Performance Management System - Research Paper Example

Practical and Written Assessment Practical and Written Assessment Introduction Performance Management System canbe described as all those activities implemented by an organization to ensure that their goals are achieved (O’Callaghan, 2004, p. 12). It focuses on the performance of an organization with the aim of achieving their intended outcome within a given period of time (Marr, 2012, p. 78). This system is the process by which an organization supports their sources, systems, and workers to tactical goals and significances. It is specifically, data oriented management system that consists of three major components, quantity, reaction, and positive support (Bernthal, Rogers & Smith, 2003, p. 66). This paper looks at performance management system in the Fasset sector. Performance management process in this organization is a major process in any organization because it assists the management and their staff to sustain the organization when implementing their business strategies (Marr, 2012, p. 79). It is; thus, an essential section of an organization joining the managers and their staff. The system is planned to support communication and criticism between administration and staff. It creates prospects for distinctive work implementation, and work as a basis for compensating top workers. Armstrong and Baron (2003, p. 67) noted that organizations need a controlled technique of interaction between different ranks of the association. Businesses that need and encourage this reaction circle can gather information on performance and develop from the facts obtained. The entire process involves employees and their supervisors, observation procedures and individual testing techniques (Bernthal, Rogers & Smith, 2003, p. 68). It usually involves frequent interactions between the management and workers concerning the organization. These compulsory communications ensure workers have an opportunity to interact and share ideas (Boland and Fowler, 2000, p. 417). 1.1 The internal and external environment of the organization Business interior environment comprises of the components within the corporation, including present workers, administration, and particularly business background, which describes staff member’s behaviour (Bernthal et al. 2001, p. 17). Some of these factors affect the organization as a whole while others only affects the managers. Leadership styles used by managers can affect the entire organization. An organizational statement describes what the association represents and reasons why the organization exists (Brigall and Modell, 2000, p. 281). The statement explains the general purpose of the association and comprises of the qualities that differentiate it from other associations or businesses similar to them (Marr, 2012, p. 79). This mission statement in any organization should be more that words written on paper they should represent the business values, as well as its intention (Brown, 2004, p. 17). This statement should be an existing, conscious article that offers communication and insight for the associates of the association. An effective statement contributes to the efforts of the organization, and it should always be based on the needs of the customers (Kennerley and Neely, 2001, p. 55). Therefore, a good statement provides information on the clients’ needs, their services, and products. Finally, it includes the organizational ideologies and philosophies. Marr, Gray and Neely (2003, p. 441), states that an organization’s policy is another major internal environment organization. The policies are used to specify the direction to administrators who should make choices about situations that happen recurrently in their company. In most cases, policies are a clue of an associations character and must correspond with the company’s statement. The company’s culture is a company’s character (Kennerley and Neely, 2002, p. 77). The company’s culture differentiates it from other organizations and influences the activities of its supporters. Culture consists of values, which are the organizational beliefs. Heroes include the true images of the organization and represent the organization, Rites and rituals as well as the social network, which is the officially prescribed method of communication within the business system (Kennerley and Neely, 2002, p. 77). Therefore, resources are individuals, machines, facilities, finances and equipment’s at the organizational disposal. Machinery, financial resources, influences human resources that in turn influence the business environment. External factors that affect the organization are those factors beyond the control of an organization like government policies, competition from other organizations that affect the organization (Bernthal, Rogers & Smith, 2003, p. 68). Performance indicator is and a measurement analysis procedure used the effectiveness of an organization (Marr, 2012, p. 14). These indicators are used within an organization to evaluate their success. Every section within an organization has its own key performance indicator that fits their responsibilities. Kennerley and Neely (2002, p. 77) identified the main performance indicators categorized into the following categories; Quantitative indicators, Qualitative indicators, leading indicators, and Contribution indicators that assess the quantity of resources used during the production of the product. Other indicators are process indicators, which assess the process of production and product indicators that assess the already produced products. 1.2 Key areas for improvement within the PMS The PMS system is the main component in Human Resource managements of any organization (Aguinis, 2013, p. 66). Effective management system should aim at improving the organizational performance because effective use of performance appraisal leads to effective organization (O’Callaghan, 2004, p. 12). The main key areas within an organization that require improvement include planning an organizational performance, which includes stating organizational objectives; it also involves planning personal development within an organization. Maintaining the organization’s performance is another major area that requires improvement. The process involves inspection on development made beside the purposes, and maybe new requirements could incorporate group meetings, client feedback, and colleagues review among others (O’Callaghan, 2004, p. 13). The process entails collecting information, handling the management process as a continuous procedure and conducting frequent reviews. The process also entails reviewing of staff performance, which involves monitoring, response, training, mentoring, and methodical interactions concerning achievement of goals (O’Callaghan, 2004, p. 14). The main critical area that requires improvement within an organizational performance management system includes planning and monitoring of all organizational activities (Marr, 2012, p. 15). Managers should plan their performance by stating clear objectives to channel organizational efforts towards attaining their stated objectives. By planning, they will understand the stated goals and objectives in the organization (Marr, 2012, p. 16). The process of planning involves includes establishing the basics and values of their implementation of appraisal strategies. These strategies should be quantifiable, comprehensible, verifiable, justifiable, and attainable (Aguinis, 2013, p. 67). Using significant elements, the staff are held responsible as individuals for job tasks or accountabilities. Staff performance strategies should be accommodating to be corrected for dynamic objectives and job requirements (Marr, 2012, p. 17). Monitoring of organizational activities should be conducted on a continuous process to ensure that area that requires improvement are identified and corrected (Bernthal, Rogers & Smith, 2003, p. 69). Effective monitoring is the constant assessment of performance and giving current feedback to staff members and work companies on their growth toward attainment of their objectives (Kennerley and Neely, 2002, p. 78). Frequent monitoring involves conducted progress evaluations with workers where their implementation is evaluated against their fundamentals and values. By conducting frequent monitoring the manager gets a chance to examine how the staff is obtaining the predetermined criterions and to change the entire production process (Aguinis, 2013, p. 79). Therefore, it is through frequent monitoring that the managers can identify an undesirable implementation during the evaluation period and offer support to tackle such implementation instead of waiting for the entire process to end. 1.3 Interventions or things you could do to improve the problems Managers need to prepare a performance evaluation document and make it available quarterly in a year to assess the employees within an organization (Bernthal, Rogers & Smith, 2003, p. 69). The performance evaluation manuscript is a beneficial symposium starter. The document unites employee execution evidence in one setting (Alcock, 2004, p. 101). The execution assessment document specifies a management record of members of staff execution conferences all through the year. The document provides a representation of the workers achievements and development all through the year (Alcock, 2004, p. 102). After conducting an evaluation, the managers should always provide feedback to their workers frequently. Members of staff appreciate frequent feedback and the manager has to ensure that this feedback is given immediately (Kennerley and Neely, 2002, P. 79). Provisions of feedback enable the workers identify area that requires improvement making the organization work effectively (Bernthal, Rogers & Smith, 2003, p. 69). During discussion concerning organization performance, it is important to engage the workers in open discussion where people can share ideas. Apart from this, the organization managers should have clear organization objectives to achieve by all members of staff (Kennerley and Neely, 2002, p. 80). Managers should give the employees an opening to evaluate themselves. Similarly, the managers should fill an implementation evaluation, provide the member of staff an assessment form, and make them answer or give their response (Bernthal, Rogers & Smith, 2003, p. 69). This will make all members within an organization to identify and discuss their weaknesses. By doing this, one would be in a position to make workers conduct their own evaluations and give feedbacks (Kennerley and Neely, 2002, p. 81). Using different sources, the manager can obtain different information concerning employee performance instead of just supervising them as they work (Bernthal, Rogers & Smith, 2003, p. 70). Therefore, it is important to ask those who interact with them to obtain more information concerning their performance. This may include clients or customers, colleagues, heads of department and management level administrators, group members, or anybody who frequently interacts or cooperates with the member of staff and can offer information about the employee being evaluated (Andersen 2002, p. 109). The management should support the staff to appreciate their work in connection to the purposes of their organization as stated in the mission statement (Bernthal, Rogers & Smith, 2003, p. 71). This is usually achieved by making the employee picture the mission statement and states how they can achieve the objectives stated in the statement (Andersen 2002, p. 112). By picturing this statement, the employee will get motivated to work towards attaining the stated objectives. Apart from this, the managers should provide avenues for employee development through training programs where they can share ideas concerning their experiences. The staff members can be offered online training which specially address the established faults can the member improve their skills and knowledge thus improve their effectiveness (Alcock, 2004, p. 111). Staff assessments offer a planned way of rewarding staff performance (Aguinis, 2013, p. 68). Confirming that staff implementation assessments are associated to recompense and staff compensations offers a fair scheme for supervising pay increases and business additional benefit. Such a scheme can assist motivate staff to work well, understanding that their prospect salary hangs on the reward presented (Kennerley and Neely, 2002, p. 81). A well-developed management technique allows the organization to appreciate how its workers are functioning, and to classify those workers that contribute more, or least in the organization (Bernthal et al. 2003, p. 73). The system allows associations to carry out a thorough evaluation of professional development of its workers, set expansion plans and provides them the choice of exhausting the consequences of the system process to affect an individual’s compensation (Kennerley and Neely, 2002, p. 82). Therefore, the system provides clarity over implementation in the organization, provides an outline for the management to promote organizational development through training usually use-recording issues concerning job implementation. Conclusion Effective management is important within an organization. This management requires using performance management system to assess the organization and identify areas that require improvement. An effective management system becomes the centre of an organization development. It is through performance management that the organization can plan for career development, rewards, decision making concerning discipline cases, issues of promotion among others. However, several organizations still find it difficult to implement performance management system effectively. Therefore, it is significant to ensure that there is satisfactory planning, assessment and professional development is conducted that will assist a sustainable implementation within an organization. This can also explain why the system has evolved and changed to fit the dynamic developing societies. Therefore, it is important for all associations to ensure that they establish an appropriate management system to evaluate their activities. It is through this system that the administration can motivate their workers and improve the organization’s effectiveness. References Alcock, P., 2004. Targets, indicators and milestones. Public Management Review 6 (2): 211-227. Andersen, H.V., and Lawrie, G., 2002. “Examining opportunities for improving public sector governance through better strategic management”. In: A. Neely, A. Walters & R. Austin (ed.), Performance Measurement and Management: Research and Action, London: Cranfield School of Management. Armstrong, M., and Baron, A., 2003. Performance Management: The New Realities’, London: Chartered Institute of Personnel and Development. Boland, T., and Fowler, A., 2000. A Systems Perspective of Performance Management in Public Sector Organisations. International Journal of Public Sector Management, 13(5):417-46. Bernthal, P., Rogers, R.W., and Smith, A., 2003. Managing Performance – Building Accountability for Organisational Success. Pittsburg, PA: Development Dimensions International. Bernthal, P., Sumlin, R., Davis, P., and Rogers, B., 2001. Performance Management Practices Survey Report. Pittsburg, PA: Development Dimensions International. Brignall, S., and Modell, S., 2000. An Institutional Perspective on Performance Measurement and Management in the “New Public Sector”, Management Accounting Research, 1(11):281-306. Brown, D., 2004. Performance management elusive for public-sector HR. Canadian HR Reporter, 17(4):17. Kennerley, M., and Neely, A. 2001. “Performance measurement frameworks: a review”, In Business Performance Measurement: Theory and Practice, 1st edn, A. Neely, ed. Cambridge: Cambridge University Press. Marr, B., 2012. Key Performance Indicators – the 75+ measures every manager needs to know. Harlow, CM: Financial Times Prentice Hall. Marr, B., Gray, D., and Neely, A., 2003. Why do firms measure their intellectual capital? Journal of Intellectual Capital, 4 (4):441-464. Read More