Performance management is a broader and a complex HR function, as it incorporates events like goal setting, frequent communication, continuous progress review and tutoring for better performance, feedback and execution of employee growth programmers and rewarding accomplishments.
An efficient and effective performance management system should include the following constituents:
Performance Planning: It is a vital component of a performance management system which is the base of performance evaluations. The performance planning is done by the employer and also the employee at the commencement of the performance session.
Performance Review and Appraisal: The evaluations and reviews are usually done half yearly in a corporate setting in the way of interim reviews and year end final reviews that is normally held during end of the financial year.
Feedback on the Performance: Counseling and Feedback is given much of prominence in performance management system. At this stage the employee obtains cognizance from the evaluator regarding the areas of perfections and also an understanding on if the employee is providing the estimated levels of performance.
Rewarding performance: It is a very important section as it determines the work incentive of any employee. At this stage, the employee is publicly acknowledged for his notable performance and is rewarded accordingly.