Organizations are institutions that are usually formed by a group of human beings. There are two major forms of organizations, namely, commercial entities and non commercial entities. The primary goal of all commercial entities across the globe is the generation of profits, whereas the principal objective of all non-commercial entities across the globe is the fruition of specific non commercial objectives (Armstrong, 2005, p. 15). This implies that the principal of the objectives of these two forms of originations differs. However, these two organizations need to ensure that they have realized their objective. There are various mechanisms that the organizations need to establish to ensure that they will realize their intentions. These mechanisms serve as vehicles that facilitate the organization achieves its intentions.
Performance management is perceived as a tool that facilitates the organization to realize its principal intentions through monitoring of outcomes. Through the application of performance management, an organization is normally conscious of the nature of performance being exhibited by the various facets of the organization such as employees, divisions, processes and the organization itself (Cardy, 2004, p. 52). All forms of organizations need to perceive performance management as a means focused goal. This is because the process of formulating and implementing sound performance management mechanism facilitate the realization of the principal objectives of organizations. The nature of performance management mechanisms which are applied by an organization has direct implications on the general output of an organization. Performance management facilitates the realization of end focused objective, which forms an integral part of the organization. This paper will discuss various aspects of two major performance management issues.
Design
Performance management is normally preceded by the designing of the performance management mechanisms. The design phase of performance management is equally essential as all the other phases of performance management. This is because the design phase has direct implications on the effectiveness of the performance management process. Management needs to hire professionals that will carry out the design phase of the performance management process (Saravanja, 2011, p. 19). The manner in which the performance management process is formulated will greatly determine the acceptability of the process. Management should ensure that the nature of performance management tool being designed is geared towards addressing a specific aspect of the organization. This is because an effective performance management mechanism should be comprised of several performance management tools. All of the performance management tools that are found within a performance management system should be geared towards the fruition of an end focused objective.
As a result, it is imperative for management to delegate the designing phase of performance management systems to professionals that are proficient in the formulation and implementation of this nature of systems. These professionals will design the performance management system for the organization in consultation with all the major constituents of the organization. This is mainly because all the major constituents of an organization have direct implications on the nature of an output that will be produced. During this phase, the designers of the performance management need to take account of the going concern of the system. This is because the system serves as a vehicle (Pulakos, 2009, p. 72). This implies that it will be employed for the purposes of realizing other objectives. It also implies that it will utilize over a relatively long duration. The designers need to formulate a performance management system that will take account of the projected ecosystem of an organization.
In addition, the management needs to make certain that the performance management system upholds the highest levels of integrity. This is because the outcome of the performance management system is supposed to present accurate information to the management team. The nature of information that is usually provided by the performance management system is for purposes of making decisions. As a result, a performance management system can also be perceived as a decision support system. Prior to the implementation of the performance management system, it needs to be piloted over a suitable duration (Kandula, 2006, p. 41). The suitability of the duration of piloting largely relies on the erudition of the performance management system. A performance management system that is intricate is supposed to be piloted for a relatively longer duration than one which is simple by design. This is because management needs to appraise the various facets of the performance management system prior to its implementation.
Over and above that, management needs to be thorough when appraising the effectiveness of performance management system. This is mainly because the implementation of an unsuitable performance management system will have negative implications on the general performance of an organization. For instance, an unsuitable performance management system may lead to the prevalence of relatively low levels of employee motivation (Armstrong, 2005, p. 32). This is because such an unsuitable performance management may project a negative image with regard to the performance of employees. This is an attribute that can lead to the loss of some of the most highly proficient members of the workforce. This is because it is extremely likely that they will feel that they are unappreciated; hence they might end up being frustrated at their work place.
Integration
Integration serves an essential aspect of any performance management system. This is because all performance management systems cannot function in isolation. The performance management system is supposed to be integrated with the various major aspects of the company to be effective at carrying out its objectives (Armstrong, 2005, p. 28). These are the main aspects of the organization that need to be integrated with the performance management system; strategic planning, organizational culture, human resource management, organization structure.
The performance management system needs to be designed in a fashion that it facilitates the carrying out strategic planning. The directors need to carry out strategic planning on the basis of accurate information that has been provided by the performance management system. This is because the directors need to be conscious of the general nature of productivity that is prevalent within an organization (Cardy, 2004, p. 42). The acquisition of this information will play an imperative role in the development of plans that are realistic. The nature of information that is obtained through performance management system will be essential in establishing then nature of performance that should be exhibited by the corporation. This is because all organizations need to operate at their best operating levels. Organizations that are successful at ensuring that they are operating at their best operating levels tend to be relatively successful in enhancing their efficiency, as well as their overall profitability.
Additionally, the performance management system needs to be integrated with the human resource department. All organizations the globe are comprised of human beings. This is irrespective of the degree of automation that characterizes an organization. This implies human beings are the basic unit of all organizations. As a result, all organizations across the globe have a human resource department (Saravanja, 2011, p. 26). The primary function of the human resource department is the human capital organization and management within an organization. Management needs to make certain that the performance management system is integrated with the human resource department. The human resource department is the most critical aspect of the organization with respect to the realization of the objectives of an organization. Management needs to make sure that they are in a position to effectively monitor the general, as well as the specific performance of all the employees. This is a feat that can be attained through the designing of a performance management system that considers the various aspects of the human resources department. The performance management system should be integrated with the organization so as to facilitate the effective appraising of employees. An organization needs to carry out performance appraisals on a periodic basis. This is a strategy aimed at making sure that the organization is only comprised of individual how manage to maintain the desired levels of productivity.
Moreover, the performance management system needs to be integrated with the organization structure. The performance management system facilitates the organization to assess the performance of all the components of the organization structure. This is because the organization structure is constituted of all the functions of an organization. Through the integration of the performance management system with the organizational structure, the management has the capability of establishing the nature of performance that represent the views of all the departments within the organization (Saravanja, 2011, p. 61). This is because the performance management system can provide a summation of the general performance of the various departments of the organization. The acquisition of this information will facilitate management in formulating plans that will revolutionize the performance of the organization. Through the acquisition of information pertaining to the performance of the various departments within the organization, management can benchmark with other organizations or financial periods. Through benchmarking, management will be in a comparatively good position of establishing whether a specific department is poorly performing or performing well. The appraisal of the performance of these departments will take account of the relevant factors that are prevailing within the ecosystem of the organization.
Over and above that, the performance management system should be integrated with the organizational culture. A performance management system can be employed as a tool for evaluating the nature of culture that is prevalent within an organization. The appraisal of the nature of culture that is prevailing within an organization will facilitate its assessment with regard to its suitability (Kandula, 2006, p. 16). The prevailing organizational culture is perceived to be suitable in the event that it is facilitating the fruition on the desired nature of productivity. A performance management system can be employed as a tool for facilitating management to formulate and implement the most suitable organization culture. This is mainly because the performance management system will facilitate management to appraise the implications of the new performance management system with respect to the general productivity of an organization. This process can be recurred up to the instance whereby management will manage to identify the most suitable culture for the organization.
The Coca Cola Company – Performance Management System
The Coca Cola Company has developed a performance management system that is considered to be suitable for this entity. Their performance management system is gearing towards facilitating the organization to achieve two principal objectives, namely; the development of employees, and the rewarding of employees. The Coca Cola Company reviews the performance of their employees on a periodic basis. In fact, it appraises the performance of their employees after every twelve months (Coca Cola, 2014, p. 2). This performance management system is designed in a manner that makes sure that the organization manages to facilitate the employees to exhibit the desired nature of the output. The performance management system of The Coca Cola Company is comprised of four stages, namely; the review of annual performance, determine the desired performance of the forthcoming year, recognition and rewards, as well as midterm review.
All the components of this performance management system carry out roles that are unique. The components of this performance management system are integrated so as to facilitate the culmination of an end focused goal. For instance, the midterm review is supposed to facilitate the organization to appraise the performance of an employee in the short term (Coca Cola, 2014, p. 3). The nature of the results that an employee obtains during the midterm review plays a critical role in facilitating him or her to adjust his or her behavior. There are numerous instances whereby the midterm review indicates that an employee is underperforming. However, the annual review will display that the employee has exhibited comparatively good performance. As a result, these two forms of reviews serve to complement each other. Otherwise, there would have been numerous instances whereby the employees will be considered to have underperformed whereas such information is not accurate. This is because an employee might have exhibited relatively good performance during the first half of the year only to underperform during the second half. This performance management system facilitates the management to acquire a holistic perspective of the performance of the employees.
The performance management system of The Coca Cola Company takes into account of some of the major aspects of the organization. As a result, it serves as one of the most essential tools with regard to strategic planning. All the strategic plans of the organization are formulated while taking account of the prevailing performance of the organization. This is because management needs to make sure that the organization is performing in a manner that will facilitate the realization of the various objectives that they are formulating. The performance management system also facilitates management to determine the nature of adjustments that need to be implemented to as to attain the desired levels of performance (Coca Cola, 2014, p. 4). Through the performance management system, management can remain conscious of the prevailing levels of productivity within the organization. As a result, they formulate and institute measures that facilitate them to adjust the general productivity of the company in a timely manner. Management should not wait until the end of the year in order to appraise the performance of the organization. This is because the company's production is mainly influenced by the productivity of the employees. In the event that management chooses to wait for the year to end for the purpose of appraising the performance of the employees, it will increase its susceptibility to poor performance. This is because management will not have the opportunity of formulating and implementing various adjustments that would influence the productivity of the employees during the year.
Management needs to adjust the performance management system to include all the aspects of the organization. This is because the performance of the organization is usually a summation of the specific performance of all the departments of the organization. Management needs to appreciate that the underperformance of a single department will have negative implications on the general performance of the entire department. Currently, the performance management system of The Coca Cola Company focuses on the performance of the employees. Some may argue that management is focusing on the performance of all the departments by concentrating on the output of the employees. However, such a statement is not entirely accurate (Coca Cola, 2014, p. 6). This is based on the existence of disparities between the appraisal of the performance of a specific department and an employee. When appraising the performance of a department, the organization will concentrate on the general output of all the employees within that department. On the other hand, when appraising the performance of an employee management concentrates on individual output. The appraisal of the performance of a specific department is imperative in that it promotes collective effort. Collective effort is essential to the general success of the corporation. This is because all the job positions within the organization are intertwined in a manner that facilitates the realization of the principal objectives of the corporation.
Reference list
Armstrong, M. 2005. Managing Performance: Performance Management in Action. London: Chartered Institute of Personnel Development.
Cardy, R. L. 2004. Performance Management: Concepts, Skills, and Exercises. New York: Sharpe.
Coca Cola. 2014. Employees Engagement - The Coca Cola Company. Retrieved March 12, 2014, from http://www.coca-colacompany.com/our-company/employee-engagement
Kandula, S. R. 2006. Performance Management: Strategies, Interventions, Drivers. New Delhi: Pretence Hall.
Pulakos, E. 2009. Performance Management: A New Approach for Driving Business Results. New York: Wiley Blackwell.
Saravanja, M. 2011. 10 Reasons Why Performance Management Fails and how to remedy them. Retrieved March 12, 2014, from http://regenesys.co.za/2011/03/10-reasons-why-performance-management-fails-and-how-to-remedy-them/
