An Analysis of Challenges in HRM Performance Management Systems

This report analyzes the challenges faced by both staff and managers in implementing performance management systems within an organization. It identifies key issues such as poor performance management, lack of leadership commitment, and misalignment of organizational processes. The report differentiates between the challenges faced by staff, such as understanding their roles and improving performance, and those faced by managers, including maintaining commitment and aligning various organizational processes. It further recommends strategies for HR leaders to overcome these challenges, such as introducing proper recognition and rewards. The report concludes by discussing the implications of not addressing these challenges, including decreased employee engagement, increased legal risks, and wasted resources. The analysis is supported by academic references from various sources, including books and journal articles. The report provides a comprehensive overview of the challenges and potential solutions in performance management, emphasizing the importance of addressing these issues for organizational success.

Running head: HUMAN RESOURCE MANAGEMENT
HUMAN RESOURCE MANAGEMENT
Name of Student
Name of University
Author’s Note

1HUMAN RESOURCE MANAGEMENT
The challenges that are faced by staff and managers in implementing performance
management systems
There are numerous challenges that could be faced in the process of implementing
performance management systems, the issues faced by staffs and the managers are different
from each other and they have their own implications as well.
The challenges faced by staffs during the implementation of performance
management systems include the poor management of performance (Aguinis 2012). In case
the performance management is not carried out due to various issues, the staffs face issues
related to the quality of their performance which prevents them from knowing the bottlenecks
that exist within their performances, this further prevents them in improving the attributes
within their performance that requires further improvement.
The challenges that are faced by managers include issues in leadership and
management commitment. The leadership as well as management commitment challenge
seems to have a huge impact on the process of integrating performance management (Noe,
Hollenbeck and Gerhart 2017). This is because usually professionals like managers fail in
maintaining the commitment of leadership as well as management, the next issue that is faced
by the managers include the lack of alignment this issue is faced due to the numerous
organizational processes that are created in the state of isolation (Armstrong 2014). In this
certain issue, the budgeting as well as operational planning is created by numerous groups
having completely different frameworks lacking alignment within the system and the
performance of individuals, organizational measurements regarding the delivery and the
departmental performance.
The ways by which HR leaders can help the staffs and managers overcome these
challenges

2HUMAN RESOURCE MANAGEMENT
The challenges that are faced by the staffs can be mitigated with the help of numerous
ways, the introduction of proper recognition as well as rewards, the lack of cooperation can
be mitigated with the help of introducing the concept of recognizing as well as promoting
good performance and hence keep the employees engaged, inspired and motivated regarding
their future with the organization (Cascio 2015). An efficient and effective rewards as well as
recognition must have a clean set of expectations along with criteria regarding the types of
behaviour as well as actions have been rewarded which drive the company forward
(Diamante 2009).
Implications for staffs as well as organization if the challenges are not mitigated
The implications of poor performance management system include lack of employee
engagement, this would have the chances of quickly eroding the engagement of employees in
the activities carried out within the organization (Dahling and O’Malley 2011). Suppose
when a particular performance plan is not clear in nature, employees would not understand
their individual roles and would feel least motivated in the project or tasks (Albrecht, Bakker
and Gruman 2015). They tend to feel least inspired in carrying out the task or investing their
hard work into it. One more implication include increased legal risks. Proving negative
evaluations having no proof for backing up would result in increasing litigation risks (Bratton
and Gold 2017). The major and most vulnerable implication include wastage of time as well
as money.

3HUMAN RESOURCE MANAGEMENT
References
Aguinis, H. 2012 Performance management, 3rd ed. Upper Saddle River, NJ: Pearson
Prentice Hall.
Albrecht, S.L., Bakker, A.B., Gruman, J.A., Macey, W.H. and Saks, A.M., 2015. Employee
engagement, human resource management practices and competitive advantage: An
integrated approach. Journal of Organizational Effectiveness: People and Performance, 2(1),
pp.7-35.
Armstrong, A. 2014 Armstrong’s handbook of performance management: an evidence-based
guide to delivering high performance, 5th ed. London: Kogan Page.
Bratton, J. and Gold, J., 2017. Human resource management: theory and practice. Palgrave.
Cascio, W.F., 2015. Managing human resources. McGraw-Hill.
Chapter 14, ‘Performance management and employee engagement’, pp. 207-214
Dahling, J. J. and O’Malley, A. L. 2011 ‘Supportive feedback environments can mend broken
performance management systems’, Industrial and Organizational Psychology, 4 (2),pp. 201-
203.
Diamante, T. 2009 ‘Authentic performance: the valuation of behavior as a negotiated
business outcome’. In: Smither, J. & London, M. (Ed.) Performance management: putting
research into action. San Francisco, CA: Pfeiffer, pp. 491-526.
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.