Summary

Performance management is the key for a company management growth, and

productivity. An effective performance management process offers companies a full

competitive advantage, and the CEO and other senior executives need to clearly support it.
This support ensures that the process is consistently used across the company, appraisals
are completed on time, and giving and receiving ongoing performance feedback is
recognized as an accepted part of the company’s culture. To meet these objectives,
companies must think of effective performance management as a process, not an event.

Organizations establish performance management system to meet three broad

process such as strategic, administrative, and developmental.

 The strategic purpose is helps the organization achieve its business objectives. The
system does this by helping employees to behave in accordance with the objectives of
the organization.

 The administrative purpose of performance management is to provide information for

day-to-day decision about salary, benefits recognition, and retention or termination.

 The developmental purpose of performance management is used as a basis for the

development of employees and talent.

Performance information may come from an employee’s self-appraisal and from

appraisals by the employee’s supervisor, employees, peers, and customers. Using only one
source makes the appraisal more subjective. Organizations can combine many 360-degree
rating sources. Instead of concentrating on the best of the worst case scenario,
measurements can be seen in the work of each employee with the same standards.The
measurement may evaluate employees in terms of attributes (characteristics or traits)
believed desirable and behaviors measurements that identify whether the employee
behaved in desirable ways.

Based on the case study, Retrofit’s Mobile the organizations can minimize appraisal
politics by establishing a fair appraisal system, involving managers and employees in
developing the system, allowing employees to challenge evaluations, communicating
expectations, and having open discussion. Performance feedback should be a regular,
scheduled management activity, so that employees can correct problems as soon as they
occur. In the feedback session, managers must solve the problems and encourage
employees to reveal their opinions and discuss the actions. Effective performance feedback
makes employees aware of their strengths and of the areas in which they can improve.
Discussing areas in which employees fall short can help the employees and their manager
uncover the source of problems and identify steps for improvement. Although discussing
weaknesses may feel uncomfortable, it is necessary when performance management has a
developmental purpose.

Action points discussion should focus on behavior and outcomes as individuals. The
system can be legally protected when it is based on behavior and results, as well as
features, as well as many transmitters, such as representing everyone. The system should
include a mentoring or staff training process that will help them improve rather than
download performance. The employees are more likely to accept it if the organization
explains its purpose, links it to help in improving performance, and keeps the performance
data private.