Performance Management Assignment PDF

Performance Management
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Introduction
The performance management system is used to communicate the goals or objectives of
the organization to employees individually, assign individual responsibility towards that goal and
monitoring the progress in the attainment of the goals allotted and assessing their individual
performance. Performance management systems consider the individual performance or the
realization of an employee which assesses and monitors all the employees of the organization.
This report discusses the factors influencing how business performance system should be
created.
Factors that should be considered in creating a performance management system include
contextual factors, technological and organizational factors. The balanced scorecard can also be
used to evaluate the performance appraisal effectiveness. Organizational and balanced score
factors include training, employee engagement, enterprise resource planning, reward
management, culture and behavior (Behery, Jabeen, and Parakandi, 2014, pp. 25). The balanced
scorecard can also help an organization to upgrade performance management systems which
concentrates on some aspects of the organization that is in line with organization strategy to suit
in the rapidly expanding global market. Another multinational performance management system
has come up such as the performance pyramid and the determinants of framework. Balance
scorecard as a performance measurement system provides meaningful and accurate measure
performance that encourages desired employee behavior in the organization. Appropriate
employee behavior enables an organization to meet the global business standards hence
achieving their business goals.

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Another factor that should be considered when creating a performance management
system is training. Training is an important aspect of the organization and according to the
contingency approach; it depends on the organization’s strategic approach. Training enhances
organizational effectiveness when coordinated with other related human resource practice
(Heras‐Saizarbitoria, and Boiral, 2013, pp. 50). When employees in an organization are trained
well on the current approaches in their field of business, they fit in the global market and tackle
the global challenges that may impact the business.
The training may have a direct effect on the team or individual performance. This will, in
turn, improve employee productivity and flexibility. Another factor is management support
where employees are committed to and ready to put all their efforts for the success of the
organization. Developing a performance management system will help an organization to adjust
its management activities and for it to be effective, it must be driven and delivered by the line
managers (Lattal, 2014, pp. 40). Therefore, good top management support in aid with a
performance management system can help SMEs and other companies to maintain acquire global
standards, expand their sales, and cope with the competitive global business.
Organizational culture as a global difference varies from a firm to firm and from country
to country. It reveals its varied characteristics like diversity in the workforce (Mir and
Pinnington, 2014, pp. 203). Organizational culture can create negative and positive effects in the
workplace and on the staff. Since culture determinants the survival of an organization it can also
create barriers to acquisitions and mergers hindering global development of SMEs and other
companies. Therefore, organizations should find effective and appropriate processes and aim at
managing performance based on cultural dimensions.