June 1, 2020 [PERFORMANCE MANAGEMENT]

1. Ideal PM system its characteristics

2. Performance Management Contributions (Benefits and dangers of poor
systems)

Bee Keeping Story:

We have to set relevant and accurate goals then should follow appropriate
approaches for the application to get the better end-results. We have to focus
on measuring and recognizing accomplishments rather than activities. Giving
feedback on the activities how we can accomplish them better is the way to
improve performance. Well-planned activities congruent with strategy of
organization when accomplished give better outcome.

1.Introduction
Organization aligns its objectives and strategy comparing its strengths with changing
environment and analyzing opportunities then performs assessment of
organizational performance needs. It identifies competencies needed (new or
improvement). Expectations are set by determining required vs desired
performances with key performance indicators.

A PM process is established and it designs a framework that includes planning,

managing, appraisal and monitoring. Finally, the process measures effectiveness of
PM by finding opportunities for development, 360 feedback, reward strategy,
improving organizational competitive position.

2. Ideal Performance Management System:

Organization may face the challenges like insufficient funds to deliver training to all
people involved and supervisor biases in performance ratings. Sometimes people’s

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lack of attention for the process could also create gaps on executing performance
system. However, better checked features in any system keeps that system better
executed.

a. Strategic Congruence: There should be similarities with the unit and

organization strategy. Individual goals should also have the connection with
the unit and organization’s goals.
b. Context congruence: PMS is about matching with where the organization
operates. The culture, region, etc. differentiates the PM strategy. An
organization may focus on behavior and results in Japanese styles where on
results only in American styles.
c. Thoroughness: It should include evaluation of all employees and managers
with the help of major job responsibilities continuously providing feedbacks in
positive way if improvement needed.
d. Practicality: It should be cost effective and easy to use – employees can make
their entries and supervisors can give their feedback for decision-making.
e. Meaningfulness: Criteria for standards and evaluations must be within the
control of employees, relevant, and important. This should be done regularly
and based on which valuable findings should be considered for decision-
making.
f. Specificity: It should guide employees about expectations in detail and in
concrete form and should say how to achieve them.
g. Identification of effective and ineffective performance: The system must
distinguish effective and ineffective behaviors and result, and identification of
employees’ level of performance effectiveness.

h. Reliability: Should include the performance measure that are consistent and
error free. Example: rating done on same employee by two supervisors should
be same.

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i. Validity: The measure should include what is important and within the control
of employees. Example: customers’ business get into legal action and
remaining installment payment couldn’t be fetched on time.
j. Acceptability and Fairness: This is most challenging and important. This can
be of two types. Distributive justice which includes perceptions of the
performance evaluation vs work performed and rewards received vs
evaluation received. Example: individualistic in US while collectiveness in
Korea. Procedural justice includes perceptions of the procedures used to
determine the performance as of linking the rating with rewards. System
should be well accepted from distributive and procedural perspectives. It
strengthens relationship and commitment of the employees with the
supervisors and organization.
k. Openness: A saying- good system has no secrets. Employees are evaluated
and their performance feedbacks are given on time. The appraisal meeting is
communicated in both ways, openly and honestly so that exchanged
information helps to standardize the process in clear ways.
l. Inclusiveness: The inputs are ongoing basis. The process represents the
concerns people and activates their participation to let them know how they
are evaluated. Employees voice is included while designing and implementing
the process to make them feel having ownership. This ultimately leads a
successful system, less employees resistance and obtain improved
performance overall.
m. Ethicality: The system should include ethical standards. Normally means
supervisors is not deciding according to his persona. He is suppressing his
personal self while providing evaluation parameters and doing appraisal on
the basis of sufficient information with clear understanding of respect for his
or her employees privacy.

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n. Correctability: The error occurred during the process should be corrected

with the transparent mechanism. This can be done by establishing an appeal
process.
o. Standardization: System should include consistency application across people
and time. For this ongoing training for managers is must.

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3. Benefits and Danger of Poor Performance

System:
ADVANTAGE
Performance system contributes the benefits to its employees, managers and
organization itself if managed well. It contributes employees by making the
job clear and motivating them. It prepares enhanced workforce by letting
them know who they are and what they need.
PMS gives the idea to managers about knowing the employees performance
and distinguishing them into level of performance preparing more competent
workforce within organization (poor performance can be improved).
For the organization, the goals are clear and where, how to grow is known.
The operation is smooth as administration is fair and appropriate. It’s
documented and protects form legal issues.

DISADVANTAGE
If the system is not managed well or let’s say poorly managed it affects all the
three parties.
Employees’ may have low self-esteem due to the job dissatisfaction and
burnout. This causes damaged relationships. The system depends on the false
or misleading information if not managed well.
Managers may face the problem like high turnover, less motivated
performance and unjustified demands on manager’s resources. Managers
without required accurate information could give unfair ratings to their
employees.
For the organization, it is wastage of time and money. Organization suffers
unclear rating system, biases, risk of legal issues, mismanaged human
resource intervention and finally problem in system acceptance.

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4.Prerequisites of PM:

Knowledge of the job is important prerequisites. If Employee knows what to

do, evaluation for the very same will be easy. Job analysis backed by
information of key components like activities, tasks, products, services and
process supplies the information for criteria setting. Job analysis helps to
know job description and job specifications. JD and JS keeps the track of KSAs
required to do the job. Knowledge is a body of information applied directly to
the performance of a function, skill is an observable competence to perform a
learned psychomotor act and ability is competence to perform an observable
behavior or a behavior that results in an observable product.

Knowing responsibilities and duties, standards of performance, working

conditions, health and safety and authority of incumbent give the idea for
matching knowledge, skills and abilities for the performance appraisal. Various
tools like joint approach, interview, questionnaire, technical conference,
observation and daily diary logbook could help doing job analysis.

While introducing PM system in an organization it requires knowledge of

organization’s mission and strategic goals along with knowledge of the job.
Job analysis of key components like activities, tasks, products, services and
process helps for the job knowledge. The required knowledge, skills and
abilities when known well, make PM easy. Other necessary things are:

a. Attitude and skill sets of supervisors through effective communication how

better and skillful they are to carry out the process and how much
authority is given to them for decision- making. It also includes
involvement and support of executives.

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b. Acceptance, commitment and ownership; the managers and employee

how do they do it and to what extent they are ready for. It includes the
availability of resources and access to them, tools and skills of employees
to have their jobs done.
c. How well the information is backed-up to create the procedural fairness
and distributive justice gives support to the overall system. So does the
process familiarity with responsible parties.
d. The culture that organization owns and the accountability the employees
bear is next factor and can be done through effective recruitment,
selection and placement process.
e. Effective induction, training, feedback, counseling, reward, compensation

mechanism, career advancement, skill development opportunities, making

managers responsible for high turnover, etc. are other prerequisites.

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