Performance Management Systems - Assignment Example

PERFORMANCE MANAGEMENT SYSTEMS Performance 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 In some instances, recording of individual critical incidents are encourage even without the supervisor’s presence. These are recorded as they occur so it will be more detailed and accurate. When scales are used to report behavior or performance and presented vertically with scale points ranging from five to nine, one is doing the behaviorally anchored rating scale (BARS). This is a method that combines the elements of the critical incidents methods and the traditional rating scale. Basically, there are steps to follow in order to construct BARS namely 1.Examples of effective and ineffective behaviors related to job are collected from People with knowledge of job. 2. These behaviors are converted in to performance dimensions. 3. A group of participants will be asked to reclassify the incidents. At this stage the incidents for which there is not 75% agreement are discarded as being too subjective. 4. Then the above mentioned incidents are rated from one to nine on a scale. 5. Finally about six to serve incidents for each performance dimensions- all meeting retranslation and standard deviation criteria will be used as BARS. In BARS behavior in jobs from critical incidents to effective and ineffective behaviors are objectively described. BARS is better than the traditional rating system because in other system it is not easy for two people to both agree on what a particular rating item means. But still BARS is a rating system which sometimes does nothelp employees improve their performmance because too much information is lost. Ratings always involve labeling and generalizations and so not almost always objective. Aside from this, BARS needs extensive upfront analysis necessary to identify the job behaviors. Without this there will be no improvement. And using too much time in upfron analysis is a waste of time s compared to usingthe data without a rting system per se or used it in a way to how gooals and objectives are used in management by objective system. Assessment center is a selection devise used to determine an employee’s qualification for a particular position usually in supervisory or managerial level. Exercises endividually or in roup are administered under standardized conditions which stimulates the skills and abilities needed for a sucessful performance. Employee’s behavior is being observed either a team of trained assessors or qualified individuals who are familiar with the reqirements of the job and the format of the assestment center. Assessment centers are being used when selecting employees, identiying their potential, measuring their developmental needs and in succession planing. Assessment centers should focus on assessing how the employees would relate to direct reports in potentially confrontational situations and not purely on anaytical ability so that leadership effectiveness can be assessed because this is designed to assess the skills that will be critical in the target job. Further in an assessment center organizational level is being simulated by the employee who aspires to reach the position. In an assessment center the management is given the opportunity to asses the skills which usually do not surface on a written test or oral interview. Employee participants are rated on how well they perform during job-related exercises. In this way qualified indiividuals are appointed to supervisory or managerial positions. The organizational code of conduct is a set of rules established by the management for their employees to follow. This is usually based on the established rules in accorance to the culture of the organization. The organizational code of conduct usually states the conditions of abnormal or unacceptable behavior withn the organization and together with this is the corresponding outcome usually in the form of punishment. This sytem serves as guide for the employees to follow such as the punishment when you come to work late, conducting immoral behavior. The items collected have preented the advantages and disadvantages of the various performance management systems. It seems there is no definite right system that can be imposed upon an organization. Varrying situations and their corresponding problem may need varrying system. It depends upon the one who is making the decision, and more ofen it is the management. Management by objective (MBO) is the most fair rating system. This is because it a systematic and organized approach that allows management to focus on achievable goals and to attain the best possible results from available resources. To increase organizational performance by aligning goals and subordinate objectives throughout the organization is its primary goal. In here it offers employees to get strong input to identify their objectives, time lines for completion and a lot more. MBO also includes ongoing tracking and feedback system in the process to reach objectives. The main principle behind Management by Objectives is to make sure that everybody within the organization has a clear understanding of the aims, or objectives, of that organization, as well as awareness of their own roles and responsibilities in achieving those aims. Both the manager and empowered employees are working together to implement and achieve their plans which ultimately achieve those of the organization. In an MBO the focus of the upper level of management is on the result and not on each activity of the employees. They delegate the tasks by asking the employee first and mutually agree upon them. In the process, this serves as a contract for both ends without the detailed description of what to do to achieve targets. Management can always present their set targets upon evaluation time, and employees on the other hand can “reason out” when targets are not met if support is not given in accordance to the set objective. The objectives sets are broken down into more specific goals or key result areas. Management by obective is the most fair because it enhance the participation of all members of the organization. Everybody has a chance of contributing to the development and improvement of the organization in accordance to each individuals capacity and functions. A case in point is this. The vision, mission goal of the organization must be set by the management. Together with this they present their objective with the corresponding key result areas. Management then turns over this to the supervisory level for them to discuss with each employee. Employees are then asked to write their targets on what to do for the coming year. This list of activities is in accordance to their function and duties. This list will not only include their regular work load but also their needs such as training needs for their improvement to accomplsh effectively their targets. This, in a way, is directly communicating to the management what each employee wants and or what they think is needed to improve their performance. This clearly demonstrates participatory management, which is beneficial to the whole organization. In this way each employee is treated as owner because they have a part in the decision-making process and in managing the organization through the identification of needs as the worker see it. Aside from this settng up objective and making it known to all the members of the organization including those of the lowest level, each member is tasked to deliver. So everybody feel their work is important towards the accomplishment of the orgaizational obejective. Objectives are specific as provided for by the management in accordance to their vision, mission, goal. Employees then understand why certain functions no matter how menial they are should be done because there is a specific target. Each target is stated in a manner that it can be measured. For example the management set their sales target in order to attain the target income. But of course this will be on the basis of what the organization can deliver based on their capabilities, and this is relayed upon to them by each employee through the setting up of their own individual target. They have expressed what needs to be attended to in order for the target to be attainable. Each member of the organization shall then be result-oriented. Each work has a meaning, a value towards the attainment of organizational objective so results are expected upon doing their own job. And of course not to foget each objective set by the management, be each unit, or even be each individual have specific target dates. The result may be of no value if it is not delivered on the right time. With this process, supervisors can easyly and fairly evaluate their employees according the standards and targets that they both agreed before the evaluation period. The employees, on the other hand, can present the reason if they were not able to deliver their targets. Reasons like if the management was not able to equip them with necessary training or if the management was not able to give the proper materials support or time. They can now both discuss and agree again on the succeeding targets to be made. With this proces there is a continuos improvement and communication between the employee, between subordinates and supervisors and between employee and management. Each one is clearly part of an organization with one mission, vision and goal. Read More