Performance Management System Essay -- Managing business Essays

Performance Management System Introduction This report is an attempt to analyse the existing Performance Management System for Large Financial Service Organisation (LFSO) and from this information, recommend, and implement an appropriate new performance management system. LFSO is an organisation, which traditionally has a paternalistic culture with low levels of unionisation. LFSO current Performance Management system was implemented two years ago changing the nature of the previous incremental salary scales described as Prerogatives by Lupton and Bowey and led to the abolition of the annual cost of living increment. This change by LFSO was an attempt to achieve a strategic, integrative and flexible approach to pay, in order to address its organisational objectives. Therefore it  ¡Ã‚ ¥reflected on a pluralist approach with the use of job evaluated grade structures regarding financial rewards and benefits ¡Ã‚ ¦. (Heery, 1996) despite the fact that with most paternalistic culture have a Unitarist approach to Performance Management systems. Initial research conducted by the organisation indicated that objectives are not always established and reviews were spasmodic. There was a high degree of resentment between the different members of staff leading to unhealthy competitiveness and unwillingness to support others. (Kerr, 1995) describe this behaviour as  ¡Ã‚ ¥esprit de corps ¡Ã‚ ¦. This resulted in an increase in general grievances. The BFU have been aware of this anxiety and have started a strong recruitment drive amongst employees but no figures on existing membership were available. ¡Ã‚ ¦ In general, both employees and management did not fully understand the scheme at its inception and saw it simply as a cost cutting exercise. The reward levels introduced were seen to be too small to act as a  ¡Ã‚ ¥motivator ¡Ã‚ ¦. There was also debate about the role of the annual appraisal interview as there was no consensus view on the purpose of these, which were regarded as an  ¡Ã‚ ¥inconvenience ¡Ã‚ ¦. Now two years into the scheme, LSFO is facing the threat of a  ¡Ã‚ ¥Bargaining Unit ¡Ã‚ ¦ or possible Unionisation. Alongside high levels of dissatisfaction from employees and some line managers who have also expressed serious concerns about their role in the process. The system itself is under severe criticism with large numbers of appeals although only a very few of these have been upheld. ... ...ments around these decisions. The manager will have in place a formal quality monitoring procedure and adherence to this will form part of the team and individual reward and appraisal procedure. As the BFU has started to implement a strong recruitment drive amongst LFSO employees, the management/ and HR Manager should consider meeting with the union to obtain its views on a partnership agreement with the organisation. This approach would recognise the possible impact BFU may have on the new system and would demonstrate a gesture of  ¡Ã‚ ¥goodwill ¡Ã‚ ¦ by the management team. It would also address the collective representation can help achieve important business objectives, including good communication. In conclusion it must be emphasised that an effective Performance Management system ensures that both Managers and employees understand each other ¡Ã‚ ¦s expectations, and how these are incorporated into the Corporate Strategy and how these impact upon their own context  ¡V their roles, behaviours, relationships and interactions, rewards and futures. Bibliography Books Beardwell, I. And Holden, L. (2001) Human Resource Management: A Contemporary Approach 3rd Ed. Prentice Hall Performance Management System Essay -- Managing business Essays Performance Management System Introduction This report is an attempt to analyse the existing Performance Management System for Large Financial Service Organisation (LFSO) and from this information, recommend, and implement an appropriate new performance management system. LFSO is an organisation, which traditionally has a paternalistic culture with low levels of unionisation. LFSO current Performance Management system was implemented two years ago changing the nature of the previous incremental salary scales described as Prerogatives by Lupton and Bowey and led to the abolition of the annual cost of living increment. This change by LFSO was an attempt to achieve a strategic, integrative and flexible approach to pay, in order to address its organisational objectives. Therefore it  ¡Ã‚ ¥reflected on a pluralist approach with the use of job evaluated grade structures regarding financial rewards and benefits ¡Ã‚ ¦. (Heery, 1996) despite the fact that with most paternalistic culture have a Unitarist approach to Performance Management systems. Initial research conducted by the organisation indicated that objectives are not always established and reviews were spasmodic. There was a high degree of resentment between the different members of staff leading to unhealthy competitiveness and unwillingness to support others. (Kerr, 1995) describe this behaviour as  ¡Ã‚ ¥esprit de corps ¡Ã‚ ¦. This resulted in an increase in general grievances. The BFU have been aware of this anxiety and have started a strong recruitment drive amongst employees but no figures on existing membership were available. ¡Ã‚ ¦ In general, both employees and management did not fully understand the scheme at its inception and saw it simply as a cost cutting exercise. The reward levels introduced were seen to be too small to act as a  ¡Ã‚ ¥motivator ¡Ã‚ ¦. There was also debate about the role of the annual appraisal interview as there was no consensus view on the purpose of these, which were regarded as an  ¡Ã‚ ¥inconvenience ¡Ã‚ ¦. Now two years into the scheme, LSFO is facing the threat of a  ¡Ã‚ ¥Bargaining Unit ¡Ã‚ ¦ or possible Unionisation. Alongside high levels of dissatisfaction from employees and some line managers who have also expressed serious concerns about their role in the process. The system itself is under severe criticism with large numbers of appeals although only a very few of these have been upheld. ... ...ments around these decisions. The manager will have in place a formal quality monitoring procedure and adherence to this will form part of the team and individual reward and appraisal procedure. As the BFU has started to implement a strong recruitment drive amongst LFSO employees, the management/ and HR Manager should consider meeting with the union to obtain its views on a partnership agreement with the organisation. This approach would recognise the possible impact BFU may have on the new system and would demonstrate a gesture of  ¡Ã‚ ¥goodwill ¡Ã‚ ¦ by the management team. It would also address the collective representation can help achieve important business objectives, including good communication. In conclusion it must be emphasised that an effective Performance Management system ensures that both Managers and employees understand each other ¡Ã‚ ¦s expectations, and how these are incorporated into the Corporate Strategy and how these impact upon their own context  ¡V their roles, behaviours, relationships and interactions, rewards and futures. Bibliography Books Beardwell, I. And Holden, L. (2001) Human Resource Management: A Contemporary Approach 3rd Ed. Prentice Hall