MGT209 Managing Human Resources, Southern Institute of Technology, New Zealand
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Title: Factors effecting performance management system
Introduction: Performance management in any organization is directly associated with the behaviour and the performance outcomes. An effective performance management system will induce appropriate proactive response from the individuals and this in-turn will create objectives of performance get achieved. Typical outcomes from the system include behaviour of the employees, economic outcomes as well as other environmental expectations. Though behaviour of the employees is not directly related to the economic implications, in its own right it is often considered as one of the outcomes of the performance management system in the organization. Performance management is all about the actual potential in the individual and how best it can be realized for organizational objectives. Essentially, organizational relations do make up an inevitable and significant part in realizing the performance management in the organizations. Managerial skills and capabilities will decide the extent to which these deliverables can be realized. The following part of the report discusses about the factors involved in the performance management of the organization. Further there is also going to have focus on strategies employed to review the performance management of the organization. Comprehensively there is going to have discussion on the factors that will contribute to enabling a positive work environment which essentially will include cultural factors as well. Specifically the write-up emphasizes the role of an employee, line manager as well as a HR department for effective performance management as well for positive work environment.
Question: Critically evaluate the role of each of the following stakeholders in effective performance management and more generally, in contributing to a positive, culturally sensitive work environment.
Answer: Factors for an Effective performance management: An effective performance management system will fit well with the organizational framework in general. This should be of use both for the managers and the managees as well. Both these stakeholders can be considered as essential partners in the development of the performance management system. All the formal and informal measures and procedures that becomes part of an effective performance management system will work on to improve the overall effectiveness of the individuals, teams as well as the corporate as a whole. A performance management system can work on to keep up its effectivity only when all the stakeholders in the system believe and respect their accountability and responsibility in meeting the objectives of the system. Each stakeholder can perform his duties effectively, only when they know, what they should do? How they should do? And when it is to be done? Agreed plans and strategies need to be collaborated for and they need to be implemented as per the strategies drafted and agreed upon, only then the true objectives of the performance management system can be realized.
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a. The employee
Answer: An employee is an essential building block for achieving any of the organizational performance expectations. Employee's Engagement will be at the core of the organizational performance requirements. Hence an effective performance and performance management is possible only when an employee is ready to make up a psychological contract for performance and is willing to render the right quality of performance as per the needs of the organizational performance. Goal setting and working for realizing the expectations of the psychological contract makes up essential characteristics of this employee contract making (Saratun, 2016). Some of key metrics of performance management system are not just the organizational outcomes and economic benefits, rather the employee satisfaction and well being. Other metrics ofcourse will include positive collaboration, attitude and behavioural changes of employees (Sharma et al., 2016).
b. The line manager
Answer: The role of line manager is even more critical in realizing the objective of an effective performance management system as well to ensure a proactive working environment in the organization. It is required for the line manager to facilitate all the characteristics that are required to enable employee engagement in the organization. Typical requirements like meaningfulness, safety and availability can be enabled by line managers in letting the organizational employee engagement to get ensured. Each of these characteristics can be achieved only when a proper job design is done, a proper coaching and social support are enabled. Further line manager should facilitate the necessary training and leadership skills development in the employees through organizational capacity building programs. Departmental operational framework and mission should enable employees get these skills as part of their operational requirements. Apart from facilitating the basic requirements for better employee engagement, an impartial engagement of the employee skills and talents is very much required to in the appraisal process. Employee's performance appraisal is required to be performed unbiased and also employee should be created of trust and justice in the system(Ali et al.,2019). Creation of perception of the trust and justice is very much required to make sure that the employee gets engaged in the organizational objectives effectively. A line manager has a key role to play to do liaison with the employees and to make them understand, what to do? How to do? When to do? Further it is required for them to develop a plan of agreement to do that in the organizational set-up. The agreement of performance need to be realistic fit for the prevailing working environment and should justify the efforts of the employees as per the industrial standards. A line manager has a significant role in providing the necessary inputs to the HR department to facilitate appropriate strategies in this direction.
c. The HR department
Answer: Ensuring a trust and justice in the system is one of the essential requirements to make the performance management system operate effectively. One of the key characteristics of the system to make sure that the HR department work on to provide a 3600 performance appraisal system in the organization. When there is feedback from different set of sources and when the feedback obtained so is comprehensive in all aspects it is more likely that the organizational employees can have trust that their efforts will be justified. Also the rewards or the incentives in proportion to the employee performance will enable better positive work environment and will work to promote constructive positive environment in the organization. One of the important aspects to be considered by HR department is to enable supervisors and the managers to get right training in implementing the performance management system(Bratton & Saks,2011). A well trained and positively equipped manager can work on to enforce better performance management in the organization, so it the role and responsibility of HR department to ensure that all managers are received with right training to implement the performance management system in the organization. A right employee engagement is the first step for achieving effect performance in the organization and a HR department should work on to enable the drivers of employee engagement to occur in the organization. It should be done by ensuring right communication, enabling the assistance to employees for work life balance and by making sure right leadership is availed to them. Though performance depends on the potential and the working environment, one of the most significant aspects that employees need to consider in enabling a positive working environment is following cultural tolerance and practicing diversity in practice (Noe et al.,2017). Globalization has made it mandatory to let the organizations become open for cultural diversity. Typical tolerance, empathy towards other cultural people, training and providing skills in others norms and values will develop a positive working environment that can make sure employees will provide the best possible productive outcomes to the organization.
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Conclusion: Broadly speaking, different stakeholders in the organization employees, line managers and HR department do have significant role to play in the organization. An effective performance management system in the organization can be ensured only by a committed and efficient role play by each of the stakeholders. Apart from installing the right performance management system, it is also required to sustain the same. A right feedback and expediting system coupled with proactive policies of the organization and competent rewards and incentive schemes will make sure the performance of the organization gets improved as a whole.
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