Importance of Performance Management System in 21st Century Organizations
Question:
Discuss about the Knowledge Management on Organisational Performance.
Human resource management has been considered to be one of the most significant things in the running of a successful organization. The 21st century organizations depend a lot on the ways their human resource management can work. They will have to measure the risks that are there in the organizations and take actions accordingly. However, the performance management system is very important aspect in the activities of the human resource management system. The performance management system has to work properly (Van Dooren, Bouckaert and Halligan 2015). The higher level managers decide what kind of things have to be achieved by the employees and what their target in the long-term plan is. The organizational objectives will have to be achieved by the individual skills of the employees. This is why the individual employees need to go through proper training and improve their level of performance to gain their objectives. Some serious issues and challenges have been faced by the performance management system of late (Van Dooren, Bouckaert and Halligan 2015).
The first challenge that is faced when implementing the performance management system in the organizations is the lack of commitment from the leaders or the higher level managers. These managers are only focused on achieving the chief objectives of the organization (Buckingham and Goodall 2015). If the top level managers do not appreciate the efforts of the employees, they will feel very much discouraged and this will be a great challenge for the employee retention for the organizations. It is very important that the leaders should provide the proper support to the employees. Only then the employees will show the motivation to meet the organizational objectives. As performance management is a very serious issue in the human resource management, it is up to the managers how they will implement the performance management system in the organizations (Buckingham and Goodall 2015) They will have to implement these systems with much efficiency and activeness. The performance management system is indeed very important and integral section in the human resource management system (Cascio 2018). The top level managers always decide the strategies by which organizations can expand and touch the new horizons of success. This is why they have to implement such strategies that could be helpful for all the employees. Their main intention is to make the employees perform better and achieve new heights indeed. They have to measure the risks and employ the performance measures that could help the organizations (Kearney 2018). The managers have to be innovative and provide new innovative ideas to the employees for betterment in their performance. They have to monitor the performance of the employees and provide them with the measures that should be taken so the organizational objectives can be met by the employees. The leaders should also introduce the reward and recognition so that the employees feel motivated to increase their performance level. The teams that are working in the organizations should always be proactive and supply the proper measures for the betterment of the performance. If the individual employees are not performing properly, they should be called in by the higher level managers and their problems and issues can be asked (Anitha 2014) The managers can suggest the employees with some ways by which the employees can improve their performance level. It can be expected that the employees can manage their performance level by the rewards and recognitions. This is how the motivation from the higher level management can effect in positive ways (Shields et al. 2015).
Challenges Faced in Implementing Performance Management System
Another important challenge in the performance management system is the choosing the wrong design about the performance management system. The tools that are used for the betterment of the performance management of the employees are different for the different industries and vary from one organization to another. It is very important to identify the risks that the particular organization is facing. Then they can go on to find the performance management tools that could be applied to that specific organization. It has been seen in some cases that the proper performance management tools are not used so the organizations have not achieved their targets and objectives. It can be one system that had been applied in one organization earlier and it has been used again in another organization probably from the same industry. this designed system can be implemented in this particular organization but the effect has not been that much positive as was in the earlier organization (Rasula, Vuksic and Stemberger 2012). This is the position when the organizations will have to think out of a different management system. It can be recommended that the organizations and their managers should consult with all the internal and external stakeholders indeed. This will lead to the better understanding of the matters by the teams and the management. If the stakeholders are consulted, it will probably lead the managers to convey the suggestions provided by them only (Parmenter 2015). It is very necessary to provide the customers with the better services all the time. The managers will have to see to the KPI or the key performance indicators of the employees. If the managers find any deterioration in the performance of the employees, they can try some other means to improve his performance. One of the most important things in order to be successful in this performance management system is the trust of the users. If the users have full trust on the organizations, they will surely take the service from the organizations. The different designs should be applied one by one and they should have a close look on the particular design that should fit them the best (Karatepe 2013). The organizations can only implement that performance management design on a long-term basis. The organizations should always implement the best options of performance management tools that are better for them. This will surely enhance their performance level indeed.
The third significant challenge in the performance management system is the monitoring the entire process and keeping the track for the enhancement of the performance for the employees and managers as well. The top level managers and the leaders should always provide the employees their feedback. This will help the employees understand in which sections they are lacking. Thus the employees will surely try to upgrade their performance. The managers should be at the centre of all the activities. Thus they can address all the situations positively. The managers should always keep a proper track of whatever is happening around them. Thus they can be able to decide what mitigation strategies they can implement if there are serious risks (Neves and Eisenberger 2012). The only purpose of the employees is to meet the objectives of the organization. They can try all the options to achieve them. They can try all the remedies that can be applied in order to mitigate the risks. If the organizational objectives are not met they can surely try out some ways by which the objectives can be met. They have to make some strategies that could be helpful to make the employees aware of their duties. They can address the HR managers to share the feedbacks from the employees. The HR department will have to take some serious actions in implementing the changes properly. The changes can take place only if the HR managers take up the primary responsibilities and perform their job roles properly. The HR department will have to provide the proper overview information to the higher level managers so they can take the proper actions against it. They can make use of the spreadsheets, sending emails to the clients, wanting their positive feedbacks and many more (Celuch, Robinson and Walsh 2015). This will surely be very helpful for the managers indeed. The monitoring work will be a continuous one. All the information should be shared by the HR department via emails and excel sheets. The increase in the performance level should be rewarded by the managers through monetary value of the gift vouchers. The judgments should be made properly and by consulting with all the seniors. Thus the organization can benefit from the tracking and monitoring of the performance levels. The progress in the performance management can be accessed by the profits made by the organizations. Thus the organization can succeed in achieving its objectives indeed. The employees will also have to contribute their best efforts for this cause effectively (Daley 2012).
This paper can be concluded by saying that the performance management is one of the most important components of the human resource management. The HR managers will have to manage all the discourses in the organization and aim for improving the performance of the organizations. The challenges that have been faced by the organizations should be tackled by the HR managers positively. This will involve the implementation of the various performance management tools, the positive role played by the top level managers and the keeping a track on the enhancement of the performance for the employees. Thus the performance management system can be made better.
References
Anitha, J., 2014. Determinants of employee engagement and their impact on employee performance. International journal of productivity and performance management, 63(3), p.308.
Buckingham, M. and Goodall, A., 2015. Reinventing performance management. Harvard Business Review, 93(4), pp.40-50.
Cascio, W., 2018. Managing human resources. McGraw-Hill Education.
Celuch, K., Robinson, N.M. and Walsh, A.M., 2015. A framework for encouraging retail customer feedback. Journal of Services Marketing, 29(4), pp.280-292.
Daley, D.M., 2012. Strategic human resources management. Public Personnel Management, pp.120-125.
Karatepe, O.M., 2013. High-performance work practices and hotel employee performance: The mediation of work engagement. International Journal of Hospitality Management, 32, pp.132-140.
Kearney, R., 2018. Public sector performance: management, motivation, and measurement. Routledge.
Neves, P. and Eisenberger, R., 2012. Management communication and employee performance: The contribution of perceived organizational support. Human Performance, 25(5), pp.452-464.
Parmenter, D., 2015. Key performance indicators: developing, implementing, and using winning KPIs. John Wiley & Sons.
Rasula, J., Vuksic, V.B. and Stemberger, M.I., 2012. The impact of knowledge management on organisational performance. Economic and Business Review for Central and South-Eastern Europe, 14(2), p.147.
Shields, J., Brown, M., Kaine, S., Dolle-Samuel, C., North-Samardzic, A., McLean, P., Johns, R., O’Leary, P., Robinson, J. and Plimmer, G., 2015. Managing Employee Performance & Reward: Concepts, Practices, Strategies. Cambridge University Press.
Van Dooren, W., Bouckaert, G. and Halligan, J., 2015. Performance management in the public sector. Routledge.
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