Performance Management System - Coursework Example

PERFORMANCE MANAGEMENT SYSTEM Student’s Name: ID Number: Lecturer: Date: Performance Management System Introduction Performance management system has always remained to be the true litmus test for business organizations’ survival in the market. Highly productive employees contribute to a company’s high performance and therefore, they give the company a competitive advantage over others. It is the efforts of these employees that differentiate great organizations from organizations that are merely good. In this regard, it is important that organizations should have systems that identify, recognize, reward as well as retaining high performing employees in order to achieve and maintain a sustainable growth. Most companies understand the importance of these systems and they spend much of their funds trying to acquire them so that they can maximize their growth and success in the marketplace. However, most employees’ performance persists despite the great investments that these companies try to invest in. Although most companies are investing in this kind of performance appraisal method, this does not guarantee high employee performance. According to (Grote 2002, pg.234), most employees feel that management performance systems in their companies are not effective. This perception of the employees is likely to demotivate them, thus creating a feeling of frustration and eventually their performance is negatively affected. Effective performance management systems that balance all employees without biasness should be put in place to ensure that a company achieves the highest competitive advantage (Kanji 2002, pg. 725). Role of performance management systems in building a performance culture Performance management systems play two important roles in ensuring that organizations are highly productive. These roles include: i) Ensuring that all employees are aware of the expectations that the company has on hem ii) Assessing employees’ performance and activities accordingly. In respect to the case study, the human resource manager of Carringbush Council has identified some of the problems affecting the employees. Among them are having competent operational managers but they lack leadership skills simply because they do not rise to the next level of management (Kirg 2010, pg. 59). The human resource manager argues that operational managers are dominated by their supervisors and therefore their performance goes unnoticed. Another problem facing Carringbush Council is that communication is very poor such that traditional method of top down system is the one that is still applied to date. Research shows that most managers do not admit that junior employees can perform better than them and they ensure that such employees’ efforts are not recognized in the company (Norman 2007, pg. 540). Therefore,with this kind of communication system, high level performing employees cannot be awarded for their efforts. As a result, the business continues to underperform even when there are employees whose skills are under-utilized. Ensuring awareness of the company’s expectations on employees’ performance Performance management system that a company is using should be communicated to the employees. Making employees of Carringbush Council aware of what they are expected of will help to make them improve their performance other than just introducing a performance management system without communicating its intentions to the intended parties. Failure to communicate makes the system to remain ineffective regardless of the resources that have been used to put it in place. Performance management is a discipline that is quickly maturing in the business world (Panda 2011, pg. 278). Just like other key elements that enhance effective employee performance for example payment of salaries,communication is also a motivating factor that makes employees to feel recognized in their respective positions. Vertical,horizontal and diagonal communication methods should be used in the organization. Top down communication leads to an inferiority complex among the employees whereby they feel that they should not air their views, and that they can only rely on the decisions made by their seniors (Robson 2005, pg. 45). Assessing employees’ performance and activities accordingly Council has competent employees as the human resource manager puts it. However, their performances are not assessed and it makes it even harder to understand those employees who re high-level performers. Business pressures are ever increasing and therefore organizations are becoming aware of the need to increase their performance to attain a high competitive advantage. Improved performance is enhanced through productive employees who can improve their performances if their efforts are continuously recognized and rewarded accordingly(Sahu 2007, 211). Designing the PMS to deal with problems raised in the initial position paper The way a performance management system is designed also determines its effectiveness in an organization. The working conditions in Carringbush Council are poor such that employees are not given a chance to communicate with their seniors. The management also fails to explain to the employees what they are expected of in the organization. The system that is to be designed should address the following issues: Working towards common goals: the human resource department should seek to harmonize individual objectives to the overall objectives of the organizations. It is the individual performance that drives the overall organizational performance. Therefore, it is very important that each individual’s roles aredefined and then be harmonized with the objectives of the organization (Solomon 2009, pg. 213). Clear understanding individual expectations: employees in organizations in which they understand their duties do not experience ambiguities in the workplace. Each employee is held accountable of hi/her duties and since each individual understands their duties, performance management motivates them to be innovative in the organization (Warner 2002, pg. 413). Rewards for good performance: when employees improve their performance, they should be rewarded with a variety of awards to show gratitude for work that has been well performed. The prospects of a better performance in an organization are cultivated through motivating employees by awarding them upon good performance. The problems faced when implementing PMS Lack of commitment from senior and line managers: According to (Zornitsky & Rubin 2008, pg. 119), most performance management systems are ineffective due to poor executive engagement. A well-developed PMS without having a committed executive remains ineffective and have no effect on the productivity of the organization. If management does take the process of introducing PMS serious, the employees will also not take it seriously. Lack of knowledge and skill: (Kanji 2002, pg36)argues that the introduction of PMS may be hindered by poor training on how it is operated. Poorly trained managers will fear to be involved in the evaluation of their subordinates using the performance management system. Investment in PMS should account for executive training as well to avoid frustrations from the managers. Resistance to change: PMS makes the performance of each employee transparent in the whole organization. Few individuals would accept this kind of a process, especially those who are reluctant at work. Therefore, employees may also require training to sensitize them on the need of having the PMS in the organization. Overcoming the problems of introducing the PMS The management should initiate training programs to ensure that all employees in the organization understand the need of having PMS. Capacity building of managers who underrate themselves is also another strategy that can help to overcome the challenges of introducing PMS. Some operational managers feel that they cannot handle employees when it comes to issues of appraisals. Such managers need an understanding of their importance in the organization and their roles and authority as managers. The gap between the management and the employees also need to be reduced. The top down method of communication should be discouraged in the organization. Employees who can freely interact with their seniors cannot fear the introduction of PMS since they can easily air their views on the system. Conclusion The main objective of PMS is to ensure that employees’ performance is improved. Consequently, the overall management will also be improved.With improved performance of the organization, the productivity will also be high and it will be able to raise its competitive advantage over other organizations. To ensure that the PMS introduced in the organization is effective, communication should be done to all the stakeholders affected by the system and also ensure that all employees are aware of what is expected of them by the organization. Introducing PMS is, however, faced with some challenges for example, lack of skills of management, resistance to change by the employees and lack of cooperation from the management. These challenges can be overcome by training all the stakeholders on the importance of using PMS in order to improve the overall performance of the organization. References Grote, R. C., 2002. The performance appraisal question and answer book a survival guide for managers. New York: American Management Association. Kanji, G. K., 2002. Performance measurement system. Total Quality Management, 13(5), 715-728. Kirg, k., 2010. Manage people, not personnel: motivation and performance appraisal. (2010). Boston, MA: HBS Press. Norman, R.,2007. Managing Outcomes While Accounting for Outputs: Redefining "Public Value" in New Zealand's Performance Management System. Public Performance & Management Review, 30(4), 536-549. Panda, S.,2011. Performance Management System: Issues and Challenges. Management and Labour Studies, 36(3), 271-280. Performance management system. (2004). Sydney: NSW Dept. of Courts Administration. Robson, I., 2005. Implementing a performance measurement system capable of creating a culture of high performance. International Journal of Productivity and Performance Management, 54(2), 137-145. Sahu, R. K., 2007. Performance management system. New Delhi: Excel Books. Solomon, C., 2009. Select a performance management system: performance improvement. Alexandria, VA: American Society for Training & Development. Warner, J., 2002. Janus performance management system a complete performance management support process for individuals, teams, and the entire organization. Amherst, Mass.: HRD Press. Zornitsky, J., & Rubin, M., 2008. Establishing a performance management system for targeted welfare programs. Washington, D.C.: National Commission for Employment Policy. Read More