Every organization performs its task with the help of resources as men, machine, materials and money. Except manpower other resources are non-living but manpower is a live and generating resource. Manpower utilizes other resources and gives output. If manpower is not available then other resources are useless and cannot produce anything. Out of all the factors of production manpower has the highest priority and ignorance of human resource can prove to be disastrous. The human resource is critical and difficult to manage. It is because human behaviour is highly unpredictable. It differs not only from individual to individual but often on the part of same individual at different points of time. In spite of biological and cultural similarities, human beings not only differ in their appearance but also in their capabilities based on their background, training and experience. Human resource or a person at work is the most important component of the undertaking. Management cannot afford to ignore human resource at any cost.
Employees are performing different jobs in an organization depending upon the nature of the organization. All the different jobs are interrelated to achieve the targets. These are to be performed by the employees properly so they can give their best output at the job. This will have great impact on the total production, sales, profit, progress and market position of the company in the market. Various factors like skills, training, motivation, dedication, welfare, management policies, fringe benefits, salary and packages, promotion, communication etc. are responsible to encourage the people to work sincerely and give their best output. The importance of employees’ performance must be understood by the management and sincere efforts must be put in that direction. The management of the company taking timely steps in that direction will be in position to develop and motivate the people to do so. Finally the company may take the lead in the market and grab the opportunities available in the market.
Present business environment is very uncertain and risky. It is very difficult to understand and predict about the future. Mistakes are likely to take place. If a slight mistake is there then it may lead to the business being in great problems. Over and above the highly competitive situation compels every organization to wake up and do the business. It is not possible to do the business the way organization wants. A high degree of competency is needed at levels of management and employees. The need for highly talented and motivated human resource is felt. If the employees are highly talented and motivated then they would be in position to give better performance and higher level of productivity. So the importance of talented and motivated manpower or human resources has been realized at management level. They are interested to hire, train and maintain the manpower in such a way that they are in position to achieve the performance standards and objectives of the organization properly.
In present time the need for higher performance and productivity has been felt. So there should be focus of HR managers on performance management. Performance management maintains, develops and motivates the people at work to give better results. Performance management includes activities to ensure that goals are consistently being met in an effective and efficient manner. Performance management can focus on performance of the organization, a department, processes to build a product or service, employees, etc. Performance management is the process of creating a work environment or setting in which people are enabled to perform to the best of their abilities. Performance management is a whole work system that begins when a job is defined as needed. It ends when an employee leaves your organization. It helps in creating good working environment of openness, mutual trust, co-operation and team spirit. People work with their high degree of motivation and without work stress. In healthy working environment people work in teams and that leads to multidimensional benefits to individuals, teams, departments, sections, divisions and organization as a whole.
The benefits of it are numerous and these are financial and non-financial both. Managing employee or system performance facilitates the effective delivery of strategic and operational goals. Major gains from performance management are financial and non–financial. The Functions of Performance Management include to create a healthy work environment, develop performance plans, selection of appropriate people, decision regarding performance standard, plans for development of employees, measurement of performance, conducts performance feedback, design compensation, recognition and reward system, contributes in developing goodwill. By performing these functions the management helps in improvement of the performance as a whole. The work related employees problems are sorted out. It gives a sense of confidence and motivation among persons. These persons create publicity by word of mouth inside and in the public outside. It contributes a lot in creating high goodwill of the company.
Keeping in view the importance of management of performance of employees it inspired us for giving insight into the topics related to performance management to the academicians, practitioners, research scholars and students undergoing management programmes.
1. Performance Management
2. Performance Management Process
3. Employees or Labour Productivity
4. Performance Appraisal
5. Performance Appraisal Process and Methods
6. Management by Objective Method
7. 360 Degree Appraisal Method
8. Assessment Centre
9. Designing, Developing and Managing Assessment Centre
10. Career Planning and Development