IntroductionEmployee performance is an important aspect of any business or organization. In fact, employee performance is what will determine whether or not a company performs well, and even with the good performance, whether it will make optimum profit and maintain that level of performance. Performance management helps companies determine how the people they have diligently employed into their organization are performing. It is essential for an organization as it gives the employees feedback on how well they are doing their work. In addition, managers are able to identify the development plans of their subordinates, and help them to synchronize these with those of the company.
However, there are many different ways in which companies can manage their employees’ performance. While not all companies can fit into one model, there is such as a thing as an ideal model (Schiff, 2006:1-2). Background In their effort to get the performance management system that fit the company’s needs and will help them get the most out of their employees, Network Solutions Inc chose a model that they deemed fit to fulfill the needs of the company.
As the organization is a world leader in software, hardware and services related to computer networking, it is prudent to imagine that they have several subsidiaries and branches throughout the world. Consequently, these reforms were translated to all divisions in the company. The reforms included having a forced distribution performance management system where all employees were classed in different groups. The high performers, who constitute 20% of all employees, were rated as 1. Average performers constituting the bulk of the employees that is 70% were number 2, while low performers, translating to the remaining 10% were rated as number 3.The system chosen by the company to manage their employee performance included activities such as goal cascading, team building, performance planning, development planning, ongoing discussions and updates between managers and employees and annual performance summary.
These activities, they believed would help them achieve their goals, and get the best out of their employees. In addition, high and average achievers were rewarded by hefty bonuses, salary increments and stock options. Those who fall in the lower category are given the option of either getting their severance pay or being let go off by the company.
Alternatively, they could agree to undergo a performance improvement plan where the activities and expectations are rigorous than the previous action plan. If their performance improves, they are taken off the plan. However, if that is not the case, their services are terminated without a severance pay. AimThe system chosen by Network Solutions Inc. raises several questions. The aim of the paper then is to answer the presented questions. For example how does this system overlap with an ideal performance management system?
Additionally, what features of the system implemented by Network Solutions correspond to the ideal characteristics, which ones are missing and which ideal characteristics need additional information in order to be sure that they are present in the system used by Network Solutions? Third, what are some advantages and positive outcomes of the system in use by the company? Finally, what disadvantages and negative outcomes will the implementation of the system result into?