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Performance Management Systems

Performance Management Systems

Performance management systems are gaining more attention from employers for specific reasons. First, the dynamic nature of the work in all sectors is compelling employers to embrace the management of performance. It is impractical to set yearly goals. Instead, employees rely on weekly goals to achieve the organization’s objectives, which demands teamwork. Second, the need for efficient collaboration among employees makes performance management critical. Third, it has become necessary to attract the right talent, retain it, and develop the entire workforce (Varma & Budhwar, 2019). Frequent communication has become essential in creating a high-performance workforce.

Define different types of performance management systems and discuss how they differ.

Organizations vary by sector, products or services, environment, workforce, goals, and needs. Thus, the techniques used to manage performance also vary and serve organizations differently. Strategic performance management addresses the change aspects that are expected to lead to long-term issues for an entity. Operational performance management deals with incremental aspects that are expected to lead to the achievement of the entity’s long-term goals. Organizational performance management systems assess the entire workforce, while individual performance management systems assess each person. For organizations where teamwork is necessary or critical, performance is managed in groups. In different instances, employers need to evaluate the performance of individuals. Furthermore, evaluation systems can also be applied to business units or groups within an organization (Excitant Ltd, 2018). Thus, an entity applies different types of performance management systems to match the purpose, group, individual, or goals.

Identify 3 key elements of an effective performance management system.

An effective performance management system allows for constant feedback. Continuous feedback enables the employer and employees to track the occurrences and determine whether the progress is proceeding according to the set goals and strategies. This approach also allows both parties to make changes along the way to reach the final goal. Any issues that arise are addressed immediately, avoiding escalation. The best practices that are related to continuous feedback include assessing performance at regular intervals, conducting informal checks on individuals, providing feedback on the deliverables and behaviors, recording the feedback, seeking feedback from other stakeholders, providing support, seeking active employee input, and considering the cultural aspects (Krishnan, 2013).

The second element that an organization’s performance management system should possess is culture, process, and systems. The system should incorporate the cultural diversity of employees and provide appropriate feedback. Creating a culture that supports the different elements of the performance management system increases the overall effectiveness. This means that employees should be actively engaged and involved in the process to enable implementation and gradual improvements. The system should be supported by clear documents that indicate the entire process and rating systems used (Krishnan, 2013). Compliance with the legal elements is critical in ensuring that the system is enforced within the existing regulations.

Finally, an effective system allows the organization and its staff to set clear targets for performance. Balanced scorecards can be used to identify different perspectives of goals. The goals that are set should be relevant to both parties and aligned with the duties or roles of employees. Once managers share their goals, they should also explain their expectations clearly. The best practice in target setting is encouraging employees to identify goals and having the managers approve these (Krishnan, 2013). The approach allows employees to commit to the targets.

Feedback, target-setting, culture, process, and systems are dependent on each other. Culture encourages feedback and the setting of goals. An organizational culture that frequently relies on feedback to improve standards can adequately lead to successful management of performance. In addition, cultural diversity is an important consideration when providing feedback and setting goals. While the culture of different employees does not affect the goals, considering it in this process enables employees to apply different strategies that suit each member. Creating a process and documenting this for referral allows an entity to incorporate all aspects of the performance management system, including feedback and cultural considerations. The organization’s culture should be flexible or accommodating enough to facilitate sharing of information.

The performance management system is heavily reliant on the goals that an entity seeks to achieve. It is impossible to measure performance without clear targets. Thus, the presence of goals enables the management of performance. For more effectiveness, it is important to involve employees in the goal-setting process, which elicits commitment (Varma & Budhwar, 2019). After setting goals, the company’s managers have to consistently provide feedback on the progress. This monitoring act ensures that the staff remains focused on the goal and addresses any issues that arise. Ensuring that the recommended best practices are implemented during the feedback process increases the chances of the system’s effectiveness. Finally, the culture of the organization should support the feedback process and information sharing. It is important to share information regarding the process of performance management. Most importantly, the culture of employees determines the approaches that each entity uses when implementing the entire system.


Excitant Ltd. (2018). Types of Performance Management.

Krishnan, S. K. (2013). 7 elements of effective performance management. Retrieved from

Varma, A., & Budhwar, P. (2019). Performance Management Systems: An Experiential Approach. New York: SAGE.


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Elements of an Effective Performance Management Systems

HR’s role in organizations has changed dramatically over the last decade, and in this newly evolved role, HR develops strategy to help drive organizational performance – at both an executive level and at a very pragmatic level. Through performance management systems implementation, organizations have been able to achieve tremendous success, even in challenging economic times and globally competitive environments. Knowing and understanding these systems is pivotal to an HR practitioner’s effectiveness in helping organizations achieve their strategic goals and ultimate success.

Performance Management Systems

Performance Management Systems

To complete this Assignment, respond to the following bullets in a 2- to 3-page paper.

  • Define different types of performance management systems and discuss how they differ.
  • Identify 3 key elements of an effective performance management system.
  • Explain how the 3 elements you identified interact with one another. Then, discuss how their interaction supports the effectiveness of a performance management system.

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