A well designed Performance management system is extremely required in any organization which is willing to grow. In the stage of globalization strategic HR practices is very much required for every organization.Performance Management helps to get through the competition within the companies. For aligning various major organizational functions which helps to attain organizational goals, Performance Management is really essential. Performance Management includes- planning, implementation, reviewing, evaluating of various process, which will help to track the performance of employees, which further helps in growth of both individual and organization. Performance Management also helps to distribute the job responsibilities, KRA which helps to have a good management system which can facilitate employees to provide a better performance.
To have consistent performance is really tough and is a great challenge in today’s tough competitive world, in that case, it completely depends upon, commitment, competence andperformance attitude of the employee. A proper reward policy is very much essential when it is a matter of rewarding an employee for his/her best performance which again acts a great motivation. The robust system of performance system is really a great need and has become really prior when the age old increment system started to fail. The previous mode of performance appraisal via increment lacked the objectives and diameters on which basis the appraisal need to be done, for that particular reason employees used to become nonproductive, which hampered the organizational performance. The lack of transparent feedback mechanism and employee involvement used to demoralize the employees badly. The current performance management system has a futuristic approach which helps to have systematic approach towards growth of the organization. The transparency, the clear declaration of diameters and parameters for measuring and employee involvement in performance management made this process more clear.
Performance Management is having a holistic approach which takes care of overall performance of the company. Being a strategic tool Performance Management needs to develop the culture of the organization. Performance Management also helps to set smart goals for employees which takes company to great heights. To develop a proper performance Management system company need to set proper information system and training procedure for employees.
Now-a-days performance management has become a big hit in most of the company, and now it has been getting integrated with various management processes such as career management, talent management, growth and development policies and many more.