Conceptualisation of Performance Management System. Free Essay.

Published: 2019-11-04
Conceptualisation of Performance Management System. Free Essay.
Type of paper:  Essay
Categories:  Management Human resources
Pages: 3
Wordcount: 559 words
5 min read

Performance management is the process of evaluating and developing the performance of the members of an organization either as individuals or teams in conformity to an organisations goals.

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The various types of performance management systems.

Performance Management by objective

Performance management by skill

Case study

The performance management system I have participated in

The performance management system I have participated in is within the banking industry. It entailed individual employee assessment.

The employees performance of their assigned tasks would be evaluated against the organizations strategic goal. The potential for development was also taken into account during the assessment process. The assessment was not a one-time event but constant reviewing of employees achievement of goals was encouraged.

The process of the above performance management system

Performance planning

Implementation of performance goals

Evaluation performance indicators

Feedback and review of performance goals

The merits and demerits


Continuous feedback

Effective use of training resource it ensures that resources are well utilized without wastage.

Open communication between the managers and employees


Requires training of manager on the same for effective implementation

Can be costly to fully implement, for example, specific trainings for each employee based on their needs

How performance management system influences motivation

Continuity - The fact that it is a continuous process is in itself a motivation for employees because they have to constantly keep working hard and smart to meet their strategic goals within their departments and display desirable outcomes at all times.

Feedback - The constant feedback provided to employees at all levels enables individual employees to constantly improve their performance over time rather than wait for the mid-year or end of the year to be informed that they have been performing poorly.

Determining appropriate rewards for employees - Performance management system is used to determine the necessary rewards for high performing employees and sanctions for constantly underperforming employees. So the employees get fair rewards for their hard work because even the poorly performing ones are given opportunities and an enabling environment to improve their performance before any form of sanction is implemented against them.

Identifying the training and developmental needs of employees - Besides these, the performance management system enables the management of an organization to identify the developmental needs of their employees and so the coaching and training provided for employees are suited to meet their specific developmental needs. This helps employees in advancing their skills and career as a whole.

Succession planning - This system is also used by the management and human resource department to plan for successions; it, therefore, gives employees an opportunity to advance in ranks within the same organization. These promotion opportunities are a source of motivation for many employees in this generation.


A recap of the above sections; as far as performance management is concerned. These include the conceptualization of the performance management system, the case study, and final thoughts on the ways in which the performance management system affects and drives motivation within the banking industry.

Performance management systems thus greatly influence employees motivation through the goals set by the organization and how they are set, the feedback that employees get from their managers and the action that is taken on highly and poorly performing employees. For the management systems to be effective in positively influencing motivation, then there must be clear standards for each job category.

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