Define The Three Broad Purposes Of Performance Management

Define The Three Broad Purposes For Performance Management And Provid

Define the three broad purposes for performance management, and provide an example of a situation that relates to each purpose. Your response should be at least 75 words in length. You are required to use at least your textbook as source material for your response. All sources used, including the textbook, must be referenced; paraphrased and quoted material must have accompanying citations. No wiki, disctionary.com or uncited information.

Paper For Above instruction

Performance management serves three primary purposes within organizations: administrative, developmental, and strategic. According to Armstrong and Taylor (2014), these purposes guide how organizations evaluate and improve employee performance to fulfill organizational objectives effectively.

The administrative purpose of performance management focuses on administrative decisions such as compensation, promotions, and disciplinary actions. For example, a company conducts annual performance appraisals to determine salary increases based on employee performance ratings. This process aids in making equitable decisions related to pay raises and promotions, ensuring fairness and clarity in employee evaluations.

The developmental purpose emphasizes improving employee skills and capabilities. An instance of this is providing constructive feedback and coaching to employees to enhance their job performance. For example, a manager might identify weaknesses in a team member’s communication skills during review sessions and arrange targeted training to address those gaps. This approach promotes continuous personal growth and aligns employee development with organizational goals.

The strategic purpose involves aligning individual performance with the long-term objectives of the organization. For example, during a strategic planning session, performance metrics are set to support broader goals like increasing market share. An employee’s performance goals might be tied to specific targets like customer satisfaction ratings or sales figures, ensuring their responsibilities contribute directly to the organization’s strategic vision.

Overall, these three purposes—administrative, developmental, and strategic—interconnect to foster a comprehensive approach to managing employee performance. By integrating these goals, organizations can motivate employees, enhance their skills, and ensure alignment with organizational objectives, thereby sustaining competitiveness and growth (Sweeger & McClelland, 2010).

References

Armstrong, M., & Taylor, S. (2014). Armstrong's Handbook of Performance Management: An Evidence-Based Guide to Delivering High Performance. Kogan Page.

Sweeney, P., & McClelland, C. (2010). Strategic Performance Management. Routledge.