A performance management system is a system in which a company tries to determine how they will evaluate the performance of each employee. Performance appraisals have been done for many years and the appraisal typically examines the fulfillment of a claim of a particular employee. Producing results is one of the many reasons why performance management systems are created. Performance reviews examine if actions for a particular employees' job description is executed. When a company wants to determine if an employee is contributing to help achieve the company's goals a performance appraisal is completed. Appraisals help the employer to analyze if an employees work and performance helps in the continued success of the company.
There is so much more competition now than there has ever been and companies want to focus on employee effectiveness. Competition increases companies need to examine their strategy and structure of their organization because competition can break or make a company's success.
HR plays a major roll regarding performance appraisals and performance management. HR helps to answer some very important questions regarding management and success of the company, such as, is the process within a particular department achieving the desired results? If not, how can the company improve and how can employees improve individually to be sure that the company will survive in this competitive industry. If a performance management system is constructed correctly, successfulness of the organization will continue to cultivate.
Performance management is a system in which the evaluation of the whole organization, individual departments and programs, and products and services are evaluated. A performance management system creates a guideline on how to get the best results and use from each employee. The system is created to evaluate the group as a whole, different teams within the company (supervisory and management), all the departments,