Page 116 - DMGT517_PERFORMANCE_MANAGEMENT_SYSTEM

Unit 10: Performance Management Implementation

can only come through a continuous improvement of an individual performance. Notes
The organisations are focusing on other areas of organisational activities rather than
strengthening their human capital.
12. Subjectivity vs Objectivity: Subjective and objective performance evaluations are two
distinct ways of measuring employee effectiveness. Subjective performance evaluations rely
more on intangible qualities that can’t be measured or quantifi ed. Objective performance
evaluations only look at measurable qualities. Some people believe that workplace
evaluations are used to decide which employees are expendable. In other words, some
workers think that performance evaluations can only hurt them. However, this is not the
case. Performance evaluations are usually used to help strengthen the performance of
current employees.
13. Limitations in Existing Financial System: In many organizations, the chart of accounts
which is used to structure the budget development and financial reporting is not aligned

to support operational analysis. The financial systems do not have the capacity to for

reporting and sorting of data to support performance reporting. Data often does not
supporting linkage of financial and operational data to determine cost per service unit or

other effi ciency metrics.
10.2 Strategies for Effective Implementation of Performance
Management

Performance Management is a highly collaborative effort that involves multiple internal and
external stakeholders working through how goals and objectives translate into lower level KPIs,
which in turn link to front line metrics. It is only after an organization creates these linkages that
alignment can occur. A common thread for any strategy - regardless of industry - is that with
time it will somehow change as organizations react to internal and external events, so one can
also look at it as an evolutionary process that involves everyone working towards a common
set of goals and objectives which at some point over in the future will be changed or modifi ed.
Some of the strategies for effective implementation of performance management are discussed
as below:
1. Supportive leadership and management: HR professional and top management plays an
important role in successful implementation of performance management. A supportive
leadership and management make the implementation strategy easy and effective.

Notes Performance-oriented work culture encompasses the following:

1. Quality of work challenge, interest, achievement, freedom and autonomy, workload,
quality of work relationships
2. Work-life balance supportive environment, recognition of life cycle needs fl exibility,
security of income, social environment
3. Future growth opportunities learning and development beyond current job, career
advancement opportunities, performance improvement, and feedback

4. Tangible rewards competitive pay, good benefits, incentives for higher performance,

ownership potential, recognition awards, fairness of reward
5. Enabling environment caring attitude, encouragement for risk taking and
acknowledgement of failure without fear, knowledge sharing, instilling ownership

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