what is the function of performance management?

Function of Performance Management

Introduction

As the name signifies the function of performance management is to identify , monitor and maintain effective strategies in to effectively plan , develop , recognise , rate and reward the performance of employees of an organisation . Through performance management the organisations ensure that their strategic goals are being met appropriately . For any business to flourish keeping a track of only the profits and losses is not sufficient as this will not give a clear picture of the organisation 's status . Hence an innovative and contemporary concept of appraising

the performance of the employees has displayed better results in the long run

It is a common practice to link the functions of performance management to just the performance of the employees of an organisation . The measurement and enhancement of the performance of the organisation in the market is also the function of this management discipline . Hence both - the employees ' performance as well as the overall performance of the organisation leads to the accomplishment of set objectives

Theoretical framework

The functions of performance management can be theoretically linked to the casual model . According to this model each organisation should define its own unique concept of performance measurement parameters based on the organisational characteristics . There are 3 stages , which popularly explain the casual model . They are (a ) outcome (b ) processes (c ) foundations

Many performance management experts have tried to set up different frameworks of performance management . Kaplan and Norton (1992 ) as well as Keegan , Eiler , and Jones (1989 ) have strongly recommended a framework of performance measurement based on the balanced picture of the organisation 's business activities . They have also emphasised on different parameters for internal and external measures , effectiveness and efficiency measures and financial and non-financial measures Another framework insists on the importance of the overview of the performance of an organisation for proper functioning of performance management

The EFQM (European Foundation for Quality Management ) model of performance measurement has tried to put forward the broadest dimension to identify the functions of performance management , in a scenario where there is measuring performance should be . Even the PMM (Performance Measurement Matrix ) has not been successful in setting up an exact dimension of measuring the performance management dimensions so that the functions of this field could be successfully identified . However it has provided a framework through which the professionals can identify the areas that need greater focus and the areas where omissions can be applied . Bititci et al (1998 ) feel that the performance measures should be an integration of the organisation 's hierarchy and work patterns in to understand the functions of the performance management of the organisation in one of the functions of performance management should be to focus on issues like shareholder value or the cost of quality that has been incurred , to address the required performance issue . Hence the conceptual / theoretical framework is as diverse as the number of researchers and experts in this field . All of them address different but important issues . The framework to be...