The Performance Management System The success of our organizations depends upon the people who are employed by these organizations. Increasing their effectiveness is thefunction of a performance management system. Itmight even be said that the very survival of an organization depends onmanagement'sability to effectively use a well desgined performance managementsystem.A well designed performance management system hasy three primaryfunctions:1. Provides the organization with data for human resource planning andforadministrative decision making.2. Lets the individual know where he or she stands in the eyes ofhis/her supervisors.3. Helps the individual to improve his or her job performance andincrease productivity.At this time in our economic history, productivity improvement is one ofthe most criticalnational economic issues. We all realize that wage increases cannot besupportedwithout real gains in productivity. Therefore, the third aim of aperformance managementsystem, improving performance and increasing productivity, is soonlikely to be seen asthe most important aim.Two basic factors in a performance management system are related toimprovedperformance and increased productivity. One is goal setting, the otheris feedback.At their best, the activities and strategies of an ongoing performancemanagementsystem will result in a positive work environment leading to greaterproductivity of the individual,the department and the organization. Feedback, regular communication,and coachingprovide the foundations....
