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Issues and Risks of the Performance a Management System in the Merged Organization - Coursework Example

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Business Table of Contents Issues and risks that might arise in the performance management system 3 Mitigating risks of the performance management system in the merged organization 4 Reference 6 Issues and risks that might arise in the performance management system Since, the organization is formed due to merging of two different organizations; the newly formed performance management system is likely to generate various risks or issues…
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Issues and Risks of the Performance a Management System in the Merged Organization
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Download file to see previous pages Implementing a single performance management system would not be appropriate to measure the performance of all employees due to the differences in their competencies and skills. Since the performance management system would have its own rating parameters, there are chances that it could be fair for some individuals and unfair with some. This is because staffs perceive fairness with regards to comparisons. Employees compare inputs with one another, such as their efforts and expertise, their job performances and compensations with other employees. Due to the disparity in skill levels and the varying levels of inputs, efforts or expertise among employees, the performance evaluating parameters would be improper indicators of actual performance levels and productivity. Some employees are likely to get overrated while some of them would remain underrated. This would appear to be unfair for staffs which would eventually render the system ineffective. It is important that the performance management system measures the different activities accurately. If they do not, then the system results would differ from the actual results which would give its managers an inaccurate picture of the conditions of the firm and results of their decisions. All members from the two organizations might not be equally educated and updated about the use of the system. All managers might not be adept in a single technology which can cause differences in the ways they use or operate the system. This could also arouse differences they interpret results or outcomes of measurements. Improper and inaccurate ratings can generate out of difference in assessments methods and techniques which can yield inaccurate results in the system (Markus, 2004, p.6-10). Mitigating risks of the performance management system in the merged organization Firstly, it must be ensured that parameters for measuring performance must be based on fairness and equality. The different skills, expertise and competencies of staffs must be measured through different parameters in order to yield unbiased and accurate results. Aspects like extent of criticality of tasks, difficulty of work activities, time taken for performing a particular work activity must be considered while measuring task performances. It is essential to train staffs and employees on the new system of performance management. The first step must be to educate staffs with regards to the importance of the system and make them understand the key concepts, terminology and best practices. It is crucial to clearly set out environmental and personal factors required for delivering top performance and the importance of supervisors to facilitate a high performing work environment in the organization. One method to eliminate discrepancies in use of parameters is to include a structured and quantitative approach. This is particularly effective in cases where the performance management is likely to be used as an input to a pay for performance scheme. Ideally, it is crucial to associate a certain weight to the job accountability and accountability in proportion to its importance and also each relevant competencies and skills if the organization wishes to reward certain behaviors. It is important to align the system with the organizational objectives and goals. Skills which are critical for the attainment of those ...Download file to see next pagesRead More
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