Performance Management System refers to a tool that helps in communicating the goals of the organization to the employees and it tracks the progress made by the employees. It helps in the evaluation of the performance of an individual in an organization. Performance Management System helps in assessing whether the employees have been able to carry out the duties for which they have been employed and it contributes to the overall business objectives. Performance Management System helps in reflecting individual performance of the employees and it proves to be helpful in keeping track of employees within an organization (Kwak and Anbari 2009). O Meara electronics company is functioning in Australia and it high market share in that of the general electronics sector within Australia. O Meara possess semi-automated factories and it employs the electronics engineers who designs the audio equipment, digital camera and the telephones. This report focusses on the current performance management system of O Meara Electronics company. It elaborates on the issues related to performance management of the organization and compares two performance management system that can benefit the organization.
The prevalent performance management system in the organization is position-based that is incapable of measuring the value of the individual employee in the organization. It does not judge the employee on the basis of their hard work, dedication and skill set and it can be stated that the current remuneration system is faulty. In the event of an employee being paid on the basis of position, it is often found that a person takes advantage of his superior position in the organization and does not prove to be of merit for an organization (Moynihan and Pandey 2010). They do not contribute to any significant extent for the organization but they continue to enjoy the remuneration of their superior position. The remuneration system that is based on position considers the work experience of the employees along with seniority for the purpose of job evaluation. This system would not suit the organizational strategy of O Meara. The job-based pay structure will increase the operating cost of O Meara. In the event of position-based remuneration system, the company may find the necessity of hiring consulting firm that can help in conducting the compensation audit (Richard et al. 2009).
The employees of O Meara are often not rewarded on the basis of their performance and it can discourage motivated and dedicated employees of an organization. The employees being not rewarded on the basis of job performance may leave the job as they may feel that their contribution may not prove to be valuable for the company. An employee who can add to the profit of the organization would want his efforts to be rewarded. He would feel de-motivated and de-valued if his efforts are not rewarded properly by the company. The organization suffers owing to the fact that the performance management is on the basis of customer contracts and about numbers but the individual performance of the employees of O Meara are not measured in the proper manner. The individual performance of the employees is not measured within the organization of O Meara and this creates complications for the employees of the company (Walker, Damanpour and Devece 2010). The teams of O Meara are not self-managed and there is no direction pertaining to the functioning of the teams. O Meara has got permanent work team along with temporary work team but they are not managed in the proper manner. A self-managing work team will be able to improve the quality of the products along with services within an organization. It will possess greater flexibility and reduce the operating cost of the organization.
The performance management issues within O Meara rises owing to the fact that the teams are composed of different kind of people and they have differing perspectives. These perspectives are however not given proper attention to by the management of O Meara. Giving proper attention to these perspectives can help in enriching the knowledge of the employees of the organization. It can augment the performance of the organization and pave the path for its development in the long run (Xiao and Menon 2014). The organisational goals being not aligned with the individual goals of the employees of O Meara is proving to be a barrier in the path of progress of the organization. The company is not being able to make profits and the market position of the company is declining on account of the faulty performance management system (Bonavia and Marin-Garcia 2011). The remuneration management strategy of the company is not rationalised and it greatly costs the company. The teams of the company O Meara are not self-managed and they do not have the proper direction that lessens the values of the employees in an organization. The team members cannot address the other members within the team and this becomes a barrier for problem-solving (Tseng 2010). The team members of O Meara do not feel involved within the meetings and they do not listen to the opinion of other people within the organization. An individual does not focus on that of team and the organizational goals that hampers the functioning of the organization.
Knowing the goal of the company can help the employees in working towards that direction and this is not clearly made clear to the employees of O Meara. There are some supervisors in the organization who do not work whereas the subordinates work and this has a bad impact on the growth of the organization. The employees who work hard are not provided with proper remuneration that can encourage them to work for the organization. The performance management system is on the basis of customer relations. They focus primarily on the aspect of innovation of the products that can help in meeting the needs of the customer. The systems along with the practices within O Meara lacks in terms of activities that can help in managing the performance (Nelson and McCann 2010). The supervisors do not work with the employees and this does not help in the working of O Meara. Supervisors are afraid of the fact that the employees who have served the organization for a long time will complain that does not work for the benefit of the organization. The employees in O Meara are not provided with the proper incentive that can encourage them to achieve the high results within the organization (Shen et al. 2009).
The Behaviourally Anchored Rating Scale is an effective performance management method that combines traditional essay evaluation along with the rating scale. It proves to be more expensive as compared to the other methods and it helps in guaranteeing precise result. The behaviour of the employee along with their performance are assessed in an organization. The overall performance of an employee is evaluated on the basis of this method (Simões, Gomes and Yasin 2011). HR Department in an organization plays a major role in relation to this performance management method. The employee in an organization is rated as good, poor or average on the basis of the behaviour along with the performance of the employee.
The 360 degree feedback makes use of multiple raters for evaluating the performance of the employees. This proves to be a time consuming method and the employee feedback is collected by those people in the organization who have interaction with the person. Employee feedback is collected by the superiors, subordinates, customers and the peers (Bhamu and Singh Sangwan 2014). The interaction with so many people helps in revealing correct assessment about an employee of an organization. A questionnaire is generally designed for the evaluation of the employees in an organization.
Behaviourally Anchored Rating scale (BARS) assesses an employee on the basis of behaviour and their performance within the company. The 360 degree feedback also helps in the evaluation of employee behaviour and that of their performance. The BARS makes use of both traditional evaluation along with that of the modern day rating scale innovation. On the other hand the 360 degree feedback is dependent on the rating scale (Storbacka 2011). The HR plays a major role in that of BARS performance management system and in the event of 360 degree feedback many people in the management along with the co-workers of an employee help in providing the feedback.
The 360 degree feedback can increase the self-awareness of the employees of O Meara. This proves to be effective in understanding the strengths, weakness and motivation of the employees of an organization. The feedback that is collected from people of different hierarchical levels in the organization can help in providing a correct assessment about an employee of an organization (Paauwe 2009). This kind of performance management system being implemented within the organization O Meara can help in judging the skills along with the capabilities of the employees. The 360 degree feedback helps in the promotion of dialogue in an organization that moves from that of measurement to that of improvement. The 360 degree feedback can help in improving the working relationship and it helps in creating a touchpoint in relation to reciprocal support (Farndale, Scullion and Sparrow 2010). The 360 Degree Feedback can help in testing the perceptions and it helps in recognizing previously overlooked strength.
Conclusion
Performance Management System is indicative of a tool that can communicate organizational goals and it helps in tracking the performance of the employees. It evaluates performance of the individuals in an organization. The position based remuneration system of O Meara that cannot measure correctly the value of the employees. The employees of O Meara are not judged based on their hard work along with skill set and this makes the remuneration system faulty. The rewards are not provided to the employees based on performance and the employees of the organization hence become de-motivated. In the event of the employees not being rewarded based on job performance they may grow frustrated and leave the job. They can feel that their performance is not working for the benefit of the organization and it may demoralise them. The teams have different kind of people possessing differing perspectives and it is important to give proper attention to these differing perspectives in an organization. The supervisors in the organization neglect their duties in the organization in O Meara and they take the advantage of the position-based remuneration system in the organization. The 360 Degree feedback can help in improving self-awareness of the workers of O Meara. It can help the employees in understanding strength, weakness along with capabilities of employees working within the organization (Armstrong and Taylor 2014). Feedback collected from the people at different organizational level can provide correct assessment about the employees of organization.
References:
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