Performance Management Theories and Practices: Course Application Essay

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Performance Management Theories and Practices

Performance management is a continuous process by which an organization identifies, measures, and develops the performance of individuals. It aligns their performance, the resources and systems with the strategic goals of the organization. According to Leeuw and Berg (2011), companies that apply performance management practices generally perform better than those that do not.

The course has covered important performance management theories and practices. One key lesson learnt, for instance, is that for performance management practices to be effective, there must be constant communication between the management team and the employees; and it is imperative for the goals of the individual to be aligned with those of the organization (Pulakos, 2009). The performance management cycle also provided insight on how performance management systems should be implemented in the organization. The elements of this cycle include: setting the objectives; measuring the performance of individuals; providing feedback on the performance; rewarding individual based on the learning outcomes; and monitoring changes to objectives and activities.

The theories that were most applicable were the goal setting theory proposed by Edwin Locke and the Expectancy theory proposed by Victor Vroom. The goal setting theory states that individual goals that are established by an employee are what motivate them for superior performance.

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If they achieve their personal goals, they will experience a sense of achievement that will motivate them to achieve the goals of the organization. On the other hand, the expectancy theory states that individuals tend to adjust their behavior based on the anticipated satisfaction of the goals they set. More specifically, the performance of individuals is influenced by expectations of future events. Thus, performance management practices have to reward employees who improve their performance accordingly. Elaine Pulakos' book 'Performance Management: A New Approach for Driving Business Results' provided valuable insight on the performance management process, and how it should be effectively applied to improve organizational performance. Leeuw and Berg's article 'Improving Operational Performance by Influencing Shopfloor Behavior via Performance Management Practices' was also helpful as it clearly demonstrates how performance management practices lead to better performance by influencing behavior.

As an entrepreneur, I will have to employ individuals that will help me in running my business and achieving my dream. Therefore, one key point I will apply to the work environment is the effective use of performance appraisal in performance management to align the individual goals of those I will….....

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