Performance Management Business Methodological Systems

Question: Discuss about the Performance Management for Business Methodological Systems. Answer: Introduction The considered discourse is going to present itself through the combined aims of analysing three different kinds of methodical systems of performance management and thereafter selecting one particular framework and developing an apt remuneration package. Additionally the assignment that is going to be structured as a report will frame a convenient performance indicator and a behaviourally anchored rating scale (BARS) to measure volume and quality of production. It is essential to mark that prior to formulate the certain aspects mentioned before, the report will select an appropriate job profile according to the chosen framework of production management. Hence, the assignment will be a fruitful exercise for the practitioners of human resource (HR) management of contemporary times. Three kinds of performance management systems The phrase performance management is indicative of the particular practice of taking decisions regarding employee centric organizational aspects such as employee performance, remuneration package, termination, and transformation and promotion policies. There is may be confusion between the concept of performance appraisals and performance management. The exercise of performance appraisal is the method of evaluating and measuring behavioural traits and achievements of the employees (Van Dooren et al. 2015). Therefore, the dimension of performance appraisal is seen as one of the chief constituents of performance management. An efficient performance management system is supposed to provide a clear picture to the stuffs regarding organizational expectations to acquire optimum organizational performance by implementing improvement systems for employee behaviour. In the contemporary era of human resource management, among several categories of high performance management practices, potential ones to be considered are a) MBO (Management by objectives) b) Forced Distribution and c) system of getting feedback in 360-Degree (De Waal 2013). a) In the performance management system of Management by Objectives, an organization regulates the policy that indicates both the workers and the managerial to work cooperatively to supervise and record organizational purposes for a particular amount of time (Moynihan and Lavertu 2012). The concept of MBO is related with one of the vital aspects of management, which is planning. It means that workers along with the team leaders and managers will not just react according to the organizational events but will work proactively according to a plan. The concept of MBO thus implicates that employees and managers to set plans according to individual organizational goals. The distinct plus points of MBO is the conceptual framework helps to set proper plans to achieve goals which advance proactive behaviours (Su et al. 2015). These proactive behaviours are used as the weapon for assessing risks or any adverse situation before they take place. However, in terms of disadvantages, in the system of MBO, organizations most of the time gives priority towards setting the goals rather than concentrating on making plans. b) This system of performance management is the process in which employees obtains anonymous peer evaluation from managerial comments and direct reports. The system of 360 feedbacks is frequently used in the contemporary HR practices as with the help of this practice management of organizations to identify aspects of their strengths and weakness (Aggarwal and Thakur 2013). On the other hand, the system is useful for production development as the system formats feedback into a development plan by tabulating them. The framework preserves anonymity by combining individual responses with feedbacks of other. Hence, it is understandable that this system helps in providing support to employees by assuring them about their strength and pointing the flaws. It is interesting to note that the system is an effective tool for performance appraisals as the exercise concentrates on employee behaviours and facets of competencies though a proper 360 structure to assess basic skills and performance ob jectives is difficult to gain through the system (De Wilde 2014). Most of the time, organizations lack in making a relevant and applicable structure for the system, and fail to measure performance objectives. c) Force distribution in performance management system is the most convenient tool for measuring employee productivity through ranking their volume and quality of productivity through ranking. The system has been criticised several times for escalating competition among the workers. Additionally, the ranking categories may not prove fruitful to evaluate the true performances of the staffs (Mio et al. 2015). The point of advantage of this system is HR professionals of an organization can properly estimate the scale of development because of the numerical data they gain from the ranking procedure. Moreover, the system if useful in creating healthy pressure to bring out the best from the employees. On the contrary, the system is ineffective in extracting the innovativeness from the employees as the pressure creates the completion to stay visible and active in the organization rather than being creative. Selection of one performance management system and a job profile After considering three most frequently used performance management systems, as being a part of HR management of a multinational company, it can be said that the MBO system should be chosen as the concept involves the cooperation between employees and management. Moreover, it is a relevant practice to form plans and apply them to achieve organizational goal. According the selected category of performance management, an appropriate job role would be the job profile of a project manager. The role of the project manager would be to work efficiently with the team members to gain productive client relationship and then to implement creative solution. The project manager will be expected to govern the projected structure that challenges the employees to become more ambitious. Furthermore, the job of the project manager would be to plan, control and execute organizational goals. Selection of the remuneration package A remuneration package for a job profile of a project manager should not just include a good amount of salary, which is most of the time considered as a lucrative option to keep employees in hand (Bussin and Smit 2014). In the contemporary era, a convenient remuneration package irrespective of any job profile should be made to reflect the duties and abilities of a particular position and therefore required to include several smart and innovative beneficiary options (Ndzi 2015). For the chosen job profile, the remuneration should be based on talent and productive power of the selected candidate. On the other hand, the remuneration package should be formed after contemplating the current market rates. Incremental increases or bonus would be given based on the performance appraisals or ratings. Instead of incentives and bulky pay scale, for the role and responsibility of the project manager, the remuneration package would include flexible working shifts and facilities like pick and drop, fixed weekend off (Nicholls et al. 2013). The package should also include free launch for those particulars those will be willing to take night shifts. On the other hand, there would be a large insurance package and retirement benefits. Gym membership and lunch programs are helpful in making an atmosphere where employee and mangers can spend time together and share views. Therefore, these are to be included along with on job training facilities. KPI (Key performance indicator) Key performance indicators are used to particularly measure and monitor performances to identify whether the production is working in the path of success or not. An effective KPI provides helps to decrease uncertainties, which are intangible and ensures measurement through a common communication method (Parmenter 2015). The use of KPI depends on individual business objectives and position. Considering the position of a project manager and the business objective to plan, control and achieve business goals along with to work successfully with the employees, the rudimentary criterions of KPI to measure the productivity of the project manager will be- Key performances Reason Desired rank out of 5 Productive power to plan and control The chief aim of the concerned position is to plan an apt projection structure and execute them by controlling the workforce. Therefore, this particular aspect is a worth criteria to indicate the performance is walking on the path of achievement or not. 4/5 Bringing creative solution Being a project manager, the ultimate responsibility is to mitigate any certain issue. Conventional mitigation strategies do not work all the time. Therefore, it is important to have creative power to be utilised in time of resolving any issue. 4/5 Satisfaction of the employees/group members The role is to work cooperatively with the employees and provide them motivation to bring out the best productivity. Satisfaction among the team members will be therefore a proper indicator. 5/5 Productive client relationship Satisfaction among the clients and their loyalty will be a potential aspect to indicate the accuracy of the productivity. 5/5 Table 1: Key Performance Indicators (Source: As created by author) BARS BARS is acknowledged to be one of most beneficiary measurement tools for performance appraisals. It is because the design of this particular rating scale has concentrated on rating employees to judge whether assigned tasks have been completed according to requirements or not (Ohland et al. 2012). The approach of BARS is to break down the jobs into behaviours. For the role of project manager, an apt scale of BARS will be - Required features Development of behaviour Required rating Creativity By doing more research works 4/5 Productivity By being attentive and punctual 5/5 Employee management By spending more times with workers 5/5 Client satisfaction By observing and considering feedbacks 4/5 Table 2: Required elements for BARS (Source: As created by author) Conclusion From the above entire discussion, it can be concluded that in the current scenario of HR management, frequently applied performance management systems include MBO, Force Distribution and system of feedback appraisals in 360 degree mode. This particular discourse has chosen the system of MBO as this system helps to engage managers and workers to become cooperative with each other. Moreover, this system is responsible for optimizing accurate planning to achieve organizational goals. 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