Performance Management System - Essay Example

Question 1 Performance management is a method through which the performance targets of an organization is achieved by using the different resources in the most effective manner. It is an integral part of the organization and starts as soon as the targets are determined and based on it the resources are allocated so that the objectives can be achieved. Performance management thereby looks at both the tactical and strategic issues. On the strategic front it looks towards determining the objectives which has to be achieved. The objectives should be such that it inclines with the overall business objectives and helps to work in a planned manner. The tactical objectives deal with the allocation of resources and looks to achieving the objectives in the most beneficial manner (Anderson, 2004). This will help the organization to achieve the objectives at the same time perform in a manner which multiplies the overall effectiveness. To ensure that performance management provides maximum benefit the following key elements have to be ensured The most important key element of performance management is determining the level of performance which has to be achieved. The goal which is determines should be such that it facilitates the resources to work in a manner that it can be achieved. The goals should be realistic and should imply that it will be achieved by using the resources in a correct manner and is something which the business can incline with the overall goals of the business (Behn, 2002). Performance management should determine the level of competencies which will b required achieving the stated objectives. Clear indications regarding the competencies should be provided so that employees are able to plan accordingly and work on the areas which help them to accomplish the target and also results in efficient use of the resources. The performance management process should specify the process in which the resources and activities will be processed and the manner in which the employees will be motivated to achieve the goals. Steps have to be taken to motivate the workforce and employees should be empowered with additional powers which helps them to perform and work according to the different business requirements and helps in the accomplishment of the goals To ensure maximum possible chances of achieving the goals continuous monitoring and regular checks should be done. This will help to provide regular checks and will provide an opportunity where changes can be made so that the chances of accomplishing the goals increase. This will also give direction to the entire process of achieving things and will help to work in a correct direction through which the targets are achieved. The performance management process should clearly indicate the manner in which steps will be taken to further improve the performance and the different directions which will be looked to achieve the goals. This should be matched by the fact that regular training and feedback is provided so that employees become better trained and understand their role and responsibilities. This will help the employees to bring the required changes in the manner the task is done. The entire process of performance management should ensure that achieving the goals will help to enhance the value of the stakeholders and while looking to achieve the goals no such steps should be taken which will result in defaming the name of the organization. Constant reviews and checks should be done regarding it so that the organization is able to develop a performance management process which looks into different minute details and helps to bring a complete transformation in the manner the objectives are achieved. The performance management system which an organization develops should be such that it helps to improve the overall process and brings efficiency in the system. Since, both the organization and the employees are largely dependent on the manner the performance management system is developed as it has an impact on their overall performance so it has to be developed in such a manner that it multiplies productivity. The performance management system should be designed in such a manner that the organization is able to achieve their objectives. Organizations need to ensure that the performance management system which is developed inclines with the system of the organization. This will thereby require proper inclination of the goals so that the overall process helps to improve efficiency (Dawson, 2000). The performance management system also has its importance for the employees as it determines the manner in which the employees have to perform and determines the strategy that has to be adopted to accomplish the goals of the business. Performance management system will also help to evaluate the manner the employee has contributed towards the goals which will thereby help to find out the compensation that has to be paid to the employees. The organization based on the different parameters which have been decided at the time of preparing the different parameters based on which the performance will be evaluated will be helpful. The organization will compare the performance based on the employees performance and will thereby help to ensure equity based on which the employees are compensated. This will help to remove the differences between the workforces and bring all the resources together to work for a common purpose. Designing a proper performance management system becomes important as it will help to determine the resources which will be used to accomplish the goals. This will help the management to match the resources with the objectives and based on it the gaps which exist will be filled. This will thereby help to multiply the efficiency and will help the organization to use the different resources properly Having a properly designed performance management system will help the employees to understand the different parameters based on which their performances will be evaluated. The employees will thereby know the different factors where they have to perform and that will be provided to them before the commencement of the work (Boice and Kleiner, 2007). This will thereby act as a guide and help the employees to be aware of their roles and responsibilities. On the overall basis a properly designed performance management system will help to develop a system through which the organization and the employees both will be able to bring the required efficiency which will help to improve the performance and provide a framework through which the objectives will be achieved in the best possible manner. The performance management process should clearly indicate the manner in which steps will be taken to further improve the performance and the different directions which will be looked to achieve the goals. The performance management system which an organization develops should be such that it helps to improve the overall process and brings efficiency in the system. This will thereby help both the employer and the employee to be able to improve the overall result of the organization. Question 2 The different method of performance evaluation and the different advantages and disadvantages are as Rating Scales The rating scale method employs two methods for measuring the performance of the employee’s i.e. graphic rating scale and behavioral rating scale. The method looks to find out the behavioral success of the employees by rating it on different scales which includes behavioral traits as well. This helps to rate the employees based on different factors so that the performance of the employee can be easily understood. The advantages of the rating scale are as (Dessler, Griffiths & Lloyd-Walker, 2007) It is an easy method as rating individuals and employees becomes easy which thereby helps to ensure easy understanding of the performance of the employees This technique is known the many employees and managers which thereby ensures effective communication and ensures that the different parameters based on which an employee is rated is clear to all. Evaluating the performance of the employee based on the rating scale ensures ease of passing information regarding the strengths and weakness of the employee. This thereby helps the employee to work on those and improve those which will thereby facilitate in the future The different disadvantage of the rating scale is as The method of evaluating the performance of the employee is directly related to the employee’s bonus or promotion which might thereby lead to an adverse impact and have an impact on the motivational level of the employees The process used to judge the performance of an employee based on different factors might be biased as the manager based on his personal preference might look to rate employee accordingly and might not actually consider the different factors which determine the role of the employee within the organization Narrative Techniques This method looks into more detailed analysis of the job and based on it the different parameters on which the employee performance will be evaluated is ascertained. It looks to determine the contribution of the employees by writing a narrative which is determined as positive and negatives and based on it the performance of an employee is evaluated. The different advantages of this technique is as (Dessler, Griffiths & Lloyd-Walker, 2007) This method looks into detailed analysis of the employee behavior which thereby helps to understand the manner in which the employee has been able to contribute positively and helps in better estimation of the employees performance This method provides an opportunity where the positives of an employee can be highlighted and the negatives can be focused on so that the employees improve those and is able to perform better in the future. The performance measure method is more detailed and looks to find out the factors which will determine the employee performance helps to evaluate the performance of the employee in a better manner. This method also ensures that the different factors which are considered are relevant and can be directly associated with the performance of an employee The disadvantages of the narrative technique of evaluating the performance of an employee is as The method of evaluating the performance of the employee might raise objections from employees as bringing forward the negatives in front of others might be something that the employee might not be ready The process used to judge the performance of an employee based on different factors might be biased as the manager based on his personal preference might look to rate employee accordingly and might not actually consider the different factors which determine the role of the employee within the organization Comparison Method This method of evaluating the performance of an employee looks towards comparing the performance of an employee with their peers. Evaluating the contribution based on comparison helps to find out the manner in which an individual employee have contributed and determines the role that the employee has carried out in the performance of the organization (Dessler, Griffiths & Lloyd-Walker, 2007). The different advantages of this technique is as This method looks into detailed analysis as it helps to compare the performance of an employee with the peer which thereby helps to find out the different factors in a better manner and helps to find out the correct underlying reasons which has contributed towards the goal This method provides an opportunity where employees are motivated as understanding their role within the groups motivates the employees to work harder and improves their level of commitment towards the organization and the chances of achieving the group goals increases The performance measure method is more detailed and looks to find out the factors which will determine the employee performance helps to evaluate the performance of the employee in a better manner. This method also ensures that the different factors which are considered are relevant and can be directly associated with the performance of an employee The disadvantage of comparison method to evaluate the performance of an employee is as The process of evaluating the performance might lead towards disharmony and fights between the employee of the organization as each employee might feel that their method of working is proper and the other employee is not able to work according to the required guidelines The process used to judge the performance of an employee based on different factors might be biased as the manager based on his personal preference might look to rate employee accordingly and might not actually consider the different factors which determine the role of the employee within the organization 360 degree Feedback This is a method which looks to evaluate the performance of an employee by getting feedback from different people like colleagues, customers, subordinates, other interested parties an supervisors. This method ensures that the different people are contacted for evaluating the performance which ensures that the chances of being biased don’t exist. The advantage of this method of performance evaluation is (Dessler, Griffiths & Lloyd-Walker, 2007) Since, the process used to judge the performance of an employee based on different factors and by different people it reduces the chances of being biased and will actually consider the different factors which determine the role of the employee within the organization This method also helps to understand the manner in which other people within the organization feel about the performance of the employee and helps to understand the different factors which others within the organization considered important The disadvantage of this method is It might result in poor alignment of the goals and might give rise to negative feelings as if an employee doesn’t rate the other properly it will give rise to negative feeling and might result in unrest within the organization References Anderson, D.B. (2004). Performance appraisal: a different approach. FBI Law Enforcement Bulletin. Washington: 63 (4), 18 Behn, R.D. (2002). The psychological barriers to performance management or why isn't everyone jumping on the performance-management bandwagon? Public Performance & Management Review, 26 (1), 5-25. Boice, D.F. and Kleiner, B.H. (2007). Designing effective performance appraisal systems.” Work Study Journal, 46 (6), 197-201 Dawson, R. (2000). Knowledge capabilities as the focus of organisational development and strategy. Journal of Knowledge Management, 4 (4), 320-327. Dessler, G., Griffiths, J., & Lloyd-Walker, B. (2007). Human resource management: Theory, skills & application (3rd ed.). Australia:Pearson Read More