Page 11 - DMGT517_PERFORMANCE_MANAGEMENT_SYSTEM

Performance Management System

Notes 1.4 Objectives of Performance Management

The major objectives of performance management are discussed below:

1. To enable the employees towards achievement of superior standards of work
performance.
2. To help the employees in identifying the knowledge and skills required for performing the

job efficiently as this would drive their focus towards performing the right task in the right
way.
3. Boosting the performance of the employees by encouraging employee empowerment,
motivation and implementation of an effective reward mechanism.
4. Promoting a two way system of communication between the supervisors and the
employees for clarifying expectations about the roles and accountabilities, communicating
the functional and organizational goals, providing a regular and a transparent feedback for
improving employee performance and continuous coaching.
5. Identifying the barriers to effective performance and resolving those barriers through
constant monitoring, coaching and development interventions.

6. Creating a basis for several administrative decisions strategic planning, succession
planning, promotions and performance based payment.
7. Promoting personal growth and advancement in the career of the employees by helping
them in acquiring the desired knowledge and skills.

1.5 Principles of Performance Management

Some of the major principles of performance management are as follows:
1. Performance management is considered a process, not an event. It follows good
management practice in which continual coaching, feedback and communication are
integral to success.
2. The Performance Management is primarily a communication tool to ensure mutual
understanding of work responsibilities, priorities and performance expectations.
3. Elements for discussion and evaluation should be job specific – not generalized personality

traits. The major duties and responsibilities of the specific job should be defi ned and

communicated as the first step in the process.
4. Performance standards for each major duty/responsibility should be defi ned and
communicated.
5. Employee involvement is encouraged in identifying major duties and defi ning performance
standards.
6. Professional development should be an important component of the plan.

7. The formal evaluation period should be long enough to allow for full performance and to
establish a history such that evaluations are fair and meaningful. One year is a common
evaluation period.
8. Documentation of performance will occur as often as needed to record the continuum of
dialogue between supervisor and employee.
9. If formal ratings are included, they should reflect the incumbent’s actual performance in

relation to the performance standard for that major duty.

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