Leadership encapsulates guiding the subordinates towards accomplishing a communal goal (Ramadanty and Martinus 2016). Leadership in organisations follow a dual-focused management approach which intends to look for the tactics which are best for the organisation as a whole and the individuals as well. It is an attitude concerned with the work ethics that empowers employees to lead from bottom, top and middle of an organisation. Motivation remains a critical criterion for the performance of the employees. Motivation energizes controls and maintains the optimum encouragement levels among the employees and henceforth, is a cardinal element for the success of any firm. Different performance management stratagems are incorporated in businesses for boosting the productivity of individuals and simultaneously of the organisation (Ramadanty and Martinus 2016).
Author Deming has demonstrated a unique way of communicating the traits and responsibilities of a leader. He has stated that the merit lists may pose a negative consequence in terms of hindering the improvement of the system. They also present strong distaste for annual performance reviews. This assessment envisions critically analysing Deming's observations regarding performance management, it also elaborates on how to advance outcomes are addressed in contemporary organisations. The assessment also discusses the human resource management skills required for avoiding the adversative issues.
Organisations emphasize short-term thinking which consequently fails the plans. Lack of constancy of purpose for planning services and products for the potential market and failing to provide adequate jobs are pitfalls that organisations sustain in today's era. Short-term planning can only apply to the current scenario and accomplishment of the short-term goals but cannot be applied for attaining the mission and vision of the firm (Kunsberg and Zucker 2018). It is also associated with the ruining of interpersonal relationships and ultimately endangering the organizational mission. In the name of performance management, short term planning is done for measuring employees' performances and appraisals are provided.
Deming (2013) stated that the merit rating rewards are provided to those individuals who conform to the organisational system and is not an attempt to reward the employees for improving the system. It gives rises to favouritism, partiality and nepotism in the business by the management and through the senior employees in the organisation and henceforth, the motivation levels of the other employees is deflated ultimately hindering the profitability of the business. It is also the key reason that the industrial unrest and lockouts are prevalent among most of the organisations leading to low productivity. The short-term profits oppose the constancy of purpose in the organisations and hence, resulting in cutting down many expenses related to long-term training which ultimately hinders the training quality, maintenance, insurance and management of the organisation (Tokarz and Malinowska 2019).
It poses a long-term impact on the employees as well. The essential problem with the merit systems is the fact that the reward systems rather than improving the performance and providing positive outcomes are simply relied upon rewarding those employees who are more cooperative and tend to have better attitude than other employees. This system instead of providing improvement and good results cultivates a fear of management. Managers think that monetary rewards can be beneficial in elevating the performance of the employees; however, there is a need to focus on the nature of the work environment to cultivate cooperation and teamwork.
The motivation of the employees is also degraded as a result of performance management. Merit systems such as merit ratings, annual reviews and financial incentives are used for performance management tools (Ramadanty and Martinus 2016). The lower merit ratings result in employees cultivating the feeling of inferiority as compared to other employees and this may further hinder their performances and lower their confidence which is reflected upon the performances. Short-term planning may cultivate a false sense of security among the managers, furthermore; building different short-term plans for accomplishing different goals can be for the expenses for the organisation. It can also be time-consuming to frame different plans and the businesses may fail to look upon the long-term goals and satisfaction of the employees.
Performance management is a process of making sure that an array of activities is implemented within the organisation so that the organisational goals are accomplished in an efficient custom. It focuses on the performance of the business by assessing different employees, departments and managing different tasks. It is regarded as a systematic process of monitoring the performance of the employees against the key performance parameters and hence, rewarding them to improve their performance. Authors Ramchandani and Aggarwal (2018) have stated that performance management is implemented to facilitate continuous feedback from the supervisors and maintaining a continuous flow of information between the employees as well as the leaders to accelerate the attainment of strategic objectives of the business.
However, apart from the positive implications, authors Park and Sturman (2016) argue that based on unfair results generated as a result of a prejudiced performance management process, the employees may feel demotivated and can also quit their jobs. If the employees perform efficiently, they wish to be assessed in a fair custom. Many organizations adopt merit rating to improve the short-term performance rather than considering the long-term success (Kunsberg and Zucker 2018).
If unfair assessment practices and favouring particular employees are trailed, then other employees may be left with little motivation to stay in the firm and may leave the company if they feel disengaged (Fletcher et al. 2020). These rating assessments are intended to bring a short-term change in employee performance, but can also be misleading and impart a negative image of the organisation on the employees and the employees may no longer feel strong ties with the firm and hence, simultaneously result in poor retention of the organisation. The morale of the employees also drops due to the prejudice assessments and they can also lose self-esteem which can result in the creation of resentment towards management and the organisation.
In contrary to this, authors Wararkar and Wararkar (2016) have mentioned that merit ratings are an essential part of performance management and long-term efficiency as they effectively bring forwards the training needs of the employees. It also fosters the informal and formal communication with employees for better comprehension of the skill set that they are equipped with (Majid 2016).
Authors Saeed and Shah (2016) feel that the merit ratings form a basis of a scientific ground of judging the worth of the employees. Merit ratings are an attempt to improve the performance of the employees if they are not up to the satisfactory levels as guided by the organisational set of standards. It also forms the ground for taking different decisions such as termination, promotion, transfer and appraisal of the employees (Adler et al. 2016). It assists in the process of promotion of the most deserving candidates and systematic evaluation and keeping a proper record of the performance of different employees.
According to authors Rivera and Tilcsik (2019), organisations may use only one factor based on which the performance is assessed and 'blending tendency notion' is incorporated in the performance management structure. Different supervisors and members of the managerial team may use different standards for the assessment and hence, confusion may be created among the employees. Furthermore, leniency among supervisors also varies (Kunsberg and Zucker 2018). This is so because lenient assessors are more likely to give higher ratings as compared to the strict assessors which may create chaos in the firm. Employees with low ratings may be left feeling non-worthy or dissatisfied (Tokarz and Malinowska 2019). In most of the organisations, assessors measure the performance of the employees by keeping them in average category and placing few in the extreme categories which are usually based on the rapport with that employee (Ramadanty and Martinus 2016).
Deming made numerous imperative observations on the performance review process. According to Deming (2013)’s opinion; the performance review in organisations is majorly impacted by the factors related with each employee. He stated that the employees are not in control of the levels of their performance and their performance is associated with the type of performance management system and organisational structure. Excellent employees main get poor outcomes and pitiable merit ratings regardless of how hardworking they are. It aligns with the opinions of authors Park and Sturman (2016) as well. Employees who are quite talented may also not get the required prospects and opportunities because of a disorganised performance management system.
The contemporary organisations have begun to comprehend the significance of long-term measures for improving the performance of the employees. Organisations are looking at career progression performance management practices. This approach is intended to strengthen the personal goals of the employees and aligning the same with the culture of the business. Organisations are emphasising on developing a clear track of the expectations from the employees and lowering competition among the co-workers and instead focusing on team performance (Lejeune et al. 2018). Motivation among the employees is also boosted in organisations by altering the leadership approach and ensuring that participative leadership is fostered so that the employees feel being valued in the business.
Contemporary organisations are progressing towards eradicating the provision of vague feedback and ensuring that the constructive evaluation is provided to the employees and a performance discussion is also conducted so that the employees can also present their views rather than simply providing the merit rating. A rationale for the performance review brings transparency between both employees and the employer so that the employees' accomplishments are focused on strengths rather than highlighting the weaknesses (Lejeune et al. 2018). Organisations are today pairing the organisational goals with the performance plans and monitoring the same towards the performance targets so that the long-term performance is strengthened and performance-aligned culture is fostered. Organisations are combating biases in performance management practices by incorporating 360-degree review system which creates a balance in the perceptions and ensures that the scope of work of the employees is also considered (Peng and Zeng 2017).
To avoid the dissemination of the feelings of being bruised, inferiority, dejected and desolate among the employees, a positive work environment must be boosted by the HRM. It begins with a well-constructed information system. The HRM must be equipped with the planning skills set entailing setting the goals and communicating the same with the employees. This makes sure that employees are well informed about the job description, the attributes, the qualities and skills required for their job profile and appraisals (Mone et al. 2018). The monitoring process also must not be too strict as apart from pushing the employees to work hard, it may also cultivate a sense of being always watched which does not cultivate the leadership skills and the sense of independence among them.
The building of the employees' skills must also be strengthened and right performance management software must be implemented so that the team's performance in real-time can be checked and modified and corrective actions to be taken whenever any glitches are found. In the monitoring phase, the data must be collected and ensured that it is contrasted against standards which are uniform for the organisation so that any sort of biases eradicated. For a proper performance-based system, employee engagement must be cultivated; this can be done through social recognition (Lejeune et al. 2018). HRM must be equipped with communication skills, conflict management and problem-solving skills so that the issues of employees regarding the performance management system are addressed in an efficient custom.
This assessment has maintained an extensive analysis of Deming’s observation on the metric ratings and its impact on the employees. He has highlighted the aspects which are counted in rewards and have reviewed merit listing, rewards and its influence on the employees as well as the organisational performance. The assessment has discussed the lack of constancy of purpose for planning services and products for the potential market and failing to provide adequate jobs which are some areas where organizations are lacking. It can be inferred from the assessment that the employees may be left with little impetus to stay in the firm and may leave the company if they feel detached. Also, the Short-term planning may cultivate a false sense of security among the managers and can be time-consuming as well and may divert the organizations from the mission. The organizations today are integrating career progression performance management practices. The assessment also discusses the goal-setting skills, communication skills and negotiation skills.
Adler, S., Campion, M., Colquitt, A., Grubb, A., Murphy, K., Ollander-Krane, R. and Pulakos, E.D. 2016. Getting rid of performance ratings: Genius or folly? A debate. Industrial and Organizational Psychology, 9,2 pp.219-252.
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Fletcher, K.A., Kanfer, R. and Tatel, C. 2020. 4 Workplace Emotions and Motivation. The Cambridge Handbook of Workplace Affect, p.52.
Kunsberg, B. and Zucker, S.W. 2018. Critical contours: an invariant linking image flow with salient surface organization. SIAM Journal on Imaging Sciences, 11,3 pp.1849-1877.
Lejeune, C., Beausaert, S. and Raemdonck, I. 2018. The impact on employees’ job performance of exercising self-directed learning within personal development plan practice. The International Journal of Human Resource Management, pp.1-27.
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Mone, E.M., London, M. and Mone, E.M., 2018. Employee engagement through effective performance management: A practical guide for managers. London: Routledge.
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