PERFORMANCE MANAGEMENT SYSTEMSPerformance management system is a tool used by management to evaluate the performance of the employees. In so doing it is also evaluating the performance of the organization as well. It serves as a guide more particularly to the management to the direction of the organization. Direction in terms of materials resources and human resources guide them on the things that need to be done, what they have to focus on with their time, money and resources. The employees, on the other hand, are also guided by result of the performance management evaluation.
Directly or indirectly this is the tool of the employee the explicitly express their opinion in a more productive way, both to he advantage of the organization and the employee as well. Some employee may look at it as a tool to discredit their abilities and potential but some may regard it as n opportunity to improve themselves. Which ever way the employee looked at it, there is the fact that they are part of the organization and so, needs to be evaluated, analyzed or tested upon if they still can serve their purpose in the organization.
Just like machines used in production lines from time to time record of use and downfall are evaluated to determine the usefulness of the machines. If this will not be done in the regular basis management may be at a loss when the machine will finally be unserviceable. It further makes the problem worst when it happens at a time that one least expect it, such as when bulk of orders are to be delivered soon. This kind of scenario is the same if it will not be done on human resources.
And besides there is the compelling reason that humans are the most important aspect of the organization. There are various ways be which management can evaluate performance of their employees. The differences lies in the approach, the process, or the end result of the evaluation. By approach it means that the system could be done starting from top level down to the lower level of the organization. By process, it could mean that the system is done in a well-planned manner throughout the year, or just could be done every end of the evaluation period.
And by end result, would mean the system is done only to asses the employee which the management wants to terminate the services, or the management would really want to make use of the opportunity to assess the needs of the whole organization for its improvement. There are nine different systems that could be used namely 1) ranking and rating 2) grading 3) graphic scales 4) critical incidents 5) behaviorally anchored rating scale (BARS) 6) essay description 7) management by objective 8) assessment centers and 9) organizational code of conduct.
There is no explicit rule that an organization can use only one system in doing their performance evaluation. In fact an organization can use one or two or even more depending upon the need and the purpose of the organization. But the management will always start the driving, meaning action shall start from the top level of the organization. Ranking is usually done to determine employees’ promotion, pay or even for providing developmental feedback. In ranking employees are compared to each other, and were given numbers to indicate whether they are better than, about the same, or less effective than their co employees.
This is often used to determine who will receive pay increases from the limited resources available or from what other decision making processes. The question lies in the fact that what if given 10 employees in one unit whose production output is much below the standard, and here another unit which exceeded their targets. After ranking, both units will surely have an outstanding employee that who attained the highest rank.
The highest ranking employee in both units will get pay increases. This may give a wrong signal to the productive unit, that despite the group’s effort to attain the target they were not compensated well. But a person in another unit who contributed to the loss of the company will be rewarded by increasing pay. The criteria for ranking can be specific and objective like ranking employees according to sales generated in a period. But it can also be subjective and uncertain like describing who can work well with other co workers. One of the considerations in using ranking is that some believes that it creates a competitive environment among employees especially if their line of work is strictly with direct measurable results, such as those involve in sales.
Sales department may be subdivided into areas and so when evaluation time comes, the person with the highest contribution in sales will be rewarded in so doing competition will be tough and creates greater productivity. But looking at it at a greater scenario, employees should be encouraged to compete as a group against other organizations which gives the same service or product that they do and not among each other.
They should be encouraged to work as a team and not an individual trying to outdo each other. Doing this organizational goal will be of prime importance to each member of the organization and not the individual goal. In fact, it might create disagreement among employees which is not beneficial to the organization. Grading is the system of pass-fail. This is not so obsolete and is still being used by some.
Some of the usually used description is the performance being acceptable or not, minimally successful or not, outstanding or not, exceeds expectations or not. This system does not in any way indicate the reasons behind a failing remark. There may be underlying reasons that brought about the inability of the employee to deliver so one received a grade of being unsuccessful. One example of this may be illustrated when there are numerous complaints about the service of a telecommunication, while in fact the reason behind is that insurgents sabotage the cell sites of these telecommunication system.
When looking at the results alone one can conclude that the person in charge is not efficient and yet the situation calls for that person’s inability to deliver because of situations beyond his control. Graphic rating scale represents each factor measuring employee’s performance during the rating period. The Relative Impact Scale as form of graphic rating scale consider the factor’s to be weighed in accordance to the specific job or position in which the employee work. This enables the system to be job specific and makes it more flexible to the supervisor’s discretion.
The process becomes more valid because of the job being specific. In here, ratee, rater and the reviewing authority are all involve in the development and implementation of the factors to consider and their corresponding values assigned. The relative impact scale and the level of performance are represented numerically in a concise and uniform way, the employees’ performance for the rating period. One of the positive aspects of this system is that information represented on the scale is specific, job related performance criteria taken from the performance plan. Identifying and describing specific events (or incidents) where the employee did something good or something that needs to be improved is what is being done in the critical incident method of performance appraisal.
It is based on the description of the event that happened and do not depend on the ratings or rankings made. Critical incidents is more useful to employees because it serves as a guide for them to improve since information are given in specific details