The use and consequences of performance management and control systems: a study of a professional services firm. http://www.cimaglobal.com/Documents/Thought_leadership_docs/Use_and_consequences.pdf
Summary of the Journal
Different organizations apply various performance management methods to track their employees. These performance management techniques can have various impacts on the morale of the employees. This article evaluates setting of the target as a performance management technique on accounting firms and how it has impacted on the morale and performance of the employees. According to Wendy et al. (2007), the study was focused majorly on accounting firms because they have a lot of employees, there is great difficulty in monitoring due diligence of junior staffs in audit, and the numerous changes that have taken place in the auditing and accounting field.
According to Wendy et al. (2007), a target is applied in accounting firms with the aim of motivating employees. Through setting a target, employees will get motivated to work harder to achieve and get promoted. The journal, therefore, conducted a research where a questionnaire was used to collect data. There were higher male respondents with 65% of all the respondent ranging between the age of 26 and 40.
According to the findings, the effects of performance management on the morale of the employees change with the change in rank or position within the organization. The journal also finds out that there can be adverse effects of setting targets on the morale of the employees as a means of performance management. For instance, excessive targets, both financial and nonfinancial in the organization’s performance evaluations may have a de-motivational impact on employee behavior. In case the employees in the accounting field find the targets unreachable, they can reject them leading to low motivation. In response, they can resolve to some undesirable actions to meet the budget target. To mitigate such risks, the Wendy et al. (2007) propose that senior management in an organization must come up with a more interactive plan to lower the dysfunctional behavior that the employees might develop.
Reaction
The journal is a true representative of what is happening in most of the accounting firms today. Managers are too much obsessed with meeting the set target than considering the impact they are having on their employees. In the world today, the market is all about competition, and in a competition, a target must be set. Setting the target is one way to make sure that the employees remain within the mission and vision of the organization.
The knowledge from the journal can be applied in various ways. First, as an accounting student, I have learned that performance management is common in most firms. At one point, I will have to meet a target within the place of work. I have already learned that to be able to adapt easily and avoid developing undesirable behavior, I must understand the demands of the target well and ask seek further assistance from the supervisor.
Reference
Beekes, W. Otley, D. and Ururuka, V. (2007).The use and consequences of performance management and control systems: a study of a professional services firm. Retrieved from http://www.cimaglobal.com/Documents/Thought_leadership_docs/Use_and_consequences.pdf
