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Hrm 001 People In Organisations Essay

870 words - 4 pages

TOPIC 5: PERFORMANCE MANAGEMENT
1. What is performance management
Performance Management is the “Processes that seek to integrate the key elements of organisational strategy & goals with employee inputs and outputs” (Robinson, 2006).
Armstrong M. (2010) defines this concept clearer as a strategy approach taking place in a number of dimension and emphasizes “It has to take account of the needs of multiple stakeholders. It is the prime responsibility of top management who plan, organize, monitor and control activities and provide leadership to achieve strategic objectives and satisfy the needs and requirements of stakeholders.”
Gheorghe and Hack (2007) make it more concise as saying ...view middle of the document...

3. The barriers to successful implementation of performance management system (PMS)
The need for an effective and efficient PMS has increased over the last decade due to its importance role in enhancing overall quality of an organisation (Linge and Schiemann, 1996; Lawson et al., 2003; De Waal and Coevert, 2007). Unfortunately, the failure rate of PMS implementation and usage projects is said to be around 70 percent (McCunn, 1998; Neely and Bourne, 2000).
De Waal and Counet (2009) did an excellent research on PMS implementations which points out 31 problems confronting an organisation from successfully implementing PMS. Among 31 problems, top ten problems from academic and practitioners point of view are listed in the table below:

Source: De Waal and Counet, 2009.

As we can see from the table above, there are significant differences between the academic and the practitioners’ point of view. The problems coming from academic point of view concentrate more on structural issues such as inadequate Information and Communication Technology (ICT) or unstable phase of an organisation. In the mean time, the practitioners place the behavioral issues as the most important problems such as lack of PM culture, lack of management commitment or the lack of knowledge about the benefits of PMS. Zairi (1994) agrees with the practitioners’ viewpoint as noting that the heart of the PMS is the human element. The management board and employees, therefore, appear to be “make or break factors” in the success of PMS implementation (Ashton, 1997).

4. How to overcome these barriers
As stated before, the failure rate of PMS implementation is alarmingly high. Therefore, it is of the utmost importance that organisations do whatever they can to increase the chance on a successful implementation and subsequent use of PMS. There are some significant issues that are...

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