Deficiencies nd the Perception of Power - Essay Example

Performnce Mngement ssignment Introduction The extent to which the prctices nd processes of humn resource mngement (HRM) cn be trnsferred from one country to nother hs been the subject of considerble debte. This question is of specil interest to multinational computer maintenance company (MCMC) when it seeks to estblish HRM processes spnning different cultures nd countries. It is question tht hs lso roused considerble interest mong those reserching HRM prctices t MCMC.Performnce mngement (PM) is strtegic HRM process tht enbles the MCMC to continuously evlute nd improve individul, subsidiry unit, nd corporte performnce ginst clerly defined, preset objectives tht re directly linked to compny strtegy. number of studies hve suggested tht, provided the design nd implementtion of PM re pproprite, it hs the potentil to ffect employee ttitudes in wy tht mkes significnt nd positive contribution to compny performnce. Current pper pper provides criticl nlysis of orgniztionl system of performnce mngement bsing on the findings retrieved nd mterils vilble. I first provide theoreticl overview of the term of performnce mngement, then reserch its ppliction to subsidiry compny, finlly comment on chnges of performnce mngement tht re supposedly needed to be implemented into orgniztionl ctivity. Performnce mngement system within n orgniztion The expression "performnce mngement" ppered in the lte 1980s nd cn be regrded s n extension of "performnce pprisl"-- prctice used to evlute n individul employee's pst performnce. Tody, however, performnce pprisl is considered s one of severl key elements of PM, the others being the communiction of compny strtegy through individul objective setting, links to trining nd development plnning, nd possibly compenstion (Brlow, 2001:501). Despite the fct tht much of the reserch hs been performed within the U.S. context, little reserch hs been crried out on PM in interntionl settings nd even less so in MCMC subsidiries operting in diverse cultures. This derth of reserch mens tht we know little bout the effects of PM on job stisfction mong employees in MCMC where the mjority of the work force re of host-country ntionlity, nd where the host-country's culture my differ substntilly from tht of the MCMC's home country. Moreover, our limited knowledge of the impct of PM on job stisfction is indictive of the pucity of reserch concerning the ttitudes of host-country employees nd especilly of nonmngeril employees in MCMC. It is well known tht employees with negtive ttitudes re likely to perform poorly, cuse disruptions in opertions, nd eventully jeoprdize the vibility of the orgniztion. Furthermore, it hs been documented tht job stisfction is relted to turnover. s Mendonc nd Knungo (2004) hve noted, job stisfction nd turnover re incresing chllenges for MCMC operting in developing countries, whose lbor mrket lcks mngeril nd technicl tlent. Vrious spects of PM hve been studied in both the interntionl nd comprtive contexts. For instnce, scholrs hve ddressed such issues s the impct of ntionl culture on mngement by objectives, differences in mngement style nd performnce pprisl in the United Sttes, Indonesi, Thilnd, nd Mlysi (Zhu, Dowling, 1994:2), nd ntionl culture nd its impct on PM/performnce pprisl in Hong Kong, Tiwn, Singpore, Gret Britin, Jpn, Kore, the United Sttes, Mlysi, the Philippines, Indi, nd Chin. The mjority of these studies, especilly the ones with comprtive ttitudinl dt, hve provided evidence tht culturl differences influence elements of PM nd tht the trnsferbility of PM between countries cnnot be ssumed. However, little interntionl nd comprtive reserch hs exmined ctul effects of PM per se on host-country employees. Consequently, while we know tht MCMCs commonly dopt stndrdized PM policies nd prctices t both their home country nd in overses subsidiries, we do not know wht effect such stndrdized PM hs on host-country employees. The effects of PM hve received greter ttention in domestic settings, but even there the reserch is limited. Most studies hve commonly concentrted on individul elements of PM in isoltion--for exmple, on objective setting, on employee prticiption in objective setting, nd on conveying performnce feedbck. Even though it could be ssumed tht multiple elements of PM would influence employee job stisfction, only few studies hve presented evidence tht the presence of such multiple elements (job objectives, performnce feedbck, subordinte prticiption in PM, nd the presence of creer discussion) produces positive chnge in employee job stisfction. The reminder of this section defines job stisfction nd exmines its reltionship with PM. Performnce mngement system within chosen orgniztion hs n influence on the job stisfction. Reserch on job stisfction is derived from the mterils vilble develop positive job ttitudes if their jobs llow them to fulfill their needs. Vrious fctors hve been shown to ffect employees' job stisfction--for exmple, the nture of the work, promotion opportunities, equitble rewrds, supervision, supportive working conditions, nd collegues. Employees re motivted not only by extrinsic needs but lso, more importntly, by positive job-relted fctors such s skill vriety, tsk identity, tsk significnce, utonomy, nd feedbck. It hs been rgued tht if skill vriety, tsk identity, nd tsk significnce exist in job, the incumbent will view the job s importnt, vluble, nd worthwhile. In ddition, if the job grnts utonomy, it gives the employee feeling of personl responsibility for the results, nd, if it provides feedbck, the employee will know how e ffectively he or she is performing. PM is n importnt process for influencing both the extrinsic nd intrinsic motivtions of employees, tht is, incresing employees' perceptions nd understnding of job tsks nd subsequently their job stisfction. For exmple, elements of PM my provide the employee with more ccurte understnding of job tsks (tsk identity nd tsk significnce) through objective setting, leding to cler sense of direction. PM lso serves to focus employee efforts nd ttention on criticl tsks through the use of performnce feedbck, which therefore ssists employees in reducing job errors nd minimizing the risks of lerning through tril nd error. In ddition, where employees desire jobs tht llow them to mke good use of their skills nd tlents, PM increses job tsk "fit" (Wldmn, 1997:265) (skill vriety) through the identifiction of trining nd development needs tht re consistent with individul nd orgniztionl gols. In exmining the impct of PM t MCMC, this study tests three hypotheses. Ech is rel ted to specific element of PM: orgniztionl nd job objectives, performnce evlution nd feedbck, nd development discussion. Orgniztionl gols nd job objectives Performnce mngement in the orgniztion commonly emphsizes the communiction of orgniztionl gols by integrting them into deprtmentl nd, more specificlly, individul-level gols nd job objectives. It could therefore be ssumed tht host-country employees t MCMC subsidiry re, vi PM, mde fully wre of the orgniztion's gols, nd tht, where these become prt of their personl job objectives, they would influence their job stisfction. However, there my be differences in how objectives re set. Some scholrs hve suggested tht the method by which objectives re set (with or without subordinte involvement) is not importnt, since both styles increse gol commitment (Locke nd Lthm, 1984). Other scholrs hve rgued tht the gol ttinment of employees my be higher where they re ble to contribute to the formultion of job objectives since their understnding of how to ttin the objectives my thus be incresed. Performnce mngement commonly entils forml performnce evlution s well s informl performnce feedbck bout progress towrd objectives. Severl scholrs hve rgued tht effective PM is dependent on employees' perceptions tht they re receiving fir performnce evlutions. However, perceptions of fir performnce evlutions re contingent not only on the outcome (e.g., the performnce rting), but lso on the employees' understnding of the process by which their performnce is evluted. It hs lso been shown tht informl performnce feedbck is strongly correlted with job stisfction. This hs led to the ssertion tht performnce feedbck, where it is conveyed frequently nd together with support from the mnger, increses the cceptnce of PM nd stisfction with the mnger. Moreover, performnce feedbck conveyed frequently nd give n immeditely fter good or bd performnce hs been shown to led to higher job stisfction nd performnce. Given these findings, it cn be thus concluded tht employee perceptions of fir performnce evlutions nd frequent performnce feedbck re positively relted to job stisfction in MCMC. Performnce mngement commonly includes definition of trining needs in order to increse future performnce s well s the identifiction of the employees' creer development spirtions nd opportunities. Discussions with n employee bout his or her development re necessry when it is recognized in connection with objective setting tht n employee needs dditionl cpbilities in order to chieve objectives, nd/or when it is noticed in the performnce evlution tht n employee did not ttin objectives due to insufficient cpbilities. Previous studies hve demonstrted tht n identifiction of the employee's trining nd creer development correltes with job stisfction nd performnce. In contrst with feedbck tht is directed t the performnce of the work itself, discussions regrding trining nd creer let people know where they stnd by focusing on how performnce cn led to desired outcomes. It hs lso been shown tht dis cussions of future plns, where they re crried out within the mbit of PM, hve positive effects on employee ttitudes. ccordingly, it cn be sid tht employee perceptions of personl development opportunities re positively relted to job stisfction in MCMC. Orgniztionl gols nd job objectives Orgniztionl gols nd job objectives proved to be n importnt predictor of employee job stisfction in ll the subsidiries nd countries included in the present study except mong Indin mngers. Communiction of subsidiry gols nd the setting of job objectives is n importnt process in tht it increses the commitment of host-country employees to their orgniztionl nd job objectives nd subsequently ugments their job stisfction. The setting of objectives is more importnt thn how the objectives re set, it could be proposed tht the setting of job objectives my be pplicble in high power-distnce countries nd cn influence job stisfction nd performnce of host-country employees. In ddition, it should be remembered tht host-country mngers from high power-distnce countries my employ more top-down style of implementing objective setting nd dictte objectives for their employees without seeking their input nd suggestions (Pucik, 1998). Indeed, there is evidence tht host-country employees in high power-distnce countries expect mngers to behve utocrticlly nd my feel uncomfortble if they re consulted openly. Furthermore, where foreign subsidiry mngers operting in uthoritrin cultures invite employees to engge in prticiption nd open consulttion during PM, they my be perceived by their employees s incompetent. This suggests tht we my need to focus on the implictions of how job objectives re set (prticiptively or nonprticiptively) for host-country employees in MCMC subsidiries in high power-distnce cultures nd on which styles re perceived more efficient by host-country employees. Chnges in the performnce mngement system Within orgniztion's performnce mngement system, there re severl issues tht should be considered in order for the orgniztion to perform to the extent to its potentil. For the multintionl orgniztion tht is being discussed, it is importntly to reinforcing its core competencies tht hve been one of the significnt developments in the technology of performnce mngement over the pst few yers. Competencies define for ll members of the orgniztion the behviors, skills, ttributes, performnce fctors nd proficiencies tht every orgniztion member is expected to possess nd disply. They re limited in number nd criticl to orgniztionl success. The performnce pprisl system plys severl roles here. First, it is the mechnism tht helps the orgniztion highlight nd communicte the smll number of criticlly importnt behviors nd skills ginst which every single employee will be ssessed. In ddition, creting new performnce pprisl system my help force the orgniztion to define just wht ttributes or fctors re ctully t the orgniztion's core. Finlly, the pprisl system cn gurntee tht these competencies re fully understood nd institutionlized. Within the frmes of my orgniztion top mngement relizes tht determining the core competencies -- s difficult s doing tht hd been -- re in fct the esy job. The hrd job is be communicting them to every employee. Even hrder would be mking sure tht they showed up, dy in, dy out, in everybody's job performnce. Tht's where performnce pprisl cme in. Not so long go senior mngement within orgniztion commissioned performnce pprisl implementtion tem. They put together group representing digonl slice of the orgniztion: mngers nd professionl employees, supervisors, nd technicins from different levels nd functions nd geogrphicl loctions throughout the gency. This twenty-member tsk force ws mde responsible for creting performnce pprisl system tht directly relted orgniztionl mission, vision, nd vlues to ech employee's job. In ddition, top mngement demnded tht the system reinforce the importnce of ll employees' demonstrting the core competencies nd individul chrcteristics they hd identified. Clrifying Competencies The chosen orgniztion experience demonstrtes one of the key findings of the best-prctice performnce mngement study: orgniztions re incorporting core competencies into their pprisl procedures. Some do it extremely well. Others, public nd privte both, struggle with the process. But one, multintionl orgniztion developed performnce pprisl system tht is model for its form design, its incorportion of core competencies, nd the ingenious process its designers cme up with for mking it esy for mngers to use the system well. The multintionl orgniztion's design tem found n elegnt solution to this sensitive problem. The sme form is used for everybody -- "whtever our job, we're ll employees of the City of Irving." But in the prt of the form tht concentrtes on competencies, the designers recognized tht there re different skill groups, nd they estblished vrious ctegories to tke the differences in job content into ccount. They strted by determining tht every job in the city fell netly into one of six groups ccording to the skill demnds of the position: Clericl, Mintennce/Trdes, Technicl, Professionl, Supervisory, nd Executive Mngement. They then begn the identifiction of competencies. They strted with the reliztion tht some of the things they expect of employees re simply bone-deep ttributes or expecttions required of nybody who collects pycheck from the multintionl orgniztion. They clled these, "Core Vlues," nd settled on five of them: Customer Service, Ethics nd Integrity, Job Knowledge nd Skills, Professionlism, nd Self Mngement. Besides these, there re lso "Performnce Essentils" -- skills or proficiencies needed by nyone who works for living. gin, the list ws nrrowed to the six most importnt for nyone on the pyroll of the city: Communiction, Self Development, Inititive, Interpersonl Skills, Qulity of Work, nd Temwork. Like the Core Vlues, these re essentil in everybody's job nd show up on every employee's pprisl form. But finlly, there re those competencies tht will vry from one skill group to nother. For clericl employee, two criticl competencies re Work Hbits nd Quntity of Work. This brings the totl number of competencies ssessed for person in the Clericl skill group to 13 -- five core vlues, six performnce essentil, nd the two specific, job-relted skill group competencies. For professionl employee the totl number of competencies ssessed grows to 20 -- the sme five core vlues nd six performnce essentils, but the list of skill group competencies chnges. "Quntity of Work" nd "Work Hbits" dispper from the list (they're tken for grnted in professionls) but re replced with nine others, like ccountbility nd chievement Orienttion nd Innovtion. Mintennce/Trdes employees hve 14 competencies they're ssessed ginst; people whose jobs fll into the Technicl skill group hve 17. The lrgest number comes -- s you might expect -- t the highest level. Executive Mngement is ssessed ginst 22 competencies, while members of the Supervisory skill group -- s you might not expect -- hve the highest number of competencies t 23. From Performnce pprisl to Performnce Improvement Performnce pprisl is only one exmple of the led public sector orgniztions re tking in performnce mngement innovtion. The purpose of performnce pprisl is to identify the qulity of n individul's job performnce. Wht hppens when tht qulity is uncceptble One of the most innovtive performnce mngement procedures public sector orgniztions re instlling is non-punitive, "discipline without punishment" pproch when informl converstions fil to solve problems of bsenteeism, poor performnce, nd shbby ttitudes. Orgniztions s vried s the Chrlotte (NC) Housing uthority, North Crolin's Mecklenburg County, the Congressionl Budget Office, the University of Illinois, the City of Sn ngelo (TX), the Houston Deprtment of vition, nd the entire Stte of Georgi hve rejected trditionl dversril disciplinry responses. In these orgniztions, reprimnds, wrnings, demotions, nd unpid disciplinry suspensions re thing of the pst. Insted, they hve dopted n pproch tht requires errnt employees to tke personl responsibility for their behvior nd commit to fully stisfctory performnce s condition of continued employment. Conclusion This study shows tht the communiction of multinational computer company gols nd the setting of job objectives constitute n importnt process for incresing the job stisfction of host-country employees. In ddition, fir performnce evlutions nd frequent performnce feedbck constitute n importnt predictor of job stisfction t these workplces. It hs lso considered the personl development spect of PM nd found tht it influences job stisfction mong employees in ll the countries nd subsidiries included in the study. However, it lso reveled tht the prctice of evluting nd giving feedbck on perfprmnce is likely to be dpted to the host culture. References: 1. Brlow, G. "Deficiencies nd the Perception of Power: Ltent Functions in the Mngement pprisl." Journl of Mngement Studies, 26 (2001), 499-517. 2. Gosselin, .; Werner, J.M.; nd Hlle, N. "Rtee Preferences Concerning Performnce Mngement nd pprisl." Humn Resources Development Qurterly, 8, 4(2001), 315-333. 3. Hckmn, J., nd Oldhm, G. "Motivtion Through the Design of Work: Test of Theory." Orgniztionl Behvior nd Humn Performnce, 16(1996), 250-279. 4. Lthm, G.P., nd Wexley K.N. Incresing Productivity Through Performnce pprisl. London: ddison Wesley, 1994. 5. Lwler, E.E. "The Multitrit-Multirte pproch to Mesuring Mngeril Performnce." Journl of pplied Psychology 51(1997), 369-381. 6. Mbey, C., nd Slmn, G. Strtegic Humn Resource Mngement. Oxford: Blckwell, 1995. 7. Mendonc, M., nd Knungo, R.N. "Mnging Humn Resources: The Issue of Culturl Fit." Journl of Mngement Inquiry, 3 (2004), 189-205. 8. Pucik, V. "Strtegic llince with the Jpnese: Implictions for Humn Resources Mngement." In F. Contrctor nd P. Lornge (eds.), Coopertive Strtegies in Interntionl Business. Toronto: Lexington Books, 1998. 9. Wldmn, D.. "Predictors of Employee Preferences for Multirter nd Group-Bsed Performnce pprisl." Group nd Orgniztion Mngement, 22 (June 1997), 264- 287. 10. Zhu, C.J., nd Dowling, P.J. "The Impct of the Economic System upon Humn Resource Mngement in Chin." Humn Resource Plnning, 17, 4(1994), 1-21. Read More