performance management essay sample

Essay on Performance Management Process

Through performance management, management and workers collaborate to organize, evaluate, and analyze an employee’s job objectives and contributions to the corporation. Performance management is a continual process of creating targets, measuring progress, and offering continuing feedback and coaching to ensure that workers fulfill their objectives and career goals. Armstrong and Baron (1998) consider it a never-ending process that prioritizes the future over the organization’s past. They stress the strategic and holistic character of the process, which aims to improve the efficacy of firms by enhancing the efficiency of the employees and by expanding the capacities of individuals and team contributors. The main goals of performance management are to communicate a common goal of the firm’s mission, define expectations of the firm, and ensure that the employees understand what high performance means and how to accomplish it. Also, it helps increase worker motivation and allows them to track their progress and determine what should be done to enhance overall performance. The process is more than just an annual performance review. The steps to the process can be broken down into four, including; planning, coaching, reviewing, and rewarding.

While planning, HR must describe the position in detail, including the short- and long-term goals, primary aims, detailed descriptions, and an explicit criterion for evaluating these goals and objectives. The goals should be detailed, quantifiable, attainable, and exact performance requirements should be established. Personnel has an opportunity to provide feedback on the information after managers have completed the defining step (Qureshi et al., 2010). They execute their jobs; therefore, they have a unique perspective on the skills, abilities, and goals that can best help the corporation accomplish its objectives. Both administration and the personnel agree on the role’s description, purpose, and aims. By making the first step of the process collaborative, the management set the tone for the rest of the process to be interactive. Personnel feels participated in goal setting, which is critical.

At the beginning of the process, it is critical to go over performance objectives with personnel, covering both results and behavior they are intended to accomplish during the next cycle. Behaviors are significant because they indicate how employees approach their work, support the team, mentor, and communicate to others (Pulakos, 2014). Some employees produce excellent results, but it is challenging to deal with, unfriendly, and demonstrate maladaptive work behaviors. Behavior is vital to consider in the work environment; such behaviors can be pretty disruptive. On the other hand, a worker can be interpersonally practical, kind, and exceedingly helpful but never achieve significant outcomes.

Coaching is a necessary process and should be done regularly. Employees are coached to solve performance challenges and problems to make an excellent contribution to the corporation. Monitoring performances do not include scrutinizing details of how employees do their allocated duties and activities. During couching, there is an examination of how far the employees have a cone in achieving their goals. Potential roadblocks to the staff’s performance goals and what might be done to overcome them are identified. Thoughts are made on how the team achieves its objectives (Qureshi et al., 2010). Adjustments to the work schedule are determined due to shifts in the corporation’s priorities or when staff is required to take on new duties. The management determines whether more assistance is necessary to help the employee in accomplishing their goals. Setting objectives for specific employees is an integral part of performance management and requires a successful performance evaluation. Thus, there is a need to track how far the employee has progressed towards their objectives. Also, it is important to note how they attained their goals. The idea is to measure frequently and apply the results to coaching and counseling.

A review or appraisal meeting is a chance to examine, analyze, and highlight the employee’s achievements during the appraisal period. Most appraisals include a self-examination component. Workers can analyze their performance in advance of the appraisal meeting by utilizing the performance plan and evaluation form as a guide. The procedure can aid in the identification of discrepancies between the employee’s self-perception and the manager’s perspectives and promote a more in-depth discussion of performance difficulties. To properly analyze employee performance, the manager should evaluate their performance management notes and other documentation collected during the year issues communicated to the employee before the assessment should be included in the record and meeting. Thus, ensuring that the management address performance problems while developing and assuring the employees that the performance evaluation meeting will be free of surprises (Qureshi et al., 2010). A successful review system should include all critical parts of the job, be devoid of contaminating influences, and quantify essential job attributes. It should be trustworthy and free of rating flaws. Equally important, review systems should be fair to everyone as they must meet the criteria of equality legislation.

Recognition and reward are the last steps in the process, and it helps employees stay motivated such as leadership opportunities, time-off, recognition, and new projects. Workers should be motivated by a good incentive and recognition system that aligns their objectives with the company. Staff remuneration and recognition for good performance must maximize competitiveness and yielding pay investment in such a framework. Given the high expense of reward programs, it is critical to have a well-thought-out strategy that reflects their goals and expectations. The significant functions of incentive programs are attracting and retaining qualified people, particularly in tight labor markets, driving workers to fulfill their job aims and impacting the culture, reinforcing and defining the structure like status and hierarchy, and encouraging entrepreneurship, flexibility, participation, and innovation. The end of the performance cycle provides the last opportunity for the employees and the management to give feedback on the process and input and feedback for the first stage for the next cycle.

Performance engagement aids in the development of a culture of support and trust among employees and the business. Workers are more engaged when they are aware that their efforts are recognized and appreciated. Staff who receive feedback from their employers once a year, for instance, will be detached and disengaged (Brown et al., 2018). Performance management can also be helpful when building employee development strategies, indicating that one is anticipating employee development requirements thus, boosting the overall performance.

An aging population has two significant HR impacts in terms of the management process. First, the management can ensure the delivery of knowledge held by the older workers before they retire; second, firms have to address how to maintain reliable levels of efficiency among older workers even as they remain in the firm. As the personnel that drive the knowledge-based economy ages, there seems to be a risk that critical expertise will be lost as the older workers go to retirement (Beardwell & Thompson, 2017). Therefore, knowledge transfer ensures a firm’s success, and knowledge is recognized as the most significant business resource. A performance management process is a deliberate approach for providing the appropriate information to the right individuals at the right time and a method for placing knowledge into practice to enhance corporation performance.

Understanding how diversity influences performance has become a preeminent problem for HRM as the workers continue to be more diversified and inclusive. The impact of diverse populations on workplace results has been investigated. Job satisfaction is favorably and strongly connected to diversity management. Well-managed diversity management leads to a more satisfied workforce. It implies that resources should be allocated to diversity management initiatives and training programs at the corporate level (Beardwell & Thompson, 2017). All personnel, especially supervisors, should consider diversity as a fundamental asset. At the sub-organizational level, the management interested in successful performance management should devote time and effort to comprehending the various views of staff groups. Acknowledging and handling diversity present in teams will lead to the success of the organization. Therefore, HR teams must consider diversity management as a primary instrument in the toolset of performance management. They must endeavor to provide diversity-related competencies and elevate levels of awareness and understanding throughout the company.

In conclusion, human resources are significant to a company’s success. Corporations would be unproductive if they did not have efficient personnel, and they would risk missing to carry out their stated objectives and goals. As a result, every company, as part of its strategy, implements appropriate processes of performance management, a system that aids in the commitment of staff members to the company’s goals. If personnel realize that their effort and devotion are being reviewed, they will be more motivated to continue working. To encourage the growth of remuneration or other forms of incentives like praise and appreciation, as an element related to assessment and plays a vital role in engaging workers. Thus, many multinational businesses use remuneration due to good performance in the company structure (Osmani & Ramolli), 2012). The performance review process is perceived as more formal and should be completed by the management. Still, in most instances, the evaluation of the people is done without assessing the actual capabilities and outcomes of staff performance. While the technique of remuneration is used, it all remains a matter of choice as the evaluation is variable depending on narrow political or personal interests as determined by the management or business leaders. In addition, a component that should be present in performance evaluations is a greater emphasis on the discovery and use of strategies for enhancing performance instead of their application with no beneficial consequences.

Beardwell, J., & Thompson, A. (2017).  Human resource management: a contemporary approach.  (8th ed.). Pearson.

Brown, T. C., O’Kane, P., Mazumdar, B., & McCracken, M. (2018). Performance Management: A Scoping Review of the Literature and an Agenda for Future Research.  Human Resource Development Review ,  18 (1), 47–82. https://doi.org/10.1177/1534484318798533

Osmani, F., & Ramolli), G. M. (2012). Performance Management, Its Assessment and Importance.  Procedia – Social and Behavioral Sciences ,  41 , 434–441. https://doi.org/10.1016/j.sbspro.2012.04.052

Pulakos, E. (2014).  Performance Management A roadmap for developing, implementing and evaluating performance management systems . https://www.shrm.org/hr-today/trends-and-forecasting/special-reports-and-expert-views/Documents/Performance-Management.pdf

Qureshi, J., Shahjehan, A., & Afsar, B. (2010). Performance management systems: A comparative analysis.  African Journal of Business Management ,  4 (9), 1856–1862. https://academicjournals.org/journal/AJBM/article-full-text-pdf/0ECF0F532323.pdf

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121 Performance Management Essay Topic Ideas & Examples

Inside This Article

Performance management is a crucial aspect of any organization, as it involves setting goals, evaluating progress, and providing feedback to employees in order to improve their performance. However, coming up with essay topics on this subject can be challenging. To help you out, we have compiled a list of 121 performance management essay topic ideas and examples that you can use for your next assignment.

• The importance of performance management in organizations
• The evolution of performance management systems
• The role of leadership in performance management
• Benefits and challenges of performance appraisals
• The impact of performance management on employee motivation
• How to create an effective performance management system
• The role of technology in performance management
• Performance management in the era of remote work
• The connection between performance management and organizational culture
• The link between performance management and employee engagement
• The role of feedback in performance management
• Performance management and talent development
• Performance management in multinational companies
• The impact of performance management on job satisfaction
• Performance management in the public sector
• Performance management in small businesses
• The role of HR in performance management
• The impact of performance management on organizational performance
• The connection between performance management and compensation
• Performance management and succession planning
• The role of training and development in performance management
• Performance management and diversity
• Performance management in healthcare organizations
• The impact of performance management on employee retention
• The role of communication in performance management
• Performance management in the gig economy
• The connection between performance management and job design
• Performance management in the age of automation
• The role of coaching and mentoring in performance management
• Performance management in the hospitality industry
• The impact of performance management on team dynamics
• The link between performance management and job performance
• Performance management in nonprofit organizations
• The connection between performance management and organizational change
• Performance management in the retail industry
• The role of goal setting in performance management
• Performance management and conflict resolution
• The impact of performance management on employee morale
• Performance management in the education sector
• The connection between performance management and employee well-being
• Performance management in the manufacturing industry
• The role of performance management in organizational learning
• Performance management and ethical considerations
• The impact of performance management on employee burnout
• Performance management in the financial services industry
• The connection between performance management and employee turnover
• Performance management and work-life balance
• The role of performance management in organizational development
• Performance management in the technology sector
• The impact of performance management on employee job satisfaction
• Performance management and corporate social responsibility
• The connection between performance management and employee empowerment
• The role of performance management in promoting diversity and inclusion
• Performance management and talent acquisition
• The impact of performance management on employee engagement
• Performance management in government agencies
• The connection between performance management and organizational resilience
• Performance management and employee performance improvement
• The role of performance management in promoting a culture of continuous improvement
• Performance management in the healthcare sector
• The impact of performance management on organizational efficiency
• Performance management and employee recognition
• The connection between performance management and organizational agility
• Performance management and employee development
• The role of performance management in promoting innovation
• Performance management in the energy sector
• The impact of performance management on team collaboration
• Performance management and organizational learning
• The connection between performance management and employee accountability
• Performance management in the telecommunications industry
• The role of performance management in promoting work-life balance
• Performance management and employee engagement strategies
• The impact of performance management on organizational culture
• Performance management and employee retention strategies
• The connection between performance management and organizational effectiveness
• Performance management in the automotive industry
• The role of performance management in promoting employee well-being
• Performance management and employee satisfaction
• The impact of performance management on team performance
• Performance management and employee development strategies
• The connection between performance management and organizational performance
• Performance management in the pharmaceutical industry
• The role of performance management in promoting employee motivation
• Performance management and employee engagement initiatives
• The impact of performance management on organizational success
• Performance management and employee performance management
• The connection between performance management and organizational growth
• Performance management in the construction industry
• The role of performance management in promoting employee productivity
• The impact of performance management on organizational resilience
• Performance management and employee development initiatives
• The connection between performance management and organizational change management
• The role of performance management in promoting employee engagement
• Performance management and employee satisfaction strategies
• The connection between performance management and organizational performance improvement
• The connection between performance management and organizational success
• The impact of performance management on organizational growth
• Performance management and employee satisfaction initiatives
• The impact of performance management on organizational change management

These essay topics cover a wide range of aspects of performance management, allowing you to choose a topic that aligns with your interests and expertise. Whether you are studying HR, organizational behavior, or management, these topics will help you explore the complexities of performance management in depth. So, pick a topic that resonates with you and start writing your next performance management essay!

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Performance Management

Ivan Andreev

Demand Generation & Capture Strategist

ivan.andreev@valamis.com

March 14, 2022 · updated April 2, 2024

17 minute read

Increasingly, organizations are understanding that their management systems must be brought into the 21st century if they are going to be competitive in the current market.

Research shows that previous systems, such as yearly appraisals, are outdated and can even serve to decrease employee engagement and motivation. In light of this, more companies are turning to performance management than ever before.

This dynamic and strategic approach to developing improved performance in employees is gaining ground in companies large and small, including many Fortune 500 and industry-leading organizations.

What is performance management?

The importance of performance management, the purpose and goals of performance management, the benefits of performance management, 15 employee performance management best practices, 5 real-world examples of performance management, what is the difference between performance management and performance appraisals.

Performance management is a strategic approach to creating and sustaining improved performance in employees, leading to an increase in the effectiveness of companies.

By focusing on the development of employees and the alignment of company goals with team and individual goals, managers can create a work environment that enables both employees and companies to thrive.

Based on the definition of performance management, a system is built within an organization to measure and improve the performance of the people in that organization.

In practice, performance management means that management is consistently working to develop their employees, establish clear goals, and offer consistent feedback throughout the year.

In contrast to other systems of reviewing employee performance, such as yearly performance appraisals , employee performance management is a much more dynamic and involved process with better outcomes.

For the Human Resources department, performance management is an important system for onboarding , developing and retaining employees, as well as reviewing their performance.

It is increasingly understood that a yearly performance appraisal system does not effectively engage employees, fails to consistently set and meet company objectives, and does not result in a strong understanding of employee performance.

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Why is performance management important?

In any organization, no matter the size, it is important to understand what your employees are doing, how they are doing it, and why they are doing it.

Without a system in place to define roles, understand individual strengths and weaknesses, provide constructive feedback , trigger interventions and reward positive behavior, it is much more difficult for managers to effectively lead their employees.

Smart organizations pair their performance management with an incentive management process. The two systems have a lot in common, from defining roles and setting goals to reviewing and rewarding employee behavior, and as such, do very well when run simultaneously. Using incentive management also means that the all-important ‘reward’ step of performance management is done properly.

Talent management is an important part of every organization. Three of the main problems that organizations face are:

• keeping employees engaged
• retaining talent
• developing leaders from within

These are the issues that performance management very effectively targets.

1. Keeping employees engaged

Engagement of employees is a focus of any management team. In a yearly appraisal system, goals would be given at the beginning of the year and then revisited 12 months later to see if they had been met. This long stretch of time without feedback or check-in is an almost certain engagement killer.

In fact, 94% of employees would prefer their manager gives them feedback and development opportunities in real-time, and 81% would prefer at least quarterly check-ins with their manager, according to the Growth Divide Study .

Studies show that employees do best with feedback on a monthly or quarterly basis, with regular check-ins serving as a zone to problem solve, adjust goals as necessary, and to refresh their focus on the goal. In fact, companies where employees meet to review goals quarterly or more frequently are almost 50% more likely to have above-average financial performance.

When surveyed, employees had some negative feelings about a yearly appraisal system:

• 62% of employees feel that their performance review was incomplete
• 48% did not feel comfortable raising issues with their manager in between performance reviews
• 61% feel that the process is outdated
• 74% feel that they would be more effective with more frequent feedback
• 68% of executives don’t learn about employee concerns until the performance review

All of this adds up to a lot of missed opportunities to solve problems and increase employee performance and engagement.

As employee engagement rises, nine key performance indicators show successful outcomes. Absenteeism, turnover, shrinkage, safety incidents, patient safety incidents and defects in quality are lessened by at least 25%, and often more, across the board. Customer experience, productivity and profitability all show positive outcomes.

This study, by Gallup , was conducted across a broad range of industries, showing that employee engagement is a critical factor, no matter the industry.

2. Retaining talent

Employees who have frequent meetings with management to discuss performance, solve problems and receive training are more likely to stay with the company.

If employees see that their management team is putting in the work to develop them professionally, help them succeed with their goals, and reward performance on a consistent basis, then they are more incentivized to both stay with the company and work harder.

3. Developing leaders from within

This consistent development and partnership between managers and employees allow for the development of leaders from within the company.

Recruiting costs can be extremely high, as are costs for onboarding and training new employees. To be able to groom leaders from within the company means that there is already a proven culture fit with this individual and that training costs and resources spent developing this person into an asset are not lost.

This leadership path also serves as a motivating force for employees, who can see that their hard work will be rewarded with promotions and other benefits.

Performance management also creates a need for management to consistently focus on company objectives and goals, and to consider how best to achieve them. This continual revisiting of goals means that they are more likely to stay relevant, as goals will be adjusted in light of new technology, changes in the market, or other factors throughout the year.

According to Forbes , ‘companies that set performance goals quarterly generate 31% greater returns from their performance process than those who do it annually, and those who do it monthly get even better results.’

The purpose of performance management is to give both managers and employees a clear and consistent system within which to work that, in turn, will lead to increased productivity.

• This system shows employees the pathway to success, allows for the measuring of performance coupled with feedback and offers training and development opportunities.
• Performance management allows management to understand what their employees are doing and track progress on company objectives while providing consistent feedback.

There are five main objectives of performance management:

• Develop clear role definitions, expectations and goals
• Increase employee engagement
• Develop managerial leadership and coaching skills
• Boost productivity through improved performance
• Develop a performance reward program that incentivizes accomplishment

These performance management goals show a clear path from the developing of goals to the rewarding of increased accomplishment. If one of these performance management objectives is not done well, then the others will suffer as a result.

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Performance management has a multitude of benefits for employees and managers, as well as for the company as a whole. If a company can successfully create an environment of engagement where customers are equally engaged by employees on the front line, their outcome is even better.

When organizations successfully engage their customers and their employees, they experience a 240% boost in performance-related business outcomes compared with an organization with neither engaged employees nor engaged customers. – Gallup

• Having well-defined roles and performance standards makes hiring an easier process, as candidates know what is expected of them, and HR can more easily understand if a candidate is a right fit for the role.
• Those well-defined roles and standards make training easier, as trainers know exactly which areas need to be covered, and which information is nonessential.
• Consistent developing and revisiting of goals ensure that the organization keeps up with changing market forces easily, and reacts quickly as a whole, regardless of the size of the organization.
• Clear expectations and roles set employees up for achieving goals from the start, providing a springboard to success.
• Employees who feel that their company is invested in their success stay with their companies, increasing employee retention.
• Consistent feedback and coaching from managers lead directly to increased engagement from employees while developing the ability to provide good coaching and feedback leads to more skilled managers.
• As employees become more skilled, they can move up through the company, creating a leadership pipeline.
• Productivity will increase thanks to increased engagement, clear goals and upskilling of employees.
• Employees remain incentivized to perform long-term, as they are properly rewarded for their hard work.

While performance management can sound deceptively simple, with just four steps as outlined above, the process itself is very complicated. That’s why we have put together this list of best practices for performance management.

Think of it like the essentials of performance management – these will help make sure that your employee performance management system is performing the way it should.

1. Identify the goals of your performance management initiatives

As you are creating your performance management program, you need to understand what you want to accomplish.

Asking the following questions can help you:

• Is increased productivity a priority?
• Does your organization want to identify leaders from within and develop them?
• Do you want to streamline the compensation process?
• Are you seeking to improve employee retention or engagement?

If you know what you want your program to do, it will be easier to build it to accomplish that goal.

2. Define and describe each role

We mentioned this above, but it bears repeating. It is much harder for an employee to be successful if they don’t know exactly what is expected from them, how they should do it, and what the end result should look like.

3. Pair goals with a performance plan

As you set goals, develop a performance plan to go alongside. Year-long goals often fail, as they are too large and employees can get overwhelmed before they start. A performance plan helps them visualize their path, making it much more likely that they will meet their goal.

4. Monitor progress towards performance targets

Review key areas of performance. Use metrics and analytics to your advantage, tracking how goals are progressing to make sure that interventions can happen early, if necessary.

5. Coaching should be frequent

The point of coaching is to help identify and solve problems before they get too big. If it’s not frequent, it’s not going to help at all. Monthly or quarterly meetings should be held to help keep employees on the right track.

6. Use guidelines to your advantage

Guidelines should be created for each role as part of the first stage of the performance management cycle. These policies or guidelines should stipulate specific areas for, or limits on, opportunity, search and experimentation. Employees do their jobs better when they have solid guidelines to follow.

7. Build a performance-aligned culture

Make sure your workplace has shared values and cultural alignment. A sense of shared values, beliefs and expectations among employees creates a more harmonious and pleasant workplace. Employees should be committed to the values and objectives outlined, and exemplified by, top management.

8. Organize cross-functional workshops

This helps employees – and managers – understand what other departments do, how they think and what their strengths and weaknesses are. They can discover something new and find new connections, which can help them in future work.

9. Management should offer actionable feedback

During these coaching meetings, tensions can arise if the feedback is not given in a constructive, actionable manner. It is not very important to look backward and point fingers, rather management should guide employees towards future success.

10. Keep it professional, not personal

Giving less-than-stellar feedback is hard on both managers and employees, it’s one of the reasons that performance appraisals tend to be a least-liked task. Managers should make sure to keep feedback professional and remember to focus on behavior, rather than characteristics.

For example, pointing out that David regularly turned in important reports late is feedback about a behavior. Saying that David is lazy, and that’s why the reports were often late is feedback about a characteristic. One of these can help an employee own their role in a project’s success (or lack thereof) and the other will make them defensive instantly.

11. It’s not only employees that need training

Management should be trained too. Coaching and offering good feedback are not easy jobs, which is why there are so many specialist coaches out there. For managers to be able to lead well, they should be trained in these skill sets.

12. Take advantage of multiple-source feedback

Ask employees to write feedback for each other. This will give management a more holistic view on employee performance, understand the challenges that teams are facing, and be able to better offer feedback.

13. Don’t depend only on reviews

While the review process is important, it is only one part of the system as a whole. Planning, coaching, and rewarding employees are equally key parts of the system.

14. Problems are not always employee-based

It can be easy to assume that problems are always caused by employees, but that simply is not the case. Problems can arise from external factors such as availability of supplies, internal processes that are causing issues, or organizational policies. Seek out the source of problems as precisely as you can in order to fix them.

15. Recognize and reward performance publicly and frequently

Management cannot expect employees to stay motivated if they are never rewarded, yet many companies overlook this key step. Make sure that employees are compensated and recognized for their hard work, and they will continue delivering for your organization.

Of course, it’s one thing to understand the theory of what performance management is, but it’s another thing to use it in a real company. Let’s take a look at some real-world examples of the performance management process in action:

It’s no surprise that Google would show up on a list of companies that use a newer, innovative system of management. This company has always been a trendsetter, and their performance management process is one that relies on data and analysis, as well as making sure that their managers are well trained.

When assessing their performance management system, Google launched a project dedicated to assessing their managers, which has led to a thorough training and future development process that sets managers, and thus employees, up for success.

They also use a system of setting goals that have caught on across multiple industries. Using their Objectives and Key Results (OKRs) system, they reframe the goal-setting process, with great results.

Another tech trendsetter, Facebook has a performance management process that puts a heavy emphasis on peer-to-peer feedback. In semi-annual reviews, they are able to use that feedback to see how well teams are performing and understand where collaboration is happening – and where it is not. They also have developed an internal software to provide continuous, real-time feedback. This helps employees solve issues before they become problems.

Cargill is a Minnesota-based food-producer and distributor with over 150,000 employees and serves to demonstrate that even huge companies can ditch unwieldy performance appraisals and institute a new system. In following the latest research on the dissatisfaction of management with outdated performance management process, Cargill created their ‘Everyday Performance Management’ system. The system is designed to be continuous, centered around a positive employee-manager relationship, with daily activity and feedback being incorporated into conversations that solve problems rather than rehash past actions.

The Everyday Performance Management system had overwhelmingly positive results, with 69% of employees stating that they received feedback that was useful for their professional development, and 70% reporting that they felt valued as a result of the continuous performance discussions with their manager.

Adobe calculated that managers were spending about 80,000 hours a year on performance reviews, only to have employees report that they left those reviews demoralized and turnover was increasing as a result.

Seeing a system that only produced negatives, Adobe’s leadership team made a bold leap into a performance management system that began by training managers how to perform more frequent check-ins and offer actionable guidance, then the company gave managers the leeway they needed to effectively lead.

Management was given much more freedom in how they structured their check-ins and employee review sessions, as well as more discretion in salaries and promotions. Employees are often contacted for ‘pulse surveys’ – a way for the leadership team to make sure that individual managers are leading their teams well. One of the many positive results of this has been a 30% cut involuntary turnover due to a frequent check-in program.

Accenture is a massive company – over 330,000 people, so changing their systems means a huge effort. When they switched to their new system, they got rid of about 90% of the previous process. Now, they are using a more fluid performance management process where employees receive ongoing, timely feedback from management. This has been paired with a renewed focus on immediate employee development and an internal app for communicating feedback.

There are common threads in all of these examples. Each company has built a system that works for them, rather than following a one-size-fits-all approach. What works for one company might not work for another – it depends on the industry, the speed and flexibility of the company, and the overall goal of the system itself.

With similar names and purposes that sometimes align, it is no surprise that some people find it hard to spot the difference between performance management and performance appraisals.

In fact, performance appraisals are often part of the performance management process , although some companies still rely on performance appraisals alone.

An easy way to understand the difference between the two is that performance appraisals are reactive, and performance management is proactive.

A performance appraisal looks at all of the past actions of the employee within a set amount of time , and rates how well they performed in their role and how many goals they met.

Performance management looks at the present and future of the employee, and what can be done to help future performance and meet future goals . Performance management is focused on the development and training of an employee, and how that can benefit both the employee and the company.

A performance appraisal is a formal, operational task, done according to rigid parameters and in a quantitative manner. HR leads performance appraisals, with input from management. Performance management is much more informal and strategic, led by management with input from the employees in a more flexible manner.

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Essays on Performance Management

Performance management: limitations and positives analysis, performance management and organization health, importance of performance management system, performance management and motivation: a case analysis of haier, performance management and reward.

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Basic Rules Of Effective Performance Management

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90 Performance Management Research Topics

🏆 best essay topics on performance management, 👍 good performance management research topics & essay examples, 🎓 most interesting performance management research titles, ❓ research questions on performance management.

• Amazon Approach to Management and Performance Evaluation
• The Amazon Company’s Performance Management
• Performance Management and Strategic Planning
• Performance Appraisal and Human Resource Management
• TD Canada Trust Bank’s Performance Management
• Hotel Management: Performance Improvement Plan
• Google Inc.’s Performance Management System
• Leadership, Management Style and Organizational Performance The focus on globalization and multiculturalism has emphasised the importance of understanding Organizational productivity and team effectiveness.
• Performance Management and Appraisal Systems The performance management process is important. During it the HR team works together with other members of the company towards achieving organizational goals.
• Nike Company’s Performance Management & Logistics The conceptualization of Nike as a company dates back to the year 1962 when its founders, Bill Bowerman and Phil Knight.
• Human Resource Management and Performance of the Organization The success of the company relies on the proper management of its people because the workforce of a company is the major factor that runs the business.
• Employee Performance Management System In human resource management, it is important to ensure that employees are motivated and satisfied with their work. It can achieve by carrying out employee performance management.
• Options Consulting Solutions Company’s Performance Management Options Consulting Solutions is a recruiting firm headquartered in Toronto, Ontario. The firm was started more than two decades ago.
• Performance in Safety Management Systems (SMS) The study will collect data on improvement patterns of SMS regulations and technologies as two qualitative independent variables and risk factors.
• Informative Speech On Business Performance Management In the troubled days of economic crisis and recession the only way companies have to survive economic uncertainty is by making good use of business “performance management”.
• Why Performance Management Appraisals Fail Performance management appraisal may fail due to judgment by top management and the supervisors. The top management and supervisors sometimes experience errors.
• Performance Management in Business Performance has now been integrated into the quality management system of the organization. Effective performance measurement influences efficacy of the use of information.
• Performance Management System: Role and Advantages Performance management systems play an important role in the achievement of organisational goals, mission, and vision
• Strategic Performance Management Plan for a Sales Manager The paper creates a strategic performance plan for the Dialogue Direct and recognizes the attributes that will be rated regarding the position of the sales manager.
• Importance of Performance Management in Organizations The paper explores the concept of benefits management at the organization plumbing supply company in Olean, New York.
• Information Systems and Project Management Performance The authors assert that requirements instability and requirements diversity are related to stakeholder perception gaps and this can be tied in with project performance.
• Performance Management and KPIs in a Management Measurement System Performance management is a dynamic process that requires timely reports so that procedures are drawn to guarantee that corporate goals are achieved.
• Performance Management Issues of the Organization There is a significant relationship between compensation and performance management. This is because compensation can be a way of performance management.
• Strategic Human Resource Management and Performance For successful performance, human resource managers have to ensure that they recruit employees with potential and possess qualifications that will enable them to create value.
• Portfolio Management: Stock Selection and Portfolio Performance The paper covers the performance of the portfolio, stock selection criteria, each stock performance, and the returns of the portfolio for the period.
• Metrics and Performance Measurement in Operations Management Metrics is indeed a powerful management tool in aligning company strategies and objectives and ensuring people are working towards a common direction.
• Performance Management Issues: Types and Factors Performance management aims to ensure the effectiveness and growth of the organization through the definition of strategic objectives and management activities.
• Management: Effective Teamwork Role for Organizations Performance Groups usually pass several important stages: forming, storming, norming, and performing. Depending on the stage, teams and groups demonstrate unique organizational features.
• Performance Management System: Personal Experience Managers collect the data systematically based on each department’s performance. In other words, the performance is measured by the results.
• Negative Performance Management Managers should possess strong planning and problem-solving skills to establish clear goals and strategies to achieve goals on time without losing quality.
• Performance Management and Working Relationships Performance management is an area of execution, and benefits may not be obvious at the project planning stage.
• Quality Management and Performance Improvement in Healthcare There are a number of healthcare quality issues affecting the performance improvement of various caregiving centers.
• Performance Management System in Healthcare The Joint Commission enhances the level of the healthcare services provided to the public. The entity ensures that hospitals have a good performance management system.
• Balanced Scorecard: Performance Management Tool This essay presents an assessment of a balanced scorecard used by an organization in a real estate business environment.
• Business Intelligence and Performance Management Business Intelligence encompasses software tools for querying, reporting and analysing. It may be summarised as the processes and tools that turn data into information.
• Organizational Management and Performance: Inter-Organizational Relationships Organization as a system entails that there must be inputs which are to be processed in order to give an output. This output is optimal goal the organization strives to accomplish
• Earned Value Performance Management for Projects In the earned value management system, the project performance is measured by taking into account the actual cost spent for the baseline plan.
• Performance Management: Aspects and the Levels Performance management is a cyclical process that is usually aimed at improving the performance of either under performing group, individuals, to further improve good performers.
• Performance Management: Term Definition Performance management is assessing the process of achieving goals and objectives to unsure that it is successful through communication and taking the right action.
• Management: Performance Measurement in Organizations Performance measurement is vital in all organizations because the organizations need to verify the validity of the selection methods and to improve the productivity.
• Performance Management: Employee Performance Documentation Organizations that succeed in effective documentation of employee performance can feel secure in the current economic realities.
• Performance Management and Appraisal Plan The Office of Human Resources presents a Management by Objectives (MBO) performance appraisal plan and process that will be implemented in the next month.
• Management Functions for Better Company Performance Managing an organization is not easy when one has to the role of a leader, the role of a manager, and the role of an HRM specialist.
• New Employee’s Success and Performance Management Once a new employee is selected, strategies of how best to maximize employee success on the new job should be put in place.
• Performance Management: Warehouse Performance Measurement The analysis of the costs taken by the organization can be viewed as the first step towards identifying the changes in the warehouse business performance.
• Issues Concerning the Use of Social and Environmental Indicators for Performance Management
• Performance Management and Performance Measurement in the Education Sector
• The Relationship Between Performance Management and Organizational Goals
• Effective Performance Management With the Balanced
• Major Constraints and Possible Solutions for Performance Management in Korea
• Performance Management and Key Performance Indicators for Higher Education Institutions in Serbia
• Differences Between Cost-effectiveness and Performance Management
• Performance Management Strategy and Broader Issues of Organizations
• Linking Performance Management Strategy To Corporate Management Strategy
• Relationship Between Hrm and Organisational Performance Management
• Effective Leadership Practices Can Lead to High-Performance Management
• The Difference Between Performance Management and Performance Appraisal
• Performance Management Practices, Employee Attitudes, and Managed Performance
• Factors Influencing Software Team Performance Management
• Power and Performance Management of GPUs Based Cluster
• Strategic Performance Management and Creative Industry
• Global Performance Management Systems: The Role of Trust as Perceived by Country Managers
• Effective Team and Performance Management
• Developing High Performance: Performance Management in the Australian Public Service
• Performance Management and Incentive Plan Design
• Does the Company Size Affect Performance Management System?
• Why Is Strategic Performance Management Important?
• How Is Performance Management Related to Learning and Development?
• What Are the Benefits of Performance Management?
• How Are Performance Management Systems Used for Dual Purposes?
• Why Is Team Performance Management Important?
• Can Performance Management Improve the Skills of an Individual?
• What Is the Impact of Performance Management on Employees?
• How Has Sainsbury’s Used Performance Management to Increase Their Quality of Service?
• What Can Performance Management Offer to Learning and Development Practice Within an Organization?
• How Does Performance Management Help Employees to Learn?
• What’s the Purpose of Performance Management?
• Why Are Learning and Development Important for Performance Management?
• How Does Performance Management Encourage Employee Development?
• What Are the Primary Objectives of Performance Management?
• How Can Performance Management Improve Productivity?
• Why Should HR Connect Performance Management and Learning?
• What Is an Effective Performance Management System?
• How Does Performance Management Work in an Educational Institution?
• What Are the Possible Outcomes From Effective Performance Management?
• How Does Performance Management Contribute to the Output of an Organization?
• What Is the Main Feature of Performance Management?
• How Does Performance Management Add Value?
• What Is the Difference Between Performance Management and Performance Appraisals?
• Why Is Performance Management Important in Training and Development?

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Home — Essay Samples — Business — Performance Management — The Future of Performance Management

The Future of Performance Management

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Published: Aug 30, 2022

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Table of contents

Current view of performance management, factors impacting organisations today, implication of these factors to performance management, influential research and its impact on performance management, emerging trends in performance management.

• Macro-Economic Environment;
• Globalisation;
• Increased competition.
• Collaboration;

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To many college goers, composing Performance Management papers comes easy; others need the help of various types. The WowEssays.com collection includes professionally crafted sample essays on Performance Management and related issues. Most definitely, among all those Performance Management essay examples, you will find a piece that resonates with what you see as a worthy paper. You can be sure that virtually every Performance Management item presented here can be used as a sharp example to follow in terms of overall structure and writing different parts of a paper – introduction, main body, or conclusion.

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Performance in any organization is measured by the productivity and quality of services rendered to increase the profitability and ultimate success. The performance requires that individual job is directed towards the set goals of the entire organization, which address the strengths, weaknesses, threats and opportunities identified during the analysis of organization situations. Employees’ aggressiveness and improved managerial efforts help yield good performance in any organization at all cost .It is therefore, important to review performance at appropriate moments to adjust the organization expectations.

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It is the role of every employee and the management of a firm to ensure that the firm succeeds. To make sure that a firm succeeds, there are ways through which the firm can track its performance. These ways are performance management system and the balance scorecard process. CliftonLarsonAllen is an example of a firm in the United States that uses these two methods to track its performance.

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Blue Hat 9 White Hat 9 Red Hat 10 Black Hat 10 Yellow Hat 10 Green Hat 11 Application of Mintzberg’s Theory at Sofitel Hangzhou Westlake 11 Interpersonal use of Managerial Skills 11 Informational Role of Managers to Solve Problems 12 Decisional Role of Managers for Dealing with the Issue 13 5.0 Conclusion 13

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Sustaining employee performance at the workplace goes beyond simply encouraging them to work longer hours by requiring them to report early and leave late. How an employee feels impacts on how well they can perform the work and thus the organization should invest in strategies that help employees to feel better about their job. Employees put in a lot of efforts to ensure that the organization achieves sits targets and thus need to be motivated throughout the process. The two positions chosen include chief finance officer and chief technology officer at the electric car automaker, Tesla.

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Netflix is one of the leading companies in internet streaming industry with extremely aggressive growth strategy in its domestic and international market. Singapore is one of the strategic locations for the organization, which allows access not only to the large and technologically advanced market in the country but also to North Korea and other regions within the East and South East Asian Market (Netflix, 2015). Singapore growth strategy is based on competitive pricing and aggressive differentiation strategy, where Netflix offers own original content and plans to expand production on Singapore local market (Peng, 2015).

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Performance Management and Appraisal Essay

Elements of a performance management system or practice that inspire and motivate employees.

Employee relations is a practice that inspires employees at the workplace. This is the aspect of maintaining good relationships with employees. Employee relations determine the achievement of goals because it creates a favorable environment to communicate effectively. Employee relations also improve the dispute resolution process because the parties involved can solve conflicts easily.

When proper employee relations processes are maintained, discrimination in the workplace is avoided. Employee relations create an avenue for the management to practice leadership skills. Therefore, the managers should practice the necessary leadership skills to encourage employees to achieve the organizational goals (Subrahmaniyam, 2009).

Employee engagement is another practice that inspires employees. This is determined by the involvement of employees in all activities of the organization. When employees are engaged, they feel secure, and they trust the management. This increases their performance.

Employee engagement encourages employers to have good leadership strategies so as to address all the issues affecting the employees. The problems affecting employees are easily identified when an engagement is employed. This is because the managers work together with the employees, and problems can be identified and resolved within the required time (Subrahmaniyam, 2009).

A labor union is another performance management system that promotes employee motivation. This deals with labor unions and the issues that affect labor unions. Labor unions form the link between the employees and the employer. This system ensures that the needs of employees are addressed. In addition, labor unions are involved in dispute resolution.

The employees are motivated to work when they have a work union because all their problems are solved easily. In addition, the employees can talk to the management through the union officials.

The unions protect the interest of the employees because the employer cannot impose issues onto the employees. Therefore, the employees can strike when they feel that their needs are not fulfilled. The union protects the employees from being sacked when they are on strike (Subrahmaniyam, 2009).

How performance evaluations can lead to or detract from employee engagement in the workplace

According to Albrecht (2010), performance evaluation enhances the engagement of employees because it helps employees to know how they perform at the workplace. In addition, performance evaluation helps the management and employees to be connected. This is because there is a close supervision and interaction between the management and employees.

When reviews are done regularly, the employees and the management understand the business processes appropriately. The reviews also lead to employee engagement when proper communication is practiced. Evaluations improve the employee engagement because they encourage leaders to identify the needs of the followers.

In addition, employees with poor performance have the risk of being fired. This encourages employees to improve their performance and engaged in all the activities of the organization. Therefore, evaluations promote improvements in the quality and quantity of work done because employees are corrected in areas where they have weaknesses (Quality Digest 2010).

On the other hand, performance evaluation can detract employee engagement when the reviews are not done regularly. In such a case, the reviews are perceived as events rather than processes to enhance the performance of employees.

In addition, reviews detract employee engagement when they are not linked to the goals of an organization. Employees usually expect an increase in wages after the performance reviews are done, and this may detract them from achieving the goals of the organization (Quality Digest 2010).

Albrecht, S. L. (2010). Handbook of employee engagement: Perspectives, issues, research and practice . Cheltenham, Glos, UK: Edward Elgar.

Quality Digest (2010). Turn Your Performance Review System Into One That Works . Web.

Subrahmaniyam, M. M. (2009). Performance management: Measure and improve the effectiveness of your employees . New Delhi: Global India Publications.

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IvyPanda. (2023, December 25). Performance Management and Appraisal. https://ivypanda.com/essays/performance-management-and-appraisal/

"Performance Management and Appraisal." IvyPanda , 25 Dec. 2023, ivypanda.com/essays/performance-management-and-appraisal/.

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IvyPanda . 2023. "Performance Management and Appraisal." December 25, 2023. https://ivypanda.com/essays/performance-management-and-appraisal/.

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IvyPanda . "Performance Management and Appraisal." December 25, 2023. https://ivypanda.com/essays/performance-management-and-appraisal/.

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9 Performance Management Examples [+10 Brand Examples]

Table of Contents:

• Pros and cons of some performance management

9 practical examples of performance management for businesses

10 brands and their performance management strategies and examples, pros and cons of performance management.

Employee performance management is practically one of the most crucial business processes. For this reason, you need to figure out what kind of employee performance management will be the most efficient for your company. Mainly, there are two types of employee performance management: qualitative and quantitative employee performance management.

Qualitative employee performance management means that the employee should set a goal clear in his mind and have enough time (normally at least three months) to achieve it. On the other hand, quantitative employee performance management can be done by measuring work progress by measuring indicators such as elapsed time and the number of tasks completed towards an expected output or result. It's also necessary to consider weekly work hours and possible overtime when using this employee performance management example. ‍

Each company owner or manager should consider employee performance management examples depending on business objectives, industry specifics, work culture, available resources, etc. There are some pros and cons which you need to know about employee performance management before making your decision. ‍

Pros of employee performance management: ‍

• Employee engagement
• Higher employee motivation
• Enhanced ability to retain good employees 
• Improved chance of controlling costs
• Increased transparency for managers
• Quick reaction to changes in the market environment 
• More efficient planning and forecasting process when using employee performance management software 

Cons of employee performance management:  ‍

• Employee performance management can't provide 100% accurate results
• Employee performance management has a lot of limitations because employee performance and employee productivity can't be measured and monitored all the time (there can be many unexpected factors that influence employee performance)
• Employee performance management takes a lot of time and effort

Employee performance management examples can vary depending on the business industry, company size and objectives. This is why there are at least nine performance management examples that you can use for your own company: employee performance management by employee group; employee performance management by employee; employee feedback; employee recognition; goal-setting; peer review; 360-degree feedback; coaching; employee performance management software.

• Employee performance management by employee group means that managers are responsible for the employees' performance based on their groups (e.g., executive assistants, customer service representatives, customer support team etc.). ‍
• ‍ Performance management by employee suggests dividing all employees into groups according to skills needed to achieve the company's objectives. For example, employee performance management for marketing and sales department employees should be different from those in the IT sector because business objectives and work culture can be significantly different. ‍
• Employee feedback is a good employee performance management example that helps improve the existing employee performance management process: you should ask your employees what could be done better or differently to increase employee performance. ‍
• Employee recognition is an employee performance management example that focuses on rewarding good employees for their great work . It can be done in many ways: formal employee of the month awards, employee bonuses, employee gifts etc. ‍
• Goal-setting is one of the best employee performance management examples because it's closely related to both employee performance management software and employee performance management by an employee. Goal setting process can be done with the help of modern performance management software or using a manual method. ‍ ‍
• Peer review is employee recognition that shows how co-workers appreciate each other for good employee performance . It's one of the best employee performance management examples because it boosts employee motivation and increases employee engagement. ‍
• 360-degree feedback is an employee performance management example that includes evaluating employee performance with the help of several managers (manager, subordinates, co-workers etc.). 360-degree feedback helps evaluate each employee more accurately since there are several opinions about employee performance. ‍
• Coaching is an employee performance management example that can be done with the help of employee performance management software (there is employee performance management software like BetterManager available) or without it (especially in small businesses). Coaching includes providing employees with advice and recommendations on how they can achieve better employee performance.  ‍
• Employee performance management software is a great employee performance management example that can help managers to manage employee performance and develop their leadership skills. Employee performance management software consists of employee feedback, employee recognition, goal-setting and employee coaching applications.

Top brands all around the world use employee performance management examples like employee feedback, employee recognition and goal-setting to develop their business strategies. Here are some employee performance management examples that top brands around the world use:

• Video games industry: Top brands in this industry create employee performance management examples by focusing on employee appreciation and setting employee goals. For example, Valve Corporation is a well-known software company that released an employee performance management tool called “Kudos” that lets employees recognize each other. Besides employee performance management examples like goal setting and employee recognition, Valve Corporation uses employee feedback such as employee performance management. A typical example is that employees can leave notes on a software project if they have a new idea about it, which the team lead may consider when he makes a new update project plan. ‍
• Airbnb employee performance management software (which can be found on BetterManager) is employee feedback/review that has employee performance management by employee feature. ‍
• LinkedIn performance management metrics include employee goal setting, where employees set their long and short-term targets. They are further evaluated on how successful they were in meeting those targets. Also, this employee performance management example includes 360-degree feedback as well as employee recognition. ‍
• Facebook employee performance management software helps managers to provide employee feedback/review and employee goal setting; employee performance management example also includes employee coaching. ‍
• Microsoft’s employee performance management strategy is employee goal-setting, where employee's progress toward their goals is constantly monitored. This employee performance management example focuses on contributing to business growth as well as personal development of employees. ‍
• Dell provides managers with employee performance management software which includes employee feedback/review application. ‍
• Uber employee, performance management example, includes employee goal setting and employee recognition, employee performance management by peer (employees appreciate their co-workers for good work). ‍
• Twitter employee goal-setting is one of the best employee performance management examples because it's an employee goal-setting by employee feature which allows employees to set their targets and track their progress. Employee performance management example also includes employee coaching. ‍
• Disney employee goal setting an example is an employee performance management technique where employees set goals related to the company’s business metrics and employee development. Employee feedback/review application also comes with this employee performance management software. ‍
• IBM employee performance management software is an employee feedback/review application (360-degree feedback) that allows employees to provide managers with employee feedback and make necessary improvements. This employee performance management example also includes goal-setting application.

It can be difficult getting the right performance management tool for small and medium businesses. Rather than getting expensive software and educating your whole team on it, download Matter's free Slack app and start giving constructive feedback and Kudos all inside of Slack. It comes with unlimited seats and feedback and is perfect for any team size.

Start Employee Recognition, Rewards, & Surveys

Recognition, Rewards & Surveys all in Slack or Teams

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Performance Management in Healthcare

Performance management components and purpose (ac 4.1), factors to be considered in performance management (ac 4.2), performance review methods (ac 4.3), financial and non-financial in reward system (ac 5.1), reward, performance, and motivation relationship, treating employees fairly (ac 5.3).

A performance management system in healthcare should include the following key components: objectives and measures, organizational strategy, and performance management processes. The organization’s strategy should be clear and aligned with the business’s overall goals (Brown et al., 2019). It should also be communicated to all employees to understand how their duties contribute to the organization’s success. Regarding objectives and measures, goals should be specific, measurable, attainable, relevant, and time-bound.

Furthermore, these objectives should likewise be linked to the strategic goals of the organization. Measures can be quantitative or qualitative and should accurately track progress towards objectives (Brown et al., 2019). Conversely, the purpose of performance management in healthcare is to ensure that all healthcare workers meet the standards and provide quality care to patients. Through performance management, individual workers can be held accountable for their actions, and the system can be improved by identifying and addressing problems (Brown et al., 2019). Performance management in addition, assists in ensuring that healthcare workers are properly trained and have the necessary skills to do their jobs. It can provide feedback on job performance, identify areas in which employees need improvement, and help to create a culture of accountability within the workplace.

The main factors that need to be considered when managing performance are goal setting, task analysis, performance appraisal, training and development, and reward systems. Goal setting specifies desired outcomes that an organization wishes to achieve. It involves the identification of specific goals, developing action plans to achieve them, and allocating necessary resources (Madanat & Khasawneh, 2018). Task analysis is breaking down a task into individual steps to better understand and perform it. This involves identifying all the tasks required to complete a goal and determining which tasks are most important and how much time should be allocated.

Performance appraisal is a process by which individual performance is assessed and measured. This information is then used to identify areas in which an individual needs to improve their current level of performance. The appraisal may likewise be used as the basis for salary increases, bonuses, and other forms of compensation (Madanat & Khasawneh, 2018). Training and development usually refer to the ongoing process of providing employees with the necessary skills and knowledge to do their jobs, such as through on-the-job training. The development includes giving employees opportunities to grow and advance within the organization. It is vital to ensure that performance appraisal and training and development are considered when managing employee performance in a healthcare setting (Madanat & Khasawneh, 2018). Lastly, when designing and managing a healthcare system, it is essential to consider the role of reward systems in motivating behavior.

Performance reviews are a key part of any workplace, and healthcare is no exception. There are a number of different methods that can be used to conduct performance reviews in the healthcare setting. One common method is checklists, which are used to evaluate everything from patient care to communication within the team (Brown et al., 2019). They provide a simple, standardized way to assess performance and ensure that best practices are being followed. Another method is using goal-setting tools such as scorecards or Balanced Scorecards. These tools help track progress towards specific goals and objectives and can be used to identify areas of improvement. Finally, many organizations also use 360-degree feedback reviews to improve their operations from the received reports. 360-degree feedback reviews are a performance review methodology where employees receive feedback from their superiors, colleagues, and direct reports (Brown et al., 2019). This review is often applied in the healthcare setting, where employees can provide input on their peers’ work performance. This review is beneficial because it allows for a more holistic view of an employee’s strengths and weaknesses.

There are many key components that are required to achieve an effective total reward system in a healthcare setting. The most important financial components are base pay, incentives, and bonuses (Madanat & Khasawneh, 2018). Base pay establishes a floor that employees feel they must reach, while incentives and bonuses provide an opportunity to earn more if they exceed expectations. However, non-financial components such as benefits, job security, and work/life balance are also critical to attracting and retaining talented employees. A healthy work/life balance allows employees to have time for their personal lives outside of work, while job security provides a sense of security that they will be able to keep their job. Moreover, a strong total reward system should include all of these elements to attract and retain the best talent in the healthcare industry. It is crucial to tailor the rewards to the individual employees’ needs and desires, as each employee is unique (Madanat & Khasawneh, 2018). By creating a customized total reward system, employers can ensure that they offer their employees the right financial and non-financial incentives.

The relationship between reward and performance is a two-way street. Employees who feel they are being recognized and rewarded for their hard work tend to be more motivated and perform better than those who do not feel appreciated. However, at the same time, good performance by employees should also result in some form of reward, whether it is a bonus, a raise, or public recognition (Nabi et al., 2017). The links between motivation and performance among healthcare employees are particularly important because of the critical role that healthcare professionals play in ensuring the well-being of patients. It is essential that hospitals and other healthcare organizations find ways to motivate their employees so that they can provide quality care for patients.

One way to achieve this is by offering employees financial rewards for good performance. Base pay rewards can motivate healthcare employees to perform better in the short term. However, incentives and bonuses are often more effective in motivating employees to achieve long-term goals. Incentives are typically linked to specific outcomes or behaviors, while bonuses are based on overall performance or a single exceptional achievement (Nabi et al., 2017). Both types of rewards can be effective in motivating employees, but they should be tailored to the individual to be most effective.

On the other hand, Non-financial rewards can motivate healthcare employees to perform better in several ways. First, they can provide a sense of satisfaction and pride in the work that is being done. This type of intrinsic motivation can lead employees to take greater ownership of their work and put more effort into doing their jobs well (Nabi et al., 2017). Second, non-financial rewards can help to create a positive work environment where employees feel appreciated and supported, thus leading to employees working cooperatively and feeling more motivated to do their best work. Finally, non-financial rewards can be an effective way to recognize individual achievement and boost morale.

There are a few reasons why treating employees fairly concerning pay is important. First, fair pay is essential for maintaining a healthy workforce. Additionally, research has shown that a fair wage contributes to lower absenteeism and turnover rates and can even lead to increased profits (Nabi et al., 2017). Second, fair payment is right because people deserve to be compensated equitably for their work. Better payment will also help the healthcare institution attract and maintain the top talents, thus making more profit due to an increased and returning client base. Finally, treating employees fairly in terms of pay is a good business practice that should be embraced by any institution aiming at achieving its goals. When paid fairly, employees are more likely to be loyal and productive team members, thus serving the patients passionately.

In conclusion, performance management is essential to organizational success or growth. It ensures that employees meet goals and objectives and helps identify areas where they may need additional training or support. Conversely, goal setting, training and development, reward systems, task analysis, and performance appraisal are important factors to consider when managing performance in a healthcare setup. Additionally, non-financial rewards are essential for employee motivation because they help employees feel like their work is valuable and that they are contributing to something meaningful. In addition, financial rewards make employees believe they are fairly compensated for their work, thus effectively providing the best healthcare services to the patients.

Brown, T. C., O’Kane, P., Mazumdar, B., & McCracken, M. (2019). Performance management: A scoping review of the literature and an agenda for future research. Human Resource Development Review , 18 (1), 47-82.

Madanat, H. G., & Khasawneh, A. S. (2018). Level of effectiveness of human resource management practices and its impact on employees’ satisfaction in the banking sector of Jordan. Journal of Organizational Culture, Communications and Conflict , 22 (1), 1-19. Web.

Nabi, M. N., Ahmed, A. A. T., & Rahman, M. S. (2017). The empirical study on human resource management practices with special reference to job satisfaction and employee turnover at Investment Corporation of Bangladesh. Human Resource Management Research , 7 (1), 54-64.