Performance ManagementThe success of an organization is dependent on numerous factors among them the recruitment and retention of competent and efficient workforce. This function is well ingrained in the meaning of human resource management, which harnesses working human relations within the entrepreneurial entity. The value of human resource management is underscored by canonical objectives such as creation, actualization and strategic appraisal of organizational policy provisions and company development programs. The human resource management department in many organizations is charged with the role of recruiting, selecting, orienting, training and nurturing of employees with the aim of achieving an efficient and high performing workforce.
For this reason, employee performance management has become one of the strategic human resource management (HRM) tools that are so crucial in attaining a superior competitive edge over other competitors (Dickinson 2012). Employees’ competence and performance is highly influenced by HRM activities such development of a competitive compensation and benefits program, career development, and proper management of employees’ performance. As a rule of thumb in effective human resource management, managers need to determine whether their entire workforce is performing its roles efficiently and effectively as well as identification of areas that need improvement in order to achieve high performance standards.
In order to achieve this, managers should understand the specific roles of every employee, their qualifications, and competence and job expectations in order to determine work force performance. Performance management system has emerged as one of the most important tools in the management of employees’ performance in both public and private organizations (Binderkrantz & Christensen 2012). Performance management system (PMS) facilitates the process of employee performance management through establishment of performance standards used as a guideline in evaluating employee performance.
Performance reviews present employees with an opportunity to set their goals and provide feedback to the management in order to remain objective in their respective roles (Pharris 2012). Despite the importance of PMS, studies have revealed inconsistencies in the effectiveness of the systems, a phenomenon attributed to failure in understanding factors that influence effective application of the system (Biron, Farndale & Paauwe 2011). Some of the key influential factors in promoting effective PMS include proper communication of performance expectations, involvement of entire workforce from the senior management to the junior employees, formal training of performance raters and adoption of a broad view in the management.
A critical review and evaluation of a Case Study on 'Disrupted Links in the Performance Management Process at "Omega, Inc. gives a broader yet clearer implications of PMS in the HRM realm. Overview of the Case StudyOmega Inc. faces performance management related challenges in its operations contributed by its operational structure. The success or failure of the company is greatly influenced by sales representatives that the management of the company lacks direct contact or control over.
The HRM field has been described as a congruence of human related factors that seek enhancement of cooperation for improved individual or group performance. Although the performance of Omega Inc. in terms of sales is directly proportional to the sale representatives’ performance, the management has failed establish direct link with them leaving them to operate independently under the franchised dealers (Aguinis 2009). Because of the operational structure adopted by Omega Inc. , the performance challenges faced by the company are attributed to failure to understand the specific roles or job description of sales representatives, lack of clear formal operational process, recruitment standards, and poor motivational strategies.
The company particularly fails to harmonize its operations with different franchise applying varied management strategies.