A 2,500 3,000 word individual report Essay Example | Topics and Well Written Essays - 1750 words

A 2,500 3,000 word individual report - Essay Example Finally, we look into how we can implement Performance Management to improve the company to better achieving its long term goals. The purpose of this section is to define Performance Appraisal and Performance Management, as well as to distinguish between the two. Both Performance Appraisal and Performance Management lead to increase in organisational productivity (Thomson 2003). Performance Appraisal is one of the tools used for implementing Performance Management. Performance Appraisal is the process of setting job standards, measuring and evaluating employee performance, and giving relevant feedback to the employees (Thomson 2003). Performance appraisals are an important part of performance management, particularly in the Feedback Stage of Performance Management (Farrington 2007). Currently, our company is relying on Performance Appraisal in order to improve employee performance. However, Performance Appraisal is not enough to maximize and maintain good employee performance for the following reasons. Performance Appraisal, when used alone, is demotivating, it takes a lot of time to implement and get results back, it creates a legal liability, and it flies in the face of team rewards and accountability (Brull 1997). Furthermore, Cook discusses that the focus of Performance Appraisal is too much on the individual, instead of developing the employee. Appraisal is inconsistent and only useful in the extremes of performance (1993). In itself, it is therefore not enough to maximize organisational productivity. This section defines Performance Management, its two foci which are development and reward driven, and details the process of performance management. This section then explains how and why Performance Management improves organisational productivity. Performance Management is the process used by managers to enable the employees to perform effectively and efficiently