The Importance of Performance Management

Dsicuss about the Making Management Accounting Research More Useful.

Performance management refers to the planned and organized system under which the performance of the organization along with the issues faced and steps taken to overcome these issues are observed and studied. This helps the organization in achieving its goals; satisfying customer wants and also helps in employee efficiency (Buchner, 2007).  One of the major steps in implementing performance management is gathering and examining the information available. It is necessary that the information so collected and studied is accurate so that the actual status of the quality of activities can be known. This can also be referred to as data improvement cycle. Performance management is an instrument which is used to fortify good management system of an organization (Nielsen, 2014). It is a method used by the managers to ensure and make a healthy work environment which (1) Assists in continuous growth (2) Adjust with change in environment (3) endeavour to achieve enormous goals (4) Indulges creativity in employees (5) Encourage mastering and professional development of the workers (6) Stimulate the workers to work hard and achieve the objectives of the firm.

The process of making departments to complete an objective is the strategy which is used to reduce the pressure of the top level management and also move to achieve the goals as fast as possible. After all the managers form the various departments have set their goals and objective to be achieved, each worker makes known to his co-operative goal and then they are required to complete the task assigned to them. This process is usually termed as goal alignment (Simon et. al, 2010). It is employed to check that every employee is trying to achieve the same goal and there is no squandered effort of the employees which goes off the table.

Motivation of the staff is directly related to the benefit of the organization. The organizations and firms usually give compensations to their employees in order to motivate them. Compensation is a type of allowance provided to the workers or employees for the service rendered by them to the firm. It can be either of financial aspect like salary, wages, bonuses, insurance, travel allowance or it can be of non-financial aspect as a change in the physical form of the work environment provided to the employees or the payroll systems of the firm (Ready et. al, 2008). Motivation cannot be forced on a worker. Performance management is taken into a force to check the daily achievement of goals of the firm and its employees so as to attain maximum return. Performance management is a type of review system in which the goals and objectives are kept secured in documents and a regular check is made by the employees in order to complete them (Merchant, 2012).

Implementing a Performance Management System

Implementing a performance management system states that every worker should be assigned a task that is directly associated to the main goal or the objective of the firm linking it to the firm’s main strategy (Madden, 2014). The process of making departments to complete an objective is the strategy which is used to reduce the pressure of the top level management and also move to achieve the goals as fast as possible. After all the managers form the various departments have set their goals and objective to be achieved, each worker makes known to his co-operative goal and then they are required to complete the task assigned to them. This process is usually termed as goal alignment (Simon et. al, 2010). It is employed to check that every employee is trying to achieve the same goal and there is no squandered effort of the employees which goes off the table.

In association with Mining Co, the employees who are working in the organization are prone to mental or physical collapse through regular traveling to lonely locations, thereby influencing their overall level of motivation. This shows that the employees are more likely to quit their jobs because of the prevalence of such risky working environment. Nonetheless, this proves that any workforce that is not motivated can impact the overall organizational performance because of the fact that it results in restricted productivity and efficiency (Levine & Prietula, 2013). This is the reason why a performance management initiative is required to be implemented by Mining Co. Besides, an organization that is filled with productivity, commitment, creativity, and innovation can easily outperform its competitors and this is feasible only by having a motivated base of employees (Sonnentag & Niessen, 2008). Furthermore, when it comes to attracting and retaining best employees, Mining Co is facing various issues and hence, implementing a performance management initiative has become necessary for it. Another reason why such approach is beneficial can be attributed to the fact that it facilitates in proper communication or interlink betwixt the employees and the management.

The rewards or compensation provided to the workers may be helpful to inspire some workers but not all the workers are affected by such means. Workers will be inspired only if it seems to them that all the compensations provided are divided fairly among all the employees and if it is not divided fairly then this may cause dispute and thus advance various problems (Corkindale, 2011). The firm should ensure that the compensation provided to their employees is actually affecting the motivation of employees. Increase in the motivation of employees will directly affect the performance of the business as the work of employees is ultimately related to the firm’s performance (Coyne & Garvin, 2013). Therefore, performance initiative of Mining Co must concentrate on enhancing employees’ future development so that they work for its betterment. Besides, financial rewards like bonuses can be provided to increase their motivation level.

Motivating Employees through Compensation and Goal Alignment

Firstly, based on the working conditions, a performance management initiative is highly needed in the case of Mining Co because its employees are prone to stress and burnouts that facilitates in lesser motivation among them. Besides, such approach can enhance productivity level on a larger scale because the needs of employees can be easily identified and corrective actions can be easily implemented to make sure they are retained in the best possible way.

Secondly, taking into consideration the working conditions at Mining Co, employee morale or motivation can also be boosted through the provision of incentives like bonuses, paid leave, etc. With such incentives, the employees can offer their best commitment and devotion towards the company, thereby maximizing its overall performance. In addition to this, efficient communication strategies can also be adopted to gather valuable feedback from the employees and addressing their concerns in the best possible way. This can altogether play a key role in making the employees feel appreciated and taken good care of, thereby resulting in the development of motivation and morale amongst them. Hence, these approaches can assist in motivating the staff of Mining Co.

The expectations need to be defined in a clear and straight forward manner. Both the managers, as well as employee need to have a clear cut demarcation of the required performance. Moreover, what is defined as exceptional performance must be stated clearly? To ensure this, it is essential that an in-depth discussion is needed to be made with a focus on the responsibilities that will ease the pressure and any frenzy situation can be avoided.

People argue for a beginning of a useful strategy adapting, retaining and growing resources are required and they should be at least of standard quality which clearly shows people as a resource (Aguinis & Kraiger, 2009). The main concerns of the human resources are to ensure that the baseline is preserved within a company which is all about performance management. Whenever there is a rapid change in the internal or external environment of a firm, these starting factors are constantly changing and moving towards the upward direction. Because of fewer regulations and globalization, the competition between the firms has increased because of the similar product or service provided by them to the group of customers. As the result of an increase in completion and maintain the international standards to work, these public firms are to be managed in a more sophisticated way. Further, these challenges in the new complicated environment present a huge challenge to the managers of companies wherein they come under an undue obligation towards staff rotation, safeguarding the assets of the company, and efficient decision making as a whole.

Addressing the Challenges faced by Mining Co

In relation to Mining Co, it can be observed that the company is functioning in isolated areas wherein there is an enormous prevalence of external environmental threats that is a posing a major threat to is smooth functioning of operations. Such isolated area is served by very minimal fly-out and fly-in employees, thereby creating a problematic situation of rotation of employees. In addition to this, the financial crisis in Greece is also playing a key role in aggravating Mining Co’s management crisis (Hemmer & Labro, 2008). Apart from this, the prevalence of ISIS is also influencing the potential and willingness of both senior and subordinate-level workforce to form part of the organization. As a result of these factors, Mining Co is forced to encounter challenges like improper retention of employees, ineffective decision-making and restricted management control.

It is therefore required that Mining Co implements motivational plans and approaches within its framework so that it can not only retain a maximum number of employees but also enhance their productivity level. Moreover, the major issue is an isolated area of company’s operation that is posing a threat to the security of employees and hence, such motivational plans can boost their morale and safeguard them from the influence of external threats. Nevertheless, in times of economic crisis, employee motivation is highly required because a crisis can degrade the overall effectiveness of an organization and if corrective actions like motivational approaches are not adopted, the company cannot survive for long. Incorporation of retention tools into the company’s framework can also assist the organization in a remaining firm even during the presence of a financial crisis. Further, if employees are appropriately rewarded for their work by offering them incentives, they will provide full dedication for the betterment of the company, thereby enhancing their overall contribution towards the organization.

Firstly, through single entity operations, Mining Co is encountering several types of security issues associated with financial crisis, ineffective rotation of workers, etc. Due to the prevalence of such concerns within the company’s working environment, employees have become unwilling to work in such area and therefore, implementation of a proper security measure is crucial for employees to feel safe in the environment they are working (Pinder, 2008). Furthermore, if employees are not assured of their security, they will hesitate in providing full dedication and devotion towards the well-being of the company and therefore, if proper security measures through the use of technologies are implemented in the working atmosphere of the company, employees will work for enhancing the productivity as a whole.

Incorporating Motivational Plans and Approaches

Secondly, in order to motivate employees, there must be a satisfactory working environment that caters to the requirements of the employees. For such purpose, the organization must attempt to offer various kinds of incentives to them so that it increases their motivation and morale. Furthermore, approaches like communication or interlink betwixt all the sites of the organization can be done in order to encourage rotation of employees (Nielsen, 2013). In addition, the organization must also attain the feedback of employees from all the working segments so that their grievances can be addressed immediately. Retention packages can also form part of such working environment in order to retain senior executives, thereby facilitating in enhanced productivity, commitment, and attainment of organizational efficiency (Olsen, 2012). The financial incentive is the most vital in the case of Mining Co because it plays a key role in enhancing social welfare because employees will show utmost dedication to performing better than others in order to gain more incentives.

Performance management can be described as a sum total in which the performance of the individuals are given away, observed and refined (Aguinis & Kraiger, 2009). It is also termed as building a proper work environment which is suitable for the employees to work in and thus achieve their assigned goals. It is noticed that the need for performance management has significantly increased for the firms nowadays than it in the old days. Nonetheless, based on the current scenario, the modern companies must be duly able to indulge, expect, prepare, and also manage a crisis whenever it occurs (Pinder, 2008). In relation to Mining Co, a crisis management team is highly needed because the company is facing major external threats and if such corrective actions are not implemented, it may face major losses.

The structure and design of crisis management team will be a sum of all the activities and features of the organization. The team sources must be comprised of personnel in tune with the Mintzberg’s classification. It is assumed that the team projects a CMT instead of an emergency team.  CMT needs to be well versed with the happening of the division and the impacts it can project on other divisions (Aube & Rousseau, 2011).  Beyond question, it must be ensured that the membership of CMT will enable it to make decisions and influence the overall organization.  In terms of crisis, the organization needs to tame the business demand and should be able to take relevant decision.

Mining Co is encountering a major issue of retaining and attracting its best range of employees and the reason behind this can be attributed to the fact that the company is vulnerable to threats from the external environment and the financial conditions are strict as well. Due to all these issues, the employees who are already present in the organization are forced to leave it because of minimal motivation, safety or security issues, etc. Hence, if Mining Co pursues a crisis management team within its framework, it can easily identify and assess the risks that are surrounding its affairs and thereafter, it can easily prepare corrective actions or emergency plans to get rid of such risks (Nielsen, 2013). Further, the company must also make attempts to enter into collaborations with higher learning institutions in order to build talent. For such purpose, it may require additional funding for development and training of the workforce.

A crisis management team must be able to predict the upcoming risks that pose a threat to the affairs of a company. For such purpose, the team must comprise of professionals from fields like human resources, finance, etc so that they are collectively able to think and ascertain proper actions in relation to the same. Besides, the team must comprise of members who have accurate leadership skills and are able to design creativity in their work. In simple words, a team that has the potential to react faster and determine accurate results for the same must be the selection criteria.

The structure of the team must align with the organizational objectives so that the employees are able to understand them properly. The selected members must perform as leaders in their segments and must assist those who require proper knowledge and skills to tackle any issues. Further, a communication approach must be prevalent to assist workforce of the company in sharing information during the occurrence of a crisis (Ki & Brown, 2013). Nonetheless, such communication is needed to ensure that employees voice their issues and help the company in solving their concerns as well. The team must also be able to drive training schedules for the betterment of the workforce so that they can also contribute to avoiding the crisis.

The main positions comprise of human resource officials, regional crisis manager, legal persons, and environmental assessor. It is the role of managers to cater to issues associated with emergencies. Further, the role of crisis manager is to assess upcoming and present threats and coordinate other members to react or avoid the crisis. The environmental assessor makes way to evaluate the environmental crisis and thereafter, design evaluation tools for the same (Ki & Brown, 2013). The legal expert’s advice the team in legal matters and approving affairs that are selected for the entire team.

Reward approaches must be interlinked with the organizational performance. For instance, the top executives must be awarded based on the overall organizational performance. Furthermore, skill development, career opportunities, etc kind of programs must be held in order to enhance the satisfaction of employees and assist in overall development. With the help of such reward strategies, retention of employees also becomes easier as they provide full dedication after implementation of such plans.

Conclusion

In order to implement the process of performance management, it is significant the employees along with the line managers work hand in hand. This will result in determining the performance expectations along with needs the company and the individuals in order to devise a plan for the future. One of the important characteristics of performance management is that it is not required to be made formal in order to gain the maximum effect (Gerrish, 2015). Performance management has been described as one of the modern tools of human resources which assist in implementing the leadership model within an organization.

It is important that the regular tasks within an organization are synced with the organization strategy under performance management. This tool helps one answer questions such as if the working of the organization is towards it aimed objective or not, also id the decision-making process is consistent with the business plans (Gerrish, 2015). Performance management helps to ensure that all the employees at all the levels are aware of the strategy of the organization, and their role in its implementation. It is now in the hands of the management to ensure that the employees are taught about this strategy and their contribution towards the same.

References

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