Question

*Evaluates how Performance Management contributes to promoting challenge, improving capability and recognising and rewarding talent.

Answer 1

Performance management is a curial component of managing the employees in an organization. It is a mechanism using which employees are rated, compensated and appraised for the contributions done to the organization with respect to the given targets. Having a performance management system in place helps to motivate employees, identify training needs, promote the growth of the employee and help in retaining good while leaving bad employees from the process.

To ensure a well structured performance management is setup, the goal should be set using SMART framework. Having a goal structure in place, helps in measuring the performance. If the employees have done well during the course of year, they can be appraised accordingly. It also helps in identifying the best candidates for promotional opportunities within the organization. Suppose there is job role for a higher post within the structure and HR team is tasked with identifying a suitable employee within the organization for it, then the performance database becomes a ready reference point for them. It also bring challenge of selecting the best from the talent pool since there could be multiple employees who could fill the role easily.

Performance management also helps in bridging the gap between the required capabilities and the existing capabilities. The review of work done in last year and previous year can help in identifying the main areas which need development. Such key areas of personnel development can be brought to the forefront only by using performance management initiatives.

Ultimately the outcome that every employee wants from performance management mechanism is to get appropriate rewards for the work done. They provide a great platform for transparent and clear visibility of rating and approaches of measurement. It also gives an opportunity to discuss the weak issues of the year and highlight the positive ones. For the right talent, a performance management system helps in gaining promotions, getting higher targets and ultimately higher compensation from the employers.