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Ideal Performance Management System Characteristics

This assignment, you will critically evaluate Aguinis� (2012) list of ideal performance management
system characteristics in the context of a different organization, one that does not have any kind of formal

performance management system in place.

To prepare for this Assignment:

1) Review case 1.1 in (Aguinis, 2012), which presents a set of �ideal� characteristics for a performance

management system.

2) To complete this Individual Assignment:

In 1650 words, prepare a critical evaluation of Aguinis� (2012) list of ideal performance management
system characteristics that you used in your Week 5 Assignment.((The paper is sent by email))

3) In your evaluation, consider whether this list incorporates all of the important features and success
factors you have reviewed in this module, in sufficient detail, for a Human Resources leader to be able to
use it effectively in improving an existing performance management system. Recommend changes to the

list, or explain why no changes are necessary.

4) As part of your evaluation, formulate a �test case� organisation that does not have any kind of formal

performance management system in place. Discuss the potential costs and benefits to this organisation
of implementing a performance management system that adheres to these characteristics.

5) Incorporate ideas and concepts from your readings and further research to support your arguments.

Appreciate each single moment you spend in my paper.

Ideal Performance Management System Characteristics
Critical evaluation of the characteristics used in week 5 assignment
Without doubt, having clear and specific goals and objectives in an evaluation system is
the first system towards identification of errors and developments. This goes a long way in
ensuring that the necessary improvements are made while the strengths are maintained.
Moreover, whenever a project is going on, things that are not proceeding as planned are
identified in advance and amended, which saves a company a lot of money. Ubidin et al. (2015)
noted that effective performance management systems are always characterized by specific
evaluation attributes that correspond to and fit the employees’ job description. Essentially, all
that this means is that guided by the performance management system, the employees would
always remain aware about their roles and responsibilities and perform them as required. This
would prevent underperformance and colliding if some are not vividly aware of what they should
do. Therefore, based on this specificity, all employees would be in a position to meet all the set
expectations, which would result to organizational success.
Again, an effective performance management system has the necessary measured for
identifying and determining performance that is effective or ineffective. Moreover, detrimental
results and behaviors would be identified in advance, which would permit early amendments.
Therefore, barely would it reach a point where a given challenge becomes too complicated to be
solved amicably (Yeoh, Richards & Shan, 2014). This would also go hand in hand with the
exact identification of varying performance effectiveness levels among the employees.
Consequently, the management would be able to create appropriate reward systems based on the
employees’ performance levels. As a result, the employees would become more motivated to
perform better. In addition, this would be the basis of the management identifying the underlying

reasons as to why the employees might not be performing based on the set standards. Following
this, all the factors that influence performance would be identified and addressed, and the overall
wellbeing of the employees would improve as some of these factors are usually personal or
human related.
Many employees and managers in different organizations would agree that effective
performance management systems put the employees’ interests at the centre. If the employees
are not in favor of all the projects being implemented and the changes being adopted, then barely
can there be success (Koss, 2011). On the same note, the employees should believe that the
systems used for management and evaluation is fair. It can only be fair if the employees and
managers believe it is. Consequently, it becomes very easy for them to comply and support the
planned goals and objectives that were initially agreed up. Peaceful operations in any company
ultimately promote success and higher performance. Moreover, clear, timely, and effective
communication of all the expectations is important in promoting employee retention, prevention
turnover, increasing productivity, and ensuring loyalty. There is a great need for the management
to ensure that all communications are two way. The feedback that the employees give should
never be underrated or ignored. This is based on the fact that these are the eyes of the
organization and they can create awareness about the competition or changes occurring in the
market and industry. In addition, an organization can depend on these to determine the
improvements that are needed, considering that the employees are in more direct contact with the
customers (Yoon-Ho, Dong-One & Ali, 2015). Therefore, they get to know about the clients’
needs even before the management does. Any organization should be aware that taking care of
the employees properly is all that is needed for the customers to be handled in the best possible

Promoting and ensuring equality is another very cardinal component of an effective
performance management system. Therefore, appraisal should be standard regardless of if being
used to appraise the top executive or frontline employees. Moreover, there is a great need for
every employee at the organization to be evaluated and audited. Through this, everyone would be
keen in performing to their best level. In addition, cases of fraud would be curbed considering
that they are mostly perpetuated by the top managers. If the employees are sure that all their
managers are also exposed to the processes that they are exposed to, then they would have some
sense of comfort or consolation in the equal treatment.
Basing evaluation on subjective factors is recommended. Moreover, having a clearly
defined performance criterion enables all the employees to perform based on what is expected
from them. Essentially, a well defined performance criterion should come after well defined
goals and objectives. Therefore, the management in every organization should be keen in
ensuring that the performance criteria being used is understandable, clear, and defined properly.
As less time as possible should be used when using the performance management system.
Moreover, there should be adequate measures for ensuring that the gathered data is trustworthy,
consistent, reliable, valid, and consistent. Many would agree that effective performance
evaluation systems consume the least time possible and if economical, then maximum benefits
can be attained.
If the system being used is practical, that is, easy to use, readily accessible for use, and
satisfactory, then using it would promote proper decisions. The employees would never consider
the system a burden, and would comply to it. In addition, it should measure functions that the
employees can control and the benefits realized from its implementation should outweigh the
costs faced.

If the list has all the vital features and success factors in adequate detail for effective use by

a HR leader in improving an existing performance management system
Some vital features and success factors are missing, and a HR intending to improve an
existing performance management system would need to include them for maximum benefits to
be realized.

Recommended changes/ why changes are not necessary

One of these is the presence of an appeal process that the employees can use to challenge
incorrect or unjust decisions and practices. The presence of this can greatly ensure that those in
authority are very cautious about all the actions they engage in, since the employees are watching
(Ento, Bento & Ferreira, 2014). In addition, this is another way of giving the employees a voice
in the organization, meaning that they are valued as a fundamental component.
Regardless of the fact that performance criteria that are consistent and used on all the
employees despite their levels was emphasized on, it is necessary to ensure that the performance
evaluations are carried out regularly. This would ensure that any emerging issues are detected
early enough and addressed before they become too complicated. Another item that should be
stated strongly and emphasized on is the need for supervisors to suppress personal self-interests
when providing evaluations. As far as this is concerned, using external auditors and evaluators
can greatly ensure that these personal self-interests are suppressed (Buckingham & Goodall,
Another item that ought to be included is the need for the management to respect
employee privacy. For example, if not sure about something, a supervisor can track emails and
texts from the phone the company has given to the employee for business purposes but not the
personal phones. In addition, the management should apply the employee privacy rules to avoid

breaches. In connection to this, it would only be fair if the management evaluated only the
performance dimension for which sufficient information is available. This can go a long way in
ensuring that the management is aggressive in collecting all the needed information for
evaluation before time, and that information is not sought forcefully from the employees when
the evaluation period draws near.
Another item that HR personnel should include is strategic congruence where the
individual goals of the employees are aligned to those of the unit and organization. This is useful
since it makes the employees feel that they are in the right place. For example, an organization
that promotes learning among the employees, promotes, and partly finances their education
advancement would attract new and experienced employees compared to their counterparts.
Another item is the need to be responsive to and consider the norms of the region’s and country’s
culture (Aguinis, 2012). This promotes the organization’s acceptability to the local people, and
this is important in helping it maintain a competitive edge. The skills and knowledge of the
evaluators should change gradually based on the developments taking place in the industry. This
would act as a platform for improvement within the organization. Moreover, the organization
should always focus on using the results obtained from the evaluations for making vital
administrative decisions.
Potential costs and benefits for the organization implementing a performance management

systems which adheres to the characteristics

At Tex organization that does not have in place a recognized performance management
system, there are numerous benefits that can be realized following the implementation of a
system with the specified characteristics. Following the adoption and proper implementation of
the system, the organization would become more focused on effectiveness, success, and

efficiency. In connection to this, the employees would experience a different workplace
environment where they have the resources, ability, and empowerment needed to perform to
their maximal ability. Another benefit that the test case organization would experience is
increase fulfillment of the set goals and objectives, considering that the dedication and
commitment of the employees would go a long way in making this possible. Following the
adoption of the system, the managers would also become more committed to their management
and leadership roles, which would ensure that they remain relevant to the organization
considering all the developments going on.
One potential cost that the organization would face is an increase in audit costs.
Considering that increasing performance and productivity would become a key component, then
it would be necessary for the management to commit more funds and times towards regular
meaningful, sincere, and truthful performance review and audits. Regardless of the fact that the
organization would face increased cost, eventually, the benefits of this would become evident.

Reference List

Aguinis, H. (2012). Performance Management. New York City, NY: Prentice Hall.
Buckingham, M., & Goodall, A. (2015). Reinventing Performance Management. (cover story).
Harvard Business Review, vol. 93 iss. 4, pp. 40-50.
Ento, A., Bento, R., & Ferreira, L. (2014). Strategic Performance Management Systems: Impact
on Business Results. Journal of Computer Information Systems, vol. 54 iss. 3, pp. 25-
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, vol. 2 iss. 2,
pp. 153-155.
Yeoh, W., Richards, G., & Shan, W. (2014). Benefits And Barriers To Corporate Performance
Management Systems. Journal of Computer Information Systems, vol. 55 iss. 1, pp.
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, vol. 70 iss. 1, pp. 36-61.

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