Examine the importance of performance management in an organisation

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Mariam Peyton

Mariam Peyton is a professional Financial Analyst. She holds a Masters degree in Economics. She specialises in financial analysis and forecasting. Her expertise includes studying the financial performance of companies, markets and entire industries looking for trends, insights and information that can help you glean rich insights for use in academic and market research.

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The paper explores the role of performance management in an organization. Performance management has come to be well-known in the last two decades despite the fact that it is not a new concept. David Gresty noted that this subject matter had been researched and studied since the 1990s. However, research has it that performance management can be traced back to the 1940s when the manager wanted a justification for their salary and their input in the organization. Performance management refers to an important tool that organizations use or implement in order to achieve organizational success. This process converts human resources into performance. Performance management is the key tool that business managers use to identify, measure and develop the performance of their employees by aligning their performance with the strategic goals of an organization. This essay is going to examine performance management in an organization.

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• Examine the importance of performance management in an organization a Case Study
  • Key Learning Outcomes
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• 1.0 INTRODUCTION
• 2.0 TOPIC NAME

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Examine the importance of performance management in an organization a Case Study

Key Learning Outcomes

1.0 INTRODUCTION

In the past years, manufacturing industries and other industries have invented various techniques and approaches to be used in the running of their different activities so as to boost their productivity. This has birthed a number of ideologies i.e. lean production, and concurrent engineering which entails total quality management and total productive management among so many others. The primary objective of these philosophies is to optimize an organization’s performance within and outside. Performance management is a method used by an organization to evaluate and develop employees’ skills and performances so as to boost its organizational performance. It is also considered a feedback control system that uses policy and strategy to obtain feedback from the various levels of an organization so as to manage and control its performance. 

Performance management has got a number of benefits that go beyond evaluations, raises, and promotions because it has the propensity to impact an organization whether positively or negatively. Among its many importances include; a) it creates development and training strategies that are to be used in an organization, b) it helps an organization to align their employees, resources, and systems to meet their strategic objectives among so many others which are going to be discussed in detail in the following sections of this paper. 

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