Introduction

The performance management of the organization is mostly based on the requirement of the customers, the individual performances are on the ad hoc basis and there are very less scope to manage it, is basically unorganized, it is not measured. This system is not good for the organization; if the performances are not measured and evaluated it would be difficult for the management team to manage the performance of the employees it is very important. The organizational goals should not be linked with the individual goals. Often employees have personal goals as well. Motivation plays a very important role in improving the performance of the employees, if the staff members are not motivated they will not perform efficiently. So the employees are needed to be motivated so that they can achieve the desired performance. One of the good thing about the performance management system used in the organization  is that, they have two teams one, is permanent work team and the other is temporary work team, incorporated when there is high demand from the customers. The teams include members from different departments, it includes, engineers, staffs from production department and marketing experts as well (Armstrong & Taylor, 2014).

Performance evaluation refers to the method by which the performances of the employees are evaluated, it is a very important step in performance management. It helps in determining the selection of promotion and reward for the employees. The evaluation of the performance of the employees can be done by assessment of the jobs of the employees. Humana resource  policies of the organization should be effective and effectively the performance of the employees needs to be monitored. There should appropriate policies and practices for all the human resource functions like, recruitment, selection, training and development. Evaluation is that method by which the value of something can be measured, in this reference the value of the performance of the employees can be evaluated, this way the value of employees can also be measured.

Performance appraisals

The next step that needs to be taken in the performance measurement is performance appraisals. Appraisals in an organization is done for the promotion, compensation and also the termination of the employees, performance appraisals are criteria to position the existing employees to a position they deserve according to their performance. Raters must be used to evaluate the information related to the employees; raters are very important tool for performance evaluation and appraisal. There are certain elements that need to be considered for performance appraisals they are, discussions of with the employees, it is very important to consider the times the appraisal can be done, annually, every six months or any other time frame that can be used for performance appraisals. There has to be documentary evidences of appraisal meetings and decisions taken for appraisal. The employees are needed to be provided with clear objectives. The feedback of the supervisors, colleagues are important for appraising any employee, feedback is taken so that the managers can reach to a firm decision for promotion of the employees (Mone & London, 2014). 

There are various methods for performance appraisal. Omeara electronics does not follow any contemporary methods of performance appraisal, the most widely used performance appraisal methods are,  

Ranking– Ranking is one of the most common methods that are used for performance appraisal, this method is a very subjective in this method the employees are compared based on their performances and they are given ranks.

Rating scale– Rating scale is the method in which the employees are rated based on the quality of the work, their attitude, dependability and cooperation.

Critical Incident technique- In this method the superiors are evaluated.

Assessment centre- In this method tests are conducted so that the employees are promoted based on the results of the tests (Micheli & Mari, 2014).

For appraisal of the employees there are certain criteria that needs to be considered, there should be transparency in the approaches of the performance appraisal of the employees, they should be well aware of all the criteria. All the employees should be given chance to improve their performances. They should give feedback about their experiences. The performance appraisal is a tool that should only be used for evaluation and not for finding faults, the is to take corrective actions and reward the employees who have been performing well in the organization (Landy, Zedeck & Cleveland, 2017).

Remuneration policies of the organization needs to be very transparent and fair, it motivates the employees and directly impacts the performance of the employees and it is improved (Armstrong & Taylor, 2014).

Training and development

Providing training and development to the employees is an effective technique that is used for the management of performance of the employees. In an organization it might happen that the employees are finding difficult to cope up with any new technologies. It is therefore very important to provide training and development sessions, it is a very effective method to improve the performance of the employees when it is know that what are areas in which the employees are finding difficulty (DeNisi & Smith, 2014).

The work environment of the employees often acts as hindrance for their effective performance management, for instance if the workshop of the employees is very hot and there is no fans, it will become difficult for the employees to work in the hot environment. So it is very important that the management ensure a work environment for the employees that enables effective performance.

There has to be synchronization between the skills required for a particular task and the skills required for any task and the skills of the employees. If unskilled employee is made to a highly skilled task then the results will never be positive therefore there has to be a strategy for task allocation based on the skills of the employees and the skill required to perform a particular task (Certo, 2015).

Motivation is also important for performance measurement, if the employees are not motivated enough, their performance will not be good. The HR managers needs to motivate the employees so that they are encouraged to perform well in the tasks that are allocated to them.

All the above measures requires an action plan, there must be a planning before deciding which would be the most effective method that can help in performance management of the employees. The issues are needed to be identified first and then planning should be done (Buckingham & Goodall, 2015).

Without the help of the mentor it is not possible to provide guidance to the employees so that they can lead the employees to reach the goals of the organization. Mentoring will also help in career development and training of the employees (Bernardin & Wiatrowski, 2013).

Management by objectives

Management by objectives have been the method by which the performance of many organizations are managed by the organizational leaders. In this approach the management sets certain objectives, this objectives and goals are SMART, specific, measurable, achievable, relevant and trackable. Once the goals are set it is very important to set standards for the tasks that will be undertaken for achieving the goals and objectives of the organization. The performance of the employees will be compared with the set standards and deviations will be found out. Once the deviations are found out, corrective actions will be taken for improvement. MBO is one of the most common techniques as well as an effective tool for performance management (Buckingham & Goodall, 2015). 

Comparison between two performance management systems

Diagnosis of the issues

The performance management system of the organization is based on customer relations. There is lack of processes and activities for the management of performances. According to the employees that the supervisors of O’Meara Electronics do not work in coordination with the staffs as there seems to be lot of issues between them. There has been lot of criticism about the position remuneration system, where the workshop level employee who works for eight hours standing whole day is paid less compared to his supervisor who has to put less effort than the workshop level employee does (Koufteros, Verghese & Lucianetti, 2014). 

If the existing performance management approach used by the organization is seen that it would be found that there are many limitations. The remuneration system is not good, the evaluation of performances are not effective. The employees are not satisfied with the existing performance appraisal system used by the organization. The dissatisfaction of the employees and the declining profitability of the organization give the clear indication that the performance management approaches of the organization are not effective (Van Dooren, Bouckaert & Halligan, 2015). 

Recommendations

The organization needs to implement strategies and methods for performance management so that it regains its position in the market. Omeara electronics can consider implementing the Kanji business excellence system. As per the comparison, there are very few negative points for this approach so the organization can use the method. Management by objectives is another technique that can be used because it combines the organizational goals with the individual goals. Both KBEM and MBO are the techniques that provide scope for improvement and are not just based on controlling. Apart from that, the organization can use a combination of other methods as well; it will be more effective for the organization. They can use effective remuneration policies are needed to be implemented so that employees are motivated to work, performance evaluation and performance raters and 360 degree feedback techniques should be used for appraisal. The employees needs to motivated and their workplace should have a healthy environment for work (DeNisi & Smith, 2014).

Conclusion

Thus, it can be concluded that the performance management system used by Omeara electronics are not effective and hence needs to be improved. There are some limitations in the systems as well as in the case study where very less information about the management techniques used are mentioned. Which provides a impression to the reader that the performance management is not effective and has been the reason for declining level of performances. Performance evaluation is not with the help of effective tools.

References

Armstrong, M., & Taylor, S. (2014). Armstrong’s handbook of human resource management practice. Kogan Page Publishers.Bernardin, H. J., & Wiatrowski, M. (2013). Performance appraisal. Psychology and Policing, 257.

Buckingham, M., & Goodall, A. (2015). Reinventing performance management. Harvard Business Review, 93(4), 40-50.

Certo, S. (2015). Supervision: Concepts and skill-building. McGraw-Hill Higher Education.

DeNisi, A., & Smith, C. E. (2014). Performance appraisal, performance management, and firm-level performance: a review, a proposed model, and new directions for future research. Academy of Management Annals, 8(1), 127-179.

Koufteros, X., Verghese, A. J., & Lucianetti, L. (2014). The effect of performance measurement systems on firm performance: A cross-sectional and a longitudinal study. Journal of Operations Management, 32(6), 313-336.

Landy, F., Zedeck, S., & Cleveland, J. (Eds.). (2017). Performance measurement and theory. Taylor & Francis.

Micheli, P., & Mari, L. (2014). The theory and practice of performance measurement. Management accounting research, 25(2), 147-156.

Mone, E. M., & London, M. (2014). Employee engagement through effective performance management: A practical guide for managers. Routledge.

Morrow Jr, J. R., Mood, D., Disch, J., & Kang, M. (2015). Measurement and Evaluation in Human Performance, 5E. Human Kinetics.

Van Dooren, W., Bouckaert, G., & Halligan, J. (2015). Performance management in the public sector. Routledge.