Performance Management System Process - Assignment Example

1. Evaluate the PMS development plan and implementation processes outlined in the above case. Are there any ways by which you believe PMS development and implementation processes could have been improved upon? PMS is a process that helps in the effective management of individuals and teams to ensure high level of organizational management is attained. We can say that the PMS development plan outlined in this case is an effective one. The plan is effective because it aims to establish a shared understanding concerning what is to be attained at CBH and outlines an approach that will be used to lead and develop people to ensure that high performance for CBH is achieved. The PMS plan in the case began by collecting views of employees and identifying the weaknesses in previous management systems. This was essential since the process of planning was consultative to reduce cases of rejection of the system. The plan started off well but the proposals made to correct the system were not all inclusive and only managers were consulted. The fact that the employees’ views were not sought at this [point might present some problems during implementation since the employees will feel that they are being forced out of their comfort areas. Furthermore, the case notes that some employees are unionized but the plan does not involve union leaders. Thus this may be a problem during implementation since employees who are unionized may not face the same wrath like those who are not unionized and hence the system is bound to be unfair. This may result in high rates of employee turnover. In spite this shortcomings, the system proposes continuous performance improvement, development and management of individual behaviour which are essential for improving the general performance of the organization. The nature and detail of the system was well communicated. From evaluation little emphasis was placed on the skill level of supervisors to operate the system. In addition, measurement of competence, provision of feedback and setting performance goals by supervisors was not adequately addressed during development of the PMS system. Even though the plan and implementation of this PMS was effective, those involved in its planning should have involved all stakeholders at all stages. The unions to which the employees belong to, employees and even customers could have been consulted instead of narrowing down to management only. This could have provided a wide view of ways of improving the performance of CBH. In addition, it would have addressed the problems experienced during the implementation of the system such as how to measure competence and to set performance goals. 2. What are the purposes of CBH’s PMS? Identify and evaluate the key features or characteristics of this PMS. What do you see as its defining characteristics? The purposes of PMS at CBH included improvement of competence, improving performance and rewarding best performing individuals in addition to linking performance to remuneration for individuals in management positions. Furthermore, the system was aimed at providing behaviour descriptors or indicators that differ at different levels. One of the major characteristic of this system was to create performance development and reward system. This development of employees’ performance is in line with the purpose of performance management system of ensuring that employees receive information continuously about how effective they are performing relative to their expectations. Another characteristic of this PMS is provision of competency rating guide. This is also inline with the function of PMS of identifying performance of employees which does not meet expectation of the firm. The system is also characterised by rewarding the best performers which is also good for recognizing performers. This ensures that the distribution of awards and salary are in line with performance. The system also provides career plan for its employees to ensure that employees further their careers to improve their performance. This is one of key characteristics that encourages and facilitates development of employees. The defining characteristic of this system was the process for communicating employee performance expectations, maintaining ongoing performance dialogue in addition to conducting annual performance appraisal. 3. What (if any) do you assess as potential weaknesses in this PMS, and how might those weaknesses be addresses? There are some weaknesses in the PMS that was developed at CBH. One of the weaknesses is that the system does not indicate how employee performance that does not meet the expectation of the firm is addressed. It only talks about rewarding those who perform better. In addition, the system failed in its development stages in that some vital stakeholders such unions were not involved in the process. This is bound to raise inequality issues pertaining actions to be taken to unionized non performers and unionized non performers. In addition, the procedure for resolving performance pay disputes is not outlined in the system that was developed at CBH. This is bound to present grave tussle between the management and the employees who feel that their efforts are not being recognized through equivalent pay. From evaluation little emphasis was placed on the skill level of supervisors to operate the system. In addition, measurement of competence, provision of feedback and setting performance goals by supervisors was not adequately addressed during development of the PMS system. To address this problems the system need to be revised and put into consideration these issues. The revision should involve all those unions to which the unionized employees of CBH belong to. In addition, the management ought to incorporate how those who perform below the expectation of the firm would be addressed. Procedures for resolving disputes related to performance and pay should also be incorporated in the system. The supervisors need to be educated on how to measure competence, provide feedback and how to set performance goals. 4. How is performance managed within this PMS? Performance management process ensures that employees focus their work efforts in such a way that they contribute to the attainment of the firm’s mission. It involves three stages which include setting expectations for the employee performance, maintenance of dialogue between supervisors and employees while keeping performance on track and measurement of actual performance in relation to performance expectations. Management of performance within this PMS at CBH involves setting performance goals through different departments setting specific objectives which are aligned to the business of the department. The measurement of outcomes is agreed upon by the managers and employees. This makes employees to understand what is expected out of them in terms of priorities and outcomes. These phases of performance management set expectations for employees and maintains dialogue between employees and managers in addition to keeping track of performance and measuring the actual management in relation to expected performance. Thus management within this PMS is in line with standard performance management systems. The fact that goals are set at departmental stage implies that the mission of the firm is taken into account when formulating and implementing these goals to im[prove the performance of CBH at large. 5. Does the PMS provide a sound basis for identifying training and development needs? The profitability of an organization depends on the productiveness of employees. The identification of training and development needs of employees should involve analysis of the whole organization and should identify where training is needed and where it will work best within the organization. Once the organization has obtained a clear idea where training is required the content of the program ought to be concentrated on this section. The performance of individuals can be compared to the organization’s performance standards or anticipated needs. These details and descriptions will aid in establishing the gap between standard or expected performance and actual performance. Thus the need for training and development is the difference between standard or expected performance and actual performance. The PMS which was developed for CBH enables employees to develop their own development objectives which they are expected to seek assistance. The learning and development needs are done by a section of the firm that is responsible for this function. The PMS for CBH does not provide a comprehensive basis for the identification of training and development needs. It only provides a development plan that is expected to be done by the employee. It has little content on how the important gaps that require training will be addressed. Thus the PMS for CBH is not sound. Read More