An Example of a Performance Management System

Organizations use a combination of procedures, processes and forms to evaluate job performance of their employees. A perfect performance management system contains a number of elements that include job descriptions, disciplinary commendations and policies, appraisals and performance expectations. Although both employees and supervisors frequently dread appraisals and evaluations of annual performance, a huge number of performance management systems work effectively and offer enough support for a fruitful workforce. This paper focuses on developing an ideal performance management system to be implemented by human resource manager of XY organization.

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Organizational Strategy

XY is an organization that deals with provision of computer services that include development of software, computer repairs, networking services and system management services. The organization headquarters are located in Texas, though it has offices in three other states in the United States. The company was established five years ago (2010), and it focuses on expanding its services to other states in the United States of America. The organization main mission is to be the world leading computer services provider. Its vision is to offer effective ad reliable computer services beyond the United States. Therefore, the company intends to operate at the international level in the near future.

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Performance Appraisal Systems

Workers performance appraisal refers to a process of workers evaluation by the management and provision of the feedback regarding job performance which includes steps to redirect or improve activities as required. This process normally combines oral and written elements of evaluation. Performance documentation offers the foundation for promotions and pay increases. Appraisal is also essential in assisting the workers to improve work performance and it act as an opportunity in which they can be recognized or rewarded for excellent performance. Moreover, they can act as a host of extra functions, offering a launching point in which firms can shape and clarify responsibilities based on business trends, clear communication lines between management and employees and branch re-examinations of possibly overused business practice (Aguinis, 2011).

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In this organization, performance appraisal will be used to develop employees’ experience and to act as managers teaching moment. In this regard, the organization will be conducting performance appraisal annual at the end of their year. The appraisal will focus on improving the productivity of the company, and guiding in taking informed professional decision concerning termination, job changes, and promotion. It will also focus on identifying what is needed to perform a job responsibilities and goals and to evaluate the performance of workers over the goals of their job. The appraisal will focus on identifying different areas for improvement, and supporting improvement effort of employees by offering feedback.

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The performance appraisal in the organization will involve oral element where employees will have a dialogue with managers at their work place. It will involve observation of the employee’s behaviors while working and while dealing with clients. This will also evaluating customers feedback based on individual or group work efficiency. The appraisal will also include a written evaluation where workers will be required to demonstrate their understanding on their jobs requirements, and roles and duties. They will also need to show their ability to handle job challenges, to make sensitive decisions and enhance efficiency all the time. The appraisal will also guide the employees in identifying things they would want to be changed to enhance their performance, or things that can be improved to increase work efficiency (Sagepub, n.d.).

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Measuring Performance

Employee performance measurement involves carrying out progressive review with workers where their performance is contrasted with their standards and elements. Continuous monitoring offers the supervisor the chance to evaluate how well workers are meeting encoded standards and to make modifications to problematic and unrealistic standards. Through monitoring the supervisors can identify performance that is unacceptable at any time and offer assistance on how to better performance before it affect the company’s production or output (OPM, 2011). Workers performance measurement comprise of different techniques used by employers based on worker’s job category, workplace culture, and the relationship between a worker and the supervisor. These techniques include qualitative evaluations that include 360-degree feedback that involves customers and supervisors feedback and graphic rating scales performance measurement. Others include management objective and self-assessment (Sagepub,  n.d.).

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Based on the organization operation, the organization will adapt two forms of performance measurement include 360-degree feedback. This involves the use of all employees, supervisors and management and if possible customers to provide feedback to other employees. Team work, skills and effective coordination between departments is highly needed in software development and other computer services related work.  Based on the nature of the work performed in the organization, it would be easy for employee to identify the ability of other employees and when the abilities are effectively utilized. This feedback system will focus on professional qualifications, interpersonal skills and job duties. However, the employees will have to receive training on how to use this feedback tool to avoid personal biasness and to ensure only aspects related to professional interest and goals are employed. Management by objective is another measurement strategy that will be employed in the organization. It centers on aligning the organization and individual goals. In this case supervisors will work together with their workers to identify resources needed by the employees to attain their goals and to establish goals of their performance (OPM, 2011).

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Employee Compensation

Employee compensation highly determine the employees devotion to their work, workers attraction and workers maintenance. Compensation refers to payment given to the employee for the work done. It includes normal agreed wages or salary, rewards for effective performance and career development to enhance performance. Compensation is normally done based on individual qualification and experience, work done or individual work description and responsibilities and also based on the external market and the governmental restriction on the minimum rate of compensations for each job descriptions and qualifications. Apart from basic compensation, the organization will offer extra compensations as a way of boosting the performance of workers. This include providing them with short-term and long-term incentives based individual performance, handling hard projects unexceptionally, being highly preferred by customers or by being source of high level of skills and information for the company. The company will also offer rewards to its workers to enhance their general performance. This include offering them medical insurance covering even their dependents, paid leaves, organization program to fund workers project such as saving and loan financing program at considerable rate and with individual shares as collateral as a way of boosting workers financial growth (Aguinis, 2011).

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Communication is one of the greatest success tools in an organization. It determines the internal environment of the organization. To enhance effective performance two way communications is very necessary. This can be enhanced by open communication between workers and the managers. Open communication enhances team work and collaboration. It facilitates sharing of ideas, improves the level of creativity and enhances conflict resolution in an organization. Open communication allows the involvement of employees in contribution to decision’s making and thus making them feel valued. Therefore, the company will have regular open discussion between employees and managers and supervisors. They will also have an open forum to present their challenges to the human resource managers through company’s blogs. The company will also consider discussing its concerns with workers through Skype especially for branch companies, group Google chats among other social media means. This will enhance the improvement of the level of creativity and idea sharing in the organization. Being a software company, creativity will be highly needed (Aguinis, 2011).

Individual Development

Knowledge advancement, research and development are among a number of aspects needed in technology companies to create competitive product or services. The company will focus on promoting individual career development by encouraging personal determination to enhance the organization performance. The company will also offer promotions and salary increment for individuals who will take personal improvement initiatives by improving their level of knowledge and performance. The company will also provide personal and career development based on individual contribution to the company’s success and also based on their devotion and ability to be more resourceful to the company with their added knowledge. This will include paid study leave for the best performed employees, and scholarship for very resourceful employees. Internal workshop and training will also be frequently organized in the organization to improve workers understanding of their jobs, their creativity level and ability to implement ideas, to nature team work and collaboration (Sagepub, n.d.).

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