Essay Help Services

Key Tools Used In Performance Management System

Home Articles Key Tools Used In Performance Management System

Every business organisation need to track down its performance, and there are different ways of doing it. Some organisations asses it with the sales numbers, some see their enhancement in the popularity for example on the social media platforms and some check it with the help of marketing leads its managers have produced over the period. Assessing the performance is the best way to see whether they have achieved their targets which they have set themselves at the beginning of the year. To enhance the productivity of any organisation, it is essential that it keeps a check on the performance of its employees.

But to check the performance, it is essential that the organisations have a clear written record of all the key responsibility areas of the duties which are performed to complete a task. When the managers and the employees know what they should achieve by doing a process in the instructed way, it is likely that they arrive at the desired outcome. It is also vital that the performance objectives should be written and communicated to the employees who will do a particular job. One more aspect of setting the performance goals is that it should be aligned with the strategic objectives of the firm. Every task which is performed in the company is to achieve the overall objectives of the organisation, and therefore every work should support the values of the company.

Performance management is one of the most critical functions of human resource management, and it is the responsibility of human resource personnel to align the objective and standards of the outcomes with the help of which the performance of the employees can be measured. The performance management system not only give the information about the performance of the employees but it also offers beneficial data to the training department as well. When the training managers need to know about the need for providing training then the performance appraisal forms give the best insights to them, They get to know in which area a particular person or maybe the whole department needs training.


The performance management should be an ongoing process, and the managers should not keep it to the end of the year only. Many successful companies have converted their yearly performance appraisals to the half-yearly and even to the quarterly basis. If the performance management system is designed and implemented correctly, then it can positively change the performance outcomes. This is also an excellent tool for improving the communication between the employees and their superiors. When the managers discuss the issues more frequently with the employees on the one to one ratio, then the candour in the organisations also increases, and the higher management can build a conducive and progressive culture.

The performance management system also helps the officials to set the standards of the job and the message can be conveyed to the employees by talking to them. The employees can even come up with beautiful ideas to do individual work, and when listened to it carefully the companies can try applying them to check their applicability. When the workers get time and chance to speak up about their issues and problems if there is any discrepancy in the performance, then they feel less stressed.


• The Performance appraisals

The performance appraisals are regarded as one of the most widely used tools for managing the performance. The human resource managers should know how to use the performance appraisal tool so that they can get drastic results from their efforts and the performance interviews. The performance appraisals should be totally honest, and the HR managers should remain unbiased in the whole process. When the employees feel that the performance appraisals are fair, then they also give their honest opinions, and this results in a two-way communication which proves to be highly fruitful for the organisations.

• The Key Performance Indicators or KPIs

The KPIs are designed to provide the criteria for the measures used by the companies to set the performance standards of different individuals, business units of a conglomerate with the overall strategic objectives of the organisation. The KPIs enable the companies to know whether they are working on the right track or not. When the KPIs are designed efficiently, then they help to give clarity about the current levels of individual and organisational performance and the desired level of outcomes. KPIs also serve as excellent decision-making tools for the higher management officials. This is because with the help of KPIs the complicated performance management procedures of an organization can be broken down to the easily achievable and manageable areas and help in taking the right decisions for the future.

• MBOs or Management by Objective

In this procedure, the management has to define clear and achievable objectives for every department. With the help of MBO framework, the managers can focus on one thing at a time and then achieve one result they can move on to the next task. This is a brilliant way to boost the confidence as well as the motivation of the employees with every achieved task. The organisations are using this tool all over the world and reaping beautiful results. Here every task has clear objectives to achieve which are decided upon according to the standards set by the industry benchmarks. Then the performance of the employees is measured by comparing the results with the established standards.

• 360-degree feedback system

The 360 feedback system has gained considerable popularity among the HR managers and the employees as well. With this tool, the performance of the employees is measured by the broad assessment criteria, and all the stakeholder whoa re directly or indirectly involved in that task are involved in this. The feedback is taken from all the people working around the employees such as his/her immediate superior, customers if the person has a front line dealing, the peers, the subordinates, suppliers, distributors etc. Then the results obtained from all the people are tallied with the description or reasons given by the employees, while this process is kept highly confidential for its effectiveness. With this tool, the organisations get affair and accurate point of view about the performance and behaviour of the employees at work.

• The Recognition and Reward Programs

Recognition plays a significant role in motivating the workforce. When a worker give his 100% to his job, and he is praised in front of the whole team, then it boosts the motivation to a different level. It also works adversely if the companies fail to recognise good performance and it leads to the disengagement of the workers from the oval mission and vision of the company. Therefore, rewards and recognition make an essential function or tool for performance management system. Some companies reward their employees with the monitory benefits, whereas some work at the broader level and design more intricate systems for rewarding their employees. A well-recognised person remains loyal to the company and also gives his/her best efforts for increasing the productivity.

• PDPs or Personal Development plans

The personal development plans or PDPs are exclusively made for every employee to keep track of their performance. The main aspects which are used while designing the useful PDP plan are the individual needs of the employees, the performance standards on which the results should be compared, and the goals which will help to support the personal development of the employees along with the strategic mission of the organisation.

Search Here

Order Now

Latest Reviews


Payments And Security