Is Performance Management an Important Component of Talent Management?
Being in a business that relies on manpower for profit, no company serious in its endeavors will overlook the very same thing for its being in business. In a company, this may entail stringent monitoring of each and every employee’s performance or as a collective group. While a policy such as this may sound so strict and demanding, the imposed rule has something to do in setting a balance between an individual’s personal goals and that of the organizational goals which, if left unchecked, might not meet as they’re different.
“Performance Problem” Defined
Defined as the discrepancy between desired and actual results, the term “performance problem” is coined to name a performance-based issue that is, while appearing at the time, unnamed. In its identification, another concept is also formed which is meant to address the very same problem that led to its very creation—performance management.
The Birth of Performance Management
The concept of “performance management” did not into use until around the late 1970s, a time when the need to manage and enhance a human behavior towards a particular result has an absent term. In a nutshell, performance management implies that the quality of an employee’s performance may directly correlate the level of interventions applied towards the person’s attitude.
In the context of the collective group of people, performance management is also defined as the strategic and structured approach which results to a favorable outcome by underpinning the importance of focusing on the people significant to the pursuit (Armstrong and Baron, 1998). In a company setting, this suggests the individual worker, the team, or the organization as a whole. Intuitively enough, the use of performance management as a concept mostly applies in the professional sector where certain actions have financial ramifications.
But placed in the context where finance is not involved, performance management serves as a benchmark meant as a reference for improving upon people’s performance such as in sports, NGO programs, school, or literally any other group which concerns interacting people.
The Three Steps of Performance Management
Yet, while the concept of performance management may pertain to a single aspect of measuring a person’s performance in whichever endeavor, the overall process of quantifying a person’s ability at work requires three unique steps:
- Commitment analysis
- Work analysis
- Defining performance standards
Commitment analysis consists of a mission statement tailored for a job or process, inclusive of the product, scope, and purpose. In this part of the performance management as well are the list of key objectives commensurate with their own performance standards.
Following the commitment analysis is the work analysis. In this step, the job description and reporting structure are found.
Lastly, there are the performance standards which comes alongside expectations which aim to measure both the efficiency and effectiveness of the work.
Major Perk of a Well-implemented Performance Management
Properly imposed for its intended ideals, an employee whose performance is carefully monitored and optimized for the job exhibits a relative boost in his performance which easily translates to better productivity and subsequently better revenue for the company.
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