Executive Summary
Purpose of Performance Management System
The main purpose of the Performance Management (PM) System would be to analyze, assess & thereby ensure the effective working of the employees for which they are hired for. The Performance Management system should aim to examine the efficiency of the employees which indirectly would contribute to the progressive growth of the company in the long run.
Benefits of Performance Management System
An effective PM system creates positive influence on the loyalty of the employees while motivating them to perform better
The efficient PM system at Lion Office Systems would help the company to collaborate better & in the process will help identify future leaders who would be groomed as per their career aspirations.
Moreover the company would be able to understand the talent gap & thereby look for new recruits outside Nelson region as planned under business objectives (Carr & Kline, 2016).
Factors Making Performance Management Successful
Many factors help in making performance management successful. While some are external factors, some internal factors are also relevant in this respect. Some of the common factors are:
The competence of the managers – This will in implementing the performance management system efficiently at Lion Office Systems
The mindset of the people – This will drive the PM to be implemented across the three units of Lion Office Systems
Reinforcement – From time to time reinforcements from the higher officials will help in pushing forward the importance of PM
Performance Management System
Features
Some of the important features of the PM system at Lion Office Systems should be:
Fair mode of assessment for all levels of employees across varied criteria which is aligned with the job description.
The PM system must be a continuous process through which the employees & the managers should be able to reflect their achievements & accolades.
The PM system should be well documented in order to ensure transparency & credibility.
The PM system should be aligned with the higher business objectives of Lion Office Systems and should facilitate proper feedback for effective training & development of the employees.
Should be made online & paperless in order to support the objective of Lion Office Systems to digitize their business (Yeoh, et al., 2015).
Justification
Fair assessment would enable all the employees to work harder & efficiently.
The continuity will help in determining the achievements on a regular basis.
The documentation will help in achieve credibility in the PM system.
The alignment with the higher objectives would help in achieving the strategic objectives of Lion Office Systems.
Making it online will go side by side with the objective of the organization to implement IT as an enabler & strategic tool for development.
PM System
The PM system as envisaged for Lion Office Systems is being illustrated below:
Step(s)
Description
Justification
1
Online initiation of PM review as per set frequency
Will Determine Employee Motivation & Expectation & also facilitate IT adoption
2
Setting of Goals with the supervisor
Will enable healthy interaction between the employee & the supervisor
3
Accepting the Goals
Will ensure accountability
4
Filling up the achievements
Will ensure well documentation objectives of the employees
5
Validation of the Goals by the Supervisor
Will ensure the perception filings of the supervisor
6
Acceptance of the perceptions of the supervisor
Will ensure transparency
7
Validation by the Reviewer
Validation & acceptance of the higher management in order to ensure fair play by the supervisor
8
Goals & achievement locked for comparison
Will ensure enterprise wide comparison on the same levels
9
Performance Report Generation by the system
Will ensure transparency & credibility of the system
10
Performance Report acceptance by the employee
Will ensure employee acceptance to work harder or to continue the same stint.
Table: PM Process, Source: (Sahoo & Mishra, 2012)
Performance Reviews Effectiveness
In order to ensure effectiveness in the performance reviews following measures can be taken by Petrawhat:
The Expectations should be set early for employees to understand & respond to the goals set.
The tone of expectations should be same across the organization in order to ensure same level play.
The PM system should aim at constructive coaching of the employees.
The employees should be made aware of the reviews on a quarterly basis & thereby should be given chances for improvement
Horns & Halo effects should be eliminated
Soliciting feedback across the unit should enable a 360 degree approach
Preparation of proper discussion sessions with the employees
Following the principles & aligning goals with business objectives
Not to talk about compensation during the review as that will be decided at enterprise level
Performance Appraisal System
The Performance appraisal system should systematically link the different objectives of the organization. Some of the major linkage factors are (Heathfield, 2017):
The Performance Appraisal should have points across different parameters which will determine employees level & thereby guide the employee towards development through training
Performance appraisal should be linked to financial rewards for better motivation
Should be a top-Down approach (Knight, 2011)
Should be online to facilitate IT adoption
Should involve career counselling
Should emphasize past performance & future planning
Should be realistic
Should be able to highlight effective use of resources
References
Carr, A. & Kline, K., 2016. Encouraging Effective Performance Management Systems, Ohio: Society for Industrial and Organizational Psychology, Inc.
Heathfield, S. M., 2017. Tips for Effective Employee Performance Reviews. [Online]
Available at: https://www.thebalance.com/effective-performance-review-tips-1918842
[Accessed 11 August 2017].
Knight, R., 2011. Delivering an Effective Performance Review. [Online]
Available at: https://hbr.org/2011/11/delivering-an-effective-perfor
[Accessed 11 August 2017].
Sahoo, C. & Mishra, S., 2012. Performance management benefits organizations and their employees. Human Resource Management International Digest, 20(6), pp. 3-5.
Yeoh, W., Richards, G. & Wang, S., 2015. Benefits and Barriers to Corporate Performance Management Systems. Journal of Computer Information Systems , 55(1), pp. 105-116.