Performance Management
Abstract
Performance management is an essential element in any organization. Measuring an organization's performance harness the management's ability to evaluate the company's position and determine its capacity to stipulated objectives. Subsequently, through performance evaluation, an organization receives real-time data documenting its progress, strengths, weaknesses, threats, as well as potent opportunities. Therefore, the received information plays a focal role in guiding an organization towards achieving its mandate and surpassing numerous obstacles. Dr. W Edward Deming, an American engineer, lecturer, statistician, management consultant, and professor unveiled the System of Profound Knowledge. Though it marked the culmination of the professor's works, he significantly influenced numerous doctrines through his well thought-out dialects. The System of Profound Knowledge (SoPK) refers to a management theory that provides a robust framework encompassing both action and decision-making parameters for any leader who endeavor to transform and organization. Evidently, businesses that have managed to implement and maintain the program asserts its ability to reduce costs by simultaneously mitigating wastages, staff attrition, litigation and reworking. This paper endeavors to access the applicability of Deming’s theory of profound knowledge on a Middle East based corporation.
Introduction
The Arab Organization for Industrialization refers to an Egyptian-based organization incepted in 1975. The Arab military organization emerged from consultative deliberations among Qatar, Egypt, the United Arab Emirates (UAE), and Saudi Arabia. The main intent that fostered the organization's inception was the need to have supervisory authority over the collective development of the region's defense industry. Following the remarkable Israeli-Egyptian treaty of 1979, the Arab League suspended Egypt and implemented an economic sanction against the state. Subsequently, the relationship entrenched through the Arab Organization for Industrialization soared. By 1993, Egypt became the sole owner of the organization, given the deplorable relationships among member states. To date, the Arab Organization for Industrialization not only oversees the Egyptian military but also engages in distinctive civilian-based programs, environmental sanitation endeavors and intends to pursue the power sector. Although the Arab Organization for Industrialization was initially a pan-Arabism owned corporation, the United Arab Emirates and Saudi Arabia returned their shares with a market capitalization of US $ 1.8 billion. In essence, since 1993, Egypt became the corporation's sole owner. Today, the Arab Organization for Industrialization has over 1200 engineers, ten factories, and employs a staggering workforce of more than 16000 workers. It is imperative to highlight that, during its formative years; the Israeli defense industry posed a notable threat to the region's military composition.
Reasons for Selecting the Deming Program for the Arab Organization for Industrialization
Today, the Arab Organization for Industrialization is one of the expansive corporations in Egypt with a keen focus on the civilian transport sector as well as defense. Without a doubt, the past decade has presented grave challenges for the Middle East region, as well as the entire globe. Terrorism among other insurgency-propagated actions has severely ruptured humanity's socialization and economic progress. Over the past five years, hundreds of thousands have lost their lives while millions have moved away from their homes in search of habitable environments. While insurgency, terrorism proliferation, and religious propaganda remain dicey issues the world over, they have adversely affected the Middle East. ISIS-led actions, the Syrian war, and the ever-unending Palestine-Israeli war evidence the magnitude of the problem. Additionally, Tunisia and Egypt's civil unrest marked a new era, as the populace agitated the regimes, seeking to have democratic elections, as well as systems. In essence, Egypt direly needs a working defense sector that will contain both internal and external threats in the future. The Arab Organization for Industrialization is a crucial enterprise for the country and the region's well-being. Its engagement in the aircraft factory and engine factory would significantly benefit from the Deming's management theory. The quality program will assist the Arab Organization for Industrialization undertakes a conclusive reengineering and redesign policy geared towards success (Aguinis, 2009).
Advantages of Deming's System of Profound Knowledge in the Arab Organization for Industrialization
Deming opined that formulating an enjoined comprehension of a system and engaging in distinct actions to optimize the economic outcomes, as well as aligning the employee's belief to the system created a sustainable improvement framework. The theory affirms that the Arab Organization for Industrialization has to work towards optimizing its economic outcomes and ensuring that the employees play an active role in the transformation.
Appreciation of the System
According to Deming, any organization is a system that constitutes numerous interrelated components that work towards achieving the system's core objectives. In essence, the elementary components of a system include the employees, management, consumers, and suppliers and the objectives (Aguinis, 2009). Deming reiterated that understanding the system's intricacies direly helps in overcoming the prevailing complexities. Arab Organization for Industrialization is a typical system with all the constituent elements. In the wake of trying times, that require astute defense mechanisms, the Arab Organization for Industrialization has to appreciate the system's intricacies. In essence, creating a robust defense mechanism is a complex endeavor given the numerous interrelated elements. For instance, an effective defense mechanism has to safeguard civilian rights, as opposed to vindicating innocent citizens. The management theory will help the Egyptian Ministry of Military in understanding the constituent element that formulates the organization. In doing so, the management will appreciate the consultative efforts from the interrelated components and work towards improvement.
Understand Variations and their Impact on the System
It is imperative to understand the intrinsic capacity to deliver the required output in the instance of a variation. According to Deming, variation is a common phenomenon that arises in most human activities. Arab Organization for Industrialization has to understand the impact variation would have in the organization's ability to supply the required output. With such an understanding, the organization would indoctrinate feasible managerial policies to hinder negative afflictions allied to the deviation (Cascio, & Aguinis, 2005). Since variation is an inevitable occurrence, the organization has to formulate plans to mitigate negative impacts of such variations. The defense and transport sectors are core economic pillars that support most countries. Given the critical nature of the company's engagements, the Deming theorem would significantly mitigate unwarranted ramifications allied to variations.
Theory of Knowledge
Through the Theory of Knowledge, Deming explained that combining the environment, people, and methods would aid in formulating foreseeable change. It is momentous to note that knowledge is not data or information, but rather, the ability to interpret the system. The Arab Organization for Industrialization has to extract knowledge from innumerable sources, synthesize it, and act upon it for the nation's welfare (Outtz, 2010). Knowledge emanates from various sources within the system; hence, the management should be able to tap it and use it to improve the prevailing systems. Through the theory of knowledge, the organization will understand supplier and consumer needs hence improve towards creating a better raptor.
Psychology
Deming inferred that psychology helps in understanding employees' behavior and understanding their inclination towards innovation, learning, and success. Through the theory, Deming advocated for a flat organizational structure where employees would cordially relate with the management and freely air their grievances, as well as suggestions (Smither, & London, 2009). The Arab Organization for Industrialization needs to create a conducive wok environment by understanding the employees' psychology and working towards unveiling formidable policies.
Conclusion
Undoubtedly, performance management is a vital element in any organization. In essence, performance management helps an organization unearth weak elements in the system and address such issues promptly. Additionally, the theorem has helped corporation increase their quality, foster consumer loyalty, profitability, and alleviate work satisfaction. The SoPK theory focuses on four interrelated areas in businesses that include an appreciation of a system, knowledge variation, theory of knowledge, as well as psychology. The Arab Organization for Industrialization is a reputable organization that oversees the Egyptian defense and transport sectors. The institution would reap immeasurable benefits by implementing the Deming System of Profound Knowledge. Through the theory, the organization would cut costs, increase performance and harness quality.
References
Aguinis, H. (2009). Performance management. Upper Saddle River, NJ: Pearson Prentice Hall.
Cascio, W. F., & Aguinis, H. (2005). Applied psychology in human resource management. Upper Saddle River, NJ: Pearson Prentice Hall.
Outtz, J. (2010). Adverse impact: Implications for organizational staffing and high stakes selection. New York: Psychology Press.
Smither, J. W., & London, M. (2009). Performance management: Putting research into action. San Francisco: Jossey-Bass.
