Five Concerns of Performance Management - We have known that performance management is an important function of Human Resource Management (HRM). HRM is mainly interested for proper utilization of manpower and contribute to a good extent in achieving the objectives of the organization. In nutshell, it can be said that through better performance it is to make the organization more effective in the present competitive situation. The following are the main concerns of performance management: 1. Concern with Productivity
It is first of all concerned with the output per person/system/machine/group It is concerned with the results achieved, the performance of activities, competencies needed to perform these activities from every individual, group or team/ department and organization as a whole. In present uncontrollable, risky and rapidly changing environment it is difficult for everyone to survive, stabilize, grow and excel in their performance. Those who are in position to give excellent performance they are leader in the market. They are only grabbing maximum opportunities. Performance management is mainly concerned for better result through processes, input and required competencies. It is possible through planning, developing, measuring and review of the performance of every one. Performance management plays an important role for effective working of human resource management.
2. Concern with Planning of Performance
Performance management is concerned with planning of the performance of people at work for better result in future. This means defining expectations expressed as objectives and in business plans. It plans the roles of everyone, standards of performance to be given in advance so that the actual performance can be compared with these standards. The performance of individual or group is aligned with the goals of the organization.
3. Concern with Performance Measurement and Review
The third concern of performance management means to measure the output of individuals and systems periodically. Further it is to compare with the standards already fixed. This shows the position of the performance whether the result is in the required direction or not. If the result is as per the planning then it is to be maintained otherwise it needs the remedial action for improvement.
This position must be reviewed further for better result also Though this concern many irregularities will be removed and there may be better and smooth performance of everyone concerned in achieving the objective of the organization.
4. Interest in Continuous Improvement
Performance management philosophy is based on innovation in every area of the organization. Concern with continuous improvement is based on the belief that continually striving to reach higher and higher standards in every part of the organization will provide better performance and will be in position to give competitive advantage to the organization over its competitors
This means clarifying what organizational, team and individual effectiveness look like and taking steps to ensure that those defined levels of effectiveness are achieved. As Armstrong and Murlis said that helps in establishing a culture in which managers, individuals and groups take responsibility for the continuous improvement of business processes and of their own skills, competencies and contribution.’
5. Concern with Continuous Development
The fifth concern of performance management follows the Japanese concept of Kaizen. Performance management is concerned with creating a culture in which organizational and individual learning and development is a continuous process. Human resource managers are putting their efforts for creating a healthy working environment for everyone. That is very helpful for learning and work. People learn from success and face the challenges in their routine functioning.