Performance Management and Organizational Goals

It is important to understand the relationship between performance management and organizational goals. They have a strong impact on one another and they present many challenges. Together, both performance management and organizational goals are tools that if used correctly can enhance the overall performance level of the organization.

“Performance management is the systematic process by which an agency involves its employees, as individuals and members of a group, in improving effectiveness in the accomplishment of agency mission and goals” (U.S. Office of Personnel Management). Performance Management consists of activities that ensure that organizational goals are being met in an effective and efficient manner. It can focus on the performance management of the organization, department, employee or even the processes to build products or services.

“Organizational goals are the overall objectives, purpose and mission of a business that have been established by its management and communicated to its employees” (organizational goals, 2012). These goals consist of short and/or long term goals that the organization must meet to reach milestones necessary for the company to grow, expand, and function for business purposes.

Performance management is the overall management of the performance of the organization. It is measured by the goals set by the organization which should be attainable based on the needs of the organization and broken down by departments. Performance management is measured by upper management, department heads and HR management by the policies and procedures that have been created to ensure that the personnel hired by the company is performing at the level that is necessary and needed for the company to reach goals. “In developing a performance management system, it is important to ensure that it is aligned with other HR systems in the organization” (Pulakos, 2004, p. 22). This alignment ensures that personnel are performing at standard necessary...