Performance Management Systems and Motivation
Throughout this unit, you may be discovering new ways that organisations manage performance. How would you do it? Some may respond with a performance management system, and others may say a performance appraisal. While many may think they are the same, they are indeed different. Performance management systems are the processes that organisations use to analyse and develop the employees’ skills and capabilities. Organisations implement these systems to improve employees’ performance on a long-term basis. On the other hand, performance appraisals, also referred to as performance evaluations, evaluate the performance or the skills of employees. They are just one component of the performance management process. (Lussier and Hendon, 2013)
Many organisations align rewards within their performance management systems to motivate their employees. Rewards can be provided to employees that reach organisational goals, objectives and/or continually contribute to the organisational vision as demonstrated in their performance appraisals. The use of rewards focuses on both the extrinsic motivation (financial reward and benefits) and intrinsic motivation (employee recognition) of employees (Wilton, 2011). Yet, the use of rewards can have a negative impact by creating perceptions of bias and lack of fairness. Consider the impact that a rewards system may have on employees within your scenario organisation. In this Individual Assignment, you will analyse the relationship between motivation and performance management systems. You will also evaluate a performance management system in the context of your scenario organisation.
References
Lussier, R. N, & J. R. Hendon, (2013)Human Resource Management: Functions, Applications, Skill Development, Los Angeles: Sage
Wilton, N., (2011)An Introduction to Human Resource Management, Los Angeles: Sage
To prepare for this Individual Assignment:
§ Review the Unit Introduction and the Learning Resources, including the HR/OB Matrix.
§ Conduct library research to identify relevant and current academic literature beyond your Learning Resources.
§ Select a performance appraisal system you would implement in your scenario organisation and consider how its use may impact motivation within your scenario organisation.
To complete this Individual Assignment:
Scenerio Organization
Opening a new overseas office
Lanx, a UK-based, textile-manufacturing firm is opening a new plant in Delhi, India. Lanx has enjoyed marked growth in the UK and determines that it can reduce long-term manufacturing costs by having a presence in Delhi. Selected current Lanx managers, who are all UK nationals and have worked in the UK-office for more than 5 years, will relocate and manage Delhi employees onsite. The selected Lanx managers were chosen for their company experience, performance record and ability to lead diverse groups. However, none of the selected managers has had extensive intercultural communication training
§ Write a 2- to 3- page critical analysis on the effects of performance management systems on employee motivation. Your analysis should include:
o A description of your selected performance appraisal system and its components (e.g., evaluation, reflection, rewards).
o A critical evaluation of the system within the context of your scenario organisation. Include the potential strengths and limitations of using the system for your assigned organisation.
o An analysis of how the performance management system may impact motivation in your scenario organisation in the following areas:
o The performance appraisal process (goal setting, evaluating performance and conducting reviews)
o Different categories and levels of employees
o Manager bias
