Managers and HR Challenges in Establishing Performance Order Instructions:
A range of challenges confronts managers and HR leaders when establishing a performance management system. Staff at all levels can have a critical role in this complex process.
In this essay, you will explore the challenges of – and possible solutions to – implementing a performance management system.
To complete this essay:
•In approximately 850 words, analyze specific challenges faced by staff and managers in implementing performance management systems, and recommend ways in which HR leaders can help staff and managers overcome these challenges.
In formulating your essay, consider the following questions:
•How do the challenges faced by employees – or those subject to the performance management system – differ from those faced by managers responsible for implementing it?
•What are the implications for staff, and the organisation as a whole, if these challenges are not overcome?
Important Note:
Please follow the exact instructions
above.
Managers and HR Challenges in Establishing Performance Sample Answer
Challenges that confront managers and HR leaders when establishing a performance management system
Organizations often identify a number of challenges whenever they execute performance management systems. This paper discusses the challenges of executing a performance management system as well the possible solutions to the identified challenges. Furthermore, the implications for employees and the company as a whole are described if those challenges are not overcome.
Design challenges: a major challenge is that the performance management system may be poorly designed such that it fails to address the organization’s specific needs (Dahling & O’Malley 2011). To overcome this challenge, the performance management system has to be designed to address the company’s particular needs. The process of design must entail an extensive consultation with important stakeholders and the system’s future users. Interaction and consultation are essential in building relationships and trust with pertinent stakeholders and staff members. Trust is a key necessity for the performance management system’s success. Before being applied in the company, the new performance management system has to be thoroughly tested and piloted. The consequence of applying a system which is incomplete is that it would result in loss of time, loss of human and fiscal resources, and credibility, over and above increasing opposition to change (Mone et al. 2011). An incomplete performance management system also results in low acceptance of this new system. The individuals who are involved in designing should have expertise in performance management and they should understand the context of the organization.
Lack of integration: performance management in any business organization should be approached from an integrative standpoint. It is important to create synergy between the performance management system and organizational structure, culture, human resource management processes, strategic planning and every other important organizational processes and systems (Risher 2012). Team, individual and organizational objectives have to be harmonized. If integration is absent, the performance management system could not succeed on its own, in spite of how good it may be.
Lack of support from the top management: to overcome this challenge, the execution of the system should be driven and supported by the organization’s senior leadership. The senior executives should be committed to executing the performance management system. The senior executives have to be encouraged to inspire the employees, create a common vision, and create a performance management system which will drive the whole company toward a shared purpose (Dahling & O’Malley 2011). An organization that has excellent performance management outcomes has strong vision-driven and value-driven leaders who take risks, communicate the vision, inspire employees, and offer support as well as rewards.
Incompetence: to effectively overcome this challenge, the persons who are involved in the performance management system should have relevant skills, attitudes, and knowledge to use this system. Some of the key skills needed are as follows: be able to develop performance indicators, performance agreements, management competencies, and key results areas; should be able to measure performance indicators; should be able to communicate the results and give feedback; and should be able to monitor and evaluate the performance management system (Armstrong 2014). To ensure that those who utilize this system are constantly developed, proactive training and development will need to be carried out.
Lack of rewards: to overcome this challenge, a reward system which discourages mediocre and low performance and rewards high performance has to be established. A holistic and inclusive reward system that comprises a variety of rewards including study and learning opportunities, promotions, public acknowledgements, greater work responsibilities, merit awards, and monetary rewards need to be developed and communicated to all employees. A lot of importance should be given to rewards that are non-financial. Measures will have to be established for taking corrective action against staff members who are low performers (Mone et al. 2011).
Communication challenges: to effectively overcome this challenge, a hands-on communication strategy and process has to be followed during the performance management system implementation. Communication is a critical success factor of the whole performance management system. It is worth mentioning that effectual communication calls for the provision of pertinent information. Effective communication also reduces anxieties and fears, ensures buy-in from the system’s users, generates commitment to the system, and decreases resistance to change (Gruman & Saks 2011).
Lack of monitoring and evaluation: to effectively overcome this challenge, the implementation of performance management system has to be monitored constantly. Problems should be detected early enough so that prompt remedial action could be taken. It is important to develop monitoring systems that would gather information methodically, analyze that information and interpret it, and utilize it for decision-making. The process of evaluation has to be carried out regularly so that any problems could be detected early enough (Dahling & O’Malley 2011). The identified problems have to be fed back to the design stage so that prompt remedial action could be taken aimed at addressing the problems identified. For the performance management system to be successful, it should be evaluated and improved continually.
The identified challenges are not insurmountable hindrances, but are aspects that call for much attention and work. If these challenges are not addressed, they could actually cause the organization’s performance management system to fail. The challenges can undermine the performance management system’s execution. In essence, to prevent the challenges from undermining the execution of the performance management system, it would be important to meet those challenges head-on.
Managers and HR Challenges in Establishing Performance References
Armstrong, A 2014, Armstrong’s handbook of performance management: An evidence-based guide to delivering high performance (5th ed.). London: Kogan Page
Dahling, JJ., & O’Malley, AL 2011, Supportive feedback environments can mend broken performance management systems. Industrial and Organizational Psychology, 4:201-203
Gruman, JA & Saks, AM 2011, Performance management and employee engagement. Human Resource Management Review, 21(2): 123-136
Mone, E., Eisinger, C., Guggenheim, K., Price, B., & Stine, C 2011, Performance management at the wheel: Driving employee engagement in organizations. J Bus Psychol, 26: 205-212
Risher, H 2012, Employers need to focus on improving performance management. Compensation & Benefits Review, 44(4): 188-190
