Why Performance Management Is a Necessary but Often Difficult Process in Organisations - Case Study Example

Examine why performance management is a necessary but often difficult process in organisations Performance management (PM) refers to commitment by leaders and managers to achieve highest performance levels from the employees. Involvement of employees in all the important processes inside the organization is a key part of the performance management system. For that, organisations, leaders as well as department managers should productively involve the employees, to motivate the employees and also to elicit better productivity from them. They should implement this aspect of PM in every department at every operation including offshore or onshore operations. That is, as part of performance management, the organisation has to keep the mental as well as physical state of the employees in an optimum state. Only if the employees’ are physically fit and importantly mentally motivated, they can optimally contribute their skill, knowledge and hard work for the success of the organisation. So, through performance management, the employees can be optimally motivated to provide optimal contribution. As part of performance management, the organisation, management, leaders and managers has to implement certain steps or strategies. These performance management strategies will surely elevate the employees’ motivation and make them productive. However, while implementing these strategies, there will certain pitfalls or problematic issues, which could hamper the strategies from reaching logical conclusion. That is, these issues will cause certain problems, which could make these strategies unsuccessful. So, although performance management strategies will lead to many positives for the organisation, there will be some difficulties in aptly implementing it, and this paper will examine this issue by focusing on the performance management strategies in each aspect of organisational functioning. During Recruitment and decision making process Performance management refers to commitment by managers to achieve highest performance levels. Managers should take responsibilities to eliminate road blocks to success by providing sufficient resources and be careful in employee selection process as well as being ready to provide adequate rewards valued by employees (Cascio, 1996). The activities conducted by managers before, during and after interviews of performance feedback entail roles before interviews including communication with employees on their performance by coaching them, giving feedback and communicating performance efficiency. During interviews, the manager should avoid judging individuality of the employees and ponder on performance in order not to discourage employees’ performance in future. The manager should be active in listening, create evenhandedness and precision perceptions and shun criticisms that prove destructive. As part of performance management or performance management strategies, after interviewing new employees, the manager should carry on communications with subordinates while examining his or her advancement on the set objectives in order to keep employee behavior on check and enhance commitment for performance by employees. But, on the other hand, if all the above mentioned avoidable mistakes are indeed carried out, then the PM strategies will not yield good results. That is, if there is bias and double standards during interviews, then the candidates will get de-motivated, and will not be interested to join or even perform in the organisation. The manager should also obtain feedback from performance training which he can use to solve employment problems. In this regard manager should take his or her time to prepare adequately for performance interviews. The manager should encourage participation during interviews, and welcome subordinate ideas by creating ownership perception which would in turn result into increased satisfaction by the subordinates on systems of appraisal as they are given opportunities to give their suggestions. That is, as part of the PM system, the managers or supervisors can involve the workers in all the important processes particularly decision making process by using the inputs from the employees for the optimum functioning of the organizations. Managers or supervisors should put for discussion his/ hers thoughts among the workers, and thereby involving them productively as a form of teamwork. “…give them a clear sense of purpose, an accurate explanation of their personal importance in the running of the organisation, and regular communication about the direction and performance of the business” (HR Zone). This strategy will have favourable results. If the managers or supervisor does not productively involve the employees it will surely lead to de-motivation and this can be seen in many organisations in the world. So, managers’ or supervisor’s act of involving and allowing co-workers as a team to play a part in the important processes, but at the same time being the final authority is one of the important parts of the performance management systems. But, if it is not implemented properly, it could reach the other extreme and could lead to de-motivation among the employees. Thus, the PM strategy of effectively involving the employees is a necessary strategy but could be difficult to implemented, leading to repercussions. . Formation of a common organizational culture as part of the performance management system The success or failure of an organization depends on the role; the leader, manager plays. The leader or managers only can establish an optimum performance management system and can ‘sprinkle’ motivation and drive into the minds of the workers, thereby accentuating their performance for the betterment of the organization. “Performance management is an essential tool for high performing organizations, and it is one of a manager’s most important responsibilities, if not the most important responsibility” (Pulakos 2004). The task of the leader or manager is to create a working culture, embed the working culture in the working group and environment in the form of team culture, sustain it and also rectify it, when faults occur. The culture creation will start with the leader or manager ‘imposing’ his/her own assumptions, ideals, ideas, etc, as a form of organizational culture. They will, therefore, be quite comfortable in imposing those views and personal cultures, on their partners and employees as the organization copes with challenges and targets. This imposition of manager’s assumptions, as a form of good culture is one of the first steps. Because once a common culture is imposed on the employees, they will have a common thing to hold on to. If the many employees adopt this common culture, they will surely form into a team and with also work as team, with the common culture acting as the binding element. So, this external impetus or adoption of common culture from external source forms the basis for the self-managed teams, as the “common goal is defined outside the team” (Chatfield). But, in some organizations, the challenge to this imposition of a new culture will come in the form of experienced workers who will be slugging out in the same job in the same environment, importantly in the same mindset for years, who could act as the disturbing element in the formation of a team, with a common organizational culture. “In order to remain competitive, change is an inevitable part of organisational life. But resistance to change can trigger productivity paralysis through low morale and reduced output.” (Training zone). Thus, this PM strategy of implementing a common culture could be made difficult by certain elements of the workforce. At the same time, the leader or manager is only responsible for making them fall in line and make them fast and ready, thereby transforming the self-directed teams into self-managed teams. So, this process of great working culture will always be or should always be ‘seeded’ by the leader or manager, and it forms an important part of the performance management system. “HRM highlights responsibility for managing organization culture and leadership issues. HRM concerns with setting consistent HR policies which reflect and communicate “core values” of the company. It is through building culture and sharing common values among people that companies are trying to ensure that their acts and decision are based on best interest of the company rather than stressing on conventional rules and procedures, thus achieving the element of speed” (alagse.com). Rewarding as part of performance management Optimum and unbiased rewarding system should be part of any performance management system because it can only motivate the employees by imbuing in their mind that their performance will surely be recognized and feted. It can only optimize the performance of the workers. “…build the psychological contract, in which employees feel valued by their employer, and the employer values (and is seen to value) employees’ contributions” (cipd). But, if this rewarding system is biased, illogical, un-genuine, it could affect the performance. That is, if the organization overriding tried and trusted individuals; give important posts, responsibilities and rewards to individuals who might be family members, friends, and persons with negative influence on the leader, etc, it will create negative effects. If this practice is followed, it will create de-motivation and disenchantment among workers and will show the organization in poor light. In many companies, because of the ritual of awarding plum posts to the family members and shielding them when they committed mistakes, many members of the organization banded together in a kind of mutual protection society that developed a culture of its own. They were more loyal to each other than to the company, without any focus on the company’s goals. Here also, it is clear that although performance management is a important process, it could cause problems and will be difficult to implement. So, to keep the core group of good workers in a motivated state, the organization needs to award the right individuals with correct inputs from the HRD and HRM. Only, if they decide that the rewards are fair they are more motivated to put effort into tasks (Beardwell and Claydon 2007). “Especially in organizations that use performance management as a basis for pay and other HR decisions, it is important to ensure that all employees are treated in a fair and equitable manner” (Pulakos, 2004). Allocating Rewards and Status to the deserving and apt candidates or workers is an important trait the leader should have. In an organization, the workers would do their duties for personal motivations like money, looking after their family etc, but their motivation level will get a great boost if they receive rewards and promotions. Rewards and promotions to deserving and ‘success achieved’ workers will motivate them to give better results and motivate others also, to reach that status. So, leaders can quickly get across their own priorities, values, assumptions, etc and importantly organization’s goals and profits by consistently linking rewards and punishments to the activities of the candidate. Conclusion In the present era, the business world needs to have a lot of improvement within its ranks, if it adopts the policy of working towards the establishment of a performance management system. Although, as discussed above, while implementing performance management, there might be some problems among the workforce, it will be on the minor side because it can lead to many positives. That is, basically, it would guarantee them a lot of success as their employees and workers would dedicate their whole hearted efforts towards the well being of the company as well as towards their own individual capacities. Once these performance management systems are installed and in place, organisations can have a proper check and balance mechanism as concerns to the people who are working in the company. Performance management systems make use of the fact that performance is increased on the part of all concerned and there is no shortfall as concerns to commitment, dedication and devotion when at work. What this performance management system does is to ensure that the right people get the bonuses, incentives and so on as well as point out the ones who have fallen short on the company’s expectations over a period of time. Thus, although, implementing performance management is difficult, it is a necessary thing, which could lead to optimum success for the organisation. References alagse.com, Human resource management and personnel management - shift in focus, viewed on August 20, 2010 http://www.alagse.com/hr/hr2.php Beardwell, J and Claydon, T 2007, Human Resource Management: a contemporary approach, Harlow: Financial Times, Prentice Hall Cascio, WF 1996, Managing for maximum performance. HRMonthly (Australia), pp. 10-13 Chatfield, M, Self-Directed and Self-Managed Teams, viewed on August 20, 2010 http://www.irism.com/selfteam.htm cipd, Employee communication, viewed on August 20, 2010 http://www.cipd.co.uk/subjects/empreltns/comconslt/empcomm.htm?IsSrchRe s=1 HR zone. HR tip: Controlling absence, viewed on August 20, 2010 http://www.hrzone.co.uk/cgi-bin/item.cgi?id=176289&d=1063 Pulakos, E 2004, Performance Management: A roadmap for developing, implementing and evaluating performance management systems, Society for Human Resource Management, United States of America. Training zone, On The Couch: Counselling at Work, viewed on August 20, 2010 http://www.trainingzone.co.uk/cgi-bin/item.cgi?id=177537 Read More