Performance Management

Write a 6 pages paper on analysis of performance management. According to US office of personnel management, “Performance management is the systematic process by which an agency involves its employees, as individuals and members of a group, in improving organizational effectiveness in the accomplishment of agency mission and goals”(US office of personnel management). “Simply put, performance management includes activities to ensure that goals are consistently being met in an effective and efficient manner. Performance management can focus on the performance of the organization, a department, processes to build a product or service, employees, etc” (Performance Management — Basic Concepts). Planning, monitoring, developing, rating, and rewarding are the five major elements of any performance management system. This paper analyses how a company can use the performance management system to good effect, by taking the American company Macy’s as an example. (US office of personnel management) As in the case of many other organizational functions, planning is the first step of implementing an effective performance management system in an organization. At the beginning of each year, the Macy’s managers often meet each employee personally and discuss the strategies to improve their performances. During this meeting, the managers often take notes of the employee feedback and the formulate strategies to improve the individual performances. Macy’s know the difference in attitude and performance abilities of employees and give more attention to formulate strategies suitable for the individuals rather than groups. The Macy’s managers often inform the employees about the expectation of the management about their performance in the coming 12 months. Thus, the employees get a clear idea about what is to be done and what are the expectations of the management about their performances in the coming year well before they start works for the coming year. Macy’s employees can submit their suggestions to improve their performances during their meetings with the managers. Reviews are a critical component of the system. Reviews give timely feedback to the individual. It is important to schedule formal reviews during the course of the year. These can be half-yearly or quarterly depending on the need. Structured mid-term reviews enable the organization to take stock of the performance during the given period. It gives the individual an opportunity to discuss his/her achievements during the given period and to look at areas of improvement. In a dynamic environment, it is important to keep abreast of market situations. Reviews can be utilized to make the midcourse correction (Does performance appraisal benefit anyone?) Monitoring is the second step of any performance management system.

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