The Role and Issues of Performance Management in Compensation Term Paper

The Role and Issues of Performance Management in Compensation Decisions - Term Paper Example Apart from the impact that performance management can confer towards the organization, other essential issues associated with performance management will also be discussed in this paper. Effectiveness of Performance Management towards Compensating Decisions Performance management is such a phenomenon, the effective implementation of which leads towards creation of appropriate environment for strategic management in Coca-Cola on a global basis. Effectiveness of performance management assists in evaluating as to whether the performances of the employees are in accordance with the standard level set for their performance. The process of performance management duly takes into consideration the regular review of the results being achieved through performance of the employees of Coca-Cola. In the modern context, not only the results, the behaviors of the employees towards their peers and senior members are also reviewed. Moreover, the attitudes, skills, features and manners are also evalua ted through the approaches of performance management. ... Performance Management and Organizational Objectives The concept of performance management can be directly aligned with specific objectives of the organizations. The process of alignment can be effectively accomplished mainly thorough three fundamental areas within the company i.e. Coca-Cola in this case. These are the alignment among various divisions or departments within the organization, alignment among capabilities of the workforce within the organization and alignment among financial performance of the organization in various dimensions. Throughout the conduction of the process of these three essential alignment processes, the performance management aspects get associated with the specific organizational objectives. There are a number of functions that the organizations can effectively undertake after effective implementation of performance management that ultimately assists the organization in achieving its strategic goals (Schuster, 2010). The results of performance managemen t help in recruiting and appointing skilled and efficient staffs for Coca-Cola. Compensating planning can be accomplished in the most competent manner through proper evaluation of the results of performance management. The incentives for the employees are successfully calculated for the employees through performance management. Learning management can even be planned within the organization as a result of implementation of performance management. The impact of performance management upon the above mentioned list of activities, aimed at the fulfillment of organizational objectives, is actually the indication that the performance management has been effectively implemented within the selected organization (Schuster, 2010). Favorable Condition for