Global Enhance Macau Network

Performance management was bound up in the developing ethos of performance related pay (PRP). The prevailing wisdom was to fix behavior to targets and to attach financial rewards to these. There was a preoccupation with defining measures that could be attached to individual rewards, and the connection with organizational performance was often tenuous.

Performance management covers a raft of cultural, communications, and development issues, which may or may not lend themselves to measurement. For sales staff, it might performance related pay for proffesionals, it might mean a system of development unrelated to incentive pay.

Performance management system is a systematic approach to improving individual  and team performance in order to achieve organizational goals. The approach that is taken should depend on the organization; its culture, its relationship with employees and the types of job.

The Strategic Remuneration Research Centre (SRRC) found that a performance management diagnostic designed to help firms in thinking systematically through the issues involved in developing a new approach to performance management, or in changing aspects of existing reward systems that have a bearing on performance.

Performance management is not then just a narrow question of motivation; it has an effect on an organization’s culture and subcultures. This means that anyone designing and implementing a system must talk to their assumptions and values, plus those of the people it targets.

There are some good reasons for doing individual performance appraisals. Proponents argue that apraisals can help a supervisor define the work of a subordinate, measure the subordinate’s performance, and reward the subordinate in a way that will create motivation. Also, supervisor can counsel individuals on skill them in the development of new capabilities and competencies.

The problem is that most performance appraisal systems do not motivate individuals nor guide their development effectively. Instead, they cause conflict between supervisors and subordinates and lead to dysfunctional often are exaggerated when performance appraisals are tied to traditional merit pay systems.

Good performance management is comprised of three parts :

1. Performance Planning (Setting goals and objectives)

2. Daya  to day coaching (Helping people accomplish their goals)

3. Performance Evaluating (monitoring performance against goals)