What is Performance Management Essay Example | Topics and Well Written Essays - 500 words

What is Performance Management - Essay Example individual responsibility for the continuing improvement of business processes needs to be established, and individual skills and contributions need to be encouraged and nurtured. One tool for monitoring performance management is  performance appraisal. For organizations, performance management is usually known as company performance and is monitored through business appraisal. For Mega-Widget Company, Performance Management’s is beneficial as it facilitates the organization’s capacity to deliver strategic and operational goals which can be translated to a growth in sales, reduction of costs, and increased operational efficiency ultimately translating to greater competitiveness and enhanced the bottom line. It also provides the employee a clear understanding of how meeting target performance adds value to the organization’s strategic goals (Mithas, 2011). For the individual employee of Mega-Widget Company, Performance Management is beneficial as it creates an environment that motivates employees to be at its best. Through Performance Management, employees are also able to know how much and how they are contributing to the growth of the organization. And as the employees contribute to the growth of the organization, Performance Management provides the incentive structure by which employees are rewarded for achieving if not exceeding their goal in the organization (Salden and Sowa, 2011). Performance feedback is the  on-going  process between employee and manager where information is exchanged concerning the performance expected and the performance exhibited. Constructive feedback can praise good performance or correct poor performance and should  always  be tied to the  performance standards (Mithas, 2011) Performance feedback is designed to improve the performance of employees as correlated to Performance Management. It serves as a mechanism to reinforce and praise positive behavior and as a corrective measure to a less than desirable performance.