Content area
Full Text
Abstract
Performance Management means the measure of performance of an organisation, division, individual or a process in general. The scope of study encompasses the review of broad-based literature on the effects of Performance Management system on the factors that are directly linked to performance namely Motivation, Job Satisfaction and Organisation Development. These three main concepts of Organisational Behaviour have been chosen with a view of the direct impact of performance measurement on these factors. A simple analogy to this is, performance based pay leads to motivation and thereby job satisfaction, which in turn leads to improved performance or human development. Human development is nothing but an integral aspect of organizational development. An analytical review of existing literature brings forth the relationship between the variables and also aims at drawing a conclusive performance appraisal system(s) that can most likely help in enhancing the positive aspects of motivation, job satisfaction and also help in overall organisation development.
Keywords: Performance Management, Motivation, Job Satisfaction, Organisation Development, Performance Appraisal
Introduction
Performance Management is no longer a clichéd process but a whole new dimension of human resources, where the performance of the individual is not the ultimate motive, but of the Organisation. According to SHRM (the Society for Human Resource Management), "performance management is the organized method of monitoring results of work activities, collecting and evaluating performance to determine achievement of goals;, and using performance information to make decisions, allocate resources and communicate whether objectives are met." Today organisations are treading the path of difficult times but still need to sustain the dynamics of the environment they operate. The balancing act comes in the form of none other than human resources who need to operate in a high performance environment.
A Performance Management System(PMS) is a process that consists of a series of steps which has to necessarily begin with the Organisation's goals that have to be communicated to various teams operating in different genres of work. They are then translated into team goals and are then broken down to individual goals in the name of Key Result Areas (KRAs) and other Performance Indicators. The performance standards are then compared with the actual to identify compliance or deviations.% Compliance is responded with % rewards and recognition and deviations...