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Stages Of A Typical Performance Management System Management Essay

Performance can be defined as the outcome of an activity. A performance management system therefore is defined as 'a procedure for establishing performance requirements and assessing performance in order to arrive at objective individual source decisions as well concerning provide documentation to support those decisions. ' (Stephen P. Robbins, 2005, p. 296)

A good performance management system is vital for Interact to be able to control the dwindling specific performance. To build up a good system Interact should consider the three main areas of managing individual performance, these include: planning performance, providing and monitoring and formal diagnosis and reward. They are well illustrated in the performance cycle as illustrated by body 1 below

Figure 1

Stages of the performance management system Source: (Derek Torrington, p. 263)

The first key aspect of managing individual performance is the planning performance stage. This is where a supervisor at interact sits down along with his subject and they collaboratively set individual objectives originally from team aims and the agreed job description. These objectives were created in a way that in addition they offer potential development as well as fulfilling the general organisations general targets. They also needs to include procedures of how they can be assessed.

One common way managers use within setting these aims is with the 'SMART' acronym. This suggests that the objectives set should be Specific, Measurable, Appropriate, Relevant and Timed. A good example of a good goal for a worker working in the component development division could be:

To create a new cellular phone part by March 2010 (were only available in January 2010)

It is important that managers do not forget to arrange for the support, development and resources essential for the staff to be able to accomplish the aims.

The second key aspect is the delivering and monitoring performance level. As the interact employee sets going to achieve the performance agreed, the manger should ensure that he is available at all times so that the employee can check with him/her at any moment when needed. There may be some unpredicted hindrances towards achievement of performance and occasionally targets may need to be modified. Ongoing coaching is important whereby the supervisor can guide the employees through debate and providing constructive feedback. Continuous casual reviews held between your staff and his administrator should be carried out so as to ensure that work is certainly going as arranged and if the decided performance will be attainable by the agreed times. Objectives agreed upon off as complete and popularity of 'work done' so far help to act as determination for the worker in the foreseeable future for other targets yet to be completed.

The last key aspect of the performance cycle is the formal diagnosis and reward stage. This stage consists of regular reviews of the introduction of the objectives and motivate the worker. Annual reviews are also necessary in this level whereby what has been achieved is compared with what have been set to be performed which may have an impact on pay and salary increments.

Interact professionals should take notice that employees see reviews as good only when the targets establish are achievable and judgements were seen to be steady throughout the organisation. Different styles of appraising employees could be followed in order to make the best evaluation but a favorite and trusted approach is the condition resolving style which is one of the styles produced by the North american psychologist, Norman Maier. This approach suggests that 'The appraiser begins the interview by encouraging the employee to identify and discuss trouble spots and then consider solutions. The worker therefore plays an active part in analysing problems and suggesting solutions, and then analysis of performance introduction from the talk at the appraisal interview, rather than being imposed by the appraiser upon the worker. ' (Anderson, 1993, p. 102). However, it should be taken note that this style works best if the employees are prepared for it and the mangers are willing to behave in this way which is not necessarily the situation.

After the reviews have been conducted and achievement of responsibilities has been high, compensation is necessary. Most management systems include pay in the pay back package but ongoing research has shown that element of pay experienced very little impact in the inspiration of employees. Other kinds of reward other than financial such as promotion and offering of specific development opportunities are located to be more motivating to employees.

In order for the successful execution of a performance management system, brand managers who are nearer to the employees have to be included in the Human Resource team when making the machine. Training of the series managers is vital before and through the introduction of the machine.

Task 2

Learning can be defined as the procedure of learning.

Learning and development can be an essential part in keeping the performance of Interact's employees up to standard. Currently, there have been issues and complains from the employees about the quality of training on offer, and the lack of enough training to keep the component developers current with emerging solutions.

This is a serious problem for interact being the actual fact that it is operating within an industry that will require a high amount of innovation and imagination. It indicates the need for an effective people development strategy.

A good procedure that could be used to establish an efficient people development strategy would be the 'organized training pattern'. This routine includes for steps that are; identifying training needs, making development activity, undertaking development and evaluating development. This is illustrated by the diagram below.


Business strategy

People development strategy

Figure 2

A systematic style of learning and training Source: (Derek Torrington, p. 391)

Considering figure 2, the first step in the model is figuring out training and learning needs.

Before any activity can start, interact managers should take notice that discovering these needs shouldn't be the only real role of the individual source of information team but should be a process which involves the employees too. Employees about to receive training shouldn't be considered as topics but as individuals of the design.

Interact managers also needs to take notice that present day effective training requires not only a concentrate on development of complex skills by itself but also personal skills, attitudes and self-management therefore broadening the needs opportunity.

One approach that interact managers could use to distinguish working out and learning needs is the challenge centred approach. This approach analyses whether there are any performance problems and analyses whether they are caused by insufficient skill in case so, which. The gap between expected performance and real performance is the one that helps to create working out need.

For example, an determined problem with interact is usually that the component developers are not current with new technological development therefore the training need would be to continuously keep the developers up to date.

After training needs have been diagnosed, the next phase will be planning the development activity. There various methods of learning and development that Interact professionals could use such as; education and classes (off job), manager coaching and teaching, self development organizations and open and distance learning. (On job).

The next thing is undertaking the development activity.

For education and classes, Interact managers might use the consultancy classes. They could range from one day to many weeks in some instances. These have the advantage that they allow employees from various organisations to meet and share their experiences. To become very effective, they should concentrate on specific skills of knowledge, such to be presented to new technical improvements. Management should take note that these courses are usually expensive even though they are simply of short length of time.

There is a major problem that Interact managers should be prepared to face and that is the guaranteeing of the transfer of the actual employees have learnt back again to the organisation. To counteract this problem, managers could placed goals for implementing new skills after the employees return from training.

In case the Interact management choose on job training methods take supervisor coaching and teaching for example, the line supervisor will become a coach or instructor for the trainees included. He'll provide responses, counselling, encouragement discourse and sincere feedback.

Management should however take note that not absolutely all line managers can offer effective instruction, as it needs good interpersonal skills and commitment from the manager to simply accept the instruction role.

Interact management may possibly also support the use of self development groupings whereby informal categories created by employees come together and discuss organisational issues, personal development and individual work problems. The group should however be going by a skilled leader who performs the role of an facilitator and also to some degree, a way to obtain information. This group innovator could fall off as the group matures. Such a method of learning and development requires a high level of dedication from the group members and an in depth follow up on the side of management.

The final step in the learning cycle is the evaluating development stage. While evaluating development, changes in skills, knowledge, behavior and attitudes need to be considered. However, research has proven that it is actually very difficult to asses some areas of learning or training that have been completed such as changes in attitudes and behaviour. A post course questionnaire could be granted out to the trainees but this usually will evaluate the course and not the training.

Evaluation may be completed by setting up goals basing on what the individuals have learnt during training and the amount to that your employees meet these goals would signify how effective the training have been.

It is recommended that professionals should continue analyzing the trainees consistently right from the start as they attend the training training rather than to pin the analysis process by the end of the course.

Task 3

Leadership can be defined as the 'Process where an individual influences other group users towards attainment of group or organisational goals. ' (Shackleton, 1995, p. 2)

There is a detailed link between control and inspiration and performance implying that the leadership style used may have either positive or negative effects on these. Because of the recession, Interact adopted a fairly autocratic approach and have become more task focused.

An autocratic head is 'a innovator who will centralise authority, determine work methods, make unilateral decisions and limit employee participation. ' (Stephen p. Robbins, 2005, p. 593) The good thing about such a style is that it leads to quick decision making and work getting done on time.

However, there are many negative effects Interact could face as consequence of applying such a authority style.

To focus on, according to Vroom's expectancy theory which says that 'An specific tends to work in a certain way predicated on the expectation that the action will be followed by a given result and on the attractiveness of that outcome to the average person. ' (Stephen p. Robbins, 2005, p. 405), we can see that expectancy has an impact on inspiration. Therefore not expecting employees to execute unless they are directed to will only cause them to behave by doing so leading to demotivation and poor performance.

Also using Maslow's hierarchy of needs, the necessity for affiliation could be a motivational factor. Therefore not concerning employees in your choice making process and centralising authority only makes the employees feel alienated and therefore end up sense demotivated.

The autocratic style of leadership also fails to recognise that social needs are a motivational factor for employees. Maslow recognised the need for affiliation as an important feature in human motivation therefore making decisions or planning activities while excluding those who are going to be influenced may demotivate them.

Autocratic command also makes the employees believe that the organisation will not trust them enough to make sensible decisions for the nice of the organisation. This demotivates them and makes them feel just like they aren't a part of the company or not responsible enough.

As due to being very process focused, such as style does not have much matter for the needs with their subordinates. That is clearly indicated by the lack of a sound individuals source function and the fact that the Interact management has so far refused to meet the group of 'employee staff' who want to voice staff concerns. It has led to feelings of resentment, alienation and a drop in performance levels.

In conclusion, the autocratic style of leadership has a fairly more negative impact than results, but this isn't to state that Interact should not apply it, alternatively they could combine it in with other styles of leadership. Making use of the managerial grid designed by Blake and Mouton,


High concern for people

Low concern for production

Country Team management

High concern for people

High matter for production

Team management

Low concern for people

Low concern for production

Impoverished management

Low concern for people

High matter for production

Authority-compliance management High


Low Development High

The managerial grid Source: (Derek Torrington, p. 304)

Most managers agree that the best leadership style could be the team management which has both high concerns for people and production but there is a new way that shows that the best style is to use all these four styles mutually basing on differing times and various situations.

Task 4

The problems voiced by employees over the need to work harder and much longer to keep their jobs and increased levels of stress are a sign that the quality of the working life at Interact is deteriorating. Work-life balance is very important as it helps to keep the employees happy and contented with the jobs therefore minimizing absenteeism and turnover.

There are a number of procedures that management at Interact could use to be able to increase the situation.

To commence with, offering the employees adaptable working time would greatly help employees who need additional time beyond your job.

Allowing female staff to obtain their maternity leaves also enables to keep the employees pleased with their current careers.

The Interact management can also train their line professionals to cope with employee stress. The range professionals should encourage the employees to discuss and tone of voice out what's truly getting them stressed up.

An increased degree of stress at work is a total wake up call that Interact must change its design of control and control. Not allowing employees to widely increase their voices over the different issues in the organisation and refusing to discover their representative group only makes them feel unappreciated and demoralised.

Interact may possibly also reorganise their working routines in a way that the workers could easily get work done without having to spend extra long hours to work while preserving the same quality of performance.

The amount of days employees can enter their leaves should be adequate giving employees plenty of time to rest and relax in order to return to work revitalised.

For those workers who may well not be capable of geting to work but and yet their jobs do not demand their physical presence at the premises, interact could offer them alternatives of working at home. This will raise performance while at exactly the same time saving valuable time lost when the work is not done in any way.

In case personnel are having to work overtime, Interact should devise a payment scheme that addresses these extra time in a fashion that is of mutual benefit with the employees.

Interact might even go to the extent of ensuring that maternity pay is fair and comfortable for the employees. This can make them go back to work much more happily and boost their attachment to the business.

For those in areas where the work demands them to do the same regular job every day, Interact management could introduce rotation where other employees doing other daily habit work could be setup to be exchanging activities in order to prevent them from getting uninterested.

However there are a few restrictions that Interact should take notice about work-life balance regulations. For example, some insurance policies such as maternity just pay target the feminine employees therefore causing a feeling of disregard with the other employees. Another problem is the actual fact that some guidelines may actually be placed in place and yet employees may well not take them up and use them.

Task 5

Absenteeism can be explained as the

To tackle this issue, Professionals at Interact need to create a procedure to solve the absenteeism problem. The process could involve the following steps;

Identify the lack problem

Locate the absence problem

Identify and prioritize the cause of absence

Evaluate the existing control method

Design the absence control program

Implement the lack control program

Monitor the potency of the program

The first step of dealing with the absenteeism problem is assessing it. Interact could do that by collecting statistical data about thee current lack levels. This can be done by gathering information on how many people did not come directly into work with a certain period of time.

After the structure has been determined, the next thing is to find the absence problem. This is done by using gathered data to determine which specific departments possessed the highest levels of absentees for the period.

The next step is to recognize the reason for lack in the departments determined. An autocratic leadership design of the line professionals in Interact, much longer working hours, low levels of responsibility and decision making could effect into dissatisfaction with the work situation therefore resulting in a rise in absence levels.

Evaluating the current lack control method is here are some after the causes of absence have been identified. During analysis, Interact can see the weaknesses of the current control program and just why it is failing to work effectively.

After evaluation, Interact should design a new control program that tackles the condition. There are many recommendations of options that could be put in location to help reduce the problem,

First of most, I would suggest to Have interaction that they need to try and maintain continuous connection with the employees who are absent from work. This is known to greatly reduce the length of lack and shows the staff that the organisation in concerned about the well being of its people. One visit a month by the line administrator of the employee could be effective.

Another useful activity that interact could do to control absence is to include attendance levels in the performance review at the end of the entire year. Having high levels of absence during the year would be considered as underperformance in the review.

I would also recommend that the line managers undergo training so as to ensure that the absence steps are effectively completed. Proper training on how to take care of employees who are generally absent could greatly reduce the lack levels.

A deep knowledge of the causes of absence would permit Interact to have the ability to handle the absenteeism problem. Known causes of absenteeism at Interact include, employees working longer hours and increased levels of stress. When trying to identify the issues, management should not only consider what the absentees have submitted as the explanation for their absence as research has shown that they tend to write excuses that seem valid to the organisation. Interact should create a culture of trust using its employees such that they can get them to explain the real causes of absence and therefore they can respond to them effectively.

The previous step after the lack control program has been designed is to put into action it while continuously monitoring it by collecting statistical data to see whether the absence levels are dropping or not. If it's not effective then Interact have to determine why, make the required corrections and continue with it

Task 6

Employee turnover is the speed at which employees voluntarily leave their careers. At interact, the level of worker turnover has been relatively high. Collecting information on staff turnover is quite difficult to gather though one best approach could be by using leave interviews. However, there are some major reasons why staff could be departing interact.

Push factors

One reason why Interact employees could be leaving their jobs is because of Push factors. This concept implies poor working conditions, people development strategy, dissatisfaction with company plans, unwanted effects of autocratic management style, job insecurity amongst others to be the reason for forcing visitors to leave the company. In other words, Interact is "pushing" away its employees by failing to provide a good organisational and working environment to keep carefully the employees satisfied. Interact could control this cause by causing the company more employee friendly.

Another reason why employees could be leaving Interact is due to pull factors. This idea implies that rival employers in the telephone component making industry are "pulling" Have interaction employees towards them. This may be because they are paying higher salaries, offering better advantage plans, training opportunities or they have significantly more attractive working conditions. The simplest way Interact could reduce turnover triggered by this way is by to begin with analysing what other organisations on the market are offering that is making them more appealing and therefore making sure they can level up. Another way is by identifying unique selling things made available from Interact that other organisations don't have and communicating those to staff.

Employees could also be leaving Interact as a result of practical turnover. That is a predicament where staff resignations are accepted by both Interact and the worker involved. This could be because of failure of the worker to conform with the organisational culture or because of this of continuous poor performance. The best way to handle turnover brought on in this way is by improving the recruitment process so as to avoid such people in the first place.

Outside factors could also be making employees leave Interact. They are reasons that contain nothing to do with the job. They could be departing because their associates are leaving the town, personal desire to have self work. In this example, there is nothing much that Interact could do to avoid these sorts of employees from departing the organisation as it is beyond their control.

The rate of worker turnover at Interact could be greatly reduced by putting in place certain strategies so as to control the turnover rates.

Firstly one tool that Interact might use is pay. Research has shown that organisations offering higher incomes appear more attractive than people that have less. However, pay by itself may not be enough to keep the employees from giving. It ought to be coupled with other benefits such as vacations, medical offers and staff discounts. The best methodology in offering such benefits is by allowing the employees pick benefits that they favor as different employees may be interested in various packages.

Another tool that Interact might use in reducing turnover rates is putting in place family friendly People Resource practices. Since many people leave work due to family and personal reasons presenting employees additional time to invest with their own families through vacation packages, flexible working time and a well paid maternity leave may greatly help to decrease the rates.

Improving the grade of line management also may help to reduce the turnover rates as these managers play a critical role in worker relations. To make sure that the selected lines managers work, they must be selected basing on the supervisory capabilities, undertake training and appraised on their supervisory skills.

Finally induction is also known to help in reducing early personnel turnover rates as it can help to fit the employee into the organisation and identifies his/her role in it. Organisational induction could be done by the Human resource department and may include a demonstration on health and safety regulations and flame evacuation procedures. This type of induction could carry on a few days. The other kind of induction is the job-based induction. This usually takes longer and is mainly carried out by the immediate collection supervisor and in the background, fellow employees and includes activities like learning the company culture, how work is performed and what's expected of him/her.

Managing employee goals from the beginning may possibly also play an essential role in lowering the turnover rates. That is done by allowing the worker know exactly what to expect from his job right at the start of his/her career so that they are more prepared when they face the challenges. Obstacles could include time stresses etc

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