Prerequisite Stage - Implemention of PfM

Strategic goals defined by the leadership is the yoke that steer the organization towards the continual existence. The strategic goals target the long-term survival and often reflected in the organization’s mission and goals. This is the key point before developing a PfM system.

According to Aguinis (2009a) the first stage of the PfM implementing is to identify,

1. The organization’s mission and strategic goals

2. Knowledge about the task

These are crucial to develop an efficient PfM system to identify the goals and how better to get there. The first prerequisite is important as illustrated below, because it ensures that the employees’ work aligns with the organization’s goal & strategy.

Figure 1 Hierarchy of goals in various management level

The final prerequisite of PfM is the knowledge about the job in hand. To better understand the job, job analysis are utilised. Job analysis tools identify the key ingredients of a job such as activities, tasks, products, services and process and sometimes including personality traits required. (Aguinis, Mazurkiewicz, & Heggestad, 2009c).

A common example for the job analytical tool is a job specific interview, where the leader asses the task requirement along with the employee skills by asking questions and determine the suitability.


References

Aguinis, H. (2009a). An expanded view of performance management. In J. W.Smither and M. London (Editors.), Performance management: Putting research into practice .pp. 1–43. San Francisco, CA: Wiley

Aguinis, H. (2009b). Performance management. 1st ed. Upper Saddle River, NJ: Pearson Prentice Hall.

Aguinis , H., Mazurkiewicz , M. D. , & Heggestad , E. D. ( 2009c). Using web based frame-of-reference training to decrease biases in personality-based job analysis: An experimental field study . Personnel Psychology, 62, pp. 405–438.

Strategic Importance of Performance Management Systems

What is Performance Management System?
Performance management is a process where managers and employees work together to achieve their organizations’ mission, goals and objectives while reviewing employee’s work objectives and contribution to the organization.

These processes can be implemented in the organization as whole or only to a specific department.


Strategic Advantages of Performance Management System

When adopting a PfM System into an organization following factors will influence and influenced in an organization.

Achieving Strategic Goals - The organizations’ strategic goals should be reflected when defining the PfM processes Hence in the long term PfM will help achieving the goals.

Assisting Administrative Role - Performance evaluation in PfM merits the employee output and skill. The administration can take the input from the PfM and make better decision more suitable to its current condition.

Improve Communication - PfM assigns the employee their job specific role and their objectives. In addition, later the output will be evaluated. This can help the manager to channel his communication input or directive according to the employee to performance. Hence the communication between will be constructive and efficient.


Continual Improvement - The improved communication the manager can choose a better leadership role, such as mentoring, coaching, delegating etc to get the maximum output. In turn this will be a continual improvement in the employees’ career.

Evaluating the Performance- PfM is the scale for the employee, department and organizational performance evaluation. This is done by various tools and techniques, which in turn will affect the performance of the above parties and help diagnose the bottlenecks at earliest.

Advantages of Implementing Performance Management​ System
Incorporation of the PfM can yield many results according to Aguinis, H., (2009) following are some,

• Organizational objectives be defined 
• Motivation or intention to perform will be high 
• Confident level in the organization will be high 
• Leadership/Management can better understand about their followers 
• Job specific roles are defined and clarified 
• Self-assessment and development increased 
• Decision making by the administration will be fair agreeable 
• Competency level of the employee will increase
• Misconduct by the employee will reduce 
• Protection from litigation against unfair treatment and misconduct 
• Leadership goals and feedback of performance will communicated specifically and clearly 
• Employee turnover will be less 
• Voice behaviour is encouraged
• Employee engagement will increase 
• Encourages the employee to take new challenges and innovate the performance 
• Over and under performer can be identified which in-turn can helps to utilise performance improvement

Disadvantages of a poorly implemented Performance Management System

Poorly implemented has dire results and end up as a threat to the organization. According to Aguinis, H., (2009) main threats of a poorly implemented PfM are as follows,

• Increased turnover or resent from activities 
• Fabrication of false feedback or misleading information 
• Less motivation and confident in employees 
• Monitory ,effort and time wastes 
• Deteriorate relationship 
• Increased job burnouts and dissatisfaction 
• Increased chances or legal prosecution 
• Unjustified demands on managers’ and employees’ resources
• Biased view rises causing unfair and standard and rating

Implementing PfM

The process of PfM consist of the following,

1. Motivate Change

2. Lay Foundation

3. Sustain Behaviour

4. Monitor and Improve (Pulakos et al, 2012)





References

Aguinis, H., (2009). Performance management. Upper Saddle River, NJ: Pearson Prentice Hall.

Pulakos, E. D., Mueller Hanson, R., O’Leary, R. S., & Meyrowitz, M. M. (2012). Practice guidelines: Building a high-performance culture: A fresh look at performance management. Alexandria, VA: Society for Human Resources Management Foundation.