Implementing effective performance in an organization
There are generally no any secrets in implementing effective performance in an organization. Performance management is usually a process whereby if it is effectively implemented it ensures that the managers and employees are both motivated and productive. There are various steps that ought to be considered as far as performance management is concerned. It is imperative to agree with the responsibilities as well as the roles as well as the targets and the objectives that accompany the role.
Also it is crucial to make sure that the actions that are needed in order to achieve the targets as well as the objectives are achievable and are also agreed on. There is also a need to create a development plan for the employees to be trained effectively. The main secret to performance management in the organization does not lie with just the main process but more so with the discipline and the skills that are needed to make the steps work effectually. The way these skills are mainly used or not at all used can cause the structure in the organization to collapse or be successful.
Performance management comprises of all the activities that endures that the goals are being met in effective
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Finally communication allows the company members to work together and meet the client or customers needs (Gary & Birger, 1989, pp. 399-411). Any effectual performance management system employs or comes up with simple structure whereby commitments are the most integral concept. Actions in an organization can be at a service, team, individual, community or corporate level. Improvements to the outcomes should go a long way to benefit the service users. All the aspects of the management do overlap. For example leadership can never be performance management though it is crucial to its major effective use.
In order to work effectively, it hence has to be coordinated with various systems for example risk and financial management. In any organization performance management ends up becoming quite complicated. In most cases there is a network of some unfocussed meetings, indecipherable and meaningless reports as well as some ill conceived strategies and initiatives that takes place of the robust management system. The main purpose of the performance system of management is to control, measure as well as manage the entire operation in order for performance to improve and be sustained (Mark, Scott, James & David, 1996, pp.
836-866). Effectual systems of performance management comprise of some major blocks for example plans, forecasts, reports, controls and others that are not competently reinstated. Information in this paper will give you some detailed information on Network Solutions, Inc, their system as compared to an ideal system, the ideal characteristics that are missing at Network Solutions Inc, the advantages of their system implementation and disadvantages of implementing the system. 2.
0 Introduction Network Solutions Inc is a technological company that was founded in the year 1979 (Inc Icon Group International, 2008, pp. 465). It started as the technology consulting company and started with 30 employees where it focused its major efforts on the development applications. It has been incorporated for more than 14 years. The founders had vast background in the computer hardware as well as networking and hence started this company in order to service the small businesses.
It is the global leader in the software and hardware services. Recently Network Solutions used over 50 systems in order to measure performance in the company. In 2001, Network Solutions CEO came up with forced distribution performance management system where employees were rated according to their performance. In order to raise their performance levels, before the program was implemented, the design team got the support of senior leadership and other developments and other systems were stopped.
The selected team asked the leaders to involve the employees in training them and accessing the needs of the employees that were not covered by the new system. Its global cycle of management comprised of some processes like team building and goal cascading, development planning, performance planning, updates of discussions and the annual performance summary. Training resources were available. Today, the employees and the managers are solely responsible for preparing meetings, filling the developmental preparation forms as well as attending the meetings.
Employees who receive a rate of 3 which happens to be the lowest rating have a specified period that they are supposed to improve on their performance and incase they do not improve then they are excluded from the entire plan and there is no salary increase on their part. They are given a second period to prove themselves and incase nothing materializes then they are terminated. The employees with a rating of 2 receive high or average bonuses, salary increment and stock options while the one rating 1 receive the highest benefits and the company makes efforts to retain them.
Its future objective is to continue reinforcing the cultural changes to support the system of rating. It has continued to educate the employees on the system in order for them to realize that Network Solutions still motivates and punishes its employees. From the review of Network solutions and their organization strategy it is evident that the CEO knows the importance of rewarding talents and has articulated the motivational theory in the company to motivate those employees who are more productive. Integration of motivational theory in an organization is quite imperative as it encourages productivity among employees (Srinivas, 2004, pp.
208). Also the other is the transformational leadership (Wyatt, 2002, pp. 286) where the culture of the organization is changed to one that is conducive to everyone and one that can reward. The CEO came up with the new system of rating and it surely seems like it is working and has favored the entire organization. The utilitarian theory has also been focused whereby the highest population or the majorities are left happy with the new system and no wonder they supported it fully. Also the motivational strategies are quite utilitarian.
The CEO has learned the power of working in a team and has not used dictatorship in coming up with the so called new system He has incorporated the ideas of other people as well as those of the employees. The change theory is also quite imperative and has been used maximally in the new system. Change management is an imperative skill where most managers as well as leaders ought to be competent. Some of the tips that the CEO used to cultivate change are the fact that he gave the people the information and he was quite honest on the facts.
He used a communication strategy whereby he made sure that information was disseminated effectually to all people. He also let people air their views where they ended up supporting his idea. From the review we can assert or assume that the CEO used the Kotter’s change model (Brian, mark & David. 2001, Pp. 185). First he created urgency because for any change to happen then the whole organization must be for it. He identified some potential threats, opportunities and came up with honest, dynamic and convincing reasons.
He also requested for support from the stakeholders and others. He must have also come up with powerful coalition that convinced others the need of a new system and why other developing systems were not needed for the time being. He also created vision for change and determined all the positive effects of the system. There was also the communication of the vision, and removal of the obstacles as well as anchoring the changes in the corporate ladder or culture. 3. 0 Discussions
It is imperative to analyze whether or not Network Solutions performance management system accommodates the proposed characteristics of an ideal performance management systems. The main reality is that at most times performance management systems are hardly implemented in what can be termed as ideal way. In some instances there are usually no funds to articulate change; the supervisors might be biased on how they offer performance ratings and other factors. According to Aguinis (2008, PP. 26-27) an ideal system should be thorough.
This means that all the employees ought to be evaluated as well as the managers, the job responsibilities and performance should also be evaluated. At Network Solutions basing on the thoroughness factor it is patent that it was thorough as the employees’ performance ratings were evaluated according to the job responsibilities. The other characteristic of an ideal system is strategic congruence. At Network solutions the goals of the employees were aligned with the organizational goals to increase employee productivity.
Also a good system ought to be fair and accepted (Aguinis , 2008). The performance management system at Network solutions was accepted by the senior leaders as well as the employees and it was fair as it recognized those employees that had done well and rewarded them while those who were not competent enough were offered training opportunities and chances to improve. An ideal system is also inclusive of all the people who will be affected by the results. The CEO made sure to air his opinion for others to weigh and they ended up accepting the system.
It included all the parties involved. Openness is also a major factor of an ideal system and the new system had no any secrets and to a large extent it involved the employees’ welfare. Correctability is also another characteristic of an ideal system. However, at Network solutions they failed to create a system whereby incase the employees perceive there is an error in rating, there can be a mechanism in which to correct this error. They ought to come up with an appealing system where employees can challenge the unjust decisions.
An ideal system also ought to be standardized (Aguinis, 2008). Performance at Network Solutions was evaluated consistently among people and training was an ongoing process among the employees. The system was also quite ethical as there was no biasness in rating and was also valid. The system was also practical on the grounds that it was widely accepted and was result oriented. It was applicable and the entire company saw it meaningful. It was specific and effective on the grounds that employees felt they have a duty to accomplish in becoming the best so that they can be rewarded.
It also resulted to success as the company could compete with others and know which employee suit where and what ought to be done. The system was practical on the grounds that it was not too expensive to manage or too time consuming. A good system should be specific and offer concrete guidance to employees on what is expected from them. The system at Network solutions provided information which identified both ineffective and effective performance thus making it ideal. Network solutions accommodate the fourteen characteristics of an ideal system as its system though it is not correctable has all other characteristics of ideal system.
Some of the advantages of implementing the Performance management system are the fact that performance management does focus mostly on results and not necessarily the activities or behaviors. This will ensure success in the organization as every employee will be pressured to work better than the other. Performance management system will also help in identifying the goals of the company as well as the results that are needed in order to achieve the goals, measures of effectualness towards the outlined goals and the major means of achieving the goals.
This system also produces effective as well as meaningful measurements as they set consistent base for the comparison during the change efforts. The system helps to indicate the results in the improvement efforts for example management development, employee training as well as quality programs (Augustine & Mary. 1994. pp. 699-727). They will help in ensuring there is fair and equitable treatment of the employees basing on their performance. The system will also help the employees to be accountable, depersonalize issues as the supervisor will focus on results and not personality (Stephen & Tony, 1995, pp.
19-37), optimize operations since the results as well as goals are well aligned, will cultivate positive change, support communication, dialogue and feedback between the employees and the leaders, provokes more focus on needs of consumers and competitors whether external or internal, will produce specificity in resources, direction, planning, comparisons and commitments and will redirect attention from the bottom to up approach. Other advantages are the reduced costs of operation because the more the performance levels rise thus reduced costs.
There will be also enhanced employee and customer experiences and finally there will be competitive differentiation as far as improved services levels are concerned. Some of the disadvantages for this system are there will be risk of some internal competition between employees that can result to failure among the teams, rivalry and backstabbing. There can also be an issue of favoritism as well as the manager’s dilemma as they use most of their time to supervise the employees thus neglecting their tasks (John& Graeme. 2009. Pp.
20). It can also lead to discouragement among employees who think are not good enough and finally biasness. 4. 0 Conclusion From the information gathered it is proper to assert that the new system is quite ideal as it is congruent, thorough, valid, ethical, standardized, open, inclusive, fair, acceptable, practical, reliable, specific, meaningful, effective and quite reliable. The new system will mark on success of the company as the employees will be more reliable and competent and it will encourage effectual communication. 5.
0 Recommendations However, despite the fact that it is ideal it ought to be correctable and offer appeals to the employees who feel that the judgment was biased or rather unfair. This will improve communication and acceptability as well as good relationship between the employees minimizing rivalry. There should also be a strategy to reward or encourage the underperforming employees to work harder as there are many personal reasons that might trigger failure and not necessarily because one is incompetent.
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