Page 114 - DMGT517_PERFORMANCE_MANAGEMENT_SYSTEM

Pretty Bhalla, Lovely Professional University Unit 10: Performance Management Implementation

Unit 10: Performance Management Implementation Notes

CONTENTS

Objectives
Introduction
10.1 Bottlenecks
10.2 Strategies for Effective Implementation of Performance Management
10.3 Factors affecting PM Implementation

10.4 Summary
10.5 Keywords
10.6 Self Assessment
10.7 Review Questions

10.8 Further Readings
Objectives

After studying this unit, you will be able to:
State the bottlenecks in performance implementation
Describe the strategies and factors affecting performance implementation

Introduction

Performance management is a fundamental component of any business management system. A
Performance Management Plan provides a formal, regular, rigorous process for data collection,
analysis and usage. Thus changes in effectiveness and efficiency can be measured, enabling

comparison of performance over time and against that of other similar entities.

10.1 Bottlenecks

Performance management is a broader concept which includes the performance planning,
performance appraisal, monitoring and performance evaluation. Like any management concept
and tool, the success and failure of any performance management system can be attributed
primarily to the management and its employees. Lawler and McDermont (2003) stated that the
establish ment of a performance management system is a major chal lenge to most organizations.
It would be very difficult to effectively manage the human resource without an instrument that

measures its effective ness and capability.

!
Caution For effective utilisation of human resource the organizations need a sys tem that
can identify the capabilities and performance of its human capital so that they can deal
with performance problems and encourage performance excellence.

LOVELY PROFESSIONAL UNIVERSITY 109