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Performance Management System

Notes 5. Listen to everyone’s opinions in order to build consensus about where the organization is
going.
6. Provides clearer focus for the organization, thereby producing more effi ciency and
effectiveness.

7. To clearly identify the performance metrics used to measure employee’s success in meeting
predetermined targets.
8. Produces great satisfaction and meaning among planners, especially around a common
vision.
9. Increases productivity from increased efficiency and effectiveness.

10. Solves major problems in the organization
11. To provide an ongoing on-the-job feedback

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Caution Best practice identifi es that objectives are easily understood and acted upon when

they are specific, measurable, achievable, and realistic and time specific. The acronym

SMART is an aid to remember those components.
To set SMART objectives it is important to:
1. Identify the outcome expected, the ‘what’;

2. Provide indicators to measure the degree of achievement;
3. Create an objective that constitutes a challenge within the staff member’s capabilities;
4. Take into account available resources; and
5. Include a target date or response time.

3.3 Importance of Performance Planning

Coaches work with performance plans or work plans to keep their employees motivated. They
operate with such plans in place for each and every one of their team members. The following
points discuss the importance of performance planning:

1. Performance planning helps in aligning the individual goals with the organisational
goals.
2. Performance planning makes the process of performance management more accountable
and objective.
3. Performance planning focus on key results area and key performance area.
4. Performance planning helps in maximum utilisation of resources.
5. Performance planning is important to make clarity in role and responsibilities of
employees.

3.4 Methodologies of Performance Planning

The key methodologies of setting up a performance criteria are as follows:
1. Key performance area
2. Key results area

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