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How does performance management affect employee development and organizational success?
Performance management is a fundamental element of any successful organization.
According to the CIPD, performance management is the process and activities that focus on
maintaining and improving employee performance per an organization's objectives. It aligns
employee efforts toward the company's success, develops individual growth, and ensures a
motivated and productive workforce. The essay will analyze how performance management
affects employee development and organizational success.
The primary function of performance management is to align a company’s employee
activities with the organizational goals. It ensures that the employee activities harmonize with the
organization's strategic objectives. According to Aguinis (2019), employees gain insights into
their strengths and areas for growth when the management offers constructive feedback and
support (Aguinis 27). It also creates unity within the general direction by translating broad
organizational goals into specific targets for individual performance. Therefore, it is an essential
component of the company to ensure every team member effectively contributes towards the
success of the company.
It is also essential to enhance employee performance and development. Performance
management entails establishing clear expectations of employees and giving them regular
feedback. Such clarity enables employees to understand their roles and how an individual's
contribution impacts the organization. Employees are often positive and more motivated when
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they know what is expected of them. The latter leads to overall enhanced organizational
performance.
Moreover, performance management is essential in facilitating employee development.
Regular performance evaluations are integral to performance management, enabling employees
to recognize their strengths and weaknesses regarding skill development and overall
performance. Management uses these evaluations to provide opportunities for targeted training
and to further an employee's career growth for personal and professional advancement (DeNisi
and Murphy 422). In addition, regular performance reviews can help human resource
management identify and retain top talent, which helps in succession planning for highly critical
roles.
It also ensures objective evaluation that helps in improving motivation and engagement.
A structured performance management system provides a standardized approach to objectively
evaluating employees. It minimizes bias and ensures that performance appraisals, promotions,
and rewards are fair and just. According to Pulakos et al. (2019), objective evaluations are
essential to maintain the trust and morale of the workforce, which leads to improved individual
and team performance (Pulakos et al. 478). Recognition and reward for good performance are
crucial elements of performance management. Good performance recognition increases morale,
thus improving the engagement of employees. Similarly, promotions, incentives, and other
recognition programs encourage employees to improve their performance, creating a performing
culture within an organization.
In conclusion, performance management is an important determinant of employee
development and organizational success. It is crucial to provide definite direction to individual
performances concerning organizational objectives. Moreover, it is important to provide a non-
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biased evaluation of employees that helps in employee development, leading to the development
of a continuous performance culture. Therefore, an effective performance management system
helps organizations maintain a motivated and productive workforce that drives long-term growth
and success.
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Work Cited
Aguinis, Herman. Performance Management for Dummies. Wiley, 2019.
DeNisi, Angelo S., and Kevin R. Murphy. “Performance Appraisal and Performance
Management: 100 Years of Progress?” Journal of Applied Psychology, vol. 102, no. 3,
2017, pp. 421–433.
Pulakos, Elaine D., et al. “Performance Management Can Be Fixed: An On-the-Job Experiential
Learning Approach for Complex Behavior Change.” Industrial and Organizational
Psychology, vol. 12, no. 3, 2019, pp. 477–497.
