Features, Amendments, and Purpose of Performance Management System

This report provides a detailed analysis of a performance management system, focusing on its features, the amendments that can be made to improve its effectiveness, and its overall purpose. The report begins by introducing the features of a performance management system, including goal setting, formal and informal feedback, performance appraisals, monitoring training and development, and record keeping needs. It then discusses amendments that can be made to the current system, such as including job roles, responsibilities, critical success factors, 360-degree feedback, reward and recognition programs, personal development plans, and management by objective. Finally, the report discusses the purpose of the system and how it can be attained through the implementation of the suggested amendments, emphasizing the importance of measuring staff performance and aligning individual and organizational goals.

Assessment Task 2-
Role play
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Table of Contents
INTRODUCTION...........................................................................................................................3
a) Introduction to features of performance management system.................................................3
b) Amendments made in current system.....................................................................................5
c) What is purpose of system and how it can be attained............................................................7
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9
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INTRODUCTION
Every organisation needs to measure employee performance so that weak areas are
identified and improved. Also, it enables in analysing whether goals and objectives are achieved
or not. Alongside, performance is to measure within particular time period. It is done by
comparing with set goals (Kuvaas, Buch and Dysvik, 2016). The management needs to define
policy, practices and procedure on how performance is measured. Here, criteria are identified as
per job role and responsibility.
a) Introduction to features of performance management system
A performance management system is a process of managing performance of employees
according to their goals. It is a procedure through which organisation mission, goals and
objectives, etc. are attained with available resources. There are many elements of system which
is aligned to organisation policies and procedures. Moreover, several practices are also followed
in it which is according to the job design and specifications. It has been analysed that there are
different features of performance management system which is as follows :-
Goal setting and performance measurement processes
It is the first feature of system in which goals are set and processes is defined. The goals
are based on operational and strategic plans (DeNisi and Murphy, 2017). In this plan is
categorised into many areas. However, goals are set through a specific procedure. it is a
systematic procedure of doing ensuring that goals are attainable. The operational plan defines
daily activities to achieve strategic goals. Goal setting include many sub steps. Here, first is
consult work allocation and resources. The manager set plan by meeting with employees.
Furthermore, consultation is done with other people as well. First is stakeholders are identified so
that their impact can be analysed on resource allocation. The stakeholder includes all those who
have interest in performance management system.
The mapping of stakeholders enables in identifying that how goals and objectives can be
impacted and which stakeholder can influence it. through that, it becomes easy to determine
power, interest, influence, etc. of stakeholder on goals of organisation. Moreover, stakeholder
mapping allows to focus on set goals and objectives. usually, it is categorised into different
categories. Another feature is that performance standards are developed by working with
employees. The standards may be either descriptive or numeric based on standards. It can be
combination of both.
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Formal and informal feedback
this is another feature of system in which feedbacks are taken from peers, superiors,
managers, etc. that provide insight on performance of employee. The feedbacks taken is in
regard to both formal and informal feedback (Smith and Bititci, 2017). In formal, there are
certain criteria which is followed. this include meetings, reviews, etc. of staff. On other hand,
informal feedback is only taken in case of things related to time, behaviour, etc. of employee.
Performance appraisals
In this feature there are several components are included in it. they are mentioned below
Performance metrics – the performance is measured through key performance indicators. The
KPI are critical areas in organisation. they are those areas which is most important to business. It
is calculated individually of each employee. The areas are financial measure, behaviour,
productivity, etc. there are many types of KPI’s like input, process and output. They are most
important element of measuring performance. Another performance appraisal element included
in it is balance scorecard. The BSC is based on stakeholder perspective and developed
accordingly. Furthermore, it is based on KPI’s. In this many areas are been taken like financial,
learning and growth, employee satisfaction, etc. one more feature of this system is pitfalls are
included as well. This enable in measuring things that are easy to observe and not what is
important to measure.
Monitoring training and development
It is a feature of performance management system in which training and development of
employee is measured (Franco‐Santos and Otley, 2018). Through this feature it will be easy to
monitor training and development programs and what employee have learned and gained skills
from it. Also, it is evaluated that the goals and objectives set are attained or not. Along with it,
training needs are determined and on basis of that things are changed. by measuring performance
of training, it can be clarified that what training is required.
Record keeping needs and requirements
This feature of management system makes things easy to keep records of employees needs and
requirement
Setting up the proper record keeping system within the business is really important as it
will help to work out the business in an effective manner. Through the process of record keeping
it helps in meeting the legal requirements and also helps in strengthening the customer
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relationship as well as staff relationship. One of the basic needs of record keeping is that it will
help to monitor the progress of business as good record keeping can whether a business is
performing well or not. Another important need of record keeping for the store is that it can help
in preparation of financial statements such as income and expenditure statements and also help in
preparing a balance sheet (Van Thielen, Bauwens and Decramer, 2018). Record keeping also
fulfils the need of tracking deductible expenses unless and until store records them store may
forget such expenses when a prepares a tax return. It is vital for organization to keep business
record available all the time as may come under inspection by Income Tax Department which
may examine the tax returns.
In order to keep a proper record, it is essential for business to meet various requirements
of effective record keeping system and some of them are mentioned below:
Financial records: These records will help to track cash flow, preparation of tax return etc. and
following documents are required- receipts and invoices for goods and services, various types of
bank statements, contracts with various contractors and suppliers, tax documents etc.
Legal records: Following documents are required- leases, documents for registration and
insurance
Employee records: It includes the information of the employees working in such records are-
history of work performance including the performance issues, financial records which include
tax files, bank records as well as superannuation details.
Policy and procedures: These records are really important as it helps in outlining the
management of day-to-day operations and its requirements includes- employee policies,
harassment policies, operational manuals, dress standards and work place safety and health
plans. (Bourne, Franco-Santos and Pavlov, 2018)
b) Amendments made in current system
It is necessary to do changes in performance management system so that goals and
objectives are achieved. Beside this, the changes are done according to interest, power, etc. of
stakeholders. However, current system does not focus on individual employee job role. it
manages overall employee performance. Along with it, in system amendments are done to
improve system rather than identifying its weakness. Thus, the amendments done are as
mentioned below :-
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Including job role – this amendment is made in system. Here, the job roles are included in it and
on basis of that performance is measured. However, this amendment will enable in improving
efficiency of performance management. Furthermore, according to job role, the goals and
objectives will be set. Alongside, it will be easy to evaluate performance of each individual. This
will also benefit in identifying training needs and requirements. So, on basis of job role
opportunities for growth is evaluated. For instance, the performance of employee working at
middle and lower level can be distinguished.
Including roles and responsibilities- in this the amendment is related to including job roles and
responsibilities. It was included in it because it allowed to measure performance on basis of job
roles and duties (Alon, Lavi and Tabak, 2016). Now on basis of job roles higher goals can be
set. This will enable in measuring performance on basis of goals. Thus, the employee
productivity can also be improved by doing this amendment in performance management
system. In addition to it, in future as well development can be made in it. A separate criterion or
KPI can be included within system on basis of roles. It will provide a clear insight on obtaining
relevant outcomes. through it, new potential can be developed.
Critical success factors – here, the amendment is related to critical success factors of employees.
It is essential for organisation to attain mission and vision. This factor is element or factor that is
important in ensuring success of company. there are different factors mentioned in it like team
work, skills, communication, planning, etc. these all are different from success criteria.
360 feedback- This change can be included in performance management system. It is because in
current system there is no such criteria or factor taken into consideration. Moreover, by including
this in future development options can be broaden. Here, by taking 360 degree feedback it will
be easy to measure employee performance. So, on basis of that training can be provided to them.
thus, this change will also play vital role in performance management. the main thing this
amendment will result in improving employee training and development (Anjomshoae Hassan
and de Leeuw, 2017).
Reward as recognition programmes – this amendment is done in order to motivate employees
on basis of their performance. The rewards are only given to those employees whose
performance is high. Thus, the positive development option through this will be that low
performer employees will get encouraged to perform at high level. Furthermore, those who have
performed high will like to undertake more challenging goals. Therefore, with help of rewards
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performance management can be enhanced. In this way, in future areas can be identified where
rewards are given to staff on basis of their performance.
Personal development plan- In performance management system personal development plan
criteria can also be included. This will enable in measuring employee performance based on their
personal development and gaining of skills and knowledge (Ogunyomi and Bruning, 2016). It is
evaluated that PDP are those plans that is developed to set out goals and improve future
performance. Therefore, while measuring performance this can be also be considered. The
positive development in future will be that it will help in determining areas where employee have
made improvement or gained skill. So, then focus can be some other area or skill. It will be
useful for employee to develop PDP on remaining skills. Thus, in this way they can learn skills
and improve their performance. However, this will benefit in evaluating performance at higher
level.
Management by objective – it refers to process of setting objective that enable employee to
attain goals specifically. This amendment can be made in system to work towards common
goals. Furthermore, goals can be set as per individual skills and capabilities. So, the criteria of
measuring performance will be changed. in this only those objectives are taken into
consideration that match with standards. Hence, in future standards can be set at higher level. so,
it will result in encouraging employee motivation and enhancing their performance (Holzer,
Ballard and Deat, 2019).
There is required to set a systematic framework on how performance will be measured.
So, this change is also required to be done within system. Here, step by step procedure can be
written and accordingly performance can be measured. It will enable in going through all criteria
and evaluating each one. So, following a procedure will make things easy and proceeding in
systematic way.
c) What is purpose of system and how it can be attained
It has been stated that necessary amendments are made to improve performance
management system. The main purpose for making alternation in system was to include different
elements that is useful in improving system performance. Also, it was done to address those area
or part that is essential to be included in system. With revisions in system it will be easy to
measure staff performance and bring in some changes. The problem that is addressed into it is to
strengthen the system (Kuvaas, Buch and Dysvik, 2016). Here, PDP is not included in current
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system, so it will allow employee to improve their personal skills. Another problem is system
does not include 360 degree feedback procedure. thus, previously employee behaviour was not
evaluated. Thus, only numeric data and information was taken into consideration. So, by doing
changes, the system can be strengthened. Another problem is that previously employee job role
and responsibility was not included in performance. So, all staff performance was evaluated in
same way. their job roles were ignored. However, making changes in system will be useful in
addressing this problem. The staff performance will be evaluated with regard to their job role. In
this way overall purpose will be attained. The issue that is addressed is lack of proper system and
procedure to measure performance. It makes things easy and get it done in systematic way. By
mentioning all things and various criteria in evaluating performance, more development options
are identified. it will help in enhancing staff performance through their skills and abilities.
Thus, the alterations made in it are related to enhancing employee performance. In this
staff whose performance is high can learn and gain high skills and knowledge. They can grow
and develop in their own area (DeNisi and Murphy, 2017). Moreover, by specifying roles and
responsibilities it will be easy to enhance individual performance. Then, as per job roles higher
criteria can be set to make motivate them. Apart from it, alternation done will provide a new
framework for organisation to measure performance. By this the criteria that are not considered
or been missed is included in it. This will be highly beneficial in ensuring that all perspective or
factors are entitled into performance management.
CONCLUSION
It can be concluded that there are many features of performance management system. It
includes goal setting framework, performance appraisal method such as KPI, balance score card,
etc. through all these, performance is measured. But there are some amendments done in system
to improve development options. In that MBO, PDP, 360 degree feedback, etc. are included in
performance management. The main purpose to redesign system is to encourage higher
performer to enhance their performance.
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REFERENCES
Books and journals
Alon, A., Lavi, Y.Y. and Tabak, A., SAP SE, 2016. System and method for performance
management in a multi-tier computing environment. U.S. Patent 9,300,523.
Anjomshoae, A., Hassan, A. and de Leeuw, S., 2017. Toward a dynamic balanced scorecard
model for humanitarian relief organizations’ performance management. Journal of
Humanitarian Logistics and Supply Chain Management, 7(2), pp.194-218.
Bourne, M., Franco-Santos, M. and Pavlov, A., 2018. Performance measurement and
management: a system of systems perspective. International Journal of Production
Research, 56(8), pp.2788-2799.
DeNisi, A.S. and Murphy, K.R., 2017. Performance appraisal and performance management:
100 years of progress?. Journal of Applied Psychology, 102(3), p.421.
Franco‐Santos, M. and Otley, D., 2018. Reviewing and theorizing the unintended consequences
of performance management systems. International Journal of Management
Reviews, 20(3), pp.696-730.
Holzer, M., Ballard, A and Deat, F., 2019. Obstacles and opportunities for sustaining
performance management systems. International Journal of Public
Administration, 42(2), pp.132-143.
Kuvaas, B., Buch, R. and Dysvik, A., 2016. Performance management: Perceiving goals as
invariable and implications for perceived job autonomy and work performance. Human
Resource Management, 55(3), pp.401-412.
Ogunyomi, P. and Bruning, N.S., 2016. Human resource management and organizational
performance of small and medium enterprises (SMEs) in Nigeria. The International
Journal of Human Resource Management, 27(6), pp.612-634.
Smith, M. and Bititci, U.S., 2017. Interplay between performance measurement and
management, employee engagement and performance. International Journal of
Operations & Production Management, 37(9), pp.1207-1228.
Van Thielen, T., Bauwens, R. and Decramer, A., 2018. How to foster the well-being of police
officers: The role of the employee performance management system. Evaluation and
program planning, 70, pp.90-98.
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