Critical Analysis of Performance Management System: Strength and Shortcomings

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Critical Analysis of Performance Management System: Strength and Shortcomings

Departmental store founded by Imran Saleemi, Rainbow cash & carry is a departmental store and entertains their customer as a retail industry supermarket. Rainbow cash & carry opened its first branch in 2008 at Wapda town. In 2012, rainbow opened its second branch at canal road, near EME society. Furthermore, its expand its branches in other cities also in Islamabad Bahria town and two more branches in Lahore, one in Faisal town and another one in Bahria town Lahore. Rainbow cash & carry franchise also started its operation in Fatehgarh Lahore, in 2017. Rainbow cash & carry also started work at the DHA branch but never started their operation. The store expanded in all over Lahore and to other cities also. Now, Rainbow has more than 6 branches that are in Lahore and in other cities and around 700 to 800 employees are working in these branches. Rainbow cash & carry deals with 4 departments ( Grocery, Crockery, Fresh produces and Pharmacy) with a wide range of product categories. Rainbow stated that we have everything for you under one roof. Rainbow cash & carry is expanding due to its quality of food, its lowest rate relatively low with their competitor, customer care, and promotion. Rainbow cash & carry values are to satisfy their customer if they have any queries then to fix them also give respect to their customer provide quality of service, meet customer expectations, do effective communication and share their knowledge with all of them. The product that deal in the grocery department are ( butter, milk, eggs, rice, White beans, salt etc ). Fresh produces are ( meat, vegetables, etc ), and Pharmacy (Droplets, Pulse Oximeters, Injection, Tablets etc).

Essay:

Literature:

In the behavior approach, employees engage with specific behavior and there is no clear link between behavior and employee outcomes. In result approach, we only deal with employees’ results what they contribute for the organization’s goals and the outcome that they produced. The result approaches give employees the opportunity to done work according to their skill, and information and achieved desired outcomes in an autonomous way. In triat approach, we deal with employees’ unchanged characteristics like personality and intelligence. There is a link between some performance and traits ( Judge, Bono, & Illies 2002 ). Multiple methods is used in the organization to evaluate their performance management system. Our is about to measure the organization performance management system, we relate behavior approach with performance system in this we measure right level of performance and behavior that are desirable for the organizational outcomes. And in the trait approach, we measure the positive relationship between an employee’s personality and abilities and also desirable work-related behavior. We can say that there is link between behavior and result outcome in the result approach. Performance management systems help managers to know about their employee’s issues about their negative responses and find the best solution to fix them for their performance improvement ( R. K. Sahu “ performance management ‘ ). Employees adopt behavior that helps them to gain bonuses and pay increase that give them reward for their outcomes and also motivate the employees that help employees to increase their growth.

Performance System :

Performance management systems begin from the hiring process when employees know about the tasks that would perform for the organization. Goal setting and reward system involve in PM system. It’s a continuous process in which we deal with prerequisites, performance planning, performance execution, assessment and performance review. In order to achieve organizational goals, HR department should clarify their duties to the employees and employees will motivate if the job is according to their skills then employees set some expectations from the organization in the foam of the reward system. Performance management plays a vital role in various organizations that adopt them to know about their operations and their employee’s skill and its very important concept in business. Goal-oriented strategies that help organizations to achieve their objectives and goal. Through a performance management system, organizations evaluate the value of their employees that they contribute to the organization. We have many ways to perform performance management system, their tools, and techniques, and manage and monitor the employees. The organization uses its performance management system effectively, for their effectiveness they should be dedicated and committed by the HR department and managers and employees. Through analyses, organizations can develop individual talent, and strength, and also help to increase their performance. Many organization deploys their performance management system to know about their operation on a timely basis. With the help of performance management system employees engage with organization and consider it they have worth and some status in the organization. Through a performance management system, we can gather information about employees’ performance and do discussions on their feedback. The performance management system is the nervous system of the organization and provides performance relative to goals, managing the organization, effectiveness, and efficiency of services that are offered by the organization. For an effective performance management system, it is necessary that each employee should be aware of the role that will perform in the organization. The performance review stage also involves in this stage we conduct meeting between employees and managers to discuss about their assessments, this meeting is also called an appraisal meeting in which the employees receive feedback on their performance.

How does the PM system apply in the company?

The overall goal of a performance management system is to set targets that are derived from and linked to the corporate objectives and monitor performance levels and development activities in a structured way so that issues are addressed in good time and with a clear purpose. When implemented well, it drives employee engagement in the company’s overall goals, which leads to improved performance of both employees and the company. In the assessment stage, we use the appraisal form to gather the information of employees, discuss their issues and choose the different sources to gather the information. Information gathers by using paper manually and electronically. Electronically information can be stored easily and shared and it modifies easily rather than paperwork. We need an appraisal form to offer training and development, and to give rewards. When we gather information regularly its also help the organization to find out the problems and immediately fix them rather than make a more complex problem for the organization. Its helps employees to engage themselves and boost productivity. Using the information that we collect about an employee’s past performance and their current contribution, it helps the employees to grow their skills and talent. O organization applies theories and models when they used appraisal foam to collect information about employees’ performance. That form has a section in which clearly defined things like basic employees information, objectives, and competencies if employees has a behavior approach then to assess them we have a competencies secton, achievement, goals, comments and employee signature this is a generic type of form that can be used almost in every position. In some cases form has contained the competencies section rather than the result approach and on the other hand form consists of development issue and ignore both approach’s behavior and result. We have certain ways that make effective our appraisal foam. We have some factor that makes our form effective, the simplicity that makes our form easy to understand employees can easily understand, relevancy that are directly related to the tasks and responsibility, descriptiveness form should be descriptive and has a clear understanding, adaptability in this section manager deal with particular needs and situation, definitional clarity in which competencies and result clearly defined, communication in which communicate all the people that are the part of the evaluation, time orientation deal not only past employees performance but also the future. The form should have clarity in all their section if one of the section have incomplete information and not clearly defined then the rating may be inconsistent. Some organizations choose to conduct appraisal forms annually, we also have other choices we conduct that foam on a quarterly and semiannual basis. The annual basis form does not provide sufficient opportunity to discuss employees’ performance issues in a formal meeting. The review that held twice a year, individual receive feedback and adjusts goals and objectives. The company reviews on the basis of quarterly that employees receive feedback from their coworkers how they perform. Its open communication help employees to give comments to coworkers about how they are performing and also trained employees to give effective comments on their positive and negative points of their coworker. In which employees feel improvement by the help of their co-worker comments they can easily adopt a way that are effective for their career growth and also improve their performance. The performance management system has some formal meetings, system inauguration in which we discuss how the system will work and our duties and responsibility, self-appraisal in which employees himself judge their performance, classical review we discuss compensation changes, and developmental plan in which we discuss employees performance need and how we will improve their performance, objective setting in which we setting our goals in both ways behavior and result oriented. After that , we discuss where we can get the information, we discuss on sources. Some organization get direct report from the supervisor for their employee because the supervisor observes the employees directly and have good knowledge about performance, but we also have other sources to get information. We can collect from their peers, subordinates, self, and customer. Many organization uses these sources for their employee’s evaluation. According to that theory and models, an organization applies and chooses models in its performance management system. We have different degrees to conduct appraisal review, its also depend on our organization in some companies they use more then one degree. 90-degree review is basic form in which no self-evaluation and employees directly receive an evaluation by their manager. 180 degree in which we have a self-evaluation section, Once the appraisal and appraisee agreed on the evaluation then is signed off. 360-degree reviews involve four group of people. The manager gathered feedback from peers and subordinates or customers, and clients. Supervisors and managers need to utilize a performance management system in order to fullfil the gap of communication, and understanding between employees and managers. Organization applies a performance system to directly link with compensation and modify their behavior in order to compete and achieve their objectives. To applies a performance management system organization should conduct a training program to eqiup staff with skills. Performance system involve rating and evaluation, we should rate employees according to their skills and ability, its also help to motivate the employees. The organization should use a communication method in which they train their employees what is performance management how it fit to a strategy that we use in the organization and our responsibility. The organization should involve their employees and know about their needs. The appeal process in which they work according to their employee’s acceptance. Before launch the performance management system, we should trained their employees its also help increase satisfaction with system. Behavioral observation training is another program to implement the performance management system its use to observe the behavior, then we have pilot testing and online implementation. After all the testing, we implement a performance management system in our organization.

Strength and shortcoming:

Rainbow is a departmental store that provide all facilities that also engage to address the ever-changing needs of their customer. Rainbow cash & carry operates six branches and performs similar jobs not only in Lahore but across the city. Rainbow cash & carry more concerned about their quality and services and achieving their target. The performance management system is very important for every business in which we know about our employees’ performance and also know about our organization. This system is made goal achievable in an effective manner ( Agunis 2005 ). Performance management systems are implemented to know about the employee’s development and improve communication gap and solve the issue for improvement in the system to achieve goals. Rainbow cash & carry give rewards to their employees for their excellent performance in the foam of their contribution. Rainbow cash & carry use 180 degree for appraisal review in this we have a self-evaluation section. The organization evaluates its approaches by establishing level. The evaluation system have only employees’ performance information. Rainbow cash & carry thet we choose for this project, their appraisal form do not have all section in which we can easily measure employees’ performance. The evaluation process measure the level of job satisfaction between the company and employees. But Rainbow cash & carry appraisal form consists on four parts, first one they discuss employees’ basic information designation, position and rating scale to which extent individual has met expected level of performance they rate them according to them. Rainbow cash & carry do their review on annual basis they assign the task beginning of the year and according to them they calculate weightage at the end of year. Their rating scale 1-5 and according to their overall rating they give review to their employees. Then we have a comments section in which supervisors give comments on their employee’s performance and also have an employee comment section its optional if employees want to give comments. After that, we have a development training plan in which they deal with different skills like, soft, technical, leadership & management, and other. They also give job cross-training, inter-departmental work, and on-the-job training to their employees. These all are very beneficial for the employee’s improvement, for their career growth also. Rainbow cash & carry should add quatitative data also to evaluate the performance. In their appraisal form they do not have the quantitative data they can add like, what elements of your job you consider its difficult, your job interest, past experience. Employees easily state their duties and responsibilities. List of objectives that employees set by themselves and set for future for their personal growth all the data, we need that is necessary for evaluation of the employee’s performance evaluation. These are some shortcoming that needs to improve.

Improvement:

Rainbow cash & carry uses an annual review system that are not more effective. Organizations should use the complete components of appraisal foam and use a semiannual review system twice in a year that are effective rather then using an annual system. Organizations should improve and update their performance evaluation system for the betterment of employees and also the organization. Many factor impact an organization’s effectiveness and performance management system, but some factor are more important like, the system need to align and support the organization’s direction and critical success factor. Well-developed, efficiently administrated tools and processes are needed to make the system friendly. Both employees and managers use the system in a positive manner in which benefits are awarded and value-added in performance development, planning, feedback and achieving goals. Manager can improve their performance appraisal by providing regular employee feedback, two-way discussion, use employee self-appraisal. Through a performance management system, we can get adequate feedback to each person on his performance, changing behavior towards tasks, and providing data to managers which they judge future tasks.

Conclusion:

My essay is about performance management, process is a systematic process of managing behavior and monitoring employees’ performance against their key performance or goals. Its process for individual and organization performance management. In this we analyze, individual behavior that contribute for the organization’s goal. In this essay, we will cover employees’ performance analysis and measure their behavior for the organization’s outcomes or goals. We evaluate performance on fairly bases and we evaluate performance on the bases of job knowledge, skill, and quality of work. There are three types of criteria in which we create and measure a performance management system, the Behaviour approach, Result approach, and Trait approach ( Herman Aguinis ) 2009. We also discuss the performance management system and how we collect data about employees’ performance through appraisal forms. We find some gaps in our organization and also discuss how they bring improvement in their appraisal form. I will recommend improving their communication with their employees, they should use modern communication patterns. An annual review is slow and does not provide feedback immediately. They should motivate their employees it will be helpful to their organization’s objectives. They should customize their performance system in that they can collect more data about their employees’ skills, and abilities. Organizations should increase incentives ( financial incentives as well as non-financial incentives ) to motivate employees. Organizations should not use those measures that implements negative effect give training to their employees and those employees who are underperforming after the training should be terminated because it would be affect on those employees who are currently giving good performance.

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