Performance Management System Essay

371) To have a competitive advantage through employees over other companies, a business must have the ability to manage the results and behavior of all its employees (Noe et al. , 2017, p. Performance management therefore focuses on managing individual employee’s attributes such as skills, abilities and other factors which make up employee behavior and results which are then aligned with the company’s strategy. All this is carried out in order for performance management system to fulfill its strategic, administrative, and developmental purposes. Strategic purpose of a performance management is linking employee activities with organization’s goals and then communicating these company objectives. They provides tuition reimbursement to their employees to pursue formal education, rapid-progression programs for employees hired into first-level positions, and also provide employee training on hard skills and soft skills.

The above mentioned steps are important in dealing with employee skill deficiency and in the long run produce more skillful employees (Price, 2018). The company also is observed to use Stock option and bonus plans for employees as a motivational technique. In order to add value to the employees, they are assigned quarterly objectives helps build employee engagement while positively influencing profitability (Noe et al. Methods for Measuring. The weakness of this approach is simple as it requires occasional checks if the behavior are tied to the company strategy (Noe et al. Core Values. Core values of a company indicate what a company believes and stands for. It is the culture of the company. In order to emphasize its core values on the performance management system, Xactly management or HR should have a clear communication of the company mission, vision and core values to employees, ask feedback from employees on the mission, vision and core values as the HR were doing, put core values into behaviors, ensure employees understand the core values and the behaviors presenting them, make the core values part of everyday life, and maintain a continuous feedback to the employees on measures based on alignment of core values (Kamara, 2011).