Performance Management and Reward Systems

Performance management

Performance management is the way of an organization to create an environment that will make the members of the organization do their best in executing their work . This is especially used by business companies It starts on the first working day of the employee in the company and ends when the said employee resigns or is terminated from that said company . The term performance management is used interchangeably with performance appraisal system by some authors . Performance management actually is handled by the human resource department of a company (Heathfield , 2007

) while performance appraisals can come from either the company 's HR department or the supervisors (Muchinsky , 2006

In to ensure that the employee 's performance is always in line with the company 's goals , the human resource department conducts performance appraisals for their employees . This is also the company 's way of checking whether their employees accomplish the work that they hired for . Results of performance appraisals are also used as bases of the company for promotions or demotions of their employees

However , no matter how good the human resource department in managing the performance of the workers is , problems would still be unavoidable Some managers resist this system because they are concerned with the effect of the evaluation to the employees . People are often uptight when it comes to performance evaluations . They usually do not want to be evaluated when it comes to their work . Workers feel discouraged when evaluated at work because they feel that they are not trusted by the management . They often feel that they do not know where they stand in the company anymore , after the evaluation . This usually happens when the managers have limited and insufficient contact with their subordinates and when the managers are poor at giving feedbacks

But companies cannot do away with performance evaluation because it helps the management address the problems of the people or the processes by which their products are produced . It is important that the employees are directed towards the goals of the company in to contribute to the successful accomplishments of the company 's larger goal . Now , if the performance of the employees is not contributing to the achievement of the company 's goals , then it has to be corrected immediately

According to Wilson (1995 ) performance management should focus on how the workers do their work . It should also create a setting wherein the people will feel acknowledged for the achievements they have done in their work . The process of appraising the workers should include focusing on the changes that need to be executed . The human resource department should explain to the employees the criteria used to measure how much progress was achieved by the employee . They should also give feedbacks to the employees so they will know the results of the evaluation . And , reinforcements should be given to the people who have achieved and improved their performance

Another way for a company to overcome the problems in doing performance evaluations is...