Performance Management System for O’Meara Electronics Company
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This report discusses the performance management system of O’Meara Electronics Company and recommends a suitable system for them. The recommendation is 360 degree appraisal.
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Running head: PERFORMANCE SYSTEM Advanced Remuneration and Performance: O’Meara Electronics Company Name of the Student Name of the University Author’s Note:
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1 PERFORMANCE SYSTEM Table of Contents 1. Introduction............................................................................................................................2 2. Discussion..............................................................................................................................2 2.1 Analysis of Case Study and Evident Approaches to Performance Management Systems and Practices...........................................................................................................................2 2.2 Comparison of Two or More Performance Management Systems and Practices with Suggestion for One Performance Management System for O’Meara Electronics Company3 3. Conclusion..............................................................................................................................7 4. Recommendation of Performance Management System and Practices.................................7 References..................................................................................................................................8
2 PERFORMANCE SYSTEM 1. Introduction Performance management system can be stated as the systematic approach that is utilized for measuring the entire performance of few employees. It is a significant procedure by which the entire company can align their respective objectives, goals and mission with available resources and systems and also by setting the priorities (Noeet al. 2017). The following report outlines a brief discussion on the performance management system of O’Meara Electronics Company. They had been operating for more than 20 years and currently they have decided to rationalize their performance management strategies with details. 2. Discussion 2.1 Analysis of Case Study and Evident Approaches to Performance Management Systems and Practices O’Meara Electronics Company is a popular organization in general electronics sector and has a reasonably high market share in this industry. They even have a smaller market internationally(Van Dooren,BouckaertandHalligan2015). Theyhavemostlysemi- automated the factories and then employs electronics technicians and engineers, who are responsible for designing audio equipment, digital cameras, telephones and many more accessories. The staff of this organization are employed in various departments of production, dispatch, storage, marketing, development, human resources and accounting and more than 1000 staff are working here (Decramer, Smolders and Vanderstraeten 2013). In August 2016, thePresidentofthisparticularorganization,O’MearaElectronicsCompanydecided rationalizetheirexistingstrategiesofperformancemanagementandremuneration management.
3 PERFORMANCE SYSTEM Forthispurpose,theyhavehiredaHRconsultant,SarahJonesforgetting recommendations to bring new strategies and plans within the organization. The performance managementalldayforumwasbeingorganizedduringthemiddleoftheweekon Wednesday at a resort in Yarra Valley. The organizational performance management is about customer contracts as well as numbers and the individual staff performance is ad hoc to be measured (Heras‐Saizarbitoria and Boiral 2013). The execution administration framework is one of the major continuous process to characterize and convey the duties, activity parts, goalsandexecutiondesiresforincorporationofassociationofwork.Performance management system helps in easy identification of knowledge, skills and competencies. The performance goals of this organization were required to be shared with all employees and the organizational performance should be linked to individual performances (Bednall, Sanders and Runhaar 2014). At the end of the performance goal achievement, the organizational manager or supervisor provides feedback to the worker and a performance appraisal would be done for understanding the position of the employee. The results of this performance review eventually become the foundation for any changing objective and setting of new goals. 2.2 Comparison of Two or More Performance Management Systems and Practices with SuggestionforOnePerformanceManagementSystemforO’MearaElectronics Company Performance management system is responsible for providing new and innovative opportunities to the employees for their growth and development and even defusing the major conflicts and grievances amongst team members by proper and subsequent performance evaluation system (Laudon and Laudon 2016). The employee performances are accurately and fairly assessed against the major standards and targets of performance. These employees would be able to obtain proper results for their clarity over performance targets. Performance
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4 PERFORMANCE SYSTEM management system eventually provides a basic platform for discussing, developing as well as designing of the individual or departmental goals and objectives by discussion amongst the managers and their sub ordinates. In O’Meara Electronics Company, Sarah is the newly appointed HR consultant, who would look after the performance management and remuneration system for bringing more profit in their business and make the respective market position even better. With the up gradation of performance management system, they would be able to easily and promptly identify the under performer through performance reviews and could even raise the skill levels majorly (Sharma, Sharma and Agarwal 2016). Moreover, it quantifies the learning requirements and could even bring more efficiency in performance improvement plans. It is extremelybeneficialandeffectiveaswellasefficientforallorganizationsandthus performance management is enhanced on top most priority. It helps in supporting to provide confidential data for finding out of skills as well as knowledge gaps of staff for the core purpose of improvising them via mentoring systems, coaching and trainings. The primary purpose of this particular system is to improvise the performances at all times in future and it eventually helps out the business in better identification as well as categorizing of employees on the basis of their working conditions and characteristics (Blume, Rubin and Baldwin 2013). The performers are well motivated and proper training is being provided for the under performers. There are few important and significant performance management systems that are extremelyeffectiveand efficientincomparison toother typesof systemto measure performance and these are as follows: i)General Appraisal: The first and the foremost type of performance appraisal system isgeneralappraisal.Itisanongoingcommunicationwithintheemployerandthe
5 PERFORMANCE SYSTEM organizational manager in the entire year. At the end of one year, the manager determines whether the previously determined goals and objectives are being met and then provide feedback about the employer before setting new goals. The manager negotiates with the employer before giving any type of feedback and after a review is being set, subsequent feedback is provided to the employer and he gets hike on the basis of that particular review and feedback. ii)360 Degree Appraisal: This is the second important and significant type of performance appraisal system (Melnyket al. 2014). This is different from general appraisal and here manager or supervisor apart from checking the yearlong communication and performance, also takes valuable feedback from the colleagues and peers of the employee so that the entire work schedule and passion of the employee is known to the organizational management. 360 degree appraisal is being contrasted with downward feedback and upward feedback. Both of these feedback are delivered to the management or supervisory employees by only sub ordinates (Wanget al. 2016). The evaluation purposes are required to be analysed properly so that it becomes easy to obtain new methodologies of performance management and thus the employee is being analysed eventually. iii)Technological Performance Appraisal: The third important as well as noteworthy typeofperformanceappraisalsystemistechnologicalperformanceappraisal.Inthis particular appraisal process, the technical capabilities and expertise are being checked for any particular employee and thus employee throughput is determined easily and promptly (Haupt, Vadenbo and Hellweg 2017). Moreover, this performance management system even can easily identify how sound any employee is technically in comparison to others and hence enhancing performance of the employees to a high level.
6 PERFORMANCE SYSTEM iv)Employee Self Assessment: This is the third and yet another important and significant type of employee performance management system. In this type of appraisal, the employee can assess himself or herself and then finally compare this assessment with the respective completed assessment outcomes of the manager (Hammer 2015). As soon as the self-assessment results of employee and assessment outcomes of the manager are being matched, proper discussions or negotiations are being done for checking whether there is any type of difference or discrepancy present in the appraisal or not. v)Manager Performance Appraisal: In the fourth distinctive type of performance management system, the respective organizational managers go through the entire procedure of appraisal (Xavieret al. 2013). It is the major responsibility of the manager that he can easily and promptly handle both the client and the team. This manager even has to satisfy the clientswithoutdisruptingtheemployee’sorteam’smoraleunderanycircumstance. Maximum time, it is being observed that the manager appraisal procedure eventually is involving feedback from respective team members and even from clients. Several narrative responses are being required for the core purpose of identification of milestones, which are coinciding with major objectives and goal of the business. The managers comprise of two primary functionalitiesof job, which include managementof employeesin respective departments and overseeing the departmental procedures (Rashidi 2015). Thus, manager performance appraisal is termed as one of the most basic and important type of performance management system, which relates to the organizational leadership. vi)Project Evaluation Review: The next type is project evaluation review. It is considered as one of the best methods for identification of how good any employee is at work. This performance management system does not wait for feedback for one long year, rather it helps in analysis of the employees at the end of any one project. When any specific project ends in an organization, the human resource department searches for the outputs and
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7 PERFORMANCE SYSTEM how well the project team has performed (Zizlavsky 2014). Amongst the best team member is selected and is evaluated whether project is successful or not. vii)Sales Performance Appraisal: The final type of performance management system for the employees is sales performance appraisal. The sales department of the organization is judged by objectives that he or she has set for achievement of their position in market. The entire sales department as well as organizational manager should find out methods for achieving these goals that are prior to which they should set realistic goals. One suggestion to O’Meara ElectronicsCompany amongst the above typesof performance management system is 360 degree appraisal. It is a procedure by which feedbackfromanysubordinate,supervisorandcolleagueisbeingundertakenfor understanding the performance of any specific employee of staff O’Meara Electronics can use this particular system of performance management for soliciting feedback regarding their feedback about employee’s behaviour and hence they would be able to understand the working condition of organization and how to deal with the other employees. 3. Conclusion Therefore, from the above discussion, it can be concluded that the major purpose of performance management system is to manage the performances of an employee after considerationoffewaspectssuchasstrategic,administrative,communication, developmental,organizationalmaintenanceanddocumentation.Italsoprovidesnew opportunities to the employees for their growth and development in professional careers. The above report has clearly outlined a detailed analysis of performance management system in O’Meara Electronics Company and recommendation for a suitable performance management system is provided in the report.
8 PERFORMANCE SYSTEM 4. Recommendation of Performance Management System and Practices AbasicrecommendationofperformancemanagementsystemforO’Meara Electronics Company regarding their reorganization of performance management is 360 degree appraisal. With a better performance management system, the employees would be highly motivated and O’Meara would gain their market position once again.
9 PERFORMANCE SYSTEM References Bednall, T.C., Sanders, K. and Runhaar, P., 2014. Stimulating informal learning activities through perceptions of performance appraisal quality and human resource management system strength: A two-wave study.Academy of Management Learning & Education,13(1), pp.45-61. Blume, B.D., Rubin, R.S. and Baldwin, T.T., 2013. Who is attracted to an organisation using a forced distribution performance management system?.Human Resource Management Journal,23(4), pp.360-378. Decramer,A.,Smolders,C.andVanderstraeten,A.,2013.Employeeperformance management culture and system features in higher education: relationship with employee performancemanagementsatisfaction.TheInternationalJournalofHumanResource Management,24(2), pp.352-371. Hammer, M., 2015. What is business process management?. InHandbook on business process management 1(pp. 3-16). Springer, Berlin, Heidelberg. Haupt, M., Vadenbo, C. and Hellweg, S., 2017. Do we have the right performance indicators for the circular economy?: insight into the Swiss waste management system.Journal of Industrial Ecology,21(3), pp.615-627. Heras‐Saizarbitoria, I. and Boiral, O., 2013. ISO 9001 and ISO 14001: towards a research agendaonmanagementsystemstandards.InternationalJournalofManagement Reviews,15(1), pp.47-65. Laudon, K.C. and Laudon, J.P., 2016.Management information system. Pearson Education India.
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10 PERFORMANCE SYSTEM Melnyk, S.A., Bititci, U., Platts, K., Tobias, J. and Andersen, B., 2014. Is performance measurement and management fit for the future?.Management Accounting Research,25(2), pp.173-186. Noe, R. A., Hollenbeck, J. R., Gerhart, B., and Wright, P. M. 2017.Human resource management: Gaining a competitive advantage. New York, NY: McGraw-Hill Education. Rashidi,R.,2015.AREVIEWOFPERFORMANCEMANAGEMENT SYSTEM.International Journal of Academic Research,7. Sharma, N.P., Sharma, T. and Agarwal, M.N., 2016. Measuring employee perception of performancemanagementsystemeffectiveness:Conceptualizationandscale development.Employee Relations,38(2), pp.224-247. Van Dooren, W., Bouckaert, G. and Halligan, J., 2015.Performance management in the public sector. Routledge. Wang, Q., Rao, Z., Huo, Y. and Wang, S., 2016. Thermal performance of phase change material/oscillatingheatpipe-basedbatterythermalmanagementsystem.International Journal of Thermal Sciences,102, pp.9-16. Xavier, M.G., Neves, M.V., Rossi, F.D., Ferreto, T.C., Lange, T. and De Rose, C.A., 2013, February. Performance evaluation of container-based virtualization for high performance computing environments. In2013 21st Euromicro International Conference on Parallel, Distributed, and Network-Based Processing(pp. 233-240). IEEE. Zizlavsky, O., 2014. The balanced scorecard: Innovative performance measurement and management control system.Journal of technology management & innovation,9(3), pp.210- 222.