The paper "Performance Management System" is a perfect example of management coursework. The performance management system has always remained to be the true litmus test for business organizations’ survival in the market. Highly productive employees contribute to a company’ s high performance and therefore, they give the company a competitive advantage over others. It is the efforts of these employees that differentiate great organizations from organizations that are merely good. In this regard, it is important that organizations should have systems that identify, recognize, reward as well as retaining high performing employees in order to achieve and maintain sustainable growth.
Most companies understand the importance of these systems and they spend much of their funds trying to acquire them so that they can maximize their growth and success in the marketplace. However, most employees’ performance persists despite the great investments that these companies try to invest in. Although most companies are investing in this kind of performance appraisal method, this does not guarantee high employee performance. According to (Grote 2002, pg. 234), most employees feel that management performance systems in their companies are not effective.
This perception of the employees is likely to demotivate them, thus creating a feeling of frustration and eventually their performance is negatively affected. Effective performance management systems that balance all employees without business should be put in place to ensure that a company achieves the highest competitive advantage (Kanji 2002, pg. 725). Role of performance management systems in building a performance culture Performance management systems play two important roles in ensuring that organizations are highly productive. These roles include: Ensuring that all employees are aware of the expectations that the company has on the hem Assessing employees’ performance and activities accordingly. In respect to the case study, the human resource manager of Carringbush Council has identified some of the problems affecting the employees.
Among them are having competent operational managers but they lack leadership skills simply because they do not rise to the next level of management (Kirg 2010, pg. 59). The human resource manager argues that operational managers are dominated by their supervisors and therefore their performance goes unnoticed. Another problem facing the Carringbush Council is that communication is very poor such that the traditional method of top-down system is the one that is still applied to date.
Research shows that most managers do not admit that junior employees can perform better than them and they ensure that such employees’ efforts are not recognized in the company (Norman 2007, pg. 540). Therefore, with this kind of communication system, high level performing employees cannot be awarded for their efforts. As a result, the business continues to underperform even when there are employees whose skills are under-utilized. Ensuring awareness of the company’ s expectations on employees’ performance A performance management system that a company is using should be communicated to the employees.
Making employees of Carringbush Council aware of what they are expected of will help to make them improve their performance other than just introducing a performance management system without communicating its intentions to the intended parties. Failure to communicate makes the system to remain ineffective regardless of the resources that have been used to put it in place. Performance management is a discipline that is quickly maturing in the business world (Panda 2011, pg. 278).
Just like other key elements that enhance effective employee performance for example payment of salaries, communication is also a motivating factor that makes employees feel recognized in their respective positions. Vertical, horizontal and diagonal communication methods should be used in the organization. Top-down communication leads to an inferiority complex among the employees whereby they feel that they should not air their views and that they can only rely on the decisions made by their seniors (Robson 2005, pg. 45).