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Importance of performance management
Effective Performance Management System
Effective Performance Management System
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Abstract
This paper presents a case study regarding Omega Inc., which has a contract sales force for its products. The contractors are employed by independently operated franchised dealers and do not work directly for Omega. Recently, Omega provided a training program for the sales force designed to improve sales performance and the franchisees instituted a performance management system to measure goal accomplishment. There are six primary steps in a performance management system and this paper will review five of the six steps as each relates to the subsequent step.
Prerequisites to Planning
The lack of success at Omega, Inc. rested in the hands of an incompetent sales staff who were not informed of the company’s mission statement and goals. The staff received limited training on the jobs they were to perform. Omega was faced with the challenge of getting the employees to achieve their sales quotas. According to (Aguinis, 2007), “There are two important prerequisites required before a performance management system is implemented: knowledge of the organization’s mission and strategic goals and knowledge of the job in question.” The benefit of superior knowledge of the organization combined with clear and agreed upon mission and strategic goals of their unit would afford employees the opportunity to make contributions that will have a positive impact on the organization as a whole. In addition, one must possess the knowledge of the job in question to execute the tasks necessary to be done and how they should be done. This knowledge is obtained through a job analysis. Omega failed to implement strategic planning throughout all the franchises. According to Aguinis (2007), “Strategic planning allows an organizati...
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... the future and as many have stated, including Joel Barker (2009), “the best way to predict the future is to create it yourself.”
In conclusion, each segment of the performance management process holds a vital link to the next. Not unlike knocking over one domino in a series, it has an effect on the next domino. If one portion in the process is dysfunctional, the next may be identical in its dysfunction – and on and on.
References
Aguinis, H. (2009). Performance Management. (2nd Ed). New Jersey: Upper Saddle River.
Banner, D. K., Graber, J. M. (1985). Critical issues in performances appraisal. Journal of Management Development. Issue 4. Pp. 27-35.
Clifford, J. P. (1994). Job Analysis: Why do it, and how should it be done? Public Personnel Management. Volume 23. Pp. 321-340.
Smith, D. (1999). Make Success Measurable. New York: John Wiley & Sons
Miller, C. E., & Thornton, C. L. (2006). How Accurate Are Your Performance Appraisals? Public Personnel Management, 35(2), 153-162.
Ever dreaded the annual performance review? Once a year companies try to evaluate their workforce with a standard form containing generalities that are supposed to define whether each employee was successful over the previous year. The grading systems, one-way communication, and lack of collaborative effort create a dreaded process for all parties involved. To combat this loathsome process, Michelle Neely Martinez, in her article “Rewards given the right way”, explores a new design for performance appraisals that promotes open conversation regarding company and personal goals, avoids the negative reactions caused by constructive criticism, and creates positive evaluation of employees’ strengths and weaknesses to inspire “development and improvement.” (p. 2)
Halo has traditionally been considered a serious problem for the effectiveness of an appraisal system. Cleveland, Murphy, and Williams, (2009) organizations generally use performance evaluations to make some sort of decision about a worker and his job When evaluating a person, the organization attempts to measure the worker on several different criteria. In this way, the worker, with the help of the organization, is able to be aware of his strengths and can target areas for improvement. Halo eliminates the varian...
Evaluate the effectiveness of the roles that the strategic leaders played in the formation of the performance management strategy.
The performance assessment and appraisal forms are crucial within the performance management system (Aguinis, 2014). However, the appraisal form within the case study provided is designed for the supervisor’s use thus missing one vital factor throughout the entire process, employee participation. Thus, questioning the validity and reliability of the process. This is especially concerning as the bottom 10 per cent of employees are being fired and the top 20 per cent are being rewarded with $5,000.00 based on what their supervisor records on the form without consultation with employees. Thus, supervisors may not provide accurate scores as they do not have to justify their responses (Aguinis,
Tanyaturner (2013) Case 7-1 the Politics of Performance Appraisal Essay [online] available from [24 March 2014]
Performance management aims to manage and improve individual performance with a vision to improving performance across the entire business. [Walter. M, 1995] defines performance management as the process of ‘Directing and supporting employees to work as effectively and efficiently as possible in line with the needs of the organisation’. It is very important to direct and support employees to work efficiently, and this can only be successful if a well-structured performance management system is put in place. But, nonetheless some organisations don’t get it
Low and medium level performers improved and high performers reduced over time. It is due to supervisors who received evaluation were no more likely to improve performance than managers who did not receive feedback; people who gave themselves higher self-rating than the ratings their subordi...
Discuss the various purposes and uses of Job Analysis. Briefly explain the reasons why Job Analysis is regarded as a powerful, relevant, and useful personnel instrument. Fully discuss Information Collection Methods for conducting useful and relevant Job Analysis.
Performance appraisal is perceived by most as a tool to reward or penalize employees for their good or bad work respectively by the end of a year. This notion is a challenge in itself to deal with. The whole exercise becomes dull for both supervisors and their subordinates and they tend to look at it as an additional responsibility which they have to finish. In the end, there is little or no value addition for either the employee or the organization. There are, however, better ways of looking at and conducting performance appraisals. It can give much needed feedback to both performers and laggards to improve upon and if done properly can even boost their motivation. More importantly, they provide a chance to employees to have a say in their goal setting and thus aligning it with the departmental and organizational goals. Also, the process itself has a value in team making.
Performance management is a management tool used to value, monitor and measure a company’s strategies that ensure the efficiency and effectiveness of its product delivery. This management tool does not focus on the organisation and on its employees as well as stakeholders. It is a continuous process that entails that managers make sure that organisational and employee values are corresponding (Aguinis, 2005,p.1/2-1/5). Performance Management brings about the competencies in the employees, increases self-esteem by giving feedback to employees, there is a low number of lawsuits because it helps understand the company better (eThekwini Municipality, 2008,p.10-11). According to Pride, Hughes and Kapoor (2011, p.288) performance management creates motivation for employees; one theory of motivation is of Expectancy, which stipulates that employees satisfaction is driven by expectations of what an organisation will offer in return.
The objective of this report is to determine if a successful performance management system can offer anything to the learning and development process in an organisation. The report will examine the concepts of performance management and the implications it has on learning and development. It will focus on the major issues surrounding the learning and development process and outline the contributions performance management has to offer.
Grubb, T. (2007). "Performance Appraisal Reappraised: It's Not All Positive." Journal of Human Resource Education. Vol. 1, (No. 1,): 1-22.
Although performance is a major objective at top organizations, successfully addressing poor performance is also a key focus. Although many employees feel or dread performance appraisals they are directed to enforce clarity with individual employees day-to-day work-load, performance appraisals develops responsibility while making employees accountable for performance expectations, reinforces future career planning, helps the organization with determining training needs, and provides a stem of documentation for legality purposes. Performance management in detail is much broader than many employers, and employees assume and necessitates so much more. Proficient appraisals should represent a summary of on-going dialogue. Focusing only on an annual performance evaluation leads to misrepresentation of the performance management process in its
When implementing a new performance management system in an organization there are both advantages and disadvantages that need to be taken into consideration by the design team. However, one of the best ways to know if a performance management system is effective is by implementing the system within the organization and then continuously monitor and reevaluate if the system is still relevant to the organizational