Performance Management Process Analysis

Robert Cardy and Brian Leonard fairly said in their book: “…performance management is a process needed for improvement to occur.”. In big organizations with hundreds of employees, it is important to set the same goal and focus on pursuing it. Not only monitoring performance helps to optimize employees’ work, but also helps to set clear tasks for them. It is a progressive way for organizations to produce their products more efficiently.

In the given case lead managers decided to use performance management process as a base for pay-for-performance payment and reward plan. It is a big and important step in organizational development, especially considering the fact that performance management process is a good start for such changes. To begin

Pay for performance plan requires top management of the organization to be fully in favor. Moreover, all of the departments should agree on the terms and conditions of the new rules and be dedicated to meet them. The inconsistency of the implementation of the plan can be a barrier to its processing. All parts of the team are required to meet the same criteria. Using too many criteria to evaluate the employees can actually destroy the system. Fewer ratings make it possible to distinguish the outstanding performers and reward them. The danger of limiting the budgets also endangers the pay for performance strategy. With limited finance, it is impossible to differentiate the payment to the employees. A fair evaluation of the performers is the essential part of pay-for-performance plan’s implementation. Personalized issues or prejudice can be a

They could have avoided them if they thought about following moments. One of the most crucial elements of pay-for-performance strategy is the process of evaluation of the employees. Regina and Sandy need to make their plan very clear about that. They need to make sure that their performance management process truly depersonalizes the issues inside the organization. With 360-degree evaluation, everything can influence the result and the outgoing reward. In addition, since they decided to implement the team-work system, Regina and Sandy have to discuss all the steps of pay-for-performance plan implementation with the employees. They need to develop the evaluation and reward system together, roles etc. It is important to stick with their plan themselves, but not only make it work for others. It is crucial to not put pressure on the employees while making decisions in the process but to give enough time for discussion and implementation. It is hard to expect the pay-for-performance plan to work right