Most people associate performance management with performance appraisals, performance related pay, achievement of targets, motivating people and enforcing discipline. Unfortunately the above is not what performance management is all about, though they do form a fundamental part of it. Then what is a performance management system ? Performance management system (PMS) has to evolve from the performance appraisals. A well designed performance appraisal system tells you the status of the health of an organization, but it indicates only the symptoms of any ills. It is like a medical checkup. It tells you what is right or wrong. However, it does not lead you to the cure of the organizational ills. Performance Management System has to be evolved for cure and to keep the organization healthy. Most often, we attack the symptoms rather than attacking the root cause of the problem. A properly designed performance management system helps us to take action for curing the organizational ills. PMS has to be designed in such a manner that it leads to achievement of organization's goals and objectives and at the same time it enables people to achieve their full potential, lead to job enrichment and job satisfaction.
Performance management is about getting results. It is concerned with getting the best from people and helping them to achieve their full potential by enabling them to recognize their roles and contributing to the goals of the organization.
Performance appraisals indicate what has been done against what should have been done. It is an audit of the performance of the people. They also enable management's to set future goals and objectives.
regards,
Dr. Prageetha