Executive Summary 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. Introduction DMG World Media is an international exhibitions company which is a leader in home and consumer shows. The company employs fewer than 1,000 employees and is much decentralized and maintains numerous offices in many countries across the world. The company maintains a stringent, yet highly successful, human resources performance management system. Unlike traditional performance management systems that occur yearly and in more of a review format that discusses positives and negatives, DMG has performance reviews based on superior performance after each major event that it has. The executive vice president of HR, Warren Girling, states "We have a culture of how we manage our people to get that high performance. We select groups of highly motivated and developed people who understand their customers and their busin... ... middle of paper ... ..., Ohio, p.272 Varma A., Pawan S Budhwar and Angelo D., 2008. DMG World Media. Open Exchange: A Case Study, pp.30-32 (7) Jackson, Terence, 2002, “ The Management of People Across Cultures: Valuing People Differently”, Human Resource Management, vol.41, no.4 , pp.455-65. (8) McGraw, Dr. Phillip C., 2001, Self matters ,(Free Press). New York, p.30. (9) Robbins, Harvey, 1992, How to speak and listen effectively, worksmart series, (AMACOM Books), New York, p.42. (10) Skiffington , 2006, The Future of Leadership Development -is a Behavioral Coaching Approach, accessed 15-05-2010, http://www.aaa-coaching-partners.com/A_Future_of_Leadership_Coaching.htm (11) Topchik, Gary S., 2000, Managing workplace negativity, (AMACOM Books), New York. (12) Twentier, Jerry, 1998, The positive power of praising people,(NTC Contemporary) Lincolnwood, Ill, New York, p.54.
Geert Hofstede performed the most lauded research on The Dimensions of Culture theory. His findings and the model that he created were outlined in his 1980 book “Cultures Consequences.” The work was met with both acclaim and disregard from fellow academics. Hofstede’s work is generally quoted and cited without any hesitation even today and his model is still widely used the main guideline for dealing with human resources from a cultural perspective.
Triandis, H. C. (1963). Factors affecting employee selection in two cultures. Journal of Applied Psychology, 47, 89-96.
Hofstede, G. (1980). Culture's Consequences: International Differences in Work-Related Values. Beverly Hills, CA: Sage Publications.
Triandis, H., & Wasti, S. (2008). Culture. In D. Stone, & E. Stone-Romeo, The influence of culture on human resource management processes and practices (pp. 1-24). Psychology Press
Performance management aims to manage and improve individual performance with a vision to improving performance across the entire business. [Walter. M, 1995] defines performance management as the process of ‘Directing and supporting employees to work as effectively and efficiently as possible in line with the needs of the organisation’. It is very important to direct and support employees to work efficiently, and this can only be successful if a well-structured performance management system is put in place. But, nonetheless some organisations don’t get it
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.
...Harris, Sarah V. Moran (2011). Managing Cultural Differences, Leadership Skills and Strategies for Working in a Global World. 8th ed. UK: Elsevier Inc.. 10-25.
A good performance management system encourages management to take responsibility for making sure their employees meet the organization’s objectives and goals (Gary, 2004). Furthermore, according to Bowes (2009), there is good evidence that shows when good performance management systems are in place and implemented effectively, revenue, shareholder value, employee satisfaction and investor interest will all increase. Therefore, while, the Blame Library’s performance management system needs improvement in several areas it is in their best interest to continue to improve their performance management system by starting with their prerequisites. Once they have job analyses and developed job descriptions for all the jobs at the library, they will be in a good position to start working on the other characteristics of a good performance management system.
Nichols, R. G. (1961, March). Do we know how to listen? Practical helps in a modern age. The Speech Teacher, 10(2), 118-124.
Life is all about setting goals and trying to achieve them. The same theory also applies in the managerial industry. The accomplishment of desired results in a business is called performance. One of the major concerns of the top managers of a firm is the actual performance of the firm so its measurement is unavoidable.
Performance management is a process that guarantees an organisation and all of its available resources are working collectively and effectively towards achieving the organisation’s mission or goal. Performance management affords an understanding of what drives an individuals, and even organisations, performance at all levels. An understanding of performance management allows for the identification and minimisation of unproductive areas of an organisation, as well as an ability to predict future performance. It is a powerful tool that can be used by managers at all levels of an organisation to help improve a company’s productivity.
Performance management is used for the basis of promotion, reduction in force purposes (talent management), gives transparency of what an organization is looking for, merit increases, and lastly it provides protection against lawsuits for unlawful termination by keeping written documentation. Performance evaluations are advantageous to both the organization and the employee. A leading advantage of performance evaluations is it gives the employee an opportunity to create and achieve smart goals. Although performance evaluations primary function is to measure whether an employee is a good fit or a bad fit for the organization, its function is so much a broader. Performance management is tool purposely used to motivate employees to examine themselves and determine if they have selected the profession that is best for them; consequently the feedback an employee receives from their superior supports them with increase their knowledge and
When implementing a new performance management system in an organization there are both advantages and disadvantages that need to be taken into consideration by the design team. However, one of the best ways to know if a performance management system is effective is by implementing the system within the organization and then continuously monitor and reevaluate if the system is still relevant to the organizational
Hofstede ,G. (1980). Hofstede’s Culture’s Consequences- International Differences in Work Related Values. Cross- Cultural Research & Methodology, 5, 18-21.
Performance management is a continuous process that creates a working culture to encourage employees to improve their work performance and reach their full potential during their stay of employment. Performance Management also provides strategic direction, develop competency in employees and instill organization value. This paper will identify methods and affects that performance management plan has on the organization and their employees.