Performance Management System For HR Leaders

Challenges faced by employees and managers in implementing performance management system

Discuss about the Performance Management System for HR Leaders.
 

Aguinis (2013) asserts that to give a guarantee about the successful implementation of the performance management system, it is essential that employees should try to work on creating the right balance between the flexibility and consistency (Aguinis, 2013). In various cases, it is noted that remuneration schemes are driving the system of performance management that also supports in creating the long-term results of organizational behaviour as well as culture (Gregory and Levy, 2015). In some other cases, it is analysed that senior management emphasizes over the scorecard management for holding the people, who are responsible for creating a scorecard that is not attached with the focused business area, but instead it emphasizes on different deliverable projects and jobs (Gregory and Levy, 2015). The biggest challenge is that performance management system lacks the alignment among the departmental performance, individual performance and organizational delivery so that every system default moved back to the financial dimensions (Gregory and Levy, 2015).

One of the adverse effects of performance management system is the enhancement in competition among the team (Gregory and Levy, 2015). The performance-based reward system is undertaken in various companies, including shoes manufacturing companies (Mueller-Hanson and Pulakos, 2017). Through this system, the team has to work hard for giving better performance than others (Gregory and Levy, 2015). 

The alternative perspective on implementation of issues that are faced by staff and managers is that at different organizational levels poor measures are created (Locke and Latham, 1990). In few other cases targets are fixed, but then no appropriate measure is taken. In other cases, no information is collected or either kept as the act to track the performance (Latham and Locke, 2006).

The researcher recommends that yearly planning, as well as budgets, need to be synchronized with the cycle of performance management (Latham and Locke, 2006). It is recommended that corporate goals should be translated according to individual goals while planning for the performance (Latham and Locke, 2006). Employees should be skilled so that they can come up with right performance measures (Kahneman and Tversky, 1992). Tools of evaluation should be particular with specific staff categories, where else performance should be documented all around the year (Latham and Locke, 2006). It is also recommended that feedback should be given on time and rewards should be delivered on time as per performance. Culture and high performance should be set up to assist the PMS (Latham and Locke, 2006).

Implications for staff if challenges are not overcome

An organization with highly committed staff usually outperform with the disengaged staff on every aspect, including productivity, customer metrics, high performance, and reduced turnover (Kluger and DeNisi, 1996). 

It is recommended that PMS should relate with another management process, as PMS try to measure the staff achievement, assess and reward staff behaviour, where else other methods like strategic human resource decide every job role in explaining its competencies (Buckingham and Goodall, 2015).

In IT world, developments are taking place through agile methods (Buckingham and Goodall, 2015). This method emphasizes over pushing the development teams to mitigate the waste time incurred in development cycles and also support in optimizing the time with the market (Kahneman and Tversky, 1992). Technological approaches in PMS support in explaining efficiency, speed, and flexibility (Buckingham and Goodall, 2015).

The performance management system at Dodo Exclusive Shoes is the formal process, and periodic review system which has resulted due to hard work took between collaborator and boss (DeNisi and Murphy, 2017). The critical value of this exist in the evidence that its considered as an instrument for all the line managers, working at different levels for maintaining the touch with colleagues, on the way that it will fulfil the goals and objectives of work agreed to meet the commitment emanating through the directives and strategic guidelines of organizational plans (DeNisi and Murphy, 2017). Dodo Exclusive shoes PMS make sure about the right and timely meeting the goals that are mentioned in the organizational strategy, and also explore the each employee’s contribution in performance (Kahneman and Tversky, 1992). It also creates the regular communication among employees and managers for enhancing the job performance (DeNisi and Murphy, 2017).

Dodo Exclusive shoe objectives behind performance management system are to offer a right and reliable way in which staff carries out their task (Dodos, 2018). At Dodo Exclusive shoe assessments system is also directly link to the post, both practical and dependable (Mueller-Hanson and Pulakos, 2017). They are required to include the measurement level or verifiable standards (DeNisi and Smith, 2014). Through directly connecting with the post implies that the system refers the essential components for the post success (DeNisi and Smith, 2014). If assessment doesn’t go with the post, then it’s considered as invalid. It’s analysed that the evaluation is regarded as practical when examined by reviewers. It is noted that complicated system often results in a generation of conflicts and suspicion (DeNisi and Smith, 2014).

Alternative perspectives on the implementation challenges faced by managers and staff

Dodo Exclusive shoes are the South Africa national shoe retailer and provide the contemporary range of both men and women in different sections like informal and formal sections (Dodos, 2018). The company has incorporated PMS for enhancing the profitability and productivity, identifies the efforts of staff, manage the unsatisfactory performances as well as set up the training requirements for bringing further improvements in employees (Dodos, 2018). The company makes use of computer database to evaluate the employee’s performance. The database is categorized into a different database for measuring the goal fulfilment allocated to staff, which includes various steps, individual action standards, meeting essential job designation duties that are measured monthly (Latham and Locke, 2006). Performance database rating is given against the primary outcomes, primary responsibilities, and main dimensions (Kahneman and Tversky, 1992). Few databases are evaluated daily, weekly or either monthly at Dodo Exclusive shoes (Latham and Locke, 2006). The managers consider employees yearly performance, and collect the information from the database and then provide the rating accordingly (Kahneman and Tversky, 1992). The Dodo Exclusive shoes also include the culture related to sharing the performance outcomes of staff members (Latham and Locke, 2006). This permits the members to understand the progress, and accordingly they enhance the areas in which the performance is lagging behind the competitors (Kahneman and Tversky, 1992). Therefore, this aspect improves the performance of the team and positively impact the productivity of the company (Latham and Locke, 2006). 

The performance management supports in enhancing the rate of profitability of company Dodo Exclusive shoes, which later on supports in satisfying the requirement of customers (Mueller-Hanson and Pulakos, 2017). The PMS strength exists in helping in bringing improvement in productivity and corporate structure. Therefore, it offers the positivity related with:

Performance tradition- the PMS assist in bringing development in the corporate culture, and consequently, it supports in attaining the goals related to customer satisfaction in Dodo Exclusive shoes (Mueller-Hanson and Pulakos, 2017).

Engagement of employees- the efficient PMS implementation in the business supports in enhancing the company revenue (Mueller-Hanson and Pulakos, 2017). The profit and sales rate of Dodo Exclusive shoes also lead the company towards its complete development. The PMS offers the adverse effect towards the business (Mueller-Hanson and Pulakos, 2017). It includes manager’s commitment and measures (Mueller-Hanson and Pulakos, 2017). Lack of effective PMS implementation might also result in lack of adequate employee’s responsibility that impacts business productivity (Kahneman and Tversky, 1992). The application of PMS also leads towards the effective implementation of different measures that need relevant time for management at the workplace (Mueller-Hanson and Pulakos, 2017). This also needs time for managing the human resource to work at every indicator.

Recommendations for HR leaders to address these challenges

Internal Competition- When the company might use performance management system, then each staff can become the competitors and compete for status and position (Kahneman and Tversky, 1992). There is more chance for backstabbing and strong staff rivalry that might result in conflicts (DeNisi and Murphy, 2017). If there are conflicts, then the same might bring lousy influence on the team and end up in the lousy performance of Dodo Exclusive shoes (Mueller-Hanson and Pulakos, 2017).

Discouragement- in PMS process, if it’s not pleasant, then the same might lead towards staff discouragement (DeNisi and Murphy, 2017). In the process, Dodo Exclusive shoes encourage and try to celebrate the staff achievements (Mueller-Hanson and Pulakos, 2017). If staff had attained something and there is no recognition, then the same might lead towards discouragement and demotivation (DeNisi and Murphy, 2017).

Lack of Rewards- rewards are always the principal motivation for Dodo Exclusive shoe employees (Kahneman and Tversky, 1992). If there is lack of reward system, then staff performance will be impacted (DeNisi and Murphy, 2017). They wouldn’t be motivated as they are not interested in working on something, which is of no worth (Mueller-Hanson and Pulakos, 2017).

The dilemma of managers- when most of the time of Dodo Exclusive shoes is pend over supervision and staff evolution, then managers at Dodo Exclusive shoes wouldn’t be able to perform their job efficiently (DeNisi and Murphy, 2017). It will be challenging for them to perform their duties and take measurements on value indicators (Kahneman and Tversky, 1992). Besides that, it’s quite challenging to have common signs as various job hold its own job needs (DeNisi and Murphy, 2017).

Lack of Leadership assistance- At Dodo Exclusive shoes more and more leaders care about their position and also try to ignore the staff development (Murphy and Cleveland, 1995). Top leaders should support the PMS implementation (Mueller-Hanson and Pulakos, 2017). If leaders are not able to encourage the staff, then company performance will be a week, and they have to bear the consequences of it (Kahneman and Tversky, 1992).

Managers not adequately trained- Managers are recruited as per their experience at Dodo Exclusive shoes (Kahneman and Tversky, 1992). Nevertheless, not every manager comes from similar background (Mueller-Hanson and Pulakos, 2017). If managers are not given proper training, it might become challenging to improve the employee’s career path (Kahneman and Tversky, 1992).

Lack of Monitoring- At Dodo Exclusive shoes PMS implementation is monitored. Problems that are explored are corrected before it gets too late (Kahneman and Tversky, 1992). Dodo Exclusive shoes had developed the monitoring system for systematic collection of information, analysis of the situation, and its interpretation, and then accordingly to take a decision (Kahneman and Tversky, 1992). 

Role of Employee Engagement in recommendations

An accurate performance evaluation of an individual can offer data about the knowledge, skills or abilities deficiencies (Latham and Locke, 2006). Through exploring the strength and weakness, these issues can be resolved and enhanced (Mueller-Hanson and Pulakos, 2017). But the same can be done by undertaking induction programs, training, and relevant training (Effron and Ort, 2010). The training program conducted at Dodo Exclusive shoes aims to improve the capabilities as well as competencies by rightly promoting the career ladder, and promoting the employee’s diversity (Mueller-Hanson and Pulakos, 2017). The Dodo Exclusive shoes formal discipline policies emphasize over the training related with violence and harassment, as the company believes that the effective prevention plan implementation will profoundly affect the workplace reduction violence and focus more towards what steps should be taken when such incident happen (Mueller-Hanson and Pulakos, 2017). It is recommended that employers that try to implement the effective program should examine the complaints, provide training to the employees about the security problems, minimize the job stress, as well as initiate the work team to work within the supportive environment and view the rise in productivity and reduce the violent incidents (Mueller-Hanson and Pulakos, 2017). It is recommended that PMS evaluation should be conducted every year, and employees should be kept motivated to give best performance. 

References

Aguinis, H. (2013). Performance management (3rd ed). Boston, MA: Pearson

Buckingham, M. and Goodall, A. (2015). Reinventing performance management. Harvard Business Review

DeNisi, A. S. and Murphy, K. R. (2017). Performance appraisal and performance management: 100 years of progress? Journal of Applied Psychology, 3, pp. 421-433.

DeNisi, A. S. and Murphy, K. R. (2017). Performance appraisal and performance management: 100 years of progress? Journal of Applied Psychology, 3, pp. 421-433.

DeNisi, A. S. and Smith, C. E. (2014). Performance appraisal, performance management, and firm-level performance: A review, a proposed model, and new directions for future research. The Academy of Management Annals, 8, pp. 127-179.

Dodos. (2018). Online Shopping South Africa Shoes | Shoes for Sale in South Africa. [Online] Available at: https://www.dodos.co.za/ [Accessed 09 June 2018].

Effron, M. and Ort, M. (2010). One page talent management: Eliminating complexity, adding value. Boston, MA: Harvard Business Press

Gregory, J. B. and Levy, P. E. (2015). Using feedback in organizational consulting. Washington, DC: American Psychological Association;

Kahneman, D. and Tversky, A. (1992). Advances in prospect theory: Cumulative representation of uncertainty. Journal of Risk and Uncertainty, 5, pp. 297-323.

Kluger, A. N. and DeNisi, A. (1996). The effects of feedback interventions on performance: A historical review, meta analysis and a preliminary feedback intervention theory. Psychological Bulletin, 119, pp. 254-284.

Latham, G. P. and Locke, E. A. (2006). Enhancing the benefits and overcoming the pitfalls of goal setting. Organizational Dynamics, 35, pp. 332-340.

Latham, G. P. and Locke, E. A. (2006). Enhancing the benefits and overcoming the pitfalls of goal setting. Organizational Dynamics, 35, pp. 332-340.

Latham, G. P. and Locke, E. A. (2006). Enhancing the benefits and overcoming the pitfalls of goal setting. Organizational Dynamics, 35, pp. 332-340

Locke, E. A. and Latham, G. P. (1990). A theory of goal setting and task performance. Englewood Cliffs, NJ: Prentice-Hall

Mueller-Hanson, R. A. and Pulakos, E. D. (2017). Transforming performance management to drive performance: An evidence-based roadmap. New York: Routledge.

Murphy, K. R. and Cleveland, J. N. (1995). Understanding performance appraisal: Social, organizational, and goal oriented perspectives. Newbury Park, CA: Sage.