The performance management system of Colbran Medical Institute Essay

The performance management system of Colbran Medical Institute - Essay Example They tend to contribute towards their organization staunchly and scrupulously only when they are motivated, and their contributions are valued and appreciated by their organization. Valuing ones contribution and supporting their initiatives is possible only when an organization realizes its employees’ contribution in a way it should be realized. This is possible with proper implementation of an objective performance management system. Using objective measures of performance evaluation makes employees clear that organization follows procedural justice and rewards them according to their contribution. The end result of objective performance evaluation is motivation, commitment, encouragement, job satisfaction, and greater employee retention that contribute towards organization’s profitability in the long run. Moreover, with objective performance appraisal followed by good reward administration makes employees loyal and more committed towards their respective organizations . Thus, we can say that objective performance evaluation followed by performance appraisal accompanied with proper reward administration makes employees motivated and committed towards the organization. ... When organizations communicate their employees the performance standards and key performance indicators clearly, that helps businesses in achieving competitive advantage because employees with a clear goal of what is expected of them, in terms of their performance, become more devoted and committed towards the organization. They tend to direct their behaviors in a direction that lead towards successful completion of their tasks. In addition to this, with management by objectives (MBO) and clear performance standards, employees get a clear track and set their individual goals in chase of achieving organizational objectives. According to Armstrong (2000), performance management is a shared process between employees and managers. In huge organizations, managers set clear objectives and performance standards, and communicate them to the employees so that they can direct their behaviors towards the accomplishment of organizational goals. However, the basic purpose of performance managemen t as outlined by Armstrong (2000) is the establishment and identification of the means of getting better output or results at individual, team, and organizational level by communicating the performance standards and objectives clearly to each of the entity whose contribution towards the organization is considered as worthy and important. According to Philpott and Sheppard (1992), the fundamental goal of the implementation and establishment of performance management system is to develop an organizational culture that nurtures employees for continuous improvement of business processes and their own skills, knowledge, and abilities. Providence of a guideline and development of a working ladder is