When considering performance management, much of the discussion centers on the elements of a performance plan such as the work plan or the performance appraisal. Important as these and the other elements of measuring performance are, they do not speak to the development of the Performance Management System (PMS). This paper will address the multiple factors that come together to create the PMS. Special attention will be given to the means by which an organization communicates its strategy and combines it with performance management and development as a means of establishing an innovative workforce and brand based on sound, ethical practices.
In most cases, the PMS will address three standard phases where HRM set the basic expectations for employee performance; express these expectations through performance reviews maintaining a dialogue between supervisor and employee to keep performance on track, and the actual measurement component that ties performance to contribution and compensation (Maley, 2011)
Though the basic functions of performance management can provide the foundation for about any PMS within most fields, the description thus far does not address the underlying rudiments of the bigger strategy; the strategy behind the strategy so to speak. Breaugh (2011) clearly demonstrates with his research that in order to implement a sound performance management system Human Resource managers’ must have a process in place to identify and promote exceptional talent. Understanding of the process segments and the science behind them will provide HR managers with the tools to make accurate promotion decisions (p. 275). Additional research supports Breaughs’ (2011) model. Stahl et al. (2012) provides a very comprehensive study of talent management that addresses the deeper strategic elements of performance management. Six principles of talent management are addressed in order to provide a template HRM’s to follow in the development of PMS’s. Of the six principles a select few specifically address the innate origins in the strategic development of performance management. The alignment of talent strategy with business strategy; global talent management systems and practices in the system that support each other; performance management as a critical part of organizational culture; involve and encourage senior leaders and managers at all levels to participate in the talent management process (Stahl et al., 2012).
As this paper moves forward an evaluation of practices related to human resource development theory and performance will be expounded upon in such a manner that the whole of HR theory will be considered in the development of performance management. This will further address the practices engaged to cultivate an organizational climate based on honest brokerage of talent development and adherence to a culture of innovation.
A fully realized PMS is a holistic process bringing together many of the elements that make up a successful talent management system which incorporates, in particular, individual and organizational learning and development. It is this very reason that performance management systems are complex and often misinterpreted (Rousseau and Barends, 2011). Because learning styles and aptitudes differ, HRM has to ensure that every participant is certain of the meaning and direction of strategy. In her study on strategy and performance, Maley (2011) defines performance management as a process which contributes to the effective management of individuals and teams in order to achieve high levels of organizational performance. As such, it...