HRM 3 Report: Performance Measurement System at University

This report provides an overview of performance management systems in Human Resource Management (HRM). It begins by highlighting the importance of performance management in understanding a company's success and failure, emphasizing its role in setting objectives and goals. The report then delves into four key criteria for measuring performance: the balanced scorecard, productive measurement and evaluation systems, quality measure performance, and the 360 approach. It details each method's application and benefits, such as identifying areas for improvement and measuring employee engagement. Furthermore, the report addresses the challenges faced by both raters (appraisers) and ratees (employees) within performance management systems, including appraiser inexperience, employee resistance, bias, assumptions, and the impact of recent events. The report concludes by providing a comprehensive analysis of these factors and their implications for effective performance management, supported by relevant academic references.

HRM 0
HUMAN RESOURCE MANAGEMENT
Student’s Name:
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HRM 1
Four Criteria Used to Measure Performance
Performance management system in a business is a useful tool to get a better understanding of
the company’s success and failure along with the reasons that led the company to the existing
level. The information provided is valuable because it helps in setting the objectives accordingly.
In addition, any factor that lags behind gets a chance to improve. Further, it helps in setting the
goals for the organization. Performance management uses many measurement criteria, some
major ones are-
 Balance scorecard: The balanced score card was developed by Robert Kaplan and David
Norton as a system of performance management. The aim of this development was to
transform the organizational objectives into operational strategic management. Moreover,
It can be used to ensure that the company provides quality and high-level of service to its
clients. In general, the framework is used to measure employee performance and track its
graph. Furthermore, the performance management system is of great use in identifying
the areas of improvement.

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 Productive measurement and evaluation systems: The focus of the performance
management system is focused at measuring employee performance. The system helps in
determining employee engagement and commitment level. In fact, such systems help the
employees in making their contributions identified. Therefore, it benefits the employer as
well as the employees. Moreover, the sub-ordinates are appraised and rewarded on the
basis of their performance and the areas for improvement are known.
 Quality measure performance: Measuring the quality of the performance enables the
organization to get a better understanding of its success and failure. Also, the reasons for
its existing market position are revealed. Such information helps in forecasting future

HRM 3
results and develop strategies accordingly. The performance management system also
offers the opportunity to acknowledge the strengths and weaknesses of the workforce and
the required changes that need to be introduced.
 360 approach: One of the most preferred and successful criteria for measuring and
managing performance is a 360 approach. The employees receive anonymous feedbacks
in this method. These feedbacks are given by managers, colleagues, etc. In addition, the
feedback is filled online by the receiver and he also answers the same questions as
answered by his friends and leaders.
The 360 approach, quality measure performance, productive measurements, and evaluation
system, and balance scorecard all have one attribute in common, i.e. all these methods are used
to measure employee competencies and performance. These methods enable the organization to
measure the strengths and weaknesses of the workforce. Further, they help in the performance
appraisal system. However, the approach of all these criteria is different. As for the 360
approach, feedback forms are filled out, whereas the balanced scorecard evaluates monetary and
non-monetary attributes. Furthermore, the quality measure performance and productive
measurement and evaluation deal with qualitative performance management (Schwartz, 2011).
Challenges for Raters
 Appraiser inexperience- Performance management system for the first time user is a
little difficult and awkward. The review process also seems tedious and troubling. The
implementation can also be a huge barrier for new entrepreneurs (Panda, 2011).
 Resistance from employees- In some organizations, employees resist to performance
management and to the change that follows. It is often noticed that people don’t always
respond sportingly to feedbacks.

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 Bias- In any situation, bias is a problem for the employer as well as the subordinate.
There are times when family members or relatives join the business and it is difficult to
measure their performance and provide feedback. The risk of ruining personal
relationships is present. Moreover, if the relatives/friends are favored, employees are
bound to react.
Challenges for Ratees
 Bias- The cases of judgmental bias are very common in organizations where people have
relatives and friends as employees. In situations like these, the personal growth and
development of the employee are hindered and he feels betrayed.
 Assumptions- There is one major problem that is faced by employees in almost every
organization i.e. assumptions. Very often managers or leaders assume certain things
about certain employees and judge them on the basis of these assumptions. Even if the
person is competent and he failed once, the assumption will be a hurdle in the
identification of his capabilities (Panda, 2011).
 Recent events- At times employees are judged in the performance management system
on the basis of their recent acts or behavior. In certain situations, the employee might not
have performed in a competent way due to some reasons, but overall he is a worthy
fellow. This recent failure might create a problem in his total performance.

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References
Panda, S. (2011). Performance Management System: Issues and
Challenges. Management and Labour Studies, 36(3), pp.271-280.
Schwartz, R. (2011). Bridging the Performance Measurement-Management
Divide?. Public Performance & Management Review, 35(1), pp.103-107.