Effective Performance Management Systems

Document Type:Thesis

Subject Area:Management

Document 1

The appraisal systems have got established as having remarkable failures both in operation and subsequent monitoring of employee welfare. Notably, the shortcomings of these year-end reviews go a long way in making a case for more efficient performance management systems (Hersey, Blanchard & Johnson, 2007). These include annual retroactive reviews which do little for employee development due to the sheer aspect of focusing on past and possibly irrelevant information in addition to being outdated. On the other hand, the benefits of an effective performance management system are manifold and range from legislative security, employee development, efficient achievement of goals and better collaboration between the workforce and top management (Arlitt et al. On this note, the following paper endeavors to provide a retrospective analysis of performance management systems with the core objective of developing an insightful perspective and making a case for the more profound understanding of efficient employee performance management systems. Literature Review The traditional employee performance management systems, have little to offer in the modern world with the potential shortcomings outweighing the gains. These activities have been understood to be annual performance appraisal activities which constitute a performance appraisal cycle in which reviews are done at the end of each year (Otley, 1999). As an end of year activity, the most significant shortcoming of the approach gets to be its retroactive nature as it allows little room for a correction on site since the time difference between errors and their realization is remarkably long. Therefore, staff members are limited regarding their growth potential in these work environments because the performance management system in place does not make room for corrections and practice of the proposed solutions.

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Also, having a year-end review is quite taxing regarding time and energy required to assess all the activities of an entire year, comparing the same with the desired outcomes and making measured recommendations for each employee in line with the goals of the organization. Also, year-end reviews have been observed to have an overall negative effect on employee attitude and motivation. The reviews at the end of the year place each staff member on notice, and the forthcoming grilling does not help reduce the pressure. The majority of these systems allow for minimal communication between top management and the workforce, negatively impacting collaboration and teamwork, and develops an overall negative attitude towards work from the employees (Cascio, 2018). Markedly, these stem from the notion that the top management makes use of the appraisal reports in decision making, which might not be in the best interests of the staff.

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These shortcomings of an old-fashioned and skewed performance management system are in direct contrast to effective employee performance management systems. Pros and Cons Each company stands to gain from an effective performance management system. These gains are reflected in improved organizational performances relative to previous years. An effective performance management system effectively places an organization’s changing interests at heart and focuses on providing the employees as well as employers with the best working conditions possible. These include appropriate planning mechanisms at the beginning of each financial year which adequately weigh each’s capacities to the organization’s objectives and subsequently selects the most gifted individuals to tasks that they are most capable. With each working on their most fitting task in the organization, there are better chances of an improved performance limit on all the staff members (Cascio, 2018).

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These strategies ensure that the company remains in pole position to keep evolving its means of service delivery excellently to cope with the widely changing circumstances of every market. Notably, the staff members are also bound to come up with new inventions as a result of routine activities with ensuring that the company makes massive savings when they invent new ways of handling their tasks. On this note, a company stands to gain from all spheres with the implementation of an effective performance management system. The employees are guaranteed development, more effective strategies are developed, goals are set and effectively achieved, feedback from top management is continuous, and affording the workers room for self-expression provides the company with creativity and innovation opportunities which is a competitive edge above rivals (Albrecht et al.

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Although the probable benefits accruing from an effective performance system cannot be overstated, implementing such a system presents a company with an array of costs which cannot be easily mitigated. These can widely be regarded as the most effective principles of performance management. As earlier noted, best performance management systems have the stand out quality of being efficient in achieving the organization’s short and long-term objectives. The mechanisms put in place must go beyond simply working towards the organization’s goals, it must provide alternative courses of actions for the employees, ensure cooperation between the staff and team members, and lead to the better achievement of the organization’s goals (Benner & Tushman, 2003). As an analysis medium, efficiency serves as an adequate benchmark for any management system put in place in an organization.

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Besides, the system must adhere to the performance requirements placed in the initial planning stages of the company’s financial year. Coaching ensures that every member of the workforce adequately relates to every management decision carried out by peers or other members of staff. The management has an opportunity to gain coaching abilities from the professionals taxed with the duty of implementing the new performance management systems and use the same in training and team building workshops in subsequent times in the organization (Cascio, 2018). Conclusion Performance management is critical to every organization, and it is imperative that it gets accorded adequate time to implement and have staff members accustomed to the changes. Although these performance management regimes have evolved to reflect the modern changes in the economic performances of the organizations, they have not always been active.

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The earliest cases of performance management were rooted in making annual retrospective reviews at the end of a performance period and making conclusions from the same of an employee’s effectiveness in meeting the organization’s objectives. Macey, W. H. Saks, A. M. Employee engagement, human resource management practices and competitive advantage: An integrated approach. Tushman, M. L. Exploitation, exploration, and process management: The productivity dilemma revisited.  Academy of management review, 28(2), 238-256. Breton‐Miller, I. Volberda, H. W. Building alliance capability: Management techniques for superior alliance performance.  Long range planning, 36(2), 151-166. Goetsch, D.  Management of organizational behavior (Vol. Upper Saddle River, NJ: Prentice hall. Hersey, P. Blanchard, K. H. M.  Gaining a competitive advantage. Irwin: McGraw-Hill. Otley, D. Performance management: a framework for management control systems research.

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