Performance Management System: Analysis

Topic: Management
Words: 611 Pages: 2

The performance management system is of particular importance to any organization. This is because it can provide an opportunity to improve the company’s performance, achieve the best results and gain an advantage over competitors. Therefore, the human resource department must rebuild the organization’s systems to focus on performance factors and form successful performance appraisal interviews. Moreover, there is value in realizing the right way to develop or buy high-quality talent. Thus, this paper presents recommendations on how to design the most effective performance management system from the perspective of a human resource director.

First of all, it is necessary to determine the critical practices for a successful performance management system. Their implementation can completely transform the organization functioning process and limit the existing shortcomings. The research defines the studied phenomenon as “the process of systematic definition of mission, strategy, and objectives, making these measurable through critical success factors and key performance indicators” (De Waal, 2017, p. 5). Hence, one of the key aspects becomes the identification of possible risks and preventative measures related to them. In this way, the company will be able to respond to emerging problems and limit them. Another practice can be to evaluate the work of the staff and develop strategies to improve the workplace. This is due to the fact that employees are the most valuable resource of the company, which can ensure the success of activities.

The next component is the transformation of the current system of looking at personality factors to a new system of looking at performance factors. To this end, it is necessary to introduce such a measure as the ratio of performance indicators and rewards for them. Moreover, it becomes key to analyze the performance of the organization, which will help to determine the weaknesses and strengths of its functioning. In addition, companies need to set realistic, measurable, and achievable performance goals at the outset. All of these aspects will help focus the attention on performance and achieve the most favorable results.

Performance appraisal interviews have a unique role in improving the performance of the organization. This aspect is crucial because it helps to initially form a common understanding of the value of achieving company goals between managers and employees and organizational commitment (Ahuja et al., 2019). Thus, making several critical rules for conducting successful performance appraisal interviews is essential. First, it is vital to maintain a high level of professionalism and not go over personal performance. By doing so, it is essential to provide employees with an understanding of the need to work to standards (Dessler, 2017). Secondly, criticism should be objective and justified and motivate the staff, not motivate them. The last becomes obligatory to come to a common agreement, which provides the most significant understanding for the employee.

At the same time, the company must take into account the evolving business environment and the emergence of free-agent workers. This indicator can have a significant impact on decisions to develop or buy high-quality talent. This is because this measure helps transform traditional approaches to recruitment and work to more innovative ones. Therefore, the organization will be able to acquire the most valuable, experienced, and creative employees.

In conclusion, performance management is aimed at improving the productivity of the company. This includes an increase in the level of organizational commitment and the achievement of set goals. Moreover, a clear and well-established performance appraisal interview has a special role, which will help to gain a common understanding of the value of the goals and objectives set for all employees and managers of the organization. Thus, focusing on performance and implementing innovative work tactics will provide the company with a significant advantage.


Ahuja, K. K., Padhy, P., & Srivastava, G. (2018). Performance appraisal satisfaction & organizational commitment. Indian Journal of Industrial Relations, 53(4), 675-692.

De Waal, A. (2017). Strategic performance management: A managerial and behavioral approach. Bloomsbury Publishing.

Dessler, G. (2017). Human resource management. Peason Education Ltd.

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