Creating the right approach for Performance Management System

Human Resource is considered to be the backbone of any organization because it looks after the welfare of your employees. With the advancement of technology and change in time, the concept of Human Resource is changing day-by-day. Human Resource has been transformed to Strategic Human Resource which strategically deals in utilizing human resource and looking after human welfare so that they can feel associated with the organization. This helps them to give their 100% and ultimately benefits the organization.
Efficiency of employees helps the Organization to achieve its goal. No two employees have same potential. So, it is important to performance appraisal time to time to check the efficiency of each employee and provide them training accordingly. Some organizations, in the name of Performance Management review the performance of employees once in a year. Performance Management is a continuous process in which the management should have a close eye on the performance as well as their skill sets and assign work accordingly.
The success of any organization completely depends upon its team. It understands the need, value and goals of the organization and performs accordingly. The strong performance management system lets you analyze the roles of each and every employee and reward them according to their contribution.

Approaching task to create Performance Management System

Defining the goals

The management should divide the work into every employee depending upon the skill sets present in him/her. It should also set goals for each employee which must meet overall organizational goals.


It is one of the most important stages for creating a better performance management approach. When the management sets goal for each employee, then it must keep on tracking their work progress. This helps the management to prepare the report

Performance Appraisal Management

Performance Appraisal in other words can be said as performance review. The process includes observing, listening and giving feedback to the employees. This helps the Organization as well employees in reviewing their performance and working accordingly. The feedback helps the organization to find those employees who are performing well in the organization so that they can assign work according to their efficiency and also to work on those employees who lack in some skill sets which are required by the Organization to achieve the goals. It also helps employees to know where they lack behind so that they can work on enhancing their skills through training.

Performance Compensation

When an Organization pays for the work and performance of employees then it creates a positive environment by increasing competition. This positive competition leads to more new ideas. Those who work dedicatedly and perform well must be given Performance Compensation in the form of bonus, rewards, hike in salary, position, incentives etc. This motivates each and every employee which ultimately benefits the Organization.

Conclusion – The performance Management System must be made according to the needs of the Organization. Creating a good performance management system which time to time reviews the employees is very important. The stronger the performance system you have, the more success you have. Thus, the Organization must create a stronger performance Management System.