The challenge of performance management

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The business world is evolving at an ever-increasing pace. Just maintaining the current performance of the business is not enough in the contemporary world (Seotlela, 2014). Organizations must consistently and critically review performance management systems and take drastic measures (Seotlela, 2014).

If the performance management is properly developed and implemented in an organization, sustainable improvement in organizations, enhancing motivation and commitment of employees and empowering individuals to provide talent for the success of the organization (Amstrong, 2005).

 

 Implementation of the Performance Management System

The challenging part of performance management is implementing. Most for the time, performance management fails due to lack of technical knowledge and awareness of the implementation of performance management (Robert S. Kaplan, 1996). An effective implementation of performance management requires best performance management implementation model and practice. The following are common challenges of performance management systems:

 

Poor integration and alignment: A Synergy must be created between the performance management system and strategic planning, human resources management process, organizational culture, structure and all other major organizational systems (Saravanja, 2004). Without integration, no performance management system could succeed.

 

Lack of leadership support and commitment: The role of leadership is consistently regarded as the most important human factor in a performance management system. (Pace, 2011) argues that performance management becomes utterly useless without commitment from the management team. If the seniors and the management team do not show commitment to the implemented performance management systems, the employees will not take it seriously. The role of setting strategic direction and reinforcing the cycle is critical for the overall process (Saravanja, 2004).

 

Lack of constructive feedback: Feedback is the most critical success factor of the entire performance management system and it should be especially constructive feedback and requires the provision of relevant information, reduces fears and anxieties, reduces resistance to change (Saravanja, 2004).

 

Lack of understanding: Understanding of the performance management system will have long term benefits for the managers and employees (Saravanja, 2004).

 

Lack of rewards and recognition: If a trustworthy rewards and recognition system is not aligned with the performance management, the overall process becomes hallowed (Saravanja, 2004). In large organizational systems employee’s behavior will be influenced by how the organizational evaluates  performance and what behaviors are rewarded (Robbins, 2005).

 

Managing Under performers: Managing under performance is a situation where the results given are below the organizational expectations, which might affect the outcome of the employee (Robbins, 2005).

 

Performance management is fair and effective if provided with adequate notice, fair hearing, and formal review in which an employee is informed of the assessment and judgment based on evidence that requires the organization to apply performance standards (Aguinis, 2018). This will create a full understanding of the process and purposes of objective setting for both the manager and the employee.

 

 

 

List of References

Aguinis, H. (2018). Performance Management, fourth edition. Chicago Business Press.

Amstrong, M. (2005). Managing Performance in Action. London: CIPD.

Dubey, R. (2016). Sustainable Supply Chain Management: Framework and Further Research Directions.

Pace, A. (2011). The Performance Management Dilemma. Intelligence Human Performance.

Robbins, S. (2005). Organizational Behavior 11th Edition.

Robert S. Kaplan, D. P. (1996). strategic learning & the balanced scorecard.

Saravanja, M. (2004). Integrated Performance Management System Performance Management; Problems and Potential.

Seotlela, R. P. (2014). Implementation Challenges of Performance Management System in the South African Mining Industry.

 

 

Comments

  1. Pasan JayaratneSeptember 11, 2022 at 11:17 AM

    According to the skill-and-will model employee performance is correlated with ability and motivation (Steven Lattimore Mcshane and Ann 2010). Hence in order to manage performance of an employee it is imperative to manage employee motivation and abilities.

    ReplyDelete
    Replies
    1. Zainul FahadSeptember 15, 2022 at 6:50 AM

      Thank you for the comment Pasan, It is a business strategy for the organizations, which knows how to use and invest resource resulting in faster growth (Vosloban,2012).

      Delete

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