March 25, 2018

ASSIGNMENT 1 (MANAGING HUMAN PERFORMANCE IN ORGANISATIONS)  EXAMPLE OF ESSAY DON’T COPY IT BECAUSE THIS IS DIFFERENT TOPIC JUST AN EXAMPLE ABOUT HOW TO DISCUSS & STRUCTURE. The modern world of business is forever evolving at a rapid pace due to ever changing and ever growing business practices as well as the access to new technologies and a larger talent pool employers have to choose from, organisations have to keep on top of varying work ethics, employee motivations and changing organisational goals. The main focus of this paper is to research the challenges and issues faced by an organisation when implementing a performance management system (PMS) and what managers and human resource (HR) practitioners can do to help facilitate performance improvement. “Performance management can be defined as a systematic process for improving organisational performance by developing the performance of individuals and teams. It is a means of getting better results from the organisation, teams and individuals by understanding and managing performance within an agreed framework of planned goals, standards and competence requirements.” (Armstrong 2006, p. 1). For organisations and management to keep up with these fast changes and to maintain the current standards of performance, management must keep reviewing and evolving their PMS if they wish for their organisation to survive in the changing world. PMS are seen by organisations as a way to successfully convey the strategic objectives and goals an organisation has and can be used by organisations and management to help employees reach targets and objectives, to help improve overall efficiency, assist with performance capabilities of employees and to asses and evaluate employee performance by introducing motivations and incentives and develop underperformers. “The potential value of using PMS as a tool to manage and measure both employee and organisational performance depends largely on the quality of how the system is implemented. As a result, an implementation of such a system is of critical importance to the success factor in the future of any organisation. Well designed and implemented PMS has positive impact on the overall performance and financial results of the organisation. Performance management system is the most difficult system to implement in organisations” (Pulakos, cited in Miruka 2014, p. 177). If a PMS is designed inefficiently and improperly implemented there can be undesirable consequences for the organisation and anyone involved. If a PMS is suitably established within an organisation then there will be an improvement in the performance of the employees, but if a PMS is not accepted properly into an organisation this could lead to wasted resources. There are challenges and issues when implementing a PMS, some issues are lack of alignment, according to Kathuria et al. (2007) there are two distinctive types of alignment, these are vertical alignment which focuses on developing the larger set of directing variables such as workforce and organisational life cycle and horizontal alignment which centres on the coordination of efforts from all departments within an organisation. Horizontal alignment is less common place within organisations but when used should focus on cross-functional integration which is the practice of consistent and supported decisions across departments and intra-functional integration which can be achieved when there is coherence in decision making leading to cooperation from all departments. Hanson et al. (2011) describes alignment as the process of linking an organisations strategic goals with that of employees’ personal goals, and requires a shared understanding of the goals an organisation has. When implementing or updating a PMS there can be a misunderstanding or lack of alignment due to numerous processes being devised separate from the employees that the processes are being made for. There is a strong association between an organisations strategic development, the amount spent on the PMS and the operational planning devised by departments with incompatible frameworks being used. PMS can lack alignment between an individual employee’s performance and the performance of the department. “If there is poor alignment with the organisations vision to guide staff, even the best intentioned cannot tell if they are headed in the right direction.” (Wellington 2011, p. 129). When an organisations activities are aligned with the strategic objectives this guides employees in the right direction and can help contribute to the organisations competitive advantage. A second challenge when implementing a PMS can be lack of measurements, a performance measurement is simply the collection of data that evaluates whether or not the correct processes are being performed and the preferred outcomes are being accomplished. Put forward by Kerzner (2013) monitoring enables the analysis of performance, management does this by using key performance indicators (KPI’s) to guide and measure what should be monitored within an organisation. According to Taticchi (2010) a lack of management can happen at various levels within an organisation when implementing a PMS, in various circumstances targets are set by management and the organisation but there are no relevant measuring systems put in place and in even more extreme cases performance has not been tracked therefore there is no data to help measure how the organisation is operating. A third issue is the lack of leadership and management commitment, management plays an enormous part when employing a PMS. According to Groscurth (2015) a strong leadership presence leads to high productivity and reduces the risk of employee turnover, when a manager displays a lack of interest or disregard for the systems in place within the organisation it emphasises to the employees that if the management will not abide then why should the employees. “The more an employee spends time and mental energy worrying about what management or a specific manager might do that could adversely impact the employee, the less cognitive resources are available for productive efforts.” (Mayer & Gavin 2005, p.876). The problem of lack of commitment from management and leaders can have a vast impact on the integration and alignment of a PMS, having management committed to understanding, developing and accepting a PMS plays a critical part in performance success. Poor performance can be a challenge for the application of a PMS, “if a person’s performance is so poor that their job could be terminated. In turn a company can suffer if good performance is not acknowledged and rewarded appropriately, or poor performance is not highlighted and dealt with.” (Wellington 2011, p.135). Managing poor performance is usually a responsive act but more often than not it is an issue that is delayed, changing it from a simpler fix to a more difficult discussion between management and employees. A major reason that poor performance is not often tackled early in the PMS implementation is due to a lack of accurate measurements, data and evidence required to make a proper analysis. A lack of knowledge and skills can also contribute to an employees’ poor performance, “when performance is inadequate for reasons of lack of skills, knowledge, or ability, training is a solution…employees who lack adequate knowledge to raise their performance levels could probably benefit from task-specific training. If, however, these employees are reluctant to engage in training, an incentive system can serve to motivate them to participate in the training, gain the necessary knowledge, and thereby improve their performance.” (Watkins & Leigh 2009, p. 454). Also according to Watkins and Leigh (2009) a weakness within the PMS can come about due to a poor design and lack of training for the PMS that has not been conveyed to the organisation in support of the new PMS. Systematic communication should begin at the top most level within an organisation and supported by all other departments and this can only be properly done if all employees participatin g h ave adequate knowledge and skills. And finally resistance to change can be a major issue to the implementation of a PMS, regardless of how well designed a PMS is not all employees will see the need for a change. There are many factors that contribute to resistance, put forward by de Waal and Counet (2009) change in status quo, lack of willingness to learn new skills, incompetence of managements and the belief that there is no need for change. Kotter (2007) proclaims that management should continually enforce the reason that there is a need for the PMS. Managers and human resource (HR) practitioners are both responsible for performance improvement, there is a need for both managers and HR to work together to convey the importance of a PMS within the organisations and ensure that all employees understand that there is a need for the implementation of the system and that with the enactment of the PMS the issues and challenges will be dealt with. According to Tovey et al. (2010) coaching is a great skill to practice when managing performance. Coaching can is described by Tovey et al. (2010) when a mutual conversation is held and follows a particular process that results in better performance and a commitment to improvement and the formation of positive relationships with management. There are four steps to understanding coaching, these are coaching is a process that should be applied in a logical, systematic method, focuses on getting the performance to the highest level, emphases continuous improvement and helps develop a positive relationship between management and the employee. Coaching can take the form of on the job training and aims to continually develop knowledge, skills and attributes of the employee. Another improvement management and HR can use is a standalone ten step model to help facilitate performance improvement, the step of this are: identifying gaps and needs, noting the skills and knowledge that needs updating, categorising needs, linking those needs to a specific output process, prioritising those needs, selecting the right strategy, identifying resources needed, development of a performance improvement plan (PIP), implementation of the PIP and finally monitoring of the PIP. To help management and HR monitor under-performing employees a PIP provides attainable goals and support for the employees while they strive to reach their potential. When using a PIP managers and HR practitioners should continuously collect feedback, according to Heery and Noon (2008) feedback such as multi source (360-degree) feedback is sourced from the managers, colleagues and others that have the most immediate contact with the employee. “Even when feedback recipients have good intentions about improving their behaviour, little actual improvement is likely unless they remain focused on implementing their plans for using the feedback. Most managers deal with an endless series of problems and disruptions requiring considerable time and attention.” (McCall & Segrist and Mintzberg, cited in Seifert & Yukl 2010, p. 857). This is where an incentive and reward structure or system can be used to assist performance improvement, according to Ejumudo (2014) a reward system is an integral part of an organisations environment, it is instructive to employees that work that exceeds will be rewarded and that employees what are well rewarded are more likely to feel of value to the organisation. A reward structure consists of benefits and remuneration for employees, and is a great incentive managers and HR can employ when implementing a PMS when there is resistance or poor performance from employees. “Rewards or sanctions are used to reinforce or modify behaviour depending on the employee's performance and on the appropriateness of the course of action pursued. Hence to business strategists the rationale underlying the introduction of a performance measure is that it is one element of a strategic control system and can be used to influence behaviour.” (Neely et al. 2005, p. 1247). By using a reward structure when implementing a PMS it shows employees that there is a benefit to accepting the new system and that management is paying attention to the work of the employees. Put forward by Ejumudo (2014) an organisations true success comes from the employees’ willingness to apply their creativity and abilities towards the organisations development and progress. The purpose of this essay is to investigate the issues and challenges faced by an organisation when implementing a PMS, from the research conducted for this paper it can be concluded that there are major difficulties faced by the organisation as a whole, management and HR practitioners when it comes to successfully applying a PMS. These struggles are a failure on managements’ part to put into perspective the alignment and measurements as well as change their management style along with improvement of poor employee performance, these issues faced by an organisation implementing a PMS can be minimised and helped by continuous feedback, reward systems and coaching. References Armstrong, M., 2006, Performance management: Key strategies and practical guidelines. 3rd ed. Kogan Page. London. de Waal, A. A. & Counet, H., 2009. 'Lessons learned from performance management systems implementations', International Journal of Productivity and Performance Management, vol. 58, no. 4, pp. 367-390. Demartini, C., 2014. Performance Management Systems: Design, Diagnosis and Use. 1st ed. Springer. Berlin Heidelberg. Ejumudo, K., 2014. Pay reward system management and staff performance in Nigeria: a study of the Delta state civil service. Raziskave in Razprave, vol. 7, no. 3, pp. 30-64. Groscurth, C., 2015. Managers Could Do a Lot Better at Performance Management. [Online] Available at: http://www.gallup.com/businessjournal/183821/managers-lot-better-performance-management.aspx [Accessed 29 April 2016]. Hanson, J. D., Melnyk, S. A. & Calantone, R. A., 2011. Defining and measuring alignment in performance management. International Journal of Operations & Production Management, vol. 31, no. 10, pp. 1089-1114. Heery, E. & Noon, M., 2008. Oxford Reference; A Dictionary of Human Resource Management. [Online] Available at: http://www.oxfordreference.com.ezproxy.lib.rmit.edu.au/view/10.1093/acref/9780199298761.001.0001/acref-9780199298761-e-1292# [Accessed 29 April 2016]. Kathuria, R., Joshi, M. P. & Porth, S., 2007. Organizational alignment and performance: past, present and future. Manaement Decision, vol. 45, no. 3, pp. 503-512. Kerzner, H., 2013. Project Management Metrics, KPIs, and Dashboards. 1st ed. John Wiley & Sons. New York. Kotter, J., 2007. Leading Change: Why Transformation Efforts Fail.. Harvard Business Review, vol. 85, no. 1, pp. 96-103. Mayer, R. & Gavin, M., 2005. Trust in Management and Performance: Who Minds the Shop While the Employees Watch the Boss?. Academy of Management Journal, vol. 48, no. 5, pp. 874-888. Miruka, O., 2014. Implementation Challenges of Performance Management System in the South African Mining Industry. Mediterranean Journal of Social Sciences, vol. 5, no. 7, pp. 177-187. Neely, A., Gregory, M. & Platts, K., 2005. Performance measurement system design; A literature review and research agenda. International Journal of Operations & Production Management, 25(12), pp. 1228-1263. Seifert, C. F. & Yukl, G., 2010. Effects of repeated multi-source feedback on the influence behavior and effectiveness of managers: A field experiment. The Leadership Quarterly, vol. 21, no. 5, pp. 856-866. Taticchi, P., 2010. Business Performance Measurement and Management: New Contexts, Themes and Challenges. 1st ed. Springer. New York. Tovey, M. D., Uren, M. L. & Sheldon, N., 2010. Managing Performance Improvement. 3rd ed. Pearson. Frenchs Forest, NSW. Watkins, L. & Leigh, D., 2009. Handbook of Improving Performance in the Workplace : The Handbook of Selecting and Implementing Performance Interventions. 1st ed. Pfeiffer. San Francisco. Wellington, P., 2011. Effec tive People Ma nagement : Improve Performance Delegate More Effectively Handle Poor Performance and Manage Conflict. 1st ed. Kogan Page. London.

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