will be inherently based on the performance effectiveness of its personnel. In relation organizational management must therefore be devoted in a large part to the administration of performance in personnel through a variety of measures as the reconsideration of the factors which are typically used to evaluate organizational performance, the setting of benchmarks for employee performance, the consideration of metrics for assessment of employee and team performance and the overall shift from financial models