Page 117 - DMGT517_PERFORMANCE_MANAGEMENT_SYSTEM

Performance Management System

Notes 2. Performance Oriented Work Culture: Work culture drives organizational performance
because an organization becomes successful by developing a real and meaningful culture
where performance is one of the core values. Performance oriented work culture means
launching a variety of improvement efforts, including designing high-performance work
systems.
3. Providing Training and Feedback: Training is an important tool to enhance the performance
of employees. Employees should get proper training and timely feedback.
4. Building Participative Environment: The organisations should introduce a participative
work culture where both the managers and employees can discuss their views. Furthermore,
the involvement of employees is also crucial. Inviting managers and employees to assist
in the development of the system facilitates their buy-in, and enhances their trust,
understanding, and ownership of the performance management system.

5. Effective Communication Strategy: Communication is one of the most important factors
in effective implementation of performance management. Communication provides

feedback of work performance, clarifies all the important aspects related with performance
management. This facilitates the buy-in from the people in the organization without
which performance management is less likely to be successful. There should be effective
communication of performance objectives to all the employees in the organisation.
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Did u know? What are the SMARTER performance objectives?
SMARTER performance objectives means:
S-performance objectives must be specifi c
M-performance objectives must be measurable
A-performance objectives must be attainable
R-performance objectives must be realistic
T -performance objectives must be time-based
E-performance objectives should be exciting
R-performance objectives should be recorded
6. Benchmarking Best Practices: If organisations want to be more competitive they need
to continuously improve their performance, and benchmark against best practices in
performance management. By undertaking benchmarking, organizations can equip
themselves with insightful and measurable information on improving organizational
performance. Organizations should freely share with their employees such benchmarked
information, so as to create a role model to emulate, which is appropriate for the
organization.
The following are the other key strategies for effective implementation of performance
management system:
1. Relying on Objective Assessments
2. Adopting Performance Management Policies
3. Honesty and Transparency
4. Encouraging Participation without Punishing Poor Results
5. Incremental Improvements
6. Dedicating Staff and Resources

7. Clearly Defining Organization Direction

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