Evaluation of the Problems and Improvement of Performance Management System Implementation - Essay Example

EVALUATION OF THE PROBLEMS AND IMPROVEMENT OF PERFORMANCE MANAGEMENT SYSTEM IMPLEMENTATION By Location of the Institution: Date: Introduction Performance management is an ongoing process of measuring and managing the employee performance in order to enhance organizational effectiveness (Den Hartog, Boselie and Paauwe 2004). The process is an increasingly prevalent practice in organizations (Aguinis and Pierce 2008). Recent surveys indicate that few employee agree their organization’s performance management system assist in performance improvement. Less than forty percent of workers opined that their organization’s performance management systems created performance goals that were clear. These results suggest that there are problems in the design and implementation of performance management systems within organizations. In order to understand the concept of performance management system, it is critical to analyze its general regards in performance. There is a consideration of the process of performance management as a cycle in general performance planning, performance coaching, and performance appraisal and performance feedback. The overall purpose of performance management is to ensure that the organization is working together with its subsystems in an optimum fashion to achieve the firm’s goals. Given the low rating of the performance management system among employees, it is necessary to undertake a thorough analysis to realize the reason for the low ratings. Therefore, this research focuses on the performance management system in the organization internal context. In the main body, the study puts forward the problems arising in the designing and implementation of a performance management system. The paper does this by separately considering the problems that can arise in the design of a performance management system and then follows this with an explanation of problems that can arise in the implementation of the system. Further, the paper evaluates measures that can lead to improvement in the performance management system. The article aims at contributing to the development of the performance management system through exploring the problems of the performance management system in the practical application. Problems that can occur in Design and Implementation of Performance Management System Designing and the implementation of the performance management system are not an easy task and require a combined of effort by the Human Resource Managers. There are a number of potential challenges encountered in achieving a fit that is best for the organization and ensuring an effective and efficient implementation of Performance Management System. Some of the intricate problems that can occur in the design of performance management systems include: Problems that can occur in Design of Performance Management System Failure of identification of critical areas of performance and the development of main indices is a problem that can occur in the design of Performance Management System. Several organizations have implemented tools for identifying and measuring performance. However, several organizations have some challenges in the identification of important performance areas from the various operations of the organization. The selection of an incorrect index for key performance indicators can adversely affect the design of an organization’s performance management system. Indices are vital forces in structures and can lead to change but only if the main index is developed properly and implemented (Paul and Anantharman, 2003, 1252). Organizations diversity and a lack of a universally accepted standard for the identification of performance areas and development of main indices can lead to problems in the design and implementation of performance management systems. Organizations failure to carry out developmental planning can equally result in problems in the design of Performance management system (Harbour, 1992, p. 7). Performance management systems just like any other systems in the organization need proper planning before design. Individuals mandated with the responsibility of designing the system need to conduct a thorough analysis of the organization, its employees, and managers. These enable the design of the performance management system in line with the organization’s vision and goals. An organization’s lack of developmental planning can lead to poor system design. The implementation of the system will be difficult, and employees and managers will not accept it. Failure to devise tools and methods for measuring performance in performance measurement system can also lead to problems in the design of this system. Performance measurement is the continuous quantification of effectiveness and efficiency of pre-established actions (Singh, 2012, p. 101). It entails the periodic assessment of the progress toward short-run and long run aims and the reporting of the outcomes to decision makers in an effort to improve the performance of a program. An organization’s failure to devise tools for performance measurement in performance measurement system can result in a problem if not properly done (Hall, Posner and Harder, 1989, p. 60). Devising of tools and methods requires an understanding of the principles of these tools and methods. If the designers of the system lack these necessary skills, they can devise wrong tools for measurement. In addition, performance measurement using these tools can lead to problems given that there are no laid out rules and predictable relationships between involved variables. The reason for this is the impact that several variables have on the performance of an organization hence it is not easy to understand the relationship that exists between these varied variables. An organization’s failure to determine the period of assessment can also lead to problems in the design of performance measurement system (DeNisi and Pritchard, 2006, p. 271). Designers of the performance system cannot readily ascertain assessment period. Evaluation period vary from one organization to another depending on the individual organization. In some organizations, discussions on issues pertaining to remuneration and promotion take place during sessions meant to review performance. On the other hand, in other organizations, discussion of administrative actions takes place in separate meetings. The reason for not conducting discussions on rewards and other outcomes in these sessions is to allow for a debate that is more open about the needs of employees. Problems that can occur in Implementation Implementation is the most critical section in the development of an effective performance management system. There are problems that can arise in the implementation of performance management systems. The first problem that can arise in implementation is soliciting employees and managers for their involvement in the process. Getting organizational members on board is not an easy task and proves challenging to human resource experts. However, for a performance management system to be operational, members of the organization need to be adequately motivated to utilize it. Research shows that implementation program that are effective depend on the commitment level of an organization’s top management (Newcomer and Caudle, 2011, p. 122). If the top management of an organization shows a stronger commitment to the performance management system, the higher the prospect that the program will be successful. In relation to performance management, an organization that has a committed CEO, who models the program with a team of executives has a higher the chance of successs. On the other hand, a CEO who does not offer high support levels is not likely to experience success. The execution of the performance management structure is likely to fail if it lacks the support of the organization’s stakeholders. Getting support for the system from the top down to upper management and finally to the staff is a problem, even though, this support will guarantee the success of the system. Some organizations lack a strong culture of performance management resulting in the problem in the implementation of the system. In others, executive education might be required on the importance of performance management in organization’s effectiveness. Education entails incurring additional costs on top of those already incurred in designing the performance management system (Tziner, 2005, p. 4). There are also problems of members of the organization being fully committed to the system. People have a different interest; some will like the system while other will not like it. Implementation can experience problems due to the failure of people being committed to the system. Lack of fair representation can occur in the implementation of performance management systems. Lack of alignment of performance management system with other human resource systems leads to implementation problems in some organizations ((Vakkuri, 2013, p. 156). For instance, some organizations use different competencies in performance management systems to those utilized in staffing, recruitment, and training. Failure to align performance management systems to other systems in the organization, a wrong message is actively sent to both the internal and external environment on the values held by the firm. Failure to improve individual, team and organizational performance is also a problem that can occur in the implementation of the performance management system. In the implementation of the system, it is critical improving the performance of every individual, team and organizational efficiency. Improvement of Performance Management Process Improvement of the performance management process is necessary for the efficient functioning of the system. Organizations can improve their performance management processes through a number of ways. Involving key members in the design and implementation of the performance management process plays a crucial role in its improvement. Given that the success of performance management systems depends on the level with which employees and managers use the performance system, it is key involving both the employee and the manager in the process. The design team is to comprise individuals who represent major constituencies of the organization (Kernighan and Rob Pike, 2009, p. 62). In the case of several subsidiaries, these individuals draw from key business lines of the organization and varied geographical locations. Human resources representatives and consultants who have the necessary experience of performance management head the design team. These can guide the organization in the development, improvement and implementation of the performance management system thus improving the process. Design team members need to have effective communication skills, good problem-solving techniques and be team players. Automation of performance management systems can significantly improve the performance management system (Raybould, 2010, p. 10). Currently, performance management systems entail a lot of paperwork and writing. In instances where administrative demands are high, organization’s staff members and managers spend most of their time pushing paper. The do this instead of engaging in discussions on performance development and issues (Frolick and Ariyachandra, 2006, p. 43). By automation of performance management systems, the workflow of the system can be greatly influenced, and reduction of paperwork can occur. Evaluation of automated performance management systems reveals a positive view among managers and employees. They reduce workload, guarantee widespread contact with tools of performance management and avail a standardized approach to the collection and storage of performance data. In making decisions on the level of automation of the system, it is key to balance time, maintenance cost and resources. For instance, the development and maintenance of databases can characterize extensive costs that are beyond the development of the application. In addition, features like the security of information, archiving, and management of records represent additional sections that need consideration. Basic automated performance management applications comprise the functionality to carry out and capture ratings of performance with the inclusion of interfaces for users that display relevant competency and standards of performance. In addition, they also have web pages that are supporting and contain information files and help. Performance management process can be improved by effective communication (De Haas and Kleingeld, 1999, p. 241). Communication should start at the unveiling of the design process. The team carrying out the design should let its constituents be aware that performance management systems revisions are to take place, and they need to collect input and feedback on desired system features. In the event that the implementation of a new system entails fundamental changes that have the potential of threatening employees, the organization should adopt a strategy that manages change. For instance, it there was no apparent relationship between pay and performance, and a new performance system needs to link these two, staff members may feel threatened and fight and sabotage the process. The improved communication and change management process will explain plainly and justly to staff members the benefits and rationale contained in the new system. Advertising campaigns can equally improve the performance management process of an organization. New performance management can sell if presented in the form of massive communication campaigns strategies. Training of employees and managers can equally improve the performance management process (Brown, 2011). Managers and employees need to have the capacity and ability to use the performance management system efficiently and effectively. Training helps in realizing both of these goals. There are several formats of training available for adoption for performance management improvement. Job aides or classroom training can be utilized. Each of these formats has its own merits and demerits. Classroom training can be used in events when the content of training need hands-on practice or discussions that are interactive and that are not easy to achieve with other formats of training. Performa19nce management can offer support to training. These aids are advantageous given their view at the employees pace. For instance, the responsibilities of a manager can be listed in the performance management process by use of aides. Performance management process is also improved by systematic evaluation (Leigh, 2005, p. 2). Performance management systems require continuous evaluation and improvement with time. To assess the efficiency of the systems operation, a number of metrics that need tracking. Completion of training needs monitoring. It entails verification that all stakeholders of the performance management system are properly trained prior to its implementation. Upon the completion of activities of performance management, tracking needs to be undertaken. Copies of forms of performance management that are completed need submission to Human Resource through following formal performance evaluation processes. Review of management is also critical since it makes sure matching of ratings with narrative descriptions. Tracking the performance management alignment with other human resource decisions improves the process. A performance management system that links rewards to evaluation should monitor the in-house rewards and evaluation consistency. Staff members who got good assessment should equally get higher compensation. The method improves the performance management process. Engagement in legal consideration can improve performance management systems. It is fundamental for the human resource personnel of an organization to be conversant with the legal and professional guidelines. These can improve the performance of the process given that it enables an organization to align its performance system with the business requirements of the organization. It equally allows the system to match the level of backing for performance management that is present in the group. It equally ensures employees and managers deliberate the performance system as a significant component of the achievement of business results. Finally, legal considerations provide the performance system is straightforward and friendly to its users. Conclusion In conclusion, several factors influence an organization’s performance management system. However, three factors are most important and need serious consideration. First, the performance management system of an organization should be in line with and support the direction of the organization and critical factors for success. Second, tools that are developed and efficiently administered are necessary to make the performance management system friendly to the user and proper to serve members of the organization. Lastly, managers and employees of an organization need to utilize the performance management system in a way that brings value-added aids in performance planning, development, and feedback delivery. Critical discussion of problems that can occur in the design and implementation of a performance management system and evaluation of performance management improvement enables an organization to structure better its performance management system. References Aguinis, H. and Pierce, C.A. 2008, Enhancing the Relevance of Organizational Behavior. Journal of Organizational Behavior, 29, pp139—145. Brown, M. 2011. Designing effective performance systems. Performance + Instruction, 26(3), pp.14-18. De Haas, M. and Kleingeld, A. Multilevel design of performance measurement systems: Enhancing strategic dialog throughout the organization. Management Accounting Research, 10(3), pp.233-261. Den Hartog, D.N. & Boselie, P. & Paauwe, J. 2004 PM: A Model and Research Agenda Applied Psychology: An International Review, 53, pp.52-57. DeNisi, A.S. and Pritchard, R.D. 2006. Performance Appraisal, Performance Management, and Improving Individual Performance: A Motivational Framework. 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