Performance Management System Improvement - Assignment Example

? Performance Management System Improvement Performance management can be defined as a process involving management, identification,measurement and development of an organization’s human resources. Performance management is conducted to ensure that the productivity by the employees is maintained after their employment. To enhance the performance of the employees over time, it is considered important to evaluate their output to increase the efficiency of the organization (Warner, 2002). In essence, the employees’ output is figured out and ways to improve the performance level formulated. The obtained results after evaluation are used to improve on the organization’s output, effectiveness and efficiency over time. An organization generally constitutes of the two types of environment, namely; the internal environment and the external environment. The external environment could constitute of factors such as technological, political, legal and economic, whereas the internal environment is comprised of structure, organizational culture, mode of exercising power, the leadership style, and available resources. The key factors that constitute the external environment of Ngusama Investment Company are technology, political, economic and legal factors (Rao, 2004). The company has been trying to upgrade its technology so as to cope with evolution of technology that presents. Upgrading of the system also ensures that the company keeps abreast with current issues and trends in the society. With a modified technology, the employees have a platform which they work on to improve the performance of the organization. As the policies are being formulated the organization has to take in consideration of the threats and the opportunities in the external environment, the competitive advantage over the competitors and the weaknesses and forces of the organization. Once these factors have been identified, the organization can capitalize on the factors and improve the performance of the organization. Political-legislative factors play a major role in this company. These factors comprise of the legal framework which are the rules, regulations, policies and the laws that govern the organization. An organization has to see to it that they fulfill the laws formulated in a country inclusive of payment of taxes, environmental law and labor law (Sandler, & Keefe, 2004). For any organization to prevail in a market, it has to ensure that it fulfils the regulations and the policies. Technological factors; productivity is quickly achieved through the use of new technology. The production of new products increases the sales of an organization and consequently leads to an upsurge in the revenue. This therefore is a major indicator of the organization’s performance. The external environment can be viewed in two dimensions; micro-environment and macro-environment. Micro-environment is concerned with the immediate benefactors of the organization’s competitors, suppliers, customers and the public at large. On the other hand, the macro-environment constitutes of the current trends in the society. The organization concentrates on the following factors in assessment of the external environment; competitive environment analysis, analysis of the expectations for interest, the external environment’s development outlook, and analysis of the influence of the macro-environment on the organization’s performance. Competitive environment is a key external factor (Sahu, 2007). It is a process in its own that involves analyzing, identifying the major characteristics and the impact of the forces that come about as a result of competition. After the analysis, positioning efforts are made so as to ensure that the competitive advantage of the organization is attained. When conducting the activity there are competitive forces that are experienced and this makes up the environment with the organization inclusive. The industry includes all the organizations that are producing similar products or are offering identical services. The organization could also produce substitutes and termed as an industry. If the products and the services offered are similar or substitutes then that means they are supplied to the group of consumers. Geographical location could also be factor that contributes to the competitiveness of the organization. The organization is located near other organizations that produce similar products. With that in mind then Ngusama has to improve its efficiency so as to win over the customers (Kandula, 2006) A number of factors are constituted in the competitive environment; the type of need, concentration level, adequacy level, size of offer, different impact on competition, industry’s maturity, flexibility, market structure and the type of competition. The impact in the future strategies should also be looked into and ensure that whatever is formulated has some positive impact on the organization in the long-run. Competition has some intensity and this can be evaluated by assessing; consumer’s bargaining power and rivalry in the market. There are various challenges that are encountered by new competitors as they attempt to enter a market. Some of these barriers are; the high initial start-up cost, difficulty in distribution channel access, the organization’s minimal size, and administrative barriers (Erasmus, 2005). Entry into a market that has sellers who have been in the market for a long period of time is quite challenging since they have taken time to improve on the quality as well, train their employees, and position the product strategically in the market therefore it becomes difficult for any new enterprise to begin on such a high level. The bargaining power of the customers is boosted by the fact that they are well informed, and products are standardized. The suppliers bargaining power is a major contributor to the costs that are accounted for by the materials. Through the competition Ngusama company is aiming at improving the quality of their products and the services offered (Jackson, Schuler, & Werner, 2011). An attempt to offer extra services has been made to win over the customer’s loyalty. Once the customers’ loyalty is earned then the performance management can be analyzed. In the case of technology, the most recent technology is used so as to ensure that as better quality of products is obtained compared to those competitors. The expectation of the customer has to be met by the new products and the services offered in order for the company to achieve its competitive advantage. With the breach of every gap in the market the loyalty of the customer is wholly won by the company (Kumar, 2011). The internal environment of the organization constitutes of factors that are under the direct control of the company. This could comprise of people, structures, events, systems, conditions and factors. The goals of the organization, the vision and mission statement is also associated with the internal environment of an organization. Therefore, it is the role of every employee in an organization, to ensure that they work hard towards the achievement of the set targets of the organization so as to improve on the performance and efficiency in the organization. The internal factors contribute greatly to the achievement of the organization’s success (Lyster, & Arthur, 2007). The leadership style especially impacts on the attitude and behavior of the employees affects the productivity of the company. In case of a change in the culture and the mission of the organization, a great impact will be experienced. This could easily lead to disorientation of the employees and consequently lead to confusion. The objectives of the organization should be clearly stated so as to define the clear path that employees should take. Leaders have a responsibility to ensure that their style of leadership is appropriate for the attainment of the goals of the organization (Gibson, 2004). The mode of communication should also be taken into consideration as it greatly impacts on the productivity of the organization. The leaders should focus on conducting more training programs and creating forums in which ideas between the leaders and the employees can be exchanged. The result of this is that change is easily introduced in an organization if the communication channels are set right. With an appropriate communication procedure the organization’s set goals, objectives, mission and vision are achieved easily (Falcone, & Sachs, 2007). The jobs should be well designed to clearly state the role of the employees. This includes a clear statement of the job specification and requirements. This helps in assigning of responsibilities to the qualified personalities an aspect that ascertains the leadership that there will be an improvement in the performance of the organization. They should also be trained appropriately to ensure that there is effectiveness and efficiency. The leaders should ensure that they improve on their planning and engage in strategic planning. Strategies should be laid down on how the future of the organization will be and how the activities of the organization will run in the near future (Arthur, & American Management Association, 2008). In the case of human resource, how employees or deployed or how many more employees are required for the smooth running of the organization. In the event that they are planning to introduce a new product in the market then they are supposed to state how that will be effected. The strategic plan should also include the short and long run benefits of their plans. Therefore the leaders have a responsibility to see to the future of the organization as the employees focus into the present and deliver the services and products. A responsibility to lay down plans in venturing into markets is also in the hands of the leaders. In Ngusama the communication channel should be modified to suite the organization’s goal. Therefore more forums and avenues of getting ideas from the employees should be formulated. The communication also improves the relationship between the employees and the management. This will bridge the gap that exists between the leaders and the employees. Communication also ensures that the problem resolving methods are improved (Grote, 2005). Ngusama Company’s poor communication has led to the loss of very potential employees who could have worked towards the achieving of the company’s set goals. This can be effected by coming up with brief meetings in the morning before beginning the day at work and some briefings are made to enquire of any challenges that were experienced. In the same meetings ideas on how to achieve the day’s set target is stated and everyone is aware of what is expected of them by the end of that day (Snell, & Bohlander, 2013). The leaders are also in a position to tell the employees what they did not do right and how when faced by such a challenge next time they should handle it. The mode of introduction of change in Ngusama organization should be modified. For any change to be embraced and effected the employees may be involved in formulating the change or in case difficulties are experienced while involving them then the change can be introduced in steps. Humans are known to be rigid and hence resist changes. Although change is hardly embraced, it is appears to be the way to go if the performance of an organization has to be achieved. With evolving world then organizations have to run with time and transform so as to be more efficient. The leaders should be in a position to keep abreast with the current trends in the society and formulate policies and strategies that cater for the issues. This narrows the gap in the market (Grote, 2002). Communication in an organization can be through conducting the performance appraisal. Performance appraisal is the evaluation of employees that is done by their leaders. The aim of the performance appraisal is to find out if the employees accomplish their assigned responsibilities and to what extent they stretch to so as to see to it that the goals of the organization are achieved. The assessment includes behavior and also the professional conduct. The attitude of the employee towards work is also assessed, actions and the manner in which they perform. It is through the appraisal that the assignments and duties allocated to an employee are assessed and the general performance is outline (Dresner, 2008). Through conducting the appraisal the employee ideas are exchanged between the manager and the employee. It also provides an avenue in which the employee may suggest what they consider best for the organization. This can also be termed as a forum in which the future of the organization may take a different direction as the employees are the dictators of the organizations performance. After an appraisal has been carried out, then the management is in a good position to determine who deserves a reward for some well-done job. Rewarding employees contribute in a great way on their performance, hence it is a motivating factor. A company that motivates its employees has a better performance compared to one that does not. The appraisal also facilitate a good relation between the managers and the employees (Cokins, 2004). The manager is able to communicate to the employee on the standards required in the organization and correct them on things that they could be doing intentionally or unknowingly that could be detrimental to achieving the set objectives of the organization. The performance appraisal techniques can be improved through various techniques such as promoting the employees on condition of their performance. The appraisal enables in the identification of the employees’ contribution to the organization’s success References Cokins, G. (2004). Performance management finding the missing pieces (to close the intelligence gap). Hoboken, N.J.: John Wiley. Dresner, H. (2008). The performance management revolution business results through insight and action. Hoboken, N.J.: John Wiley & Sons. Grote, R. C. (2002). The performance appraisal question and answer book a survival guide for managers. New York: American Management Association. Grote, R. C. (2005). Forced ranking: making performance management work. Boston, Mass.: Harvard Business School Press. Sahu, R. K. (2007). Performance management system. New Delhi: Excel Books. Sandler, C., & Keefe, J. (2004). Performance appraisal phrase book: effective words, phrases, and techniques for successful evaluations. Avon, MA: Adams Media. Warner, J. (2002). Janus performance management system a complete performance management support process for individuals, teams, and the entire organization. Amherst, Mass.: HRD Press. Rao, T. V. (2004). Performance management and appraisal systems: HR tools for global competitiveness. New Delhi: Response Books. Kandula, S. R. (2006). Performance management: Strategies, interventions, drivers. New Delhi: PHI Learning. Erasmus, B. (2005). South African human resource management for the public sector. Cape Town: Juta Academic. Kumar, R. (2011). Human resource management: Strategic analysis text and cases. New Dehli: I.K. International. Lyster, S., & Arthur, A. (2007). 199 pre-written employee performance appraisals: The complete guide to successful employee evaluations and documentation: with companion CD-ROM. Ocala, Fla: Atlantic Pub. Group. Gibson, C. L. (2004). Performance appraisals. New York: Barnes & Noble Books. Falcone, P., & Sachs, R. T. (2007). Productive performance appraisals. New York: AMACOM, American Management Association. Arthur, D., & American Management Association. (2008). Performance appraisals: Strategies for success. New York: American Management Association. Snell, S., & Bohlander, G. W. (2013). Managing human resources. Mason, Ohio: South-Western. Jackson, S. E., Schuler, R. S., & Werner, S. (2011). Managing human resources. Mason, Ohio: South-Western. Read More