Performance Management is More Trouble than its Worth - Essay Example

Debate Essay Name Course Tutor’s Name Date ‘Performance Management is More Trouble than it’s Worth’ Introduction This essay presents arguments that support and oppose three propositions namely: ‘Performance Management Is More Trouble than it’s Worth’; ‘The Glass Ceiling is a Myth’, and ‘Labour Standards Should be Included in all Trade Agreements’. For each proposition, the essay has indicated the author’s considered opinion. In the conclusion section, there is an indication of the lessons learnt in each case study. In the first case study, the writer learnt the need to link performance management to overall organisational strategy. The glass ceiling is not entirely a myth, and the fact that employment relations are also governed by international labour standards are the lessons learnt from case studies two and three respectively. a. The supportive argument The reliance of on performance measurements which are ill-linked to organisational strategies and objectives is according to Holmberg (2000), one of the greatest weaknesses in performance management. If performance management is done without a clear link to the organisational strategy (which is often the case if Holmberg’s (2000) views are anything to go by), then all the efforts put in measuring performance and managing it do not add any value to the organisation. Busi and Bititci (2006) further note that most performance management practices target internal functions such as punctuality to work, but fail to link such internal functions to customer needs and overall organisational performance. For example, an organisation that has a highly punctual employee base may not necessarily perform well in satisfying customer needs or enhancing the company’s performance. In other words, the efforts put in performance management do not always translate to good organisational performance. The failure of performance management, most especially where performance management systems are used is indicated as very high at 70% (Neely & Bourne 2000). Yet, too much work goes into developing performance management systems, to an extent that some organisations are lost in the development process, hence losing sight of the main reasons why the performance management was being designed and implemented (de Waal & Counet 2008). b. The negative case As indicated by Brumback (2003), a world without performance management would not only be random, but also chaotic. In other words, Brumback (2003) is alluding to the fact that performance management makes workplaces more manageable and ordered hence increasing the likelihood of attaining set objectives. Brumback (2003) further indicates that the problem with unfruitful performance management is not in the process itself, but in the shortcomings present in performance managers. The performance management process must also be linked to the overall organisational strategy, and must follow four indicated phases if it is to have value for the organisation. The four steps are: setting expectations for behaviours and results; nurturing, monitoring and rescuing performance; appraising performance; and sanctioning the appraised performance for accountability purposes (Brumback 2003). c. Own opinion I believe that both the proponents and opponents of the statement that performance management is more trouble than it is worth have varied points. Personally however, I agree with Brumback’s (2003) argument that a workplace without performance management would be chaotic and random. I also think that if aligned with the strategic goals and objectives of the organisation, performance management should have a positive effect and be of value to the overall firm performance. The performance managers should also avoid losing sight of the overall organisation goals during the design and development of performance management models. Specifically, they should always keep in mind what the organisational goals and objectives are. The goals and objectives should act as the foundation on which the performance measurement model is built. For instance, instead of using punctuality as a key performance indicator, performance managers should use deadlines, customer satisfaction, employee turnover and profit levels as some of the important performance indicators. The Glass Ceiling is a Myth a. The affirmative case From the glass ceiling case study, it looks like Zoe Cruse was a victim of her own decisions. As such, arguing that her forced resignation was a reflection of the glass ceiling is arguably stretching the truth a little too far. As noted by Bombuwela and Chamaru (2013), the glass ceiling metaphor is used in many circles to explain the inequalities that exist between women and men especially in the workplace. The question one would ask in Zoe Cruse’s case is: would a man have been treated differently from Zoe Cruz? Well, probably not. Bombuwela and Chamaru (2013, p. 6) define the glass ceiling as “a transparent barrier which prevents women from moving up the corporate ladder past a certain point”. Ms. Cruz had expressed her interest in senior positions in the Morgan Stanley, but her department had also made risky decisions to trade in subprime mortgages, which ultimately led to huge losses at the height of the 2008 financial crisis. One of the theories that refute the glass ceiling phenomenon is the experience hypothesis, which suggests that women and women of equal qualifications and experiences are treated equally (Kaufmann, Isaksen & Lauer 1996). The personality theory further suggests that significant differences in personal leadership qualities and abilities exist among people of both genders (Kaufman et al. 1996). The theory further contends that regardless of gender, a person who does not possess leadership qualities such as high drive, decision-making abilities, ability to withstand pressure, risk-taking abilities, toughness, dominance, achievement orientation and ability to take an unpopular stance among others cannot ascend to leadership. b. The negative case Zoe Cruz was one step away from the CEO position, yet her dreams were halted by what is arguably the glass ceiling. The decision to ‘force’ her into retirement is a reflection that although women can move up to upper career levels, their advancement to higher positions is halted by gender bias that works against them (Bombuwela & Chamaru 2013). From the case study, Morgan Stanley was awash with internal succession politics. It is thus probable that Ms. Cruz’s forced retirement was a well calculated move engineered by her male counterparts who were interested in getting one of their own to the CEO position. If this was indeed true, it would be a reflection that the glass ceiling was indeed a real phenomenon. The stereotype theory has been quoted in attempts to support the existence of the glass ceiling phenomenon. The theory suggests in part that “a leader is a person that is perceived to be a leader”, and that “male-trait stereotypes overlap to a considerable degree with traits associated with...” a good leader (Kaufmann et al. 1996, pp. 30-31). The stereotype theory further suggests that women-trait stereotypes are less likely to be associated with good leadership. As such, and if the theoretical suggestions made are true, it would appear that the glass ceiling is indeed a true phenomenon. c. Own opinion The presence or lack thereof of the glass ceiling is arguably dependent on the prevailing organisational culture in different firms. I however do not think that the glass ceiling is entirely a myth. In some cases, and as indicated in the section above, the stereotype theory, where women are perceived as being less capable than their male counterparts, could be true. On the other hand, it could also be that women do not invest in acquiring leadership qualities like their male counterparts as suggested by the experience hypothesis. It could also be that they do not possess the leadership qualities that are more common among their male counterparts as suggested by the personality theory. Arguably, women do not have more prerogatives to act irresponsibly while using their gender as a rider. As such, they must be willing (just like their male counterparts) to be held responsible for their decisions and actions without always blaming their gender for the tough decisions taken in relation to their irresponsible conduct. Labour Standards Should be Included in All Trade Agreements a. The affirmative case Workers all over the world deserve good working conditions, fair wages, and fair working hours. Additionally, sweatshops and underage labour should be illegal throughout the world despite the economic differences among countries (Grandi 2009). Labour standards should therefore be included in all trade agreements in order to prevent the exploitation of workers throughout the world. For example, zero tolerance towards child labour is a standard that should be enforced to prevent countries that still exploit underage labour from trading on the international front. The barring of their products from the international markets would act as an incentive pushing the countries to adopt better labour practices. Notably, and as indicated by Grandi (2009), there are some “internationally recognised labour rights”, which include rights to: association; collective bargaining; prohibition of forced labour; prohibition of child labour; and minimal working conditions (i.e. minimum wage, occupational and health safety, and working hours). If enforced, such standards of labour would ensure that workers all over the world are treated with dignity, justice and fairness. b. The negative case If included in all trade agreements, labour standards would have negative effects on low- and middle- income countries, whose main competitive advantage against the developed countries is their affordable and flexible labour (Grandi 2009). Additionally, and as has been noted by Stern (2003), countries differ depending on per capita incomes, levels of development, and prevailing social, cultural and political conditions. Applying labour standards in all countries would therefore amount to denying the differences that exist between such countries. Stern (2003) further notes that different countries may have different market failures that make it hard to attain set labour standards. Ideally, countries are able to obtain optimal economic welfare when they use internal resources to correct market failures (Stern 2003). The forced use of labour standards would therefore be ill-placed in correcting internal market failures. By using trade as an intervention to force the adoption of labour standards among countries, (Stern, 2003) notes that the attainment of higher standards of labour could be hindered in future. c. Own opinion Labour standards should be included in all trade agreements because they protect the workers, regardless of their nationalities, from exploitation and from subjection to low and undermining labour practices. However, the labour standards (especially on minimum wages) should be left for individual countries to set depending on prevailing economic conditions. Notably, countries have different economic, cultural, social and political environments and as such, labour standards should be flexible enough to accommodate the differences in each country. The trade community should however prohibit negative social and cultural factors such as child labour. There are some universal standards that should receive attention from all countries irrespective of prevailing differences. Such include the need to conserve the environment (i.e. through environmental regulations), and the need to protect other people’s intellectual property. Conclusion From the first case study, I have learnt that performance should be linked to the overall organisational strategy. However, workers can also deliver on the expectations placed on them by their performance managers, and as such, the latter has the greatest responsibility to link performance management to organisational strategy. From the second case study, I have learnt that the glass ceiling is not entirely a myth, and that the prevailing organisational cultures determine whether women can assume the highest leadership positions in an organisation. The third case study has taught me that besides the internal benchmarks that a company has to meet, the international market sometimes expects manufacturers and other international businesses to meet specific labour standards. In the global market, it is only fair that fair trade practices should prevail. Notably, the welfare of workers should be protected; hence the labour standards which make it necessary for countries to enforce labour rights. References Bombuwela, P M & Chamaru, D A 2013, ‘Effects of glass ceiling on women career development in private sector organizations- case of Sri Lanka’, Journal of Competiveness, vol. 5, no.2, pp. 3-19. Brumback, G B 2003, ‘Blending “we/me” in performance management’, Team Performance Management: An International Journal, vol. 9, no. 7/8, pp. 167-173. Busi, M & Bititci, U S 2006, ‘Collaborative performance management: present gaps and future research’, International Journal of Productivity and Performance Management, vol. 55, no.1, pp. 7-25. De Waal, A & Counet, H 2008, ‘Lessons learned from performance management systems implementations’, International Journal of Productivity and Performance Management, vol. 8, no. 4, pp. 367-390. Grandi, L P 2009, Trade Agreements and their Relation to Labour Standards: the current Situation. Issue Paper No. 3, International Centre for Trade and Sustainable Development, Geneva, Switzerland. Holmberg, S 2000, ‘A system perspective on supply chain measurement’, International Journal of Physical Distribution & Logistics, vol. 30, no. 10, pp. 847-868. Kaufmann, G., Isaksen, S.G., & Lauer, K 1996, ‘Differences in upper level management: the case of innovator orientation’, European Journal of Work and Organisational Psychology, vol. 5, no. 1, pp. 29-41. Neely, A & Bourne, M 2000, ‘Why measurement initiatives fail’, Measuring Business Excellence, vol. 4, no. 4, pp. 3-6. Stern, R M 2003, ‘Labour standards and trade agreements’, Research Seminar in International Economics, Discussion Paper no. 496, pp. 1-26. Read More