Page 10 - DMGT517_PERFORMANCE_MANAGEMENT_SYSTEM

Unit 1: Introduction to Performance Management

judged apart from the results. In the organizational content, performance means successful Notes
formulation and implementation of a value creating strategy which either generates or sustains
its competitiveness.

Note Key Ingredients of Successful Performance Management

Committed leadership Transparent performance information
Build competency based development plans Effective multi-source feedback mechanisms
to discuss and address performance issue
Strong links between performance measures and Useful performance measures
program results

Adapted from: J. M. Kamensky (2006)
Hence, performance management helps organizations in management consistent performance
in a manner which holds employees and managers accountable for supporting its objectives
and strategy, successfully fulfilling assigned job responsibilities, and accomplishing individual

performance goals, this would require the following pre-requisites:
1. Business processes are as simple as possible
2. Lines of leadership and management are clear
3. Employees are empowered, which is an important driver of innovation
4. A distinct organizational culture
5. Workplace interactions are based on honesty, integrity, and trust
6. Openness to change

1.3 Characteristics of Performance Management

The following are the key characteristics of performance management:
1. Performance management is an important organizational tool to clarify performance
objectives, standards, critical dimensions, and competencies to enhance individual
performance.
2. Performance management works best when an employee’s work is planned and goals for
achievement are communicated.
3. It emphasizes the development of capability and capacity of employees to perform
consistently, coupled with the agility to respond to a changing dynamic business and work
environment.
4. Performance management is a ‘systematic’ and ‘holistic’ approach to identify critical
dimensions of performance.
5. It helps in integrating performance management process with other critical organizational
systems including leadership development, succession planning, and talent management
efforts.
6. Performance management is a multidimensional concept and includes imputes, processes,
outputs and outcomes.
7. Performance management transforms organizational objectives and strategy into a
measurable action plan by getting the right information to and from the right people at the
right time and in the right format.

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