The Performance Management System

The success of our organizations depends upon the people who are

employed by these organizations. Increasing their effectiveness is the

function of a performance management system. It

might even be said that the very survival of an organization depends on

management's

ability to effectively use a well desgined performance management

system.

A well designed performance management system hasy three primary

functions:

1. Provides the organization with data for human resource planning and

for

administrative decision making.

2. Lets the individual know where he or she stands in the eyes of

his/her supervisors.

3. Helps the individual to improve his or her job performance and

increase productivity.

At this time in our economic history, productivity improvement is one of

the most critical

national economic issues. We all realize that wage increases cannot be

supported

without real gains in productivity. Therefore, the third aim of a

performance management

system, improving performance and increasing productivity, is soon

likely to be seen as

the most important aim.

Two basic factors in a performance management system are related to

improved

performance and increased productivity. One is goal setting, the other

is feedback.

At their best, the activities and strategies of an ongoing performance

management

system will result in a positive work environment leading to greater

productivity of the individual,

the department and the organization. Feedback, regular communication,

and coaching

provide the foundations.

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