Professional Human Resource Management: Deming's Observations Analysis

This essay delves into W. Edwards Deming's observations on performance management, critically examining the potential negative impacts of traditional merit rating systems on employee motivation, long-term planning, teamwork, and overall organizational performance. The essay analyzes Deming's arguments, highlighting how performance appraisals can lead to demotivation, psychological effects, and reduced employee engagement. It then explores the perspectives of experts who support performance appraisal, referencing Hertzberg's two-factor theory. Furthermore, the essay addresses adverse outcomes, such as employee demotivation and bias, offering practical recommendations like establishing clear performance criteria, eradicating bias and nepotism, and implementing strategies to enhance employee engagement and retention. The essay provides actionable insights for organizations seeking to improve their performance management practices and foster a more positive and productive work environment.

Running head: PROFESSIONAL HUMAN RESOURCE MANAGEMENT PRACTICES
PROFESSIONAL HUMAN RESOURCE MANAGEMENT PRACTICES
Name of the Student
Name of the University
Author Note

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EXECUTIVE SUMMARY
The following paper attempted a discussion on the issues highlighted by Deming in his
observations regarding the performance management within the organization. The paper
thereafter proceeded to discuss the various issues as have been observed in the management of
the performances as have been highlighted by the concerned organizational staff. The paper
finally reached a conclusion with the discussion on the recommended measures that might be
followed in case there is some adversity in the management of the staff performance and the
performance appraisals.

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Table of Contents
Introduction..........................................................................................................................3
Deming's observation on performance management.......................................................3
Addressal for the adverse outcomes................................................................................5
Recommended measures for avoiding them....................................................................7
Conclusion...........................................................................................................................9
References..........................................................................................................................10

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Introduction
The term performance management refers to the various processes that are implemented
within the given organizations in order to ensure the fact that the concerned organizational staff
have been working towards the overall development and the achievement of the organizational
goals as have been highlighted by the concerned organizational management (Noe et al. 2017).
The performance appraisal on the other hand deals in the undertaking of the various methods of
rewards and the recognitions as have been extended to the staff of the organization. The
performance rating that is awarded to the employees lead to the differentiation among the
employees of the organization. The ratings as are received by the employees during the
performance appraisals within the organization often lead to the demotivation of the employees
(Shields et al. 2015). The following paper attempts a proper discussion on the matters that are
highlighted by Deming in his observations regarding the performance management within the
organization. The paper thereafter proceeds to discuss the various issues as have been observed
in the management of the performances as have been highlighted by the concerned
organizational staff. The paper finally reaches a conclusion with the discussion on the
recommended measures that might be followed in case there is some adversity in the
management of the staff performance and the performance appraisals.
Deming's observation on performance management
The arguments as stated by Deming highlight the fact that the performance management
tends to lead to a compulsion on the part of the employees who have been serving the concerned
organization. Deming opines that the performance appraisal on the part of the organizational
management is observed to have a number of disadvantages as are faced by the employees of the
organization (Masopust and Ivanov 2016). According to the opinions that have been highlighted

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by Deming the management and the judgement based on the performance of the employees often
lead to the conditions wherein the employees lose their motivation to deal with the job profiles
that they have been assigned. The opinions of Deming further highlight the fact that the
implementation of the performance appraisals on the part of the employees often lead to the
various issues in both the short-term and the long-term planning that is maintained by the
organizational workforce as well as leads to the depressed condition of the concerned workforce
thereby affecting the entirety of the organizational performance in the given markets (Kumar,
Maiti and Gunasekaran 2018). The thinker further opines that the performance appraisals as are
implemented within the organization lead to various other psychological effects among the
employees who have been serving the organization at the various hierarchical levels as well. The
performance rating that is awarded to the employees lead to the differentiation among the
employees of the organization. The ratings as are received by the employees during the
performance appraisals within the organization often lead to the demotivation of the employees.
This in turn is observed to have been adversely affecting the employee performance and the
employee engagement within the organization (Asadi and Gilaninia 2016). This in turn is
observed to have been affecting the performance that is delivered by the organization within the
given industry as well as the various international markets of operation. The performance
appraisals as opined by Filiz, Duran and Ozden (2017) further lead to the reduction in the
motivation that is required for the proper functioning of the concerned employees towards the
achievement of the goals and the mission that is faced by the organization.
However, there are several experts who have opined in opposition to the opinions and the
arguments as have been demonstrated by Deming. The experts opine on the fact that the
activities that are related to the performance appraisal lead to the proper motivation within the

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business organizations present all over the world. The majority of the factors highlighted by the
employees of the organization could be resolved with the help of the proper understanding of the
performances that they tend to deliver towards the organization as well as the ways in which the
performances delivered might help the organization at large to reach the goals that have been set
by the concerned organizational management (Kearney 2018). The proper organizational
management helps the concerned organizational staff in the understanding their job roles and the
issues that they might face during the delivery of the required performances. The experts further
suggest that the performance appraisal often leads to the rewarding of the employees on the basis
of the performances that they deliver towards the achievement of the various set goals. The
major theoretical support for the opinions might be observed to be presented in case of the
application of the two-factor motivational theory as has been highlighted by the eminent
American psychologist, Frederick Hertzberg (Lăzăroiu 2015). The psychologist stated that the
employees who have been serving in the workforce of a certain organization might be motivated
through the implementation of the rewards and the recognition that they receive after the
appraisal on the basis of their delivered performance.
Addressal for the adverse outcomes
The appraisal that are received by the staff of the business organizations might not at all
times be rewarding for them. The staff might find the appraised remarks to be unjustified and
demotivating for them. The concerned organizational management might be advised to
implement the measures of the total quality management in the understanding the demands that
are faced by the concerned employees of the organization as well. The conditions of the adverse
outcomes in terms of the performance of the organizational staff might be observed in the form
of the various outbursts on the part of the employees of business organizations.

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The major issues that might arise in the performance appraisal of the organizational staff
refer to the issues in the similarity in the performances of the employees serving at the similar
hierarchical level of the organization. The concerned department of the human resources are
often observed to have been comparing and contrasting between the employees of the
organization on the basis of their performances. This in turn leads to the scenario wherein two
employees are judged on the similar grounds thereby leading to the conditions wherein there
might arise the issues as have been highlighted in the matters that are related to the creation of
the demotivation on the part of the lowly graded employees (Hur 2018). The Australian
management is however observed to have been implementing the various measures that would
help in the improvement of the issues that are being faced by the organizational staff in terms in
terms of their performance appraisal as well as the various motivational factors that enable the
improvement of the performance of the staff within the given organizations. The companies in
discussion tend to apply the proper developmental procedures that would help the concerned
organizational staff to develop their engagement with business organizations that they have been
serving.
The management might further be advised to deal with the issues in the areas of the
performance management within the organizational staff. The management is advised to deal in
the development of the workable policies that are maintained by the concerned organizational
staff. This would in turn help in devising the plans and the strategies that need to be followed
within the organization in order to achieve the set goals as well as maintain the steady retention
rate within the organization as well (Mone and London 2018). The majority of the issues as have
been highlighted within the organization led to the conditions wherein the staff of the
organization lay emphasis on the issues of biasness as are observed to have been maintained

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within the organizations. The staff of various small-scale organizations have highlighted the
practices of biasness within the organization. The majority of the Australian companies are
however observed to have been implementing the measures that would assist the development of
the employee engagement within the organization. The concerned organizational staff are often
observed to be dealing with the issues that they face in terms of the nepotism as might be
practiced by the organizational management (Lee and Raschke 2016). The management might be
advised to implement the procedures that would assist in the elimination of the bias form the
processes that are followed for the performance appraisal of the concerned employees. This
would help in the developing a fairness among the given staff and thus help in the development
of the proper workplace environment within the company (Greener 2019). This would further
assist in the improvement of the retention rate within the company thereby leading to the
conditions wherein there is observed a proper improvement of the competitive edge of the
company in the given markets.
Recommended measures for avoiding them
The issues that have been discussed above might be resolved with the help of the
following recommended measures.
 Setting a proper criterion for the performance appraisal and management of the staff
performance
The setting up of a proper criterion for the development of the processes of the
performance appraisal and the management of the performance of the organizational staff. This
is observed to be helpful in the smoothening of the processes as well as ensure the maintenance
of the transparency within the given organization as well. The proper maintenance of the
transparency among the employees of an organization might in turn lead the increasing of the

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retention rate as well as help in the attraction of the potential employees towards the given
business concern. This would in turn help the company to gain a proper competitive edge within
the given markets.
 Setting of the proper workable strategies that would help in the development of the
performance of the staff and thereby maintain the retention rate within the
organization.
The management is advised to deal in the development of the workable policies that are
maintained by the concerned organizational staff. This would in turn help in devising the plans
and the strategies that need to be followed within the organization in order to achieve the set
goals as well as maintain the steady retention rate within the organization as well. The majority
of the issues as have been highlighted within the organization led to the conditions wherein the
staff of the organization lay emphasis on the issues of biasness as are observed to have been
maintained within the organizations.
 Eradication of the biasness and the nepotism within the organization.
The management might be advised to implement the procedures that would assist in the
elimination of the bias form the processes that are followed for the performance appraisal of the
concerned employees. This would help in the developing a fairness among the given staff and
thus help in the development of the proper workplace environment within the company. The
implementation of the processes for the eradication of the nepotism and biasness within the
company would further lead to the enhancement of the transparency within the organization as
well as help in the attraction of the potential employees top the concerned organization as well.
This would further assist in the improvement of the retention rate within the company thereby

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leading to the conditions wherein there is observed a proper improvement of the competitive
edge of the company in the given markets.
 Eradication of the attribution error within the process followed for the performance
appraisal and the management of the staff performance
The attribution error refers to the conditions wherein the concerned employee is judged
on the basis of the individual belief that is maintained by the concerned employees of the
organization. The attribution errors as are observed to have been taking place in matters of the
performance appraisal refers to the conditions wherein the judgement on the part of the
organizational management is influenced by the personalized thinking of the concerned person.
The attribution error highlights the influences that are maintained by the individual thought
processes of the person who have been involved in the management of the staff performance as
well as the appraisals that are put forth to the concerned staff on the basis of the performance that
they deliver towards the achievement of the goals and the mission that have been set by the
concerned organizational management. This would further assist the improvement of the
competitive edge of the firm in the given markets.
Conclusion
In lieu of the above discussion it might be stated that the proper management of the staff
performance and the appraisals of the employees on the basis of their competency would help the
company in gaining a proper competitive edge in the given markets. The companies are advised
to apply the proper developmental procedures that would help the concerned organizational staff
to develop their engagement with business organizations that they have been serving. This would

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further assist in the improvement of the retention rate within the company thereby leading to the
improvement of the competitive edge of the company in the given markets.

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References
Asadi, S.A. and Gilaninia, S., 2016. Performance Measurement of Health, Safety and
Environment (HSE) of Executive Contractors in Water and Wastewater Organization in Guilan
Province Using Quality Coefficient Model (Q), Based on Deming Cycle. Kuwait Chapter of
Arabian Journal of Business and Management Review, 33(2593), pp.1-8.
Filiz, A.C., Duran, C. and Ozden, S., 2017. Global Journal of Business, Economics and
Management. Management, 7(1), pp.25-33.
Greener, I., 2019. Performance management that works? Improving public services by making
use of intrinsic motivation. Social Policy & Administration, 53(1), pp.99-112.
Hur, Y., 2018. Testing Herzberg’s two-factor theory of motivation in the public sector: is it
applicable to public managers?. Public Organization Review, 18(3), pp.329-343.
Kearney, R., 2018. Public sector performance: management, motivation, and measurement.
Routledge.
Kumar, P., Maiti, J. and Gunasekaran, A., 2018. Impact of quality management systems on firm
performance. International Journal of Quality & Reliability Management, 35(5), pp.1034-1059.
Lăzăroiu, G., 2015. Work motivation and organizational behavior. Contemporary Readings in
Law and Social Justice, 7(2), pp.66-75.
Lee, M.T. and Raschke, R.L., 2016. Understanding employee motivation and organizational
performance: Arguments for a set-theoretic approach. Journal of Innovation & Knowledge, 1(3),
pp.162-169.