Success Factors and Key Features For Implementing Performance Management Systems
Success Factors and Key Features For Implementing Performance Management Systems
Success Factors and Key Features For Implementing Performance Management Systems
By:
Lecturer: Dr M Bussin
INTRODUCTION
Employees play a pivotal role in ensuring that their organisations become competitive in the
industry. If performance management is done correctly, productivity, motivation and morale
of employees will increase. Extensive digging needs to be done in order for employees to
understand what they perceive as fair in performance management (Sharma et al, 2009).
This process is an alteration of employee attitudes and values and these have a holistic effect
on the implementation (Ochurub, Bussin & Goosen, 2012).
CRITICAL FACTORS FOR IMPLEMENTING A PERFORMANCE
MANAGAMENT SYSTEM.
How well trained leaders are in performance management play an integral role.
Ensuring good performance management in organisation, leaders should be actively
involved in this process (Williams & Galden, 2015). Proper planning and sound
leadership tools should take great priority in the process. Proper compensation,
extensive communication, training and performance management are very effective in
every organisation and leadership (Williams, et al, 2015, p78). It is very imperative
that communication takes top priority on a daily basis through correct channels and
correspondence. Leaders should be trained rigorously on verbal and oral
communication to ensure optimization of this implementation. Leaders are able to
mentor employees and increase their skillset thus increasing performance (Nwokocha
et al, 2012).
Organisations mostly focus on pay for performance on executives and not their low
tier employees (Joseph, Emett & Louw Potgieter, 2012). Compensations for
performance takes a variety of routes however in most cases, it is monetary based and
following a certain set of criteria and formulae. Salaries and wages are what most
organisations focus on when doing pay for performance (Williams & Galden, 2015).
Depending on the organisation, pay for performance could be an important revelation
and leading to optimum performance, satisfaction and engagement from employees. A
manufacturing company could have an employee get a certain amount of money for a
certain number of units produced. This could form as motivation for many employees
to produce as many units as possible in order to receive a certain amount of money.
Organisations should have very attractive compensations in order to attract highly
skilled and performing employees. Elements such as promotion, recognition and
training & development could take a larger portion of our Pay for Performance
system. Higher performing employees stand a higher chance of being promoted thus
prompting employees to work harder in order to grow in the organisation (Mehta,
Kurbetti & Dhankar, 2014).
Pay for Performance “is based on premises that incentives, usually in a form of cash
bonuses will prompt employees to work harder and smarter, thereby improving their
own performance and attract and retain high quality employees” (Thompson &
Bauman, 2011, P 2).
Remunerations structures should be able to distinctively tell between high and low
performing, engaged and disengaged employees in the organisation.
Vroom (1964)’ expectancy theory of motivation has made assertions that pay for
performance should be able to prompt an employee to perform optimally.
CONCLUSION
It is very imperative that organisations take heed to their structures when determine
how well an employee performs in their jobs. Organisations can be inhibitors of
employee performance thus when doing appraisals, it is also important to look at what
deficiencies the organisation has and take corrective measures. It is in the jurisdiction
of both the employee and employer to ensure that performance management systems
work according and as per their own criteria. Performance management systems need
to be cascaded from top in order to use the influence to get employees to have buy in
into the new system and procedures. Change takes time to be adapted to and it is of
importance that organisations give the new system and employees time to adapt.
Pay for Performance can hinder productivity of employees if too much emphasis is
place on monetary value of a job and not on competitiveness.
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