Advantages and Disadvantages of performance management
Performance Appraisal System must be well aligned with Annual strategic plan otherwise Corporation might face severe consequences in the long-term. Cardy (2003) presented the following analysis:
• It defines a clear map for performance maximization
• Decentralization results into empowerment and workers control critical situations
• Systematic feedback is provided to employees
• Performance can be measured consistently
• It increases productivity and improves lower level employees performance
• Bodden (2004) stated that it results into mutual benefits for both employees as well as for organization
• Top management measures and motivates individual employees which is reflected in the overall performance of the organization
• It results into major investment in internal staff resource in terms of career growth, training and development
• The concept creates self- worth among individual employees
• Due to performance management different issues are surfaced and strategies are formulated to overcome different issues
• Robbin (2007) acknowledged that the process is quantifiable and measures are based on job behavior
• It is a thorough process which compares employees with each other
• The primary emphasis is given to end results
• Correcting wrong behaviors might not lead to desired results and outcomes
• Developing performance criteria might incur both monetary and nonmonetary cost
• Appropriate and effective feedback might not be
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• Authoritative style might not prefer workers controlling different situations
• The situation might get further worsened if it is implemented by untrained staff and personnel
• If performance indicators are not defined correctly then it might lead to errors and incorrect assessment
• In public organization bureaucracy prevails everywhere and politics is implied due to which the system might fail to achieve the desired results
• Organization having large number of employees might face difficulties in implementing the system
• Performance data never reflects key reasons and outcomes must be analyzed to understand the situation
• There exists certain outcomes which cannot be measured and the agency might face difficulties in quantifying the data
• Information managers gather key information however key decisions are taken by elected bodies and top management and they might reject the proposal
Functional Unit Responsible for formulating Appraisal System: Peace Corp (2008) presented the broader scope and stated that director of Human Resource Management is responsible for developing procedures and policies for the management of performance appraisal and to communicate the entire process to individual employees and functional units. The HRM unit performs as a liaison between diverse departments and coordinates performance appraisal modus operandi across the organization. Moreover the department establishes processes for reviewing the entire system periodically.
Further the HRM director along with heads of other departments formulates performance plans for employees and teams. It contributes in preparing performance improvement plans in case of unacceptable performance by employees or team members. It further assists key functional units to decentralize key tasks and delineates responsibilities and duties to individual employees. It was also highlighted that key personnel in HRM unit does not make policies alone although they involve line managers specifically supervisors since they directly communicated with the workforce.
It takes feedback from senior management in key decision making process. Moreover subordinates from different departments are involved during the process. Heathfield (n. d.) instigated that performance development meeting are arranged where supervisors present brief records of individual employees and share subordinates perception with HRM personnel so that key issues can be surfaced and proper system can be formulated. Impact of cultural diversity on appraisal system: Organizations have found that cultural diversity has resulted into numerous issues.
International HRM has presented a different perspective pertaining to organizational diverse culture and stated that diversity is required across corporations and it creates a healthy climate and productive conflict further discovers new opportunities. It stated that cultural diversity provides corporations competitive advantage over its competitors. Each diverse group makes distinctive contribution to the business environment. It creates a diverse cultures comprising of different value systems and beliefs.
It result into decrease in inter-group issues, minorities are fully integrated in business processes and operations, pluralism is favored and there exist least discrimination issues (Behery and Paton, 2008). Cultural diversity has given a new dimension to HRM policies. Prior to this HR personnel did not emphasize on research methods and techniques. However it is compulsory in this contemporary era. Even performance appraisal system is no more same and intensive efforts are made in formulating long-term strategic plans.
HRM function emphasize on cross-functional approach where individuals from different departments perform together on specific projects. Moreover units collaborate with each other and are highly integrated with each other. They conduct brainstorming sessions and focus group discussions to anticipate value requirements and expectations. Other than this HRM function needs to act as a team and join forces with different layers of the organizations. It needs to emphasize on 3600 appraisal and feedback is gathered from individual employees. On the basis of intensive research performance appraisal system is formulated.
Solution for Human Resource Management: HRM department must realign its policies and procedures. The key fact entails that the top management must be strongly committed and works for the prosperity of the organization. One needs to challenge the conventional wisdom and look into future for solutions. Today organizational workforce is considered as the most important resource of the business and it must be given primary attention. There exist immense solutions for HRM units but it requires consistency and a systematic approach. The head of police force must create a business plan and establish performance management system.
It must gather appropriate data and formulate performance measures. Moreover communications medium must be transparent and individuals must be set accountable for their responsibilities and actions. It needs to be decentralized and employees must be empowered to take important decisions. Need for a diversity plan: It really requires a diversity plan. One approach never fits for all. It requires manipulation. Two facts must be remembers that line managers and supervisors must be the part of the team and employees must be involved in the formulation process. Possibility for not attaining strategic goals:
If the performance appraisal system is not aligned with annual strategic plan then employees will not be able to gain benefits especially intrinsic rewards. The will gradually be less motivated, employees might leave the job and retention level will also decrease and this will have a negative impact on the overall productivity of the organization. This will decrease internal customer loyalty base and they might be threatened during every decision. Therefore it is necessary to take appropriate steps as soon as possible so that organization can prosper towards attaining organizational goals.
Conclusion: It can be concluded that performance management requires a holistic approach. The demeanor remains with clear requirements and expectations and employees must be involved during the development phase. This is era of globalization and one cannot prosper without understanding the broader scope of the business and the key personnel involved. Hence Police force must deploy performance management system which must be reviewed during the period and feedback must be provided. Meanwhile outcomes must be circulated across different stakeholders. References: