The ideal verse actual performance management (PM) system implemented by an organization has similarities and differences that prove to be the distinction between a system that yields the desired results and one that does not. Aguinis (2009) outlines and discusses 14 characteristics of an ideal PM system that, if implemented, are likely to help the system generate the desired results.
EDF Energy (EDF) is a European energy company that experienced a merger in 2003 and is structured into four main branches: energy, customers, networks, and development. The increased size of the organization because of the merger, and the four main braches prompted the necessity for an improved performance management system. EDF identified 38 internal effects of performance management and divided them into four categories: strategic management, organizational behavior and people issues, organizational capabilities, and operational and tactical issues (Martinez & Kennerley, 2010).
The presence of ideal system characteristics at EDF
Because the system at EDF identified 38 internal effects divided into four categories, many of the ideal system characteristics are present. If the EDF desired internal effect matches any definition of the ideal characteristic, it is included as present for the sake of this case study.
The strategic management category includes ideal system characteristics primarily of strategic congruence. This category is specific regarding distribution, support, and achievement of objectives.
The organizational behavior and people issues category includes ideal system characteristics of ethicality, openness, acceptability and fairness, and identification of effective and ineffective performance. This category focuses on ...
... middle of paper ...
...ill have to come from a formal leader.
Many assumptions can be made (by an employee or outside entity) about the system used at EDF. Assumptions can create problems in a system that will reduce its effectiveness and not generate the desired results. The organization has clearly stated that the system is under ongoing scrutiny and evolution. This could be the most important factor: the ability to evolve with the goal of improving. An ideal performance management system evolves with its employees and customers to achieve the most desirable results. During its lifespan, it will invariably have some not-so-ideal times.
Works Cited
Aguinis, H. (2009). Performance Management. Upper Saddle River, New Jersey: Pearson Education, Inc
Martinez, V. & Kennerley, M. (2010). Impact of performance measurement and management systems.
Management Services, 54(2), 42-47.
In 2012, Forbes contributor Sebastian Bailey professed, “Bad performance management costs a lot and delivers very little. In fact, when it goes wrong, he tells us, it dilutes the effect of every other people investment. Yet, when done right, the impact is significant (Bailey, 2012). We learn from Aguinis (2013), that there are dangers associated with a poorly implemented performance management systems. These include; increased turnover, wasted time and money, decreased motivation to perform, as well as damaged relationships and lowered self-esteem (p.9). The first purpose of performance management systems is to help top management achieve strategic business objectives (Aguinis, 2013). This reinforces behaviors that are consistent with the company’s cultures and goals and also plays an important role on the commitment, engagement and loyalty of company employees. Employees who have clear expectations, can align their values and vision with the company’s, understand what is expected of them and what they earn in return will have higher satisfaction and longevity within an organization.
17. Robbins, Stephen P. and Judge, Timothy A., 2011. Organizational Behavior, 14 Edition, Upper Saddle River, New Jersey. Pearson, pp555.
Describe the performance management system that is currently in place. Explain the formal performance feedback process.
In an effort to address internal performance problems and stay competitive in the food service industry, Foodbuy’s upper management implemented a forced distribution performance management system (PMS). The purpose of the newly enforced PMS was to align employees with the organization’s new strategic goals. Although changes were needed due to our numerous systems to measure performance, a more well thought out plan was necessary. Most of Foodbuy’s managerial staff saw the importance of a more uniform global plan which was needed to consolidate goal setting, performance appraisal and development into a single common system. On the contrary, many opposed the hasty implementation process. Senior management communicated the new PMS in one mass email communication to all its employees. Although it was critical that Foodbuy remained competitive within the food service industry and align with the new strategic goals, the vision was not clear how to accomplish this task. So, what went wrong? The purpose of this paper will be to discuss the poor implementation process of Foodbuy’s PMS and recommendations of how to avoid implementing hasty and lack of consensus decisions in management.
Employee performance management is the process for establishing a shared workplace understanding of what is to be achieved at an organisational level. Employee Performance Measurement is the actual measurement of the performance of an individual or a group. It consists of Performance measurement and Performance appraisal which is the process by which an employee is evaluated by his/her work behaviours by measurement and comparison with previous established standards, documented results, and communication of results with employee.[1] An organisation’s performance management system plays an important role in determining the overall effectiveness of the workplace. The key elements of an effective performance management system consists of the timing and frequency of evaluations, determination of who appraises whom, measurement procedures, storage & distribution of information, and recording materials.[1] Performance measurement have been around for many years, and has been an essential part of an organization to determine the amount of wage an employee receives according to their work performance. It was used to drive specific behaviours from employees to obtain specific outcomes for the organisation.[2] So what would we do with the results from measuring employee performance? What does the organisation benefit from this? What is the sole purpose? Managers of organisations use this information to evaluate, control, budget, motivate, promote, celebrate, learn and improve. However the ultimate purpose, in which the above elem...
Furthermore, PM supports continual improvements as it doesn’t only illuminate achievement and practice impact but it also identifies and studies deviation from performance target and any faced problems and then relevant corrective actions are proposed. Rather than producing too many reports, PM help producing efficient reporting system designed to bring a meaningful image for tracking the performance and accordingly, decision-making and what are needed to enhance performance are better guided and are an evidence-base. Therefore, PM approach has been valued as an important framework to communicate, to implement strategy, and to point out improvement actions in different organizations including healthcare. Therefore Performance management is indispensable to effectively steer reforms in healthcare organisations.
Various conflicts in the RM system can affect the benefits that can be obtained. It has been argued that performance management systems only provide superficial motivations and have little effect on underlying behaviours and attitudes. Although the RM system can have some limitations, there is strong argument for the benefits, and logic also deems it as a credible strategy to assist in improving employee performance.
Performance management was designed for an era typified by predictability, hierarchy, command and control, and stability. Its roots were firmly embedded in Frederick Taylor’s notions of scientific management. Today, the entire premise of performance management has profoundly shifted. With widespread emphasis on teamwork, shared leadership, and an environment of volatility and virtuality, the performance management model is increasingly coming under pressure.
Performance management is a management tool used to value, monitor and measure a company’s strategies that ensure the efficiency and effectiveness of its product delivery. This management tool does not focus on the organisation and on its employees as well as stakeholders. It is a continuous process that entails that managers make sure that organisational and employee values are corresponding (Aguinis, 2005,p.1/2-1/5). Performance Management brings about the competencies in the employees, increases self-esteem by giving feedback to employees, there is a low number of lawsuits because it helps understand the company better (eThekwini Municipality, 2008,p.10-11). According to Pride, Hughes and Kapoor (2011, p.288) performance management creates motivation for employees; one theory of motivation is of Expectancy, which stipulates that employees satisfaction is driven by expectations of what an organisation will offer in return.
Strong performance management plays main role in managing companies during the financial crisis. This report will detail the need for implementing a performance management system during the current global financial crisis. The report will discuss the principles and aspects of performance management and detail several challenges that are presented when implementing a performance management system, or adjusting a current system already in place. In addition, it will analyze the company, DMG World Media, who will be used as a basis for best practices as they are known for their successful positive performance system. Moreover, it will show how a performance management scheme could be successfully introduced in this company. Finally, we will explain and justify the need of implementing the systems especially in time of economic upset throughout the global markets.
The notion of performance management is infused in every aspect of corporations on a global scale. As countries try to become more competitive, each country thinks about new ways in which to positions themselves better in the global market. Corporations have adopted strategies in an attempt to educate their work forces with new initiatives and products and have adopted some form of performance managements to track success and manage their employees in attempts to achieve the best
EPM has advantages as well as disadvantages. However, the advantages are more pronounced than the disadvantages. For instance, the electronic device helps to save time in an organization. The device has the ability to gather metric data annually and is able to use the human resource formulas, as well as evaluate and grade employees based on their performance. EPM also ensures that appraisals are only viewed by the individuals who they are intended for (Lliopis, Gonzalez, & Gasco, 2005, p. 222). This has a positive effect on the company since it enh...
Performance management use as a tools to evaluate set objectives whether active or not this the scale of contribution employee and organization to get recognized employees needs for future and to rewards and appraisal and performance management uses to retain the employees and to derecuit outperforming employees furthermore indemnifying gaps of knowledge cultural behaviors can be done by this tools further more this is the two way communication a tool to organization and employee.
Performance management system supports the continuous improvement of knowledge, skills and performance of the employees. This system is required for the overall development of the individual employees, the dyads, teams and the entire organization. It helps in increasing the productivity and efficiency of the employees. It evaluates the performance of the employees and helps them in developing their future potential (Fisher, Schoenfeldt & Shaw, 2004).
Performance Management is when “manager’s work proactively with employees, in a systematic was to raise individual and\or group performance under specific headings applicable to their individual jobs and\or team work, having regard to business needs and positive motivational principles.” (Sheridan, 2007). The performance management process has two main purposes that drive