Performance Management Systems - Literature review Example

Running Head: Performance Management Systems Performance Management Systems Insert name: Module: Institution: Instructor: Date: Executive summary The triumph and development of any company is determined by the success and advancement of the people who are involved in running and controlling it. Workers who are devoted to increasing learning and expanding are an aggressive component in an organization. The constant organization of the performance of a person and the group is the remedy to a thriving affiliation between the employee and the company’s organization. Performance management helps in the establishment of free and interactive work atmosphere and this helps in developing the skills in workers and also builds a successful group of workers and a triumphant organization. Various techniques are used to motivate workers and to help them attain the required skills in their fields of production. For a big organization to effectively execute the management system, it is important that they supervise activities, plan activities and control resources available for the activities. In this view, it is the role of the organization to ensure that activities to be included in implementation are embraced by all the workers so that when planned they will benefit both the individuals and the company. These activities may include rewards and incentives given to workers as a result of good performance in the work place. This report aims at discussing the factors that may be put into consideration when designing and implementing a performance management system in a multi-campus university. The paper will also highlight the advantages and disadvantages of various options of performance management system that may address the diversity of staff functions and roles. Appropriate recommendations will be provided at the end for effective implementation of performance management scheme. Table of Content page Executive summary ………………………………………………………………………2 1. Introduction……………………………………………………………………….. 4 2. Designing and implementing a performance management system………… 5 3. Advantages and disadvantages of PMS a university …………………………6 4. Diversity of Staff Functions and Roles…………………………………………. 7 5. Options of performance management system…………………………………8 6. Conclusion ……………………………………………………………………….. 10 7. Recommendations………………………………………………………………. 11 8. References……………………………………………………………………….. 12 1. Introduction Performance management system (PMS) is a technique adopted by organizations in increasing and educating their workers. It’s also a set of guidelines for people who have signed an employment contract with a company. Information regarding the company’s positions, visions and targets are told to workers to help them comprehend the significance of the organizations work and the individual’s part in the organization. Workers are also given the structure to help them gain bonuses and salary increment when reviews of individual performance is conducted. According to Lindsay (2002), the system cannot be achieved in a day; it takes several years to derive full benefit and establish a firm foundation. In multi campus universities where the organization is quite large, the management designs set during implementation are not actually observed because the implementation of the guidelines is usually a hard task. Owing to the fact that dealing with grown ups is not as simple as it could be the case of administering rules and regulations to young kids, it is important to take into account the sensitivity of implementing and preserving the systems introduced in any organization (Dean, 2002). There will be a group which will oppose any positive happening while there will be those to propose and support the implementation. It is the role of the management to make certain that they are practiced and observed by all and it should be given time. 2. Designing and implementing a performance management system  There are various factors which an organization’s management team should consider when designing a performance management system in order to ensure that there is a smooth running of the business and also success in getting a competitive workforce in order to improve efficiency in production of goods and services (Dean, 2002). The factors can be categorized into different stages as follows; (a) managing the action, (b) planning the action and (c) control of assets, funds and any other resources available for the action. These factors can further be classified in three stages, i.e. strategic, deliberate and operational. When analyzed, the Main Decision Centers (MDCs) is identified and this is the meeting point of an action and the intensity which has a consequence of its activities, a main pressure in order to achieve the overall objectives of the manufacturing method. After preparing the methods and identifying the MDCs, another level to ensure there is flow of the manufacturing methods are objected to the MDCs. In this level, there arise other factors which the decision maker can differ in quest of the manufacturing scheme aim; these are referred to as decision variables. The performance indicators are fashioned from the aims and decision variables. The Fraunhofer Institute in Berlin has initiated a means to design management systems related with the Integrated Enterprise modeling Method and a process mapping tool. This method allows people to have a distinct comprehension on how value chain can be generated. The process records are used as the basis for the identification of significant success factors which then describe performance signals required for their perspectives. 3. Advantages and disadvantages of PMS a university Advantages of Performance Management System It enables a worker to have a clear understanding of job expectations a worker is able to get a regular performance feedback there is a clear advice and steps for improving performance for the worker there are rewards for good performance and this further motivates the worker Disadvantages of Performance Management System Inactive vision and strategy: If the senior organization panel has failed to reach a conclusion as to how the vision should be achieved, different workers’ groups will start tracking different opinions and this attempt is neither rational nor related to the plan in an integrated way. Failure to interlink the strategy to the concerned department, team and individuals goals: When this happens, those concerned do not adopt the new performance criteria but quite follow the old one and this can ruin the introduced new policy. This condition is very serious because it will cause the management to go back to the underground to prepare a new policy and this wastes time and resources. Unrelated strategy to resource allocation: This happens when the permanent strategic planning process and yearly budgeting process are separated and may this may cause unrelated funding and capital allocations (Kleynhans et al, 2006). Risk of Internal Competition: This occurs when workers compete with others for job status, position and pay, which could lead to failure among team members to communicate efficiently and strong worker enmity. It could lead to malfunction of the department leading to failure in accomplishing performance standards. Favoritism: Organization heads tend to trust and rely on one worker more than the others, either the worker is appointed to be the supervisor or the team leader. This leads to dissension and distrust among the group members and cause team division which severely affects the morale and satisfaction of the worker. 4. Diversity of Staff Functions and Roles Dean (2002) points out that staffing trends indicate that without a resolute battle to address the staffing, maintenance, and occupation advancement of workers, an organization such as a university will not have the skilled, well-informed and competent employees required to sustain its training and research operation. In a study for the University of California, Los Angeles, we find the management very concerned about the welfare of its workers by providing quality standards for the existence and success of its employees. The university encourages open contact and dialogue with the staffs to support the aim of creating an affirmative work atmosphere. The workers are allowed to discuss a wide scope of issues such as work-life balance, chances for learning and developing, and service to the community. Valuable working associations with faculty at the branch level, followed by open interactions concerning University dealings and how workers can put in to the larger educational operation, are essential to constructing devotion and allegiance to the organization (Lindsay, 2002; Dean, 2002). Leaders at all stages have a significant responsibility in instituting a hospitable and a comprehensive working and learning atmosphere for people of all backgrounds and viewpoints. Thompson et al (1997) argues that the issuance of values to the public will assist in maintaining this attempt. An organization must always monitor the climate of the workplace, i.e. campus where we have students of all kinds and personalities. It should be noted that dealing with such a group of crowd can be difficult if the staff is not well nurtured on how to handle different students at various stages. It is also clear that if the staff are well treated and have a positive attitude to the organization they are working for and in this case in a campus, they will be able to monitor different attitudes of students and will be in a position to report any unbecoming behaviours which could cause strikes, chaos and any bad campaign against the administration. Varma et al (2008) points out that the staff will not only work on the specified roles in the employment contract, but will go further to see that there is order in the institution where they are working bearing in mind that any negative action will not only affect the management, but all the entire institution including the staffs. Positive attitude towards the organization will enable them to fight all vices and encourage all positive virtues aimed at developing and protecting the interest of the organization. Good performance management system will bring out a link where the staff could act as the middle men for the students and the organization by forwarding complaints from students, and giving advice to students on remedial actions to prevent further irregularities. 5. Options of performance management system Majority of organisations working in a complex environment are exposed to varieties of options that help them run a performance management system. The options are all geared toward increasing the performance organisations. Each option comprises common recurring activities to set up organisational goals, monitoring such goals and carrying out any readjustment call upon. Any of the options will improve organisational performance based on if they are implemented expansively and remain focused on the outcomes of the organisation. The approaches comprises of; Balanced Scorecard; is deliberately designed to have a comprehensive and focused on results of an organisation. Focus on four elements, that is, customer perspective, internal-business processes, learning and growth and financials in monitoring the progress toward organisation’s strategic goals. Its weakness is that no improvement will be realised if the approach is not implemented from a strong design. Benchmarking; the approach uses standard measurements of its services and compare them with other organisations in gaining the perspective on organisational performance. This approach has been common for universities and hospitals. The goodness with this process is that, it’s perceived as a quality initiative (Budhwar & Nisi, 2008). Nevertheless, it’s not all widespread approach assured to improve performance, rather than benchmark results which can be compared and employed in entire processes. Knowledge management; aims at the compilation and management of decisive organisational knowledge in increasing its competence to attain the intended results. It involves an extensive use of computer technology in running its activities. The approach is not generally comprehensive process assured to improve organisational performance. The effectiveness of knowledge management to any organisation in reaching its wide-ranging results depends on how well the improved, decisive knowledge is implemented. Learning organisation; the approach aims at improving organisation systems-comprising of organisational individuals-to increase its capacity for performance. it mostly uses principles of system theory. The effectiveness of knowledge management to any organisation in reaching its wide-ranging results depends on how well the improved, decisive knowledge is implemented. Management by Objectives (MBO); aims at the alignment of goals and objectives of subordinates within the organisation. Under this approach, employees are able to acquire strong input recognizing their objectives, timelines for completion of intended task within the organisation (Thompson et al, 1997). MBO comprises the continuing tracking and feedback in process to reach the desired objectives, making the approach to be perceived as a form of planning. Outcome-Based Evaluation; the approach is nowadays more and more used, mostly for nonprofit organisations, to evaluate the impact of their services as well as products on their target communities. In public universities, the process has entailed the equitable distribution of educational opportunities in target market and measures the outcome results in assessing the extent of outcomes reached (Budhwar & Nisi, 2008). 6. Conclusion Basically, what is involved in a performance management scheme is moulding and bringing out the best workforce entity. We have looked at educating and equipping workers with knowledge and skills as one of the most important aspect of this system. Rewarding the workers will also play a major role of motivating and building the worker’s confidence in the organization (Budhwar & Nisi, 2008). When employees participate in the programmes initiated to help in developing the system, there is the promotion of a diverse workforce through the channel for upward mobility of staff. Such programmes consist of mentorships, expertise improvement opportunities and group nurturing. 7. Recommendations There are various recommendations which can be assorted to improve the implementation of performance management system in a multi-campus university. Maintaining a dynamic and competent workforce in each campus, affirmative action, planning to realize the range and making confident conformity with guidelines as a federal contractor are some of the recommendations that can be approved for a performance management system in an organization. An organization that cares about the performance of its staff will be very keen to provide development opportunities in support of career advancement. There should also be the creation of a hospitable and a dignified work environment, with consideration of differences in races, ethnicity, origin, economic background, gender, age, disability, sexual orientation and other personal attributes. By offering training to managers and administrators in calculating a varied workforce, there will be growth in understanding the importance of creating a dynamic and dignified work environment in all areas of the campus, also valuing individual differences, preventing discrimination, and providing tools for early resolution of workplace conflicts. Through learning, workers will develop the aptitude and ability to function efficiently and interactively in gradually more complex surroundings. 8. Reference Budhwar, P. S. & Nisi, A. D., 2008. Performance Management Systems a Global Perspective. New York: Taylor & Francis Publications Dean, J. 2002. Implementing performance management: a handbook for schools. London: Routledge Gabarro, J.J.1992. Managing People in Organization. Harvard Business Press. Graeme, M. 2006. Managing people and organizations in changing contexts. Oxford: Butterworth-Heinemann Grote, D. & Grote, R. C., 2002. The Performance Appraisal guide book. New York: AMACOM Publication. Kleynhans, R., Markham, L., Meyer, W. & Aswegen, S. V., 2006. Human Resource Management. Cape Town: Pearson Education South Africa Ltd. Lindsay, C. 2002. Performance Management Systems. New South Wales: Software Publication. Stankard, M.F. 2002. Management systems and organizational performance: the quest for excellence beyond ISO9000. Westport: Greenwood Publishing Group. Thompson, A. A., Strickland, A. J. & Kramer, T. R., 1997. Readings in Strategic Management. New Jersey: McGraw publishers. Varma, A., Budhwar, P.S. & Nisi, A.D. 2008. Performance Management Systems a Global Perspective. New York: Routledge Read More