Background Nowadays, outside world are changing rapidly and no one can prevent it anymore. One of the factors’s that affecting today’s business is a simple shifting of managing employee’s performance in every organisation.
Business organisations often rely on employees to complete business functions in a timely and efficient manner. The reputation of the business may also rely partly on the performance of its employees. Owners of businesses often develop an employee performance management to help them evaluate employees. 1. 2 Aims The purpose of this report is to evaluate the performance management in organisation by finding out their characteristics as an ‘ideal’ management system. It focuses on the Network Solutions, Inc. in order to determine their characteristics of performance management system.
This report also will give explanation about basic concepts of performance management. 1. 3 Scope The report evaluates the overview of Network Solutions by providing organisation profile & their challenge, the concept of performance management, list correspond of ideal characteristics features system which implemented and identify of mislaid characteristics at Network Solutions. Moreover, this report will analyse the advantage and disadvantage outcomes at Network Solutions from the implementation system which chase by organisation.
By providing some future suggestion about critical issues that Network Solutions facing in performing ideal performance management system also will be discussed at the end of this report. 2. 0 Overview of Network Solution, Inc. 2. 1 Profile of Network Solutions’ As the primary provider of web-related services in North America and a forge in the Internet industry, Network Solutions recognise a lot to getting things done at web speed. Network Solutions, Inc. is a worldwide leader in hardware, software, and services essential to computer networking.
Therefore, Network Solutions offers a full suite of web-related services, together with web site design, online marketing, email and web site hosting for more than 4million customers. 2. 2 Challenge faced by Network Solutions’ Recently, Network Solutions, Inc. used more than 50 different systems to measures performance within the organisation. Therefore, there are some challenges that augment in their performance system, such as: * Performance crush were not being tackled * Pressure from competitors was ineffectively escalating the outlay of managing human resource * Quality projects were driving change 3. Performance Management Performance management within the organisation grounded the organisation improvement of productivity, effectiveness and efficiency towards employee performances. Foot and Hook (2005, p. 264) defined the performance management as a process to share understanding about the needs to be achieved by managing and developing people to sharing an understanding in terms of the organisation objective. In addition, the process that line managers ensure that employees’ activities and outputs are aligning with the organisation’s goals can be defined as performance management (De Cieri and Kramer 2005, p. 24). As a result, performance management in Network Solutions are seen as an ongoing process of managing their employees for the aim to increasing job-related success (Holsworthy 2003, cited in Rees & McBain 2004, p. 17). In brief, as an HR studies it can be described that performance management are the continuous process of identifying, measuring, developing and aligning of organisation performance towards the strategic goals of the performance of organisation which are effective to accomplish in Network Solutions.
The purposes of performance management in Network Solutions are to consider with the strategic business consideration and it relates with the ongoing feedback within the organisation. As a result, by performing excellent management it can improve employee performance that driven by all line manager. 3. 1 Overview of Performance Management System Managing employees is an important part of running a small business. The reputation of the organisation may also rely partly on the performance of its employees. Boice & Kleiner (cited in Goff & Longenecker 1990, p. 98) noted that owners of organisation frequently enlarge an employee performance management system to assist them evaluate employees by training development. A formal employee performance management system in Network Solutions is usually used for annual employee assessments. These systems usually include information detailed to the organisation’s operations and how well employees achieve under specific circumstances. As a result, it is important for Network Solutions which responds to and anticipates the changes in its environment by awareness on their strategic evel (Buyens et all. , 2001 cited in Blackman ;amp; Kelly,2006). 3. 2 Characteristics of an ‘ideal’ performance management system There are fourteen characteristics described by Aguinis (2009, pp. 26-27) as an ideal performance management system which accommodates to evaluates at Network Solutions. Therefore, this involves in particular, the characteristics to be congruent with organisational strategy, thorough, practical, meaningful, specific, identifies effective ;amp; ineffective performance, reliable, open and standardised.
As a result, Network Solutions’ system provides a reasonable overlap with an ideal performance management system. Even though, the remainder characteristics are not visibly address such as, valid, acceptable and fair, inclusive, correctable, and ethical. 4. 0 Network Solutions’ Performance Management System 4. 1 Ideal characteristics which implemented at Network Solutions There are some characteristics which correspondent at Network Solution based on Aguinis (2009, pp. 26-27), such as: * Goal cascading and team building correspond with Congruent with organisational strategy characteristic.
In other words, Network Solutions highlighted that one of the first step strategy in developing an effective performance evaluation system is to determine the organisation’s objectives (Boice ;amp; Kleiner, 1997). * Performance planning and Development planning correspond with thorough characteristic. All performance and development planning have been considered in Network Solutions. In this case study, the organisation trying to accomplish four dimensions of evaluation system based on Aguinis. The idea that the system is a joint year-round responsibility of managers and employees correspond with it being standardised. Standardised characteristic is good in every organisation to adopt that concept. Therefore, Network Solutions was decided this concept in evaluated their performance to achieve their goal. 4. 2 Identification of mislaid characteristics at Network Solutions There are some characteristics may be missing based on (Aguinis 2009, pp. 26-27) in performance of Network Solution such as: * Acceptable ;amp; fair
In relates to the case study, it showed that the organisation and HR team was put in place to design and implement the new system. Well on the other hand, Network Solutions was missed this opportunity to breaking down their system to be accepted by their employees and it is also not fair for the board to expect good performance but all delegation task was not efficiently correspondent (Burgoyne, 1998 cited in Luoma, 2000). As result, an ideal system of to be acceptable and is perceived as fair by all participants is required to adopt by Network Solutions for a better future. Inclusive The valuation progression should symbolise the concerns of all the people who will be affected by the outcome in regard with this characteristics. Consequently, Network Solutions participants must be given a voice in the process of designing and implementing the system. For example, inclusive system is probable to lead to more successful systems to improve their performance preview. * Correctable “Correctability” as ideal characteristics is a process of assigning ratings to create a system as an important component of the evaluation process.
Furthermore, performance management system in which a set percentage of employees were classified in each several categories is required to listed inclusive employees rating in Network Solutions. For instance, as it mentioned in the case study, a rating of 1 to the top 20% of performers. As a result, with the individual ratings will determine the execution of annual objectives and job requirements as well as by comparison rating of others at a similar level at Network Solutions. * Ethical A superior system fulfil with ethical standards are described by Aguinis as an ideal characteristic of performance management system.
In Network Solutions, the supervisor evaluates only performance dimensions for which has sufficient information and privacy of the employee respected. Regarding all points above, the board of Network Solution should review its performance in relates with those characteristics which are mislaid and agree on required changes to improve its operation. 5. 0 Implementation system from Network Solutions 5. 1 Advantages and positives outcomes Performance management systems are used to align employee performance with company goals.
According to Davidson and Griffin (2006) a successful review system will include components for ongoing and consistent feedback, goal setting, communication between managers and employees, and motivation (Meyer ;amp; Allen, 1991 cited in Sahindis ;amp; Bouris, 2007). The ideal system ensures that everyone involved understands the process, its purpose, and any possible rewards that may stem from it. Numerous advantages that come out of this approach, such as: * Good and balanced standardised performance review system. * Structured performance reviews Employees will strive more to improve their performance knowing that good performance are rewarded * By streamlining employee goals with company goals, employees are happier knowing that their overall contribution will assist the company and ultimately, they feel ownership of the company 5. 2 Disadvantages and negative outcomes A well performance management system has become an innovative approach to accomplish organisational success. As such, a performance management system is complex because it involves employees, supervisors and strategic managerial personnel.
As a system, according to McCarthy, Garavan ;amp; O’Toole (2003) its advantages have been broadly advertised, but the system has to be carefully monitored for smooth functioning and HRD can play their roles in regards to managing Network Solutions interfaces. As a result, there are listed some of disadvantages that evaluate in this approach, such as: * Having the same approach / standardised approach applied across all departments / areas may not be as effective as we predicted it to be. What may be applicable in one department may not necessarily be applicable in others.
It may be a good idea to develop several scenarios for performance reviews, especially in different areas. * Having a set number of employees to be assigned with a given rating may not bring the encouragement effect. Employees may be stressed or under intense pressure to perform, in which case, usually the reverse will happen, i. e. worse performance rather than improvement 6. 0 Conclusion In conclusion, there has been constant change in the world of Human Resources in the past few years. The changes have been caused by the need to react quickly to severe pressures for survival.
Regarding to the roles of HR, adopting an ideal characteristic by Aguinis is important for Networks Solutions to support their performance management system. Based on Network Solution, Inc. case, it is important for board system to concern with their task to train their staff by delegate their new system and avoid some of the barriers that happens in the organisations. 7. 0 Recommendations It is recommended that: * The board level should put more efforts to control Network Solution Inc. , performance by applying Aguinis ideal characteristic performance management system. Within the organisation should construct good communication to avoid any lack of information * Network Solution should provides routine orientation meeting program for their employees to construct any new system which applied and to educate employees about the new system to ensure all on track * All board Network Solution should give their employees motivation * Network Solutions should plan to continue reinforcing the needed cultural change to support forced distribution ratings.