Page 162 - DMGT517_PERFORMANCE_MANAGEMENT_SYSTEM

Unit 13: Ethics in Performance Management

Development Goals Notes

The developmental goal for global performance management systems include:
1. helping employees at all levels to improve their performance and develop their professional
skills
2. diagnosing individual and organizational problems
3. enhancing commitment to the organization through discussion of career opportunities,
action plans and need for training and development
4. using recognition to motivate continued or improved high performance
The issue of global performance management needs an effective system to be able to evaluate in
a local cultural environment. It is necessary to make some adjustment to problems with cultural
adaptation and associated with the complexity of conducting international business. According
to guidelines for adequate global PM it is important to consider the fairness of the evaluation to
ensure that the MNC receives full value from its managers. There need also to be decided who
conducts the appraisals. (Briscoe & Schuler, 2004) PM might be the most challenging HR process
in the international context because of geographical spread and product and operation mode
diversity. To manage performance in various locations requires some planning. Firstly, MNC´s
need to recognize the difference between overall strategic goals and subsidiary goals, to look
at it in the right context and recognize various constrain that may affect goal attainment. They
can be whole versus part (the good of the whole is more important than one subsidiary’s short-

term profitability), non comparable data (for example, quality checks can be different from one
country to another) turbulence of the international environment (even long-term goals need to be
flexible), separation by time and distance and variable levels of maturity (for example more time

is might be needed to achieve results).

How Effective is your Performance Management
System?

he Performance Management System has been recognised as a significant tool for

employee development. Organisations worldwide are leveraging this tool to create
Ta high-performance culture.
As with other organisational systems, it is important to measure the effectiveness of the
appraisal management system too. Traditionally, appraisal systems have been measured
against percentage completion and timeliness. However, such a measurement is incomplete
and does not bring out the best from this powerful people development tool.

Efficiency & Effectiveness
There are two sides to measurement. Measuring efficiency is the most commonly

practised. While recruitment efficiency has been measured against time-to-hire and hiring

cost, training efficiency is based on the man-days of training conducted, reaction-level
evaluation, schedule integrity and employee attendance. The efficiency of the performance

appraisal system has been frequently measured against its adherence to timelines for goal-
setting and review/rating, the employees covered for completion, and the like.
The primary motivation for efficiency measurement has been the ease of measuring these

parameters. The real challenge lies in measuring the not-so-easy effectiveness of HR
systems. The measurement of effectiveness can have an impact on enhancing the human
Contd....

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