What do you understand by the concept Performance Management System? Explain how performance management helps develop better management systems for effective and efficient functioning of an organization. Discuss your answer with suitable organizational examples, explain briefly the situation and the organization, you are referring to.
Performance Management System as a communications system designed to help employees succeed. It is directed by managers and supervisors but requires active participation by employees. The Performance Management System ensures that employees:
• are aware of their principal job functions,
• understand the level of performance expected,
• receive timely feedback about their performance,
• have opportunities for education, training and development, and
• receive performance ratings and rewards in a fair and consistent manner.
Performance appraisal information is one consideration in making other personnel decisions such as promotions, performance-based disciplinary actions, and salary increases. Proposed personnel actions must be consistent with overall evaluations. Although there is a relationship between performance appraisals and determining employee eligibility for performance-based salary increases and bonuses, the System's primary focus is on managing employee performance towards the successful achievement of expectations set forth in the employee's work plan.
The Performance Management System applies to all permanent SPA employees who are regularly scheduled to work 20 hours or more each work week.
North Carolina Rating Scale
Performance functions, expectations, and appraisals are guided by the five-point North Carolina Rating Scale:
OUTSTANDING PERFORMANCE (O)
Performance is far above the defined job expectations. The employee consistently does outstanding work, regularly going far beyond what is expected of employees in this job. Performance that exceeds expectations is due to the effort and skills of the employee. Any performance not consistently exceeding expectations is minor or due to events not under the control of the employee.
VERY GOOD PERFORMANCE (VG)
Performance meets the defined job expectations and in many instances, exceeds job expectations. The employee generally is doing a very good job. Performance that exceeds expectations is due to the effort and skills of the employee.
GOOD PERFORMANCE (G)
Performance meets the defined job expectations. The employee generally performs according to the expectations doing a good job. The employee is doing the job at the level expected for employees in this position. The good performance is due to the employee's own effort and skills.
BELOW GOOD PERFORMANCE (BG)
Performance may meet some of the job expectations but does not fully meet the remainder. The employee generally is doing the job at a minimal level, and improvement is needed to fully meet the expectations. Performance is less than a good job. Lapses in performance are due to the employee's lack of effort or skills
UNSATISFACTORY PERFORMANCE (U)
Performance generally fails to meet the defined expectations or requires frequent, close supervision and/or the redoing of work. The employee is not doing the job at the level expected for employees in this position. Unsuccessful job performance is due to the employee's own lack of effort or skills.