Performance Management System - Essay Example

Many Organisations many have a so-called Performance Management System, but this may be a Performance Appraisal System at Best and an administrative hurdle imposed by the HR Department at worst. (Smither & London 2009). April 26, 2011 Many Organisations many have a so-called Performance Management System, but this may be a Performance Appraisal System at Best and an administrative hurdle imposed by the HR Department at worst. (Smither & London 2009). INTRODUCTION Human resource management deals with performance management system. The study takes on the advantages of performance management system. The study looks into the role of the Human Resource Management officer to the employees’ enthusiastic achievement of performance management system benchmarks. Human Resource Management officer plays a vital role in encouraging the subordinates to pass the performance management system benchmarks. Many organizations have a so-called performance management system, but this may be a performance appraisal system at best and an administrative hurdle imposed by the HR department at worst. BODY Performance management incorporates all the activities that increase the probability of goals being achieved. Performance management system is aimed the goals are met in both efficient and effective processes. Managers classifies a person has having successfully hurdled all so-called performance management systems. For example, the marketing employee is required to sell one car within one week. If the employee sells two cars, then the sales personnel is said to have passed his or her performance management requirements. On the other hand, if the employee is not able to sell a single car within the prescribed accounting period, the sales employee is classified as having failed his or her performance management system test. With the implementation of the performance management system, the people are guided in order they will stay on the right path. The path is equated with compliance with all job responsibilities. A person who is not being watched can be tempted to delay one’s work schedules. A person who is paid a daily wage would have a lesser drive to accomplish task when compared to a worker who is paid based on the quantity of work done in one day. The latter worker works faster because he or she knows that more work translates to more pay. On the other hand, employee who is paid on a daily basis will receive the same pay not taking into consideration the quantity of work done. The per day employee is tempted to slow down one’s work output since there is no incentive for working harder, faster, more efficiently, or more effectively. For the employees to comply with performance management system guidelines, the guidelines must first be realistic. First, the guideline should not be too high for the average person to reach. For example, forcing the sales employee to sell 1,000 cars in a community composed of poverty line families would not be very realistic. On the other hand, instructing a sales person to sell one car to the busy residents of Rodeo Drive is a very realistic performance management system requirement. The people living in Rodeo Drive are mostly very rich people (Washburn 1999;1). Donald Moynihan (2008;3) insists “The popularity of performance management is reflected in its semantic fertility. In earlier times, progressive reformers spoke simply of performance measurement. Business executives have recommended strategic planning and management-by- objective. State governments have attempted variants of performance budgeting for decades.” Further, people often hear of the issue where managers grade the performance of the subordinates through results, results-based reforms, as well as entrepreneurial budgeting. For the employees who reach their performance management system benchmarks, management often gives them benefits. For example, the employee who regularly comes to work late is reprimanded. When the same worker continues to report to work late in the morning, managements gives a failed performance management system grade. The failed grade can be taken either positively or negatively by the parties concerned. For the positive –minded employee, the failed grade will encourage the habitual late employee to wake up earlier. For the negative –minded employee, the employee may create reasons for being late. The employee can blame the traffic between home and work as the main culprit. However, management can state that the employee must employ strategic ways to report for work earlier. Management may have to retrench or terminate the habitually late employee if the lateness continues, despite all the allowable warnings given to the employee to reduce or even eliminate the employees’ lateness performance. Further, Joan Dean (2002;25) insists "If schools are to improve pupil performance year on year there needs to be a process of supporting teachers in their work and at the same time bring some pressure to bear on them to achieve challenging targets. This is what performance management is intended to do. The performance management process should benefit the school in the following ways. It should: increase the levels of self-esteem and job satisfaction of the staff; make a link between individual, departmental and school aims; and contribute to the ability of individuals, departments and the whole school.” The above quote clearly shows that the performance management system can work. To ensure success, all parties must do their own diversely unique share to help hasten the accomplishment of assigned tasks. For example, the high performance employee can teach the greenhorn or new production employee the secrets of increasing production output. The employees’ supervisor can add more air-condition units in the factory site in order to help the worker work in a more comfortable environment. With the comfortable environment, the employee can focus more time producing high quality goods. By increasing the employees’ production output, management has more reasons to retain the services of hardworking employees. On the other hand, management can prefer to replace the lackluster employee with a new high quality employee. Management will be more than happy to replace the lazy employee. Usually, the lazy employees generate below standard production output. Furthermore, Jerry Gilley (1999;1) opines “Many organizations have failed miserably in achieving the results required of them. When these organizations are examined closely, one common characteristic surfaces: they can talk the talk, but cant walk the walk. In other words, they have well-written, meaningful mission statements and strategic plans that sound wonderful on paper but are ineffective in helping these organizations make critical, lasting, viable decisions. These same organizations boast that "their employees are their greatest asset," or "their employees are their most valuable resource." In reality, nothing could be further from the truth.” The above quote clearly shows that there are some technicalities triggering a failed performance management system test. One such possible reason is that the management had set up a less challenging benchmark. If all the employees cannot reach the benchmark results, then management is at fault. Management expects the human employees to work like cows. Management is to blame for forcing the employees to perform herculean tasks. The herculean means that only one person, Hercules, is able to accomplish the same task. The average person cannot accomplish the feat done by Hercules. To remedy the situation, management must lower the benchmarks during the next performance management system test. In addition, Glen Bassett (1993;1) insists “Taylor and Ford both broke into the national public limelight in a narrow span of time from 1901 to 1912. Ford raced his own auto design and won in 1901. Taylor presented his first major treatise on scientific management, entitled "Shop Management," in 1903. Ford perfected the design for and produced his Model T in 1908 and by 1910 it was the most popular car in America. In the following three years, sales of the car doubled annually. Scientific management became a catchword in the popular press in 1911 when Louis Brandeis employed it as a defense against railroad rate increases in testimony before the Interstate Commerce Commission.” The above quote shows that there were people trying to create theories explaining why some people cannot reach the production benchmarks, when comparing the results of the performance management system, the authors can conclude that there will always be persons who cannot meet performance management system requirement. Putting it more realistically, the management will have to raise the performance management system benchmarks if all the employees effortlessly reach the minimum performance management system benchmark. Ford used experiments to determine the reasons why some people cannot meet performance management system benchmarks. One good reason could be that some of the employees had not been trained for their current tasks. To remedy the situation, management can set a day, several days, or a week for the training, retraining, or upgrading of the employees. With additional knowledge on how the reach benchmark goals, management will reap the financial rewards. With the training, more employees will reach the minimum production outputs. With the meeting of the production output quotas the company’s overall sales performance will increase, the company will sell more than the required benchmark products. With the higher sales outputs, the company will generate higher overall sales. Likewise, with the higher volume sales, the company’s net profits will increase. With the increase in net profits, the company will be able to increase the employees’ benefits. Benefits include increasing the high performing employees’ salaries. Another benefit is offering the high performing employee promotion to the next higher rank, including a possible job promotion to the new job of team supervisor or department manager. In addition, Andy Neely (2002;1) proposes “By its nature performance measurement is a diverse subject. Researchers with functional backgrounds as diverse as accounting, operations management, marketing, finance, economics, psychology, and sociology are all actively working in the field. As discussed in the Preface this incredible diversity brings with it both challenges and opportunities. The diversity results in a fascinating richness, but makes it extremely difficult for generations of researchers to build on each others work.” The above quote clearly shows that engineer will have a difficult time performing the job of the accountant. But the engineer will excel doing jobs that only the engineers are trained to do. In the same manner, that accountant will have a difficult time performing the job of the engineer. But the accountant will excel doing jobs that only the engineers are trained to do. Going further, the outgoing person would not comfortable working inside the dark room of the photography shop. In this type of working condition, the employee is not encouraged to give the person’s best to the accomplishment of organizational goals and objectives. Likewise, the engineer will have a difficult time performing the job of the accountant. But the engineer will excel doing jobs that only the engineers are trained to do. To remedy the situation, management must hire persons who are qualified for the job. For the data encoder job, management must hire person who is a fast typist. A fast typist can type at the speed of 50 words per minute. A uniquely faster typist can type at the continuing speed of 60 words per minute. A person who types at a snail pace rate of 20 words per minute should not apply for the job of data encoder. The management must hire the person having fast typing speeds for management knows that the hired employee can easily meet benchmark requirements. Also, Anwer Shah (2007;15) mentions “Accountability is a fundamental value for any political system. Citizens should have the right to know what actions have been taken in their name, and they should have the means to force corrective actions when government acts in an illegal, immoral, or unjust manner. Individual citizens should have the ability to have some redress when their rights are abused by government or they do not receive the public benefits to which they are entitled.” The performance management system tests are used for two major reasons. One of the reasons is to determine if the employee can continue working in the company. If the employee passes all the performance management system tests, management will definitely have to retain the services of the quality employee. On the other hand, management can inform the employee that he or she will have to find a more lucrative or fitting job that fits the current skills of the employee. Management must be firm in this stand. Retaining the services of an employee who does not have the eagerness or drive to reach monthly performance management system benchmarks would make the company suffer. The company will be losing lots of current and future revenues with the retention of the lazy employee. Despite all efforts of training the lazy employee, the lazy employee seems to have other plans. The lazy employee’s current work attitude has changed from being enthusiastic to plain boring. If this happens, letting the lazy employee go will benefit both the employee and the company. After receiving the employees failed grades, management can hire a new employee, the new employee will be trained to accomplish the assigned tasks within the given time limit. When the new employees excels, more jobs are assigned to the new employee. As the new employee continues to master the new tasks, management will continue to present more job responsibilities to the new employee. Retaining the services of energetic, results oriented employees who can easily sweep through the performance management system benchmark requirements. In addition, Marshall Meyer (2002;51) states “The first we have already encountered: all performance measures are second-best indicators of an uncertain future, although some second-best measures are better than others. The second premise is common sense, but with a twist: people will generally improve what is measured, and sometimes, people will improve what is measured without improving the underlying performance that is sought.” The above quote shows that some employees have a born talent for a certain job. For example, a math genius would easily swim in a day’s job of computing the total sales generated by the cashier. The expert in the English language can easily be at ease working in as a call center agent. The nurse graduate would be at ease working in a home for the aged. Likewise, the accountant will be at ease working as an internal auditor. The engineer will easily meet all performance management system requirements when the job is draft a house. The job of the human resource department is to develop and nurture the employees’ talents to the fullest. Ronald Burke (2007;17) mentioned “The human resources function has, for a number of reasons, been typically viewed by executives as peripheral to the successful performance of their organizations. HRM, as a course in most MBA programs is often not seen as useful as offerings in finance, marketing, or information technology. Yet, managers with full-time work experiences report that their major challenges involve people.” The human resource management can give each employee a test to determine where the will best help the company generate higher revenues. For the math-lovers, the human resource department can assign the employee as a cashier or an inventory clerk. For the smooth talker, the Human Resource Management officer can assign the employee to the store counters to meet, welcome, and fill the needs of visiting current and prospective clients. The Human Resource Management officer can also assign the silent type, introverted employee to the backdoor room of the hotel as accounting clerk. The person does not have to meet complete strangers during his working hours. The accounting clerk does not have to be a smooth talker to convince current and prospective clients to buy the company’s new products and services. The Human Resource Management officer must also continue to have seminars for the employees. The seminars will update the employees with the latest work requirements. As the global industry evolves, the company must sell products that will the continually changing needs of the current and prospective clients. In this regard, the company’s marketing department can make a research on the different wants, needs, and caprices of the company’s customers. As the clients grow, their tastes, needs, and wants also change. A boy of 7 years has a different want or need when compared to the40 year old current and prospective clients. A research conducted shows that it is possible to pinpoint the behavioural factors that can be used for performance management system. The research shows that managers focus their time and energy to what is of prime importance to improve the use of their performance management system. For example, the company can use the performance management system to determine if an employee is a consistent benchmark qualifier. The same performance management system can be used to know if the sales person can meet sales targets. If the sales person cannot meet sales targets, management can easily replace the failing sales outputs (Elzinga 2009;508). Another research conducted by Karen Furguson (2010;471) has also shown that the Human Resource Management officer has a vital in increasing the current and prospective employees’ work output. The Human Resource Management officer can have seminars that will increase the employees’ attitude to performing their tasks. Often, many employees grow bored when they perform repetitive tasks. The Human Resource Management officer can instrumentally help in increasing the excellently working employees’ salaries, benefits, and other incentives. The Human Resource Management officer can also institute program where the outstanding employees are given rewards for excellent work outputs. This is what is called as the carrot approach of management. Another research conducted by Malcolm Cresser (2006;211) shows that employees’ environment plays a major role in the employees work output. A work environment that is uncomfortable reduces the employees’ overall output. On the other hand, a work environment where the employee cannot focus on the job to be done decreases the employees’ potential work output. A well lighted work area will persuade the employee to work harder. On the other had, if the employees’ work area is too crowded with other workers, then the worker is too discouraged or distracted to excel in his current job. Another research conducted by Gerritsen Mema (2006;26) shows the importance of attitudes to accomplishment of organizational goals and objectives. The employees who are motivated will eagerly do their best to reach their benchmark goals. On the other hand, employees who are not motivated do not care if they pass the performance management system requirements. To improve the employees’ work behaviour the company must offer incentive (carrots) to the employees. Many of the employees give their best if they are offered the incentives such as awards or cash amounts. Another research by Michael Badawy (2007;56) shows that the Human Resource Management officer must implement a career planning system. The system will fit the qualities and expertise of the employees to the right job responsibilities. The planning system will include promotions at the right time and at the right place, depending on the results of the performance management system results. Another research conducted by Hashim Junaida (2010;785) shows that managers must learn the religious cultures of their employees. The Muslim employees often mix their religious beliefs with their jobs. The managers must tailor their employees’ tasks to their religious beliefs. Incorporating the employees’ beliefs will ensure the Muslim employees will be able to pass the performance management system tests. In the same light, Enrique Lopez (2009;489) insists that the job of the Human Resource Management officer is similar in almost all types of companies. The Human Resource Management officer of the nonprofit entity is to inspire the workers to excel in their daily work activities. Such activity is also the job the Human Resource Management officer of the profit- oriented entity located in the United Kingdom. Another research conducted by Sandra Watson (2007;30) states that the first line managers must learn to act as Human Resource Management officers. They are the firs persons directly in contact with the employees. Consequently, what the first line managers say to the factory workers may make or break the workers. If the line managers are effective and efficient, the factory workers will enthusiastically work for the company. Another research by Thomas Garavan (2006;251) shows that the values of the managers have an effect on the employees’ achieving performance management system benchmarks. A manager that understands the employees will have very cooperative subordinates. A strict officer may alienate some of the employees. The managers must create a link to the subordinates so they can talk on seemingly equal grounds. The equal ground encourages the employees to work harder for the company. The heartfelt concern of the managers will inspire the employees to do their best to reach the performance management system benchmarks in the earliest possible time period. CONCLUSION According to the above references, human resource management centre on the performance management system. There are many advantages of performance management system. With the help of the Human Resource Management officer, the employees will be encouraged to give their best to their diverse jobs. With the help of the Human Resource Management officer, the employees will be given more seminars that will increase their knowledge. More knowledge is needed to update the employees on their continually changing job tasks. As the current and prospective clients continually change their needs, wants, and caprices, the company must also produce goods that will fill the changing demands of the current and prospective customers. However, the Human Resource Management officer must also use the stick approach to ensure the employees pass their regular performance management system tests. The stick approach includes the use of fines, penalties, suspensions, and dismissals. The stick approach appeals to some types of employees. However, other employee types prefer the carrot (rewards approach) to encourage the employees to surpass their benchmarks. The role of the Human Resource Management officer is to encourage the employees to eagerly reach performance management system benchmarks. The human resource management officer plays an influential part in encouraging the subordinates to surpass the performance management system benchmarks. 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