THE IMPACT OF PERFORMANCE MANAGEMENT PROCESS ON THE ORGANIZATIONAL SUCCESS OF SMEs

Abstract

Performance management is significant for profit making and implementation of SMEs plans. Performance management approach is very important as a system for development of SMEs results, development of employee results in their work, and for aligning the management of SME and employee results. Managing performance is process for raising organizational results by improving the performance of employee and teams. It is a method of creating better performance from the enterprises, teams and employee by accepting and managing results in the frame of agreed objectives, plans, norms, required skills and competencies. The main purpose is to create a highperformance culture in which employee and teams take responsibility for the continuous increase of business processes and for employee skills and achievements within a framework implemented by effective leadership. Its key aim is to motivate employees on doing the right things by achieving clarity of purpose. The processes of managing performance consist of agreeing objectives and results improvement and individual development plans, implementing the activities needed to achieve the goals and plans, checking progress in achieving the goals and assessing progress and achievements so that action plans can be agreed and prepared. Managing performance is an important part of efficient human resource management which helps enterprises to understand the efficiency of the people who work in them. The outcome of the process of managing results is conditioned by the support and commitment of the SMEs management. Managing performance have to reward individual achievement and development. The process of managing results requires that enterprises management ensure that activities of individuals, deliverables and outcomes are aligned with the enterprises objectives and, consequentially, help the SMEs to achieve advantages that are more competitive. The improvement of results of small and medium enterprises is a crucial part of the process of managing performance. The purpose should be maximizing high performance. In this paper we elaborate the relationship between the process of managing performance and enterprises success in Macedonian SMEs. The sample consists 44 SMEs which take attention to this challenge. Dates in this research were collected with structured survey, and the outcomes were processed with analytical method - SPSS.