Performance Management System - Research Paper Example

Performance Management System Introduction Organizations are ‘structures’ with a ‘collage’ of workers doing their allocated work under the supervision of a leader. These workers will normally be apportioned into different departments for better arrangement work. If these departments and its employees carry out their allocated work with precision, the organization will be a success. But, ‘precision’ cannot be achieved without the initiatives of the workers and also without a capable and powerful initiator. Like the five different fingers in one’s hand, each human is different from one another having different characters, attitudes, education, etc, Unison of these different humans under a single organization to reach a target is, and will always be a difficult proposition. As these different humans could only create a different working culture, the success rate will be minimal. But, if a common and feasible working culture is ‘operationalised’, through out the organization, the organization will be a success story. The script for this success story could only be scripted by an effective leader or manager. So, this paper will explore how the organization particularly Human Resource Department (HRD) and its manager particularly Human Resource Manager can try different methods through a performance management system to get optimum performance. HRM or HR Manager’s role in the formation of a common organizational culture as part of the performance management system The success or failure of an organization depends on the role; the manager plays particularly the HR managers. The managers only can establish an optimum performance management system and can ‘sprinkle’ motivation and drive into the minds of the workers, thereby accentuating their performance for the betterment of the organization. “Performance management is an essential tool for high performing organizations, and it is one of a manager’s most important responsibilities, if not the most important responsibility” (Pulakos, 2004). The task of the HR manager is to create a working culture, embed the working culture in the working group and environment in the form of team culture, sustain it and also rectify it, when faults occur. The culture creation will start with the HR manager ‘imposing’ his/her own assumptions, ideals, ideas, etc, as a form of organizational culture. They will, therefore, be quite comfortable in imposing those views and personal cultures, on their partners and employees as the organization copes with challenges and targets. This imposition of manager’s assumptions, as a form of good culture is one of the first steps. Because once a common culture is imposed on the employees, they will have a common thing to hold on to. If the many employees adopt this common culture, they will surely form into a team and with also work as team, with the common culture acting as the binding element. So, this external impetus or adoption of common culture from external source forms the basis for the self-managed teams, as the “common goal is defined outside the team” (Chatfield). But, in some organizations, the challenge to this imposition of a new culture will come in the form of experienced workers who will be slugging out in the same job in the same environment, importantly in the same mindset for years, who could act as the disturbing element in the formation of a team, with a common organizational culture. “In order to remain competitive, change is an inevitable part of organisational life. But resistance to change can trigger productivity paralysis through low morale and reduced output.” (Training zone). But, the HR manager is only responsible for making them fall in line and make them fast and ready, thereby transforming the self-directed teams into self-managed teams. So, this process of great working culture will always be or should always be ‘seeded’ by the HRM, and it forms an important part of the performance management system. “HRM highlights responsibility for managing organization culture and leadership issues. HRM concerns with setting consistent HR policies which reflect and communicate “core values” of the company. It is through building culture and sharing common values among people that companies are trying to ensure that their acts and decision are based on best interest of the company rather than stressing on conventional rules and procedures, thus achieving the element of speed” (Alagse.com). Optimum rewarding system as part of the performance management system Optimum and unbiased rewarding system should be part of any performance management system because it can only motivate the employees by imbuing in their mind that their performance will surely be recognized and feted. It can only optimize the performance of the workers. “…build the psychological contract, in which employees feel valued by their employer, and the employer values (and is seen to value) employees’ contributions” (cipd). But, if this rewarding system is biased, illogical, un-genuine, it could affect the performance. That is, for example, if the management overriding tried and trusted individuals, give important posts and responsibilities to individuals who might be their family members, friends, and persons with negative influence, etc, it could surely have negative and disturbing impact on the high performing workers. If this practice is followed, it will create disenchantment among workers and will show the organization in poor light. So, to keep the core group of good workers in a motivated state, the organization needs to award the right individuals with correct inputs from the HRD and HRM. Only, if they decide that the rewards are fair they are more motivated to put effort into tasks (Beardwell and Claydon 2007). “Especially in organizations that use performance management as a basis for pay and other HR decisions, it is important to ensure that all employees are treated in a fair and equitable manner” (Pulakos, 2004). Allocating Rewards and Status to the deserving and apt candidates or workers is an important trait the leader should have. In an organization, the workers would do their duties for personal motivations like money, looking after their family etc, but their motivation level will get a great boost if they receive rewards and promotions. “Motivation is the art of getting people to do what you want them to do because they want to do it” (Eisenhower). Rewards and promotions to deserving and ‘success achieved’ workers will motivate them to give better results and motivate others also, to reach that status. So, leaders can quickly get across their own priorities, values, assumptions, etc and importantly organization’s goals and profits by consistently linking rewards and punishments to the activities of the candidate. “Salary strategies and job enrichment strategies were positively related to job satisfaction. Job enrichment strategies and job stability strategies were positively related to employee commitment” (Arocas & Camps, 2008) Involvement of employees in all the important processes inside the organization as part of the performance management system The human resources manager will play a major role in all the process of the organization, and importantly should also involve the employees in those processes. . “The HRM perspective stresses that each activity should form part of the whole process of people management.” (Price 2002, p.17). That is, as part of the performance management system, the HR managers can involve the workers in all the important processes by using the inputs from the employees for the optimum functioning of the organizations. So, during all the important processes that may take place inside the organization, one of the approaches the leader or HR manager can try is, putting for discussion his/ hers thoughts among the workers, and thereby involving them productively as a form of teamwork. “…give them a clear sense of purpose, an accurate explanation of their personal importance in the running of the organisation, and regular communication about the direction and performance of the business” (hrzone). This strategy will have unexpected at the same time favourable results, because one may never know from where, when and importantly from whom a great idea could come. “Dont tell people how to do things, tell them what to do and let them surprise you with their results” (Patton). So, HRM’s act of involving and allowing co-workers as a team to play a part in the important processes, but at the same time being the final authority is one of the important parts of the performance management systems. Another part of the performance management system is, HRMs can also utilize the services of the experts in all the important processes of the organization. That is, if the HRM feels that if certain employees of the organization is lacking in any particular field mainly knowledge wise and skill wise, they can bring in the experts or even the experienced staffs, and can try to fill in the pieces. This is one of the important needs of the performance management systems because experts will bring their wealth of experience in to the new avenue. Ken Olsen, mentioned by Fortune magazine in 1986 as the most successful entrepreneur in the history of American business’, who incorporated all the important aspects of Human Resource Management, always set up a number of committees and groups and insisted that all ideas be discussed and debated before they were acted on. “I’m not that smart; if I really knew what to do I would say so. But when I get into a group of smart people and listen to them discuss the idea, I get smart very fast” (Olsen). For Ken Olsen, groups were a kind of extension of his own intelligence and he often used them to think out loud and get his own ideas straight in his head. (Schein 2004, p.235). Working environment An important method for optimum performance management, which a HR manager and the HRD could implement or practice, is providing a perfect and comfortable working environment for their workers. For that, the best option is going for an open-office layout. That is, cubicles should be preferred instead of offices with doors because, in an office set up where team work will have prominent place, face to face interaction would bring in more ideas, than one calling other into a closed room and having a closed discussion. Also minimization of the use of status symbols such as private offices, special dining rooms for executives, and personal parking spaces should also be curbed down. This is one of the important needs because it will give even the lower staff, the feeling that all are treated equal, irrespective of the salary, experience etc. “From that baseline, we consider a set of related hypotheses, testing whether factors such as the extent to which the affiliate is embedded in the local environment, the extent of flows between the parent and the affiliate, the characteristics of the parent, and the nature of the industry, influence HRM practices” (Rosenzweig and Nohria, 2004). Instead of special rooms, many conference rooms and attached kitchens could also be setup to encourage people and interact comfortably. So, these kind of environment, if made part of the performance management system, will make the individuals stay, at office, an enjoyable experience at the same time encouraging experience. “Recognise their responsibility in humanisation of organisational environment to make the employees feel that the organisation where they work and spend a large part of their working life is theirs and realise that it is their second family and that they are taken not of, valued and cared for” (Rao, 2004) Conclusion Organizations and also its leaders or managers should not stagnate and saturate. Schein (2004, p.418) pushes forward this idea by stating “that the leader of the future must be a perpetual learner”. Perpetual learner in the sense, the leader or the manager should learn new levels of perception and acquire lot of insights for running an organization. As discussed in this paper, to actualize an optimum performance management system in an organization, every HR Manager should start by playing an important role in the development of a work culture. Then, as part of the system, should reward the employees genuinely and handsomely. Also, the performance management system should incorporate the practice of team decision making, with the leader or the HR Manager involving the employees in all the important processes. There should also be optimal working environment as part of the system. Unison of humans into a team with an urge to usher an organization into a successful endeavour will actualize, if the leader or the manager integrate all the above discussed practices as part of the performance management system. So, if the different methods for optimum performance management are followed and the HR manager shows all the good managerial skills discussed here, the performance of the employees can be increased manifold, with the organization also having a ubiquitous presence all over the world. References alagse.com, Human resource management and personnel management - shift in focus, viewed 22 March, 2008 http://www.alagse.com/hr/hr2.php Arocas, R & Camps, J 2008, ‘A model of high performance work practices and turnover intentions’, Personnel Review, vol. 37, no.1, pp. 26-46. Beardwell, J and Claydon, T 2007, Human Resource Management: a contemporary approach, Harlow: Financial Times, Prentice Hall Boyacigiller N.A., Goodman R. A. and Phillips M.E. 2003, Crossing Cultures: Insights from Master Teachers. Routledge. Chatfield, M, Self-Directed and Self-Managed Teams, viewed 22 March, 2008 http://www.irism.com/selfteam.htm cipd. 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