Implementation of Performance Management System in an organization Essay

Implementation of Performance Management System in an organization - Essay Example To achieve competitiveness, two things are very important i.e. managing the efficiency plus building employees skills, abilities, capabilities and behavior. To improve performance at the organizational level it is essential to create a culture and situation of continuous learning of employees and of the organization (van der Sluis, 2007). The Human Resource Development (HRD) is an evolving concept and it addresses the challenge of managing performance of employees for the organizations. HRD is an important developmental program to ensure that the organization has an institutionalized way of developing, utilizing and committing human resources in order to meet current and future organizational challenges (van der Sluis, 2007). ... Since the work requirements are changing, the traditional methods of training are inadequate to deal with the rapid change and increased complexity of work (Casey, 2005) thus, placing demands on organizations to facilitate new approaches to training (Garavan et al., 2002). Human resources are currently the foremost source of competitive advantage because all other potential competitive advantages (e.g. technology, capital, and products) can be either bought or copied (Burke and Cooper, 2008 and Pineda, 2010). At present, organizations are facing shortage of talented and adequately equipped employees with required skills and capabilities in order to reach at the eminent level of performance (Burke and Cooper, 2008). Rao (2002) for example is in favor of an â€Å"OCTAPACE† culture (openness, collaboration, trust and trustworthiness, authenticity, pro-action, autonomy, confrontation and experimentation) to create a HRD climate in the organization for improved performance. Organiz ations with better learning, training and development systems, reward and recognition, and information systems and quality orientation in terms of career planning, performance guidance and development, role efficacy, and reward and recognition systems promoted HRD climate (Hassan et al., 2006). From the figure, it can be said that Human Resource Development encompasses two key ingredients i.e. Training and Development (T&D) and Organization Development (OD). Training and Development focuses on individuals and then links with the organization whereas Organization Development basically focuses at the organization level first and then links with individuals. Additionally, there are