√ Definition of Performance Management, Purpose, Benefits, Principles & Process

August 19, 2023
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Definition of Performance Management, Purpose, Benefits, Principles & Process – In this discussion we will explain about Performance Management. Which includes the meaning, purpose, benefits, basic principles and process of performance management with complete and easy-to-understand discussion. For more details, please see the review below carefully.

Definition of Performance Management, Purpose, Benefits, Principles & Process

Let's discuss the meaning of performance management first carefully.

Definition of Performance Management

Performance management or in English Performance Management is an activity for ensure that an organizational goal has been achieved consistently in an effective manner and efficient. Performance management can focus on the performance of an organization, department, employee, or even the process for creating a product or service as well as in other areas.

Definition of Performance Management According to Experts

The following is a definition of performance management discussed by experts.

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1. Schwarz (1999)

The definition of performance management according to Schwarz is a management style which is basically open communication between managers and employees who are concerned achieving goals provides feedback from managers to employees and vice versa from employees to managers, as well as appraisals performance.

2. Armstrong (2004)

The definition of performance management according to Armstrong is a strategic and integrated approach to delivering sustainable success to organization by improving the performance of the people working within it and by developing the capabilities of the team and contributors individual⁯du.

3. Bacal (1999)

The definition of performance management according to Bacal is continuous communication and is carried out in partnership between an employee and his direct supervisor. This process includes activities to build clear expectations and an understanding of the work to be performed.

4. Castello (1994)

The definition of performance management according to Castello is the basis and driving force behind all organizational decisions, work effort and resource allocation.

Performance Management Objectives

In general, the objectives of work management or performance management are as follows:

Strategic Goals

Related to employee activities with organizational goals. The course of the strategy requires the definition of results to be achieved, behavior, characteristics of employees needed to carry out strategy, develop measurement and system feedback on performance employee.

Administrative Purposes

Use performance management information, especially performance evaluation for the purposes of administrative decisions, reviews, promotions, termination of employees and others.

Development Goals

Can carry out capacity building for employees who are successful in their field of work, provide training for those who have poor performance and place them in the right place.

But apart from that, there are also specific objectives of performance management, including:

Get suistainable performance improvements
Increase employee motivation and commitment
Enabling individuals to carry out capacity development, increase job satisfaction and also achieve personal potential that is useful for individuals and organizations
The jack of all trades for a more performance oriented change
Carry out the development of an open constructive relationship between individuals and organizations in an ongoing dialogue
Setting up a framework for agreeing work goals
Focusing attention on the required attributes and competencies
The manager and employee agree on a development plan
Setting up criteria for implementing performance measurement
The foundation for giving rewards
Empower employees
Retaining quality employees
Perform comprehensive quality management initiative support
Demonstrate how individuals value employees

Performance Management Benefits

Wibowo (2010) stated that the benefits of performance management are not only for organizations or managers but also for each individual member of the organization.

Benefits of Performance Management for Organizations

As an adjustment of organizational goals with team (group) and individual goals in improving performance As employee motivation
As an increase in commitment
As an improvement in the training and development process
As a skill upgrade
To strive for continuous improvement and development
As an effort to base career planning
As a developer restrains employees from moving or asking to quit
As a supporter of total quality initiatives and customer service
As a supporter of cultural change programs.

Performance Management Benefits For Managers Or Bosses

As an effort to classify performance and behavioral expectations
As an opportunity to use quality time
To improve team and individual performance
As the pursuit of nonfinancial rewards for staff
As a basic effort to help employees who have low performance
As individual development
As a supporter of leadership
As motivation and team development
As a framework for reviewing performance and competency levels

Benefits of Performance Management for Individuals

As a clarification of roles and goals
As a booster and supporter to perform better
As a helper for the development of capabilities and performance
As an opportunity to take advantage of quality time
As a basis for objectivity and honesty for performance measurement
In order to focus on goals and plans for improving how work is managed and implemented.

Basic Principles of Performance Management

The basic principles of performance management of an organization/company include:

Appreciate honesty
Perform service
Have responsibility
Feels like playing
There is a feeling of pity
There is a formulation of goals
There is consensus and cooperation
Its nature is sustainable
There is two-way communication
Get feedback

Performance Management Process

The processes of performance management include:

Input

Performance management requires various inputs that must be processed in order to synergize with each other in achieving organizational goals. The input is in the form of Human Resources (HR), capital, materials, equipment and technology as well as work methods and mechanisms.

Performance management requires input in the form of HR capabilities, both individually and in teams. The capacity of human resources is shown in the form of knowledge, skills and competencies.

Human resources who have the desired knowledge and skills can improve the quality of the performance process or work results. Meanwhile, competency is needed so that HR has the ability that is in accordance with the needs of the organization so that it can provide its best performance.

Process

Performance management begins with planning on how to plan for the desired goals in the future the future and design all the resources and activities needed to achieve it objective.

The progress of the plan is monitored and progress is measured in achieving the goals. Assessment and review are carried out to correct and determine steps to be taken if there are deviations from the plan. Performance management establishes mutual respect for the interests of the parties involved in the performance process.

Procedures in performance management are carried out honestly to limit the impact of losses on individuals. The performance management process is carried out transparently, especially for people who are affected by the decisions that arise and people who get the opportunity through the basis for making a decision.

Output

Output is the direct result of organizational performance, either in the form of goods or services. The work results achieved by the organization must be compared with the expected goals. Output can be greater or lower than the predetermined goals. If there is a deviation, it will be used as feedback in planning future goals and implementing the performance that has been carried out.

Benefit

In addition to paying attention to output, performance management also pays attention to the benefits of work results. The impact of work results can be positive for the organization, such as because of someone's success realizing his achievements will have an impact on increasing motivation so that the higher the performance organization. But the impact of a person's success can be negative, if because of his success he becomes arrogant which will make the work atmosphere no longer conducive.

Thus has been explained about Definition of Performance Management, Purpose, Benefits, Principles & Process, hopefully can add to your insight and knowledge. Thank you for visiting and don't forget to read other articles.

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