Performance Management Operation Impact on the Employee Performance in the Public Sector - Research Paper Example

Performance Management Operation Impact on the Employee Performance in the Public Sector Abstract The paper is composed of presenting a proposed research study based on measuring the impact of performance management operations upon the performance of employees from the context of public sector in the UAE. The proposal has been framed with the aim of persuading the reader about the importance of conducting research in this filed. The present paper intends to adequately convince the reader about the importance of the proposed study in the recent periods of time. The business environment that prevails within different types of organization is growing complex with the passage of time. The management in the present business organizations faces several resistances to change from the part of the employees. Resistance to performance management implementation is stated to be among the nature of the employees. The employees consider that implementation of performance measurement processes can risk their availability within the organizations. This is because the results of the measurement process can point their areas of weaknesses prominently. Within the competitive environment of the modern world, weaker entities are never entertained by the organizations. Hence the employees resist to the implementation of performance management systems. Thus along with the positive consequences of performance management, negative aspects are also associated with this managerial concept. Considering the prevalence of positive and negative features associated with performance management implementation within the organizations, the urge to conduct the proposed research was felt. The aim of the proposed research study will be to measure the impact of various operations under the concept of performance management on the employees’ performance. The proposal for the intended research study has been filled up with references to various previous researches conducted in the related area. It is worth mentioning that the earlier researches were all concerned with measuring both the positive as well as the negative impacts of performance management upon performance of the employees within an organization. The proposed research study will be followed through qualitative approach towards measuring the impact. Generation of authenticated data will be a matter of extreme concern for the proposed research study because the study will be based upon data published in the primary sources like that of various journals, articles, magazines, newspapers and many more. Generation of unreliable data will detract the proposed research study. The collected data from the secondary data will be analyzed with the help of exploratory data analysis approach. The breakdown of timeline which is of 36 months for the entire research study has also been summarized within the present paper. Table of Contents Abstract 1 1. Brief Introduction and Problem Statement 4 1.1. Introduction 4 1.2. Problem Statement 6 2. Research Questions 7 3. Relevance to Existing Literatures 9 4. Research Methodology 13 4.1. Research Paradigm 13 4.2. Access to Data 14 4.3. Data Analysis and Interpretation 14 4.4. Delimitation of the Research 15 5. Work Plan 16 6. References 18 7. Self-Assessment 24 1. Brief Introduction and Problem Statement 1.1. Introduction The proposed research study will be based upon the phenomenon of evaluating the effect of performance management activities on the performance of the employees from the perspective of public sector in the United Arab Emirates (UAE). The common parlance in the present business environment of the world is that “people do not do what you expect but what you inspect” (United Nations University, 2011). Keeping this fact in mind, the concept of performance management has evolved as an essential activity in the business organizations. Performance management is concerned with the entire sets of activities that are performed by the organizations for enhancing business output (The Regents of the University of California, 2008). In the modern business world, in order to generate excellent performance from the employees, the employers should take into consideration various aspect. It is not enough to consider the context of different forms of employees within the organizations. The employer should skillfully consider every environmental aspect within the organization. Comprehensive scanning of the environment within an organization can lead towards identification of a number of measures aimed at generating excellent performance from the employees (Ripley, 2002). Performance management operations are one among the several such measures. Through the creation, implementation and supportive action provision towards a performance based system which is based on generation of competency; both the employees and the employers can achieve a number of milestones. This is because employees’ achievement of mission would lead towards the organizations’ achievement of goals. Performance management system also increases achievement of expected behaviors from the employees of an organization (Poppell et al., 2006). The importance of the proposed research study is evident due to the relevance of performance management for an organization. Performance management has fundamentally four benefits towards the organizations that have drive interest towards conducting the proposed research study hence. Firstly, the focus of performance management is primarily upon the organizational outcomes and not upon the conducts and actions that are carried out within the organization (MacKenzie, 2000). As the second benefit, performance management makes strategic alliance of the various activities and methods within an organization with the aims and goals of it. Thirdly, as per the implementation of performance management within an organization, a long term observation and system focus framework is attributed towards the organizational performances. This framework is helpful for achievement of effectiveness of the organization. Fourthly, performance management operations lead towards enhancement of significant measurements within an organization. All the way through which the performance management approaches bestow their benefits to the organizations, employees are the most essential entity to be benefitted most within the organizations (McNamara, 2011). However, it would not be viable to review only the fair side of the coin as on the other side, the negativities of performance management operations exists. The most essential negative feature of performance management faced, especially in the public sectors, is the barriers to the phenomenon (Economic Commission for Africa, 2004). The public sector employees hold the notion that performance management is an extra burden upon the organizational functionalities and hence resists its implementation (Goren, 2006). However, public sector organizations, in the recent time, are facing a lot of restructuring issues in order to grow competitive and contribute to the economic health of a country (Faizal, 2005). It is from this perspective that the proposed research study has been observed to be essential in the modern context. The positive and negative aspects of the performance management within an organization had generated the interest in the proposed research study. 1.2. Problem Statement With reference to the above discussion, it is quite apparent that in the continuously changing market scenario, the public sector organizations in UAE require facing various challenges which also include the performance management of the employees as well as of the organization at large. Considering the fact, the organizations in UAE have developed significant measures to monitor the performances of their employees. Notably, these measures have both negative and positive consequences on the entire organizational system along with the individual employees working in the sector. The problem identified in this study deals with the consequences of such reforms in the organizational systems of the public sector in UAE. To be specific, the proposed research study would be to explore both the positive as well as negative consequences of the systems implemented for evaluating the employees’ performances within the public sector. In order to narrow down the scope of the proposed research and enhance the quality of findings, the proposed study will be undertaken from the perspective of the public sector in the UAE. The selection of the region for the proposed study has been based on the basis of the availability of data published in relation to the performance evaluation process in the UAE public sector firms. The available materials in the library will be effectively utilized for generating valuable findings for the proposed research study. 2. Research Questions The proposed research study will be based upon the consequences that are experienced due to the implementation of performance management within public sector organizations. A few major consequences of ineffective performance management can be identified in terms of the decreased participation of the employees. This can be a result of being conferred by the remarks after the evaluation process or even their reluctance to change brought in the organizational structure as a strategy of performance management. It is thus, quite likely to hamper the organizational sustainability and competency in its long-run as well as short-run performance. Hence, on this basis, the purpose of the proposed research study has been framed to be evaluating the nature and scope of performance management operations in public sector. Nevertheless, the aim that has been observed to be fulfilled through the proposed research study will be to measure the impact of the process upon performance of the employees operating in the public sector. In order to achieve the aim of the proposed research study, the following objectives have been set for after narrowing down the broader perspective of the proposed research’s importance: To recognize the performance management activities within public sector in the UAE To identify the various activities of performance management in the UAE public sector To measure the various impacts that the activities under performance management bestows within the public sector organizations as compared to the private sector organizations On the basis of the research aim and objectives, the following research questions have been designed for the proposed research study. What is the relationship between the positive and negative impacts of performance management on employees’ performance and on organizational performance as a whole? 3. Relevance to Existing Literatures There are various existing relevant literatures that measured the advantages and disadvantages of performance management within an organization. Lovell et al. (2002) had found that effective performance management holds the strong potential of enhancing communication among the employees of an organization. In the form of support to this finding, Baraldi & Monolo (2004) had also provided their measured fact about performance management from the perspective of the Italian hospitals through balance scorecard method. In addition to this, the prospective success of the balance scorecard method as a measure for performance management has been supported by Lawson et al. (2004). Another essential positive feature that is provided by performance management is that of close association among the employees that results in enhanced sharing of information and knowledge among the employees (Mooraj et al., 1999). The performance management efforts of the organization also results in strengthening of the level of concentration of the employees upon the activities that are essential for the organization (Kald & Nilsson, 2000). The concept has also been effectively supported by Lawrie et al., (2004) from the perspective of industrial concerns. Implementation of performance management operations generates result-oriented activities within the organizational environment (Dumond, 1994). The employees grow more concerned about the achievement of results in such organizational environment (Bititci et al., 2004). Effective implementation of performance management enhances the quality of performance of the employees through enhancement of information on performance (Robinson, 2004). This is because the information that gets circulated through effective performance management measures induces efficiency of the employees who in turn enjoy the privileges of enhancing their quality of performance (Tapinos et al., 2005). Moreover the strategic alliance among various units of the organizations that is resulted from performance management generates better level of performance among the employees of the respective units (Malina & Selto, 2001). This indicates that effective implementation of performance management within an organization adds up to the strategic performance of the organization as a whole (Shulvar & Antarkar, 2001). The efficiency of the employees in regards to their contribution towards operational performance of the organization (Waal, 2002). Performance management is also concerned with the generation of clarity about the contribution of various employees towards the fulfillment of goals and objectives of the organization (Papalexandris et al., 2004). Generation of higher innovativeness from among the employees of the organization implementing performance management operations can be assured (Sim & Koh, 2001). The fact about generation of innovation has also been supported by Self (2004). The enhancement of employee performance coupled with generation of innovative ideas from the employees is strong contributor towards the lists of positive consequences of performance management within an organization. Along with the positive impacts of implementation of performance management within an organization, it is also noteworthy to inculcate the literatures that have depicted the basis for negative consequences of performance management. As stated by Kald & Nilsson (2000), performance management results in excessive competition within the internal environment, the impact of which is adversely acknowledged by the employees. A huge amount of financial information can also prevail within the organization that can harm the organizational concern in turn (IOMA Business Intelligence at Work, 2005). Moreover, at times, the measures applied for performance management becomes too expensive as a result of which the operational expense of the organization increases (Braam & Nijssen, 2004). This might downturn the employees’ confidence upon the operational efficiency of the organization. As per the prevalence of the measures for performance management, there cannot be much availability of strategic information for the employees (Kald & Nilsson, 2000). This leaves a scope of miscommunication between the management of the organization and the employees. Hence the consequence of the implemented performance management operations can ultimately deteriorates employees’ stability. Dumond (1994) had stated that there are excessive performance indicators in the process of implementing performance management operations. The employees can consider these excessive performance indicators to be an additional task in their lists of daily activities and hence form contradictory notion about the effective of the process. Moreover, excessive performance indicators can even generate the notion among the employees that these are too much unrealistic and thus can do a little or nothing for the enhancement of performance (Malina & Selto, 2001). The above mentioned disadvantageous impacts of performance management evolve as a scope for the employees to utilize them as reasons for resisting to the process. However, it is certain that the companies would definitely face the resistance. Artley & Stroh (2001) have cited human nature to be the reason for such resistance, normally during the phase of its development. Employees resist because the results of the processes being carried out for measuring performance might depict their weak points. The authors have suggested the technique of employee ‘buy-in’ for eradicating the resistances. This is the process in which the employees get involved in every activity within the process from the start till finish. From the review undertaken about previous researches, it is clear that there are a significant number of literatures that have been conducted aiming at measuring the impact of performance management. But an essential research gap was felt which states that there are not much research study available that have focused upon measuring the negative aspects associated with performance management. Thus, considering the research gap, the notion of undertaking the proposed research study was generated. 4. Research Methodology The research methodology of the proposed research study will be presented in this section. The aim of this section is to provide a general overview of the various methods and approaches that will be followed for conducting the proposed research study. 4.1. Research Paradigm The selection of the research paradigm is deciding upon the form and approach that will be followed for the proposed research. Positivism and post-positivism are the two essential research paradigms that govern the selection process. Positivism is based on the notion that there is existence of certain laws and phenomena that preside over the events that occur socially. The events arise independent of the entities that observe (The Pennsylvania State University, 2010). In these types of researches, the characteristics within the environment depict constant facts over a period of time (Kim, 2003). On the other hand, the post-positivist paradigm is composed of formation of social facts by the entities who participate in the research process. In this case, the facts in the process are framed differently depending on the different notions of the participants (Krauss, 2005). In common parlance, post-positivist phenomenon is more effective that the positivist phenomenon and hence in the proposed research study, the former will be followed. Therefore, the study will be based on the post-positivist approach and a qualitative research design to attain the determined objectives. In this context, the study will consider the social facts related with the performance of employees which are influence by the performance management strategies and thus affect the organization at large. 4.2. Access to Data It is mandatory to arrange for all the required aspects necessary for generating access to the required data. The researcher should discuss the more on accessing the data after consulting with the parties involved with the research. In the proposed research study, the access to data will be generated through utilizing various secondary sources of data. The secondary sources would add flexibility in the entire research process and would also enhance the scope of gathering data for the researcher. A wide range of journals, articles, magazines, newspapers and valid online sources will be composite within the list of secondary sources. Within these secondary sources, the various public sector organizations that have implemented performance management processes will be researched. 4.3. Data Analysis and Interpretation The various sets of data about impact of performance management within public sector in the UAE will be analyzed with the help of exploratory data analysis. This form of analysis helps in presenting compact summary defining the fundamental features of certain sets of data in such a manner which is accessible to everyone. Exploratory data analysis reduces complexities of the forms of data makes the process of interpretation convenient. It is because of these advantageous facts about exploratory data analysis that it will be utilized in the proposed research study. Interpretation of the findings from data analysis will be conducted with the approach of exploration so that complete insights into the research can be gained. 4.4. Delimitation of the Research The proposed research study will be limited to the findings of the earlier researchers whose published research papers will be utilized in the proposed study. The research scope in the proposed study will remain confined up to the facts that have been identified by the researchers. Although the interpretation can be presented in a broader perspective, the limited findings of earlier researches will hold strong probability of demoting the quality of interpretation. There will be strong probability of coming across certain situations when wider scope of findings will be experienced. 5. Work Plan Considering the research aim and objectives, the questions are required to be designed The various areas of concern within the research are required to be identified for framing the model The research approach, participants, process of data collection, data analysis process and delimitations are required to be ascertained Various previous researches on the field of measuring impact of performance management on the employees’ performance are required to be broadly analyzed Before undertaking the final research process, the proposed methodology will be applied on test sample Data are required to be collected from the secondary sources The collected data are required to be analysed through exploratory data analysis technique The collected data and their respective analytical results along with various other chapters of research study are required to be written Submission of the written work with proper formatting and inclusion of every required norms of the program are to be done Review of the submitted work is required to be conducted as per the given comments of the reviewer 6. References Artley, W. and Stroh, S., 2001. Establishing an Integrated Performance Measurement System. The Performance-Based Management Handbook, Volume 2. Baraldi, S. and Monolo, G., 2004. Performance Measurement in Italian Hospitals: The Role of the Balanced Scorecard. International Journal of Operations and Production Management, 29(12). Bititci, U. et al., 2004. The Interplay between Performance Measurement, Organizational Culture and Management Styles. International Journal of Operations and Production Management. Braam, G. J. & Nijssen, E. J., 2004. Performance Effects of Using the Balanced Scorecard: A Note on the Dutch Experience. Long Range Planning, Vol: 37. Dumond, E. J., 1994. Making Best Use of Performance-Measures and Information. International Journal of Operations and Production Management, Vol: 14. Economic Commission for Africa, 2004. Public Sector Management Reforms in Africa: Lessons Learned. Publications. [Online] Available at: http://www.uneca.org/publications/dpmd/public_sector_mangt.pdf [Accessed October 22, 2011]. Faizal, M., 2005. Institutionalization of Performance Appraisal System: A Case Study of the Maldivian Public Service. University of Bergen. [Online] Available at: http://www.ub.uib.no/elpub/2005/h/701001/Masteroppgave.pdf [Accessed October 21, 2011]. Goren, B., 2006. What Does Public Sector Hope to Gain From Performance Management? Solutions. [Online] Available at: http://www.sas.com/solutions/pm/surveyarticle.pdf [Accessed October 21, 2011]. IOMA Business Intelligence at Work, 2005. Two Studies Reveal How Firms are improving their Budgeting and Planning. Performance Reporting: Majority of Companies Need to Fix their Balanced Scorecards. IOMA’s Financial Analysis, Planning and Reporting 2005 Yearbook. Kald, M. and Nilsson, F., 2000. Performance Measurement at Nordic Companies. European Management Journal, Vol: 14. Kim, S., 2003. Research Paradigms in Organizational Learning and Performance: Competing Modes of Inquiry. Organizational Systems and Research Association. [Online] Available at: http://www.osra.org/itlpj/kimspring2003.pdf [Accessed October 21, 2011]. Krauss, S. E., 2005. Research Paradigms and Meaning Making: A Primer. The Qualitative Report, Vol: 10. Lawson, R. et al., 2004. Automating the Balanced Scorecard. CMA Management, Vol: 77. Lawrie, G. et al., 2004. The Design of a Strategic Management System in an Industrial Private Sector Organization. International Journal of Operations and Production Management. Lovell, B. et al., 2002. A Pragmatic Assessment of the Balanced Scorecard: An Evaluation of a New Performance System for Use in a NHS Multi Agency Setting in the US. University of Bradford Working Paper Series, Vol: 2. MacKenzie, I. S., 2000. Performance Appraisal Systems for Organizational Success. Strategic Management of Change. [Online] Available at: http://www.usfa.fema.gov/pdf/efop/efo24709.pdf [Accessed October 22, 2011]. Malina, M. A. and Selto, F. H., 2001. Communicating and Controlling Strategy: An Empirical Study of the Effectiveness of the Balanced Scorecard. Journal of Management Accounting Research, Vol: 13. McNamara, C., 2011. Performance Management: Benefits and Concerns. Free Management Library. [Online] Available at: http://managementhelp.org/performancemanagement/benefits.htm [Accessed October 21, 2011]. Mooraj, S. et al., 1999. The Balanced Scorecard: a Necessary Good or an Unnecessary Evil? European Management Journal, Vol: 17. Papalexandris, A. et al., 2004. Implementing the Balanced Scorecard in Greece: A Software Firm’s Experience. Long Range Planning, Vol: 37. Poppell, C. et al., 2006. Performance Management: Measuring, Managing, and Rewarding Employee Performance. International Personnel Assessment Council, Inc. [Online] Available at: http://www.ipacweb.org/conf/06/poppell.pdf [Accessed October 21, 2011]. Ripley, D., 2002. Improving Employee Performance: Moving Beyond Traditional HRM Responses. International Society for Performance Improvement. [Online] Available at: http://www.ispi.org/pdf/suggestedReading/Ripley.pdf [Accessed October 21, 2011]. Robinson, S. P., 2004. The Adoption of the Balanced Scorecard: Performance Measurement Motives, Measures and Impact. International Journal of Operations and Production Management. Shulver, M. and Antarkar, N., 2001. The Balanced Scorecard as a Communication Protocol for Managing Across Intra-Organizational Borders. Proceedings of the 12th Annual Conference of the Production and Operations Management Society, Orlando, FL. Sim, K. L. and Koh, H. C., 2001. Balanced Scorecard: A Rising Trend in Strategic Performance Measurement. Measuring Business Excellence, Vol: 5. Tapinos, E. et al., 2005. The Impact of Performance Measurement in Strategic Planning. International Journal of Productivity and Performance Management, Vol: 54. The Regents of the University of California, 2008. Performance Management. Supervisor. [Online] Available at: http://www.hr.ucdavis.edu/supervisor/Er/PerfMgmt [Accessed October 21, 2011]. The Pennsylvania State University, 2010. Paradigm. wxh139. [Online] Available at: http://www.personal.psu.edu/wxh139/paradigm.htm [Accessed October 22, 2011]. United Nations University, 2011. Performance Management. International Institute for Software Technology. [Online] Available at: http://ocw.unu.edu/international-institute-for-software-technology/structures-and-processes-for-operating-and-implementing-e-governance/organization4.pdf [Accessed October 21, 2011]. Waal, A. A., 2002. The Role of Behavioral Factors in the Successful Implementation and Use of Performance Management Systems. PhD, Vrije Universiteit Amsterdam. 7. Self-Assessment In completing the proposal, I was confident with the importance of the area which I have chosen for study. Hence I did not find much difficulty for completing the introductory section of the proposal where primarily, I had to focus upon the relevance of the proposed research study. Similarly, I was also clear about the methodology that I will be following for conducting the proposed research study. Thus the third section of proposed methodology was also not a problem for me. However, I found some difficulty in searching for relevant research study papers of earlier researchers who have conducted research in the related field of proposed study. So a lot amount of time had to be given to this part. With much careful and logical research, I was able to complete that section as well. Read More