PERFORMANCE MANAGEMENT SYSTEM 10
Running Head: PERFORMANCE MANAGEMENT SYSTEM
Performance Management System
Student’s Name
Institutional Affiliation
Performance Management System
Introduction
A performance management system is a vital element in every organization irrespective of the size of the organization from a small business with a few employees to large multinational organizations such as Coca-cola. It is a system that is used to gauge employees’ performance. It is a way through which organizations bring into line their goals, missions as well as their short and long terms objectives to be accommodated by the available resources. In this essence, the resources to be majored on is the human capital that is the human resources from the organization’s employees.
Their resources such as the required materials and time have to be considered as well since there has to be perfect sync in the distribution of all the resources to ensure effectiveness in the organization. The administration, therefore, has to have a system that will ensure that they get the most out of the resources. To do this a system which is the performance management system which will ease their work in the monitoring process of checking the performance of the resources.
Coca Cola Company is the world’s largest beverage producing company based in the United States. It was first developed in Georgia Atlanta. According to a survey done in 2017, it was estimated to have more than 44,000 employees worldwide. Managing such a large number of employees require the use of a correctly working performance management system that encompasses all the features to be able to maintain such a large number effectively.
Purpose of Implementing Performance Management System
As discussed performance management system is essential and therefore there are some reasons why it should be implemented as the first option in the process management. Thus to establish an effective performance management system and employee performance has to be considered. Some of the reasons why performance management system is essential in an organization to include the following. The first one is to become strategic; performance management system helps in aligning the organizational goals, individual goals, and departmental goals. Therefore the overall goal should be linked to the actions of each action performed by all the employees and department. In this way, the organization can monitor the amount each adds into the organization.
The second importance is that it aids in organizational performance. A performance management system is a set of standards that are used for administrative performances such as promotion and demotion, cases of salary increment, employment transfers, and layoffs. These are administrative work that can be performed after deciding due to the help of the performance management system. It also helps in checking at the competency skills of the employees, and therefore the performers, non-performers and the underperformers can be pinpointed for effective administrative actions to be performed. The third importance is communication purposes, through the performance management system, valuable information can be communicated to the employees, and it is through it that the employees can be given the company objectives, their specific roles and the expected deliverables from them.
The fourth importance is it helps in the developmental process. The performance management system can be used to communicate positive feedbacks areas of improvement and development plans. They can be achieved through training, mentoring and coaching of the employees they will hence improve their development plans. The fifth point is to help in organizational maintenance. The performance management system is a measuring tool to check on employee and departmental performance. Coca-cola can use the above too to evaluate the performance gaps. Therefore in refiling the said gaps, the health of the organization is maintained, and the performance standards are enhanced.
Coca Cola Performance Management System
Coca-cola always undergoes several performance management procedures annually in four stages, and this shows that the performance management system has been internalized and made as a culture such that it occurs annually. The first step in the performance management system is to do an annual performance review. In this stage it is done by preparing the current year development plan; this is where all the methods that were put in place or were introduced that particular year. Then the results of those development plans are assessed. In this sense, the results are counterchecked with the set standards in comparison with the set company objectives. The second stage coca cola uses doing the year’s performance plan; this can be achieved by finalizing on the current year’s development plan.
The third stage is rewarding and recognition, this is done by paying as per the performance, this will motivate the high performers as well as challenging those underperforming encouraging them to improve on their performance. The top performers are also recognized and rewarded accordingly this is part of employee appraisal. This is incorporated into the performance management system showing how interrelated the two are in the company. The last stage is the midterm review which involves the review of the short term results. The competency development here the results are reviewed and the competency development plan are put in place to guarantee the effectiveness of the performance management system. Through the above stages, coca cola can effectively perform its performance management system by following the steps stated above.
Coca Cola Employee Engagement and Performance Appraisal
Employee engagement is the creation of an interpersonal link between the employee and the management. It is a significant part of the performance management system; it ensures there is a smooth correlation between the administration and the employees. Employee engagement involves monitoring the work of every employee and then encouraging them in one way or another. Coca-cola is one of the companies that embrace employee appraisal. It rewards the talents the employees have it also in one way or another ensure that the employees have similar levels of skills to bring uniformity to the organization.
The main objectives of the employee performance appraisal are to help in increasing the level of motivation of the employees to perform commendably. This will inspire the employees to work harder in their work. The second importance of the appraisal is to increase employee self-esteem. This is a form of development to the employees as they will become self-conscious of their abilities and they will not fear to implement them hence opening up opportunities to use their skills. It also gives awareness to the staff and the supervisors. Especially the first line managers are they are always on the floor with the workers monitoring the flow of products. It also clarifies the job requirements and the responsibilities of the employees to avoid confusions and ensure that the company gets the best out of their employees. It also increases self-understanding amongst the staff as they will be able to become self-conscious of their roles and understanding their importance in the job. Appraisal also ensures that rewards are distributed to the employees on the required basis that is fair and credible depending on the awarding systems set by the performance management system.
Performance Review Objectives.
For a performance management system to be effective, it has to follow the following objectives that the system must be accurate and fair. Since the system is trusted in making many managerial decisions such as employee layoffs and investment decisions, it must be trusted it must, therefore, be accurate and fair. This means that it will not lead to the dismissal of employees without putting into consideration reasonability in the decision made. The second objective is to have an efficient system that will not be costly to the organization. Coca-cola is a very efficient company hence introducing a system that will cost the company to spend more resources in it will bring a second thought to the management. Therefore, the system should be effective and efficient; otherwise, the company will not buy such ideas. Another objective is to ensure that the system should be able to uplift the performance of the company not only to become a measuring tool this will mean that the system becomes an essential tool in making coca cola company achieve its long term objectives. This is because the company would like to ensure that all the actions and processes it does are all geared towards meeting the long term objectives. Hence it should become part of the organizational culture and run parallel to it by not disturbing its performance while contributing positively to the functioning of the organization.
Any Needs for Change in the Performance Management System
The market is always dynamic, and hence the performance management system should always be flexible. This will ensure that the performance management system is always at par with the dynamism of the environment to avoid rigidity which if not taken care of may be costly to the company in one way or another. Therefore, the performance management system needs to undergo some few changes to ensure that it becomes useful in the current and the future. The first changes coca cola has to do is to invest more resource in the research and development department of the performance management system to ensure new methods and techniques are always introduced into the company.
The second way the company can make changes of few developments into the performance management system this is by learning from the competitors, it should check on what the competitors are doing then change their system accordingly to ensure they are at the top of the market and compete effectively. This will also bring insight to the employees on whatever they need to do to perform as per their status.
The third way the company can change or include in the performance management system is by allowing their employees to take part in giving opinions on performance management system they are the employees. They are the ones who perform the task, despite the fact it is the job of the top management to make crucial decisions, it is essential to give the employees the power to present their views and their views should be heard. This gives them the moral, they get the power, the energy to work harder knowing that the system is part of them and they took part in the formation of the system by taking part in decision making.
The last change in the performance management system is to use the coaching method of leadership through leading by example. This can be done by the management applying the performance management system on themselves first and then to the employees later. This makes the employees see the system not as harmful and something that was brought in to undermine them but something that was brought to elevate their status and make their working environment a lot easier and friendlier.
Options to Enhance the Effectiveness of Performance Management System
The effectiveness of a performance management system can be achieved through a close check on the network. Even though coca cola is a large company and is challenging to manage and hence has to be divided into different regions, to enhance proper management. Performance management system has to be used globally. This will be used irrespective of the size of the branch region; a few changes can only be made to enhance effectiveness at that level.
Nevertheless, it should be uniform worldwide to ensure uniformity. It will guarantee that the performance of each region can be put under the same scale to know the less performing departments. Hence scrutiny can be done to get light in need to make changes about the department.
A performance management system of coca cola can be enhanced effectively by the use of six steps, to begin with, is by removing the ineffective past performance management systems. Traditional systems can be less effective and may be costly for no reason. Therefore, they have to be eliminated to create a space for bringing in new effective and efficient systems that can be used to get the best of the organization. The second step is the identification and rewarding or praising the perfect players. This can be done to improve their status and motivate them. The third way is to align individual objectives with the cooperate goals effectively. This will ensure that there is perfect sync between the employee targets and the organizational goals. It is also a way to encourage positive growth in the organization.
The fourth way is to establish and use mechanized systems to progress continuous response loop that will ensure that there is a perfect connection between the stages of performance management. The next is to convert your managerial team into coaches, as a coach does, he becomes a team leader and transforms each player individually into success. This will ensure that the individual potential of each employee is touched, and hence they become the best assets of the company. Lastly is by developing an operational technique to measure the success of the employees. This will get the best way to achieve a ranking measure to the employees; this will that the employees will be legally rewarded for the excellent performance they have shown.
To conclude the performance management system is the most effective system in checking the level of resource usage especially the resources that involve the use of human resources. Human capital is an essential part of any origination; therefore coca cola had to devise the best performance management system to aid it in providing the best procedures to enhance resource allocation.
References
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