Performance management systems (PMSs) have become important tool in the determining productivity as well as identifying gaps in employee performance. Potentially, PMSs can contribute to increase employee involvement and participation (EIP), variables that underpin high performance in organizations as is the case for Delta Airlines (Kaufman, 2017).
Regular feedback on performance influences the employees’ expectations on how they approach their work, with the feedback loop involving both the reviewers that represent the employer and the employees under review (Kaufman, 2017; NGA HR, 2018). By having definitive benchmarks they can work towards achieving and the skills to achieve the same, PMS facilitate long term changes in organization culture.
Good PMSs motivates employees to improve the quality of their output overtime, particularly if the systems in place promote employee engagement (Cappelli & Travis, 2016). PMSs provide feedback on employee performance and as a consequence, augment organizational strategy because they enable managers identify and address gaps in productivity.
Some primary drawbacks of PMS is the tendency to focus on weaknesses and the large amounts of HR data that employers to process and act on to enhance productivity (Cappelli & Travis, 2016). The use of e-HRM can enhance the processing of the additional data that PMSs generate because e-HRM enables the identification of specific aspects that HR managers need to address, making the data comprehensible and actionable (Marler & Parry, 2016).
Bruce E. Kaufman, B. E. (2017) Great in Theory but Tough in Practice: Insights on Sustaining Advanced Employee Involvement at Delta Air Lines. In Lewin, D. and Gollan, P. J.
Cappelli, P., & Tavis, A. (2016). The performance management revolution. Harvard Business Review, 94(10), 58-67.
Marler, J. H., & Parry, E. (2016).
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