To complete this Individual Assignment:
�In 1,650 words, use the �ideal� characteristics checklist (Aguinis, 2012) to evaluate the
performance management system of the organisation you chose in Week 1.
�In your evaluation, identify the strengths and weaknesses of the performance management system
and make recommendations for improving the system. Be sure to use ideas and concepts from your
readings and other research.
�As part of your evaluation, formulate a �test case� describing an individual with a performance
problem and discuss how the performance management system as it exists would or would not
support this individual. Include an assessment of how the person responsible for conducting the
individual�s performance evaluation would obtain performance information, determine whether/how
to use formal performance management approaches to address the problem, what process would be
followed and which stakeholders would be involved.
PERFORMANCE MANAGEMENT SYSTEM AT NBAA 2
Performance management system at National Business Aviation Association
The success of any organization is based on the proper implementation of the
performance management system for employees at National Business Aviation Association
(NBAA) that creates an environment where the employees perform to the best of their ability
with the aim of meeting the goals of the company (Yoon-Ho, Dong-One, & Ali, 2015). The
management of NBAA believes that one crucial role of an aviation manager is to carry out
truthful, sincere and meaningful performance reviews (National Business Aviation
Association, 2015). This paper seeks to analyze the performance management systems at
NBAA.
Strengths of NBAA’s performance management system
Objectives are clear and the system has specificity: at the National Business Aviation
Association, the objectives and goals of the evaluation system are specific and clear. In
general, a performance management system which is effective would always have specific
evaluation attributes to correspond and fit with the job description of the employee (Ubidin et
al., 2015). By having specificity, comprehensive guidance is offered to workers regarding
what is expected of them and how they could satisfy these expectations. Identification of
ineffective and effective performance: the performance management system at NBAA
clearly differentiates between ineffective and effective behaviours and results, hence also
identifying the workers who display different levels of performance effectiveness (National
Business Aviation Association, 2015).
PERFORMANCE MANAGEMENT SYSTEM AT NBAA 3
It is fair and thorough: for any performance management system to work properly,
the people who are evaluated and managed should believe that the system is fair (Koss,
2011). The performance management system at NBAA is fair since the aviation managers
who are evaluated believe that the system is fair and they clearly support the stated objectives
and goals which were agreed upon when the performance term started. All expectations are
communicated to the employees. At NBAA, everybody, including top executives and
frontline workers, is appraised on a level playing field. If a score of 4 is considered
satisfactory at one level, it retains that meaning at other levels. In addition, everybody at
NBAA is subject to the process of evaluation in spite of how high he or she has climbed on
the corporate ladder (National Business Aviation Association, 2015). Moreover, evaluations
at NBAA are based largely upon factors that are objective. Performance criteria are well
defined: at NBAA, the performance criteria are clear, understandable and properly defined.
In essence, effective performance evaluation at this organization has standard evaluation
rules, forms, and evaluation procedures. On the whole, it has performance criteria and
standards which are well defined.
Process is less time consuming and data gathered is reliable and valid: NBAA’s
performance management system takes less than 50 minutes to carry out, which is a relatively
short time period. It also gathers data that is consistent and trustworthy. An effective
performance evaluation system should be designed to be less time consuming and be
economical in order to bring maximum benefits (Aguinis, 2012). Moreover, an effective
performance management system needs to supply valid, reliable and consistent data. Being
valid means that the measures of performance management system at NBAA include all
crucial performance aspects, importance aspects are not left out, and measures beyond the
employee’s control are not included. Having reliability implies that the measures of
performance are consistent and free from error (Aguinis, 2012). Practicality: the system is
PERFORMANCE MANAGEMENT SYSTEM AT NBAA 4
easy to utilize, it is readily available for usage, and is satisfactory to the people who utilize it
for decisions. Moreover, only the functions which are within the employee’s control are
measured and the benefits of using this system outweigh the costs (National Business
Aviation Association, 2015).
Weaknesses of NBAA’s performance management system
The evaluation is not ongoing and lacks meaningfulness: at NBAA, the evaluation
process comprises nothing more than a 40-minute meeting each December. The performance
is not very effective since it does not include ongoing, regular communication between the
employees and their supervisors. Employees at NBAA are often astonished by the
introduction of a new performance issue at the yearly review. This means that supervisors at
this organization are not very good in their responsibilities. The evaluations do not take place
regularly. System lacks context and strategic congruence: by lacking strategic congruence,
the goals of individual employees at the organization are not aligned with organizational and
unit goals. By lacking context congruence, the performance management system is not
congruent with norms based on the culture of the organization and norms based on the culture
of the nation and region wherein the organization is situated.
Performance is narrow-viewed: the performance management system at NBAA can
be seen as somewhat ineffective since it tends to focus largely on what the member of staff
has done and what the member of staff should do so as to improve her/his performance. This
is consistent with some values which suggest that a person is a master of his/her fate and
everyone controls their behaviour and the outcomes of that behaviour (Buckingham &
Goodall, 2015). The problem is that these values are incomplete. An employee’s behaviours,
results and contributions are all affected by a number of factors, most of which are beyond
the control of the staff member.
PERFORMANCE MANAGEMENT SYSTEM AT NBAA 5
Recommendations to improve the system
To improve NBAA’s performance management system, the first recommendation is
that this system should be ongoing and the evaluation be carried out regularly. The process
should not just comprise a 30-minute-meeting once a year. An effective performance
management must include the ongoing and regular communication between the staffs and the
supervisor. It should also leave room for input as well as feedback from the individual being
managed. In addition, the people being managed should be given an honest and open
feedback as regards any issues all through the process. A staff member must not be
astonished by the introduction of a new performance issue at the yearly evaluation
(Buckingham & Goodall, 2015).
Secondly, it is recommended that the National Business Aviation Association adopt
more broad views of performance rather than narrow views. If the goal of the organization is
to improve employee performance, then it should look at a broader spread of causes rather
than looking only at the member of staff (Yeoh, Richards & Shan, 2014). Even workers who
are extremely talented would have trouble performing well if they are hindered by poor
business and production planning, if they do not have the necessary tools to effectively carry
out their work tasks, if they are negatively affected by the work environment, and if they are
not provided with adequate resources. As such, it is of great importance, especially when
trying to find out what went wrong and how to put it right, to look broadly for causes as well
as solutions (Ento, Bento & Ferreira, 2014).
Thirdly, is recommended that the performance management system at NBAA should
have context and strategic congruence. To strategic congruence, the goals of individual
employees at the organization should be aligned with organizational as well as unit goals. To
have context congruence, the performance management system should be congruent with
PERFORMANCE MANAGEMENT SYSTEM AT NBAA 6
norms based on the culture of the organization and norms based on the culture of the country
and region in which the organization is situated (Aguinis, 2012).
Test-case: in case an employee at NBAA has a performance problem, for instance
underperformance due to slowness or lack of productivity, the HR manager identifies the
problem and the main drivers of underperformance. The HR manager then assesses and
analyzes the problem to determine its seriousness, how long it is has existed, and determines
how big the gap is between what is delivered and what is expected. The HR manager then
meets with the staff member to talk about the problem, and then they jointly devise a
solution. The HR manager then monitors the performance of the employee and provides
feedback and encouragement. If the performance of the employee does not improve, formal
warnings are issued and in the end the employee’s job is terminated if the issue cannot be
resolved.
The evaluator obtains performance information from supervisors, customers, and
colleagues/co-workers. Statistical measures of employee’s quality of work and productivity
also provide a wonderful source of information for establishing the employee’s performance
levels (Ubidin et al., 2015). Formal performance management approach can be used and this
includes the following process: inviting the staff member in writing to be present at a formal
performance management meeting, and meeting is carried out by a suitable manager who
would serve as the Chair. The line manager of the employee would also be present at the
meeting to articulate the performance concerns to the worker. The employee will have an
opportunity to ask questions and defend himself/herself (Yeoh, Richards & Shan, 2014).
Before a decision is reached, the meeting is adjourned to consider all the pertinent
information.
PERFORMANCE MANAGEMENT SYSTEM AT NBAA 7
At the end of the performance management meeting, the Chair would decide whether
a formal action is warranted or not. If no formal action is taken because employee’s
performance is satisfactory or the employee’s performance has improved sufficiently, the
worker would be informed about this and he or she would be encouraged to keep up with the
satisfactory level of performance. The outcome of this meeting might be a written warning.
The employee’s performance will continue to be monitored closely. If employee’s
performance drops below the expected standard, a final warning would be issued. A final
meeting may then be held, and a possible outcome would be employment termination (Ento,
Bento & Ferreira, 2014). The stakeholders involved include the employee, the employee’s
line manager or supervisor, and another appropriate manager.
Conclusion
To sum up, the selected organization is the National Business Aviation Association.
The strengths of this organization’s performance management system are that it is reliable
and valid, it is fair and thorough, the process is less time consuming, the system has
specificity and the objectives are clear. However, the weak points are that the performance
system is narrow-viewed, lacks context and strategic congruence, and the evaluation lacks
meaningfulness and is not regular. It is recommended that the organization take on more
broad views of performance instead of narrow views and the system should have context and
strategic congruence.
PERFORMANCE MANAGEMENT SYSTEM AT NBAA 8
References
Aguinis, H. (2012). Performance Management. New York City, NY: Prentice Hall.
Buckingham, M., & Goodall, A. (2015). Reinventing Performance Management. (cover
story). Harvard Business Review, 93(4), 40-50.
Ento, A., Bento, R., & Ferreira, L. (2014). Strategic Performance Management Systems:
Impact on Business Results. Journal of Computer Information Systems, 54(3), 25-
33.
Koss, S. K. (2011). Solving the compensation puzzle: Putting together a complete pay and
performance system. New York City, NY: Prentice Hall.
Ubidin, S. N., Aziz, N. F., Ahmad, A., & Sorooshian, S. (2015). Performance Measurement
Systems. International Journal Of Management, Accounting & Economics, 2(2),
153-155.
National Business Aviation Association. (2015). NBAA2015.
Yeoh, W., Richards, G., & Shan, W. (2014). Benefits And Barriers To Corporate
Performance Management Systems. Journal of Computer Information Systems,
55(1), 105-116.
PERFORMANCE MANAGEMENT SYSTEM AT NBAA 9
Yoon-Ho, K., Dong-One, K., & Ali, M. A. (2015). The Effects of Mutual Trustworthiness
between Labor and Management in Adopting High Performance Work Systems.
Relations Industrials / Industrial Relations, 70(1), 36-61.
