What is performance management?
Performance management is one of management which aims analysis of performance at various levels of any entity and taking corrective actions. It includes attempt to find out the drawbacks in the existing set up and arrange to fill up the Gaps. In short, it supports a company’s overall business goals by linking the work of each individual employee or manager to the overall vision and mission of the company .
Performance management involves:
- Analyzing the objectives and goals for each department or units and ensuring that these correlate with overall goals of the company .
- Analyzing the skills and job assignment details of employees in each dept and check whether these helps to achieve departmental objectives/goals.
- Also communicating performance goals and targets to each employee and obtain their agreement on those goals and targets. If need be, re-drafting of performance goals can be set or employees job requirements are modified to suit company/dept goals.
- To recognize and acknowledge the good performance of employees.
- Guiding the employees where improved performance are required and if necessary, recommending for necessary support/training.
Inter-relationship among different organization levels:
- Company Vision/mission
- Company’s long term goals/objectives
- Annual company’s goals/objectives
- Division of goals and objectives among divisions/depts
- Manager/Supervisor’s goals /objectives within the dept
- Individual Officer’s goals/objectives
Difference between Goals and objectives
Goals are statements of business aims in respect of any corporate. They are broad, timeless. They are the aspirations of the foundation members. One of the goals can be “ To be among the top ten of automobile industry”.
Objectives are specific statements . They are specific with men, material , time limit etc. It tells how the results to be achieved, when to be achieved, by whom it is to be achieved .These objectives are sub-sects of goals. While goals are not measurable, objectiv es are measurable, quantifiable. One of the objective may be “ to reply customer within 48 hours from the time of query”.
C.R. Venkata Ramani