Introduction
The major criterion that is used in evaluating performance contracts is the assessment of the core roles of the contractor. This is because the ultimate goal of a performance contract is improving the quality of results posted by contractors. This will ultimately improve the efficiency of the contractor with regard to the use of resources. Various governments around the world have resorted to the use of performance contracting for this reason.
In this essay, the author is going to look at various criteria of evaluating a performance contract. A discussion of at least one aspect of contract performance that has the potential to bring about difficulties in the author’s current and future positions will be provided. The author will also look at the strategies that can be used to overcome difficulties brought about by performance evaluation. At least two ‘best practices’ that can be used to deal with data, patents, and copyrights will also be analyzed. This is in addition to an explanation of how best to apply these practices in the author’s current and future positions.
Elements of a Performance Contract
It is noted that a performance contract between an employee and an organization should have clearly defined performance elements. This is especially so given that a performance contract is one of the most important documents used to gauge the efficiency (or lack of it thereof) of the employee. The elements that should be clearly defined and illustrated include the desired or expected results, guidelines to be followed, resources at the disposal of the employee, accountability and consequences of the employee’s actions among others (Flyvbjerg & Cowi, 2004). It is important to note that desired results should stipulate both strategic and operational duties that the employee is expected to perform within a stipulated period of time. This means that the objectives of the contract should be streamlined and aligned with the day to day activities of the employee (Hongxia, 2011).
Secondly, the roles of the employee in the organization should be highlighted so as to enhance governance (Hongxia, 2011). There are parameters that outline the quality of results to be posted within a specified period of time, as well as the principles and policies that will govern the execution of the contract.
The contract should also specify the resources that the employee will have access to within and without the organization. This includes human, technical, financial, and organizational support that will help the employee in accomplishing their tasks. It is also important to clarify the level of accountability expected on the part of the employee as per the specifications of the contract. The rewards and incentives to be given out when the employee achieves the set targets- for example promotion, increase in payment and such others- should also be made clear. Finally, the consequences of failure to achieve the targets within the stipulated period, taking into consideration exogenous factors, should be made clear to the employee. These are consequences that may include cancellation of the contract.
Performance Evaluation Methodology
The evaluation methodology takes into consideration the interests of the employees and those of the employer. In this case, the government is the employer while public servants are the employees. In terms of results, the output of the various departments within a given period of time (usually within one financial year) is assessed (Jensen & Murphy, 2011). In addition to this, the achievement of the strategic plan formulated by the government and the department are assessed. In terms of behavior, the relationship among the employees and between the employees and the management, professionalism of this relationship, demonstration of effective leadership skills and promotion of the collective interest of the government are also assessed for each and every department (Flyvbjerg & Cowi, 2004).
After the assessment is carried out, the information obtained is rated using five basic clusters. These are ‘exceptional’, ‘very good’, ‘satisfactory’, ‘marginal’, and ‘unsatisfactory’. When the rating is unsatisfactory, the employees are warned and advised to improve their future performance. If this trend persists, it may lead to cancellation of the contract binding the employee and the employer. When the ratings fall under the first category, the employees are awarded or given an incentive such as a bonus, a raise in salary and such others.
Difficulties in Performance Contracting
The areas discussed above are likely to conflict with the performance of the public servant. This is, for example, conflict of interests. Personal interests may precede the interests of the employer in the workplace, which will result in failure to achieve the set targets within the specified time period. Another difficulty associated with performance contracting is poor leadership. According to the American Bar (2012), poor leadership might hamper effective communication among employees and between employees and the management. This may lead to wastage of resources in efforts to make up for the inadequacies. It can also lead to souring of the relationship between the civil servants and the members of the public who may feel that their resources are wasted on an incompetent workforce.
Strategies to Overcome Such Difficulties in Performance Contracting
According to Jensen & Murphy (2011), strategies should be devised to address the difficulties identified above. Failure to do this will lead to poor performance on the part of the employee, which in turn will lead to conflicts and misunderstandings between the employee and the employer. The strategy that is commonly used to address difficulties in evaluating employees’ performance is the application of an employment contract. Most employment contracts last for about five years, after which they may be renewed. This gives the government the opportunity to assess the performance of the employee (American Bar, 2012). If the performance is satisfactory, the contract can then be renewed. However, if performance is poor, the government has the right to reject and nullify the contract.
Another strategy commonly used is the signing of performance agreements, where the employees are required to complete an annual performance agreement with their respective supervisors. The purpose of such an agreement is to help the employees identify and define the objectives of their activities and what is expected of them. This agreement forms the basis of appraisal or demotion.
Other strategies that can be used to overcome these challenges include the adoption of control measures to ensure that resources are used as planned. This is for example through the use of a purchase agreement. Another strategy is the drafting of a suitable time schedule that is flexible enough to accommodate the various environmental factors that are likely to affect performance. This will make it easy for employees to adequately plan their activities in accordance with the schedule.
Best Practices for Patents’ Rights
In order to come up with a ‘non-obvious’ and effective claim over a piece of art or invention, there is need to conduct a thorough research on the subject of interest (American Bar, 2012). This can be achieved by coming up with a list of patents that have already been issued and those applications that are being processed. This research should help the individual avoid reinventing or infringing on patents that have already been secured by other people. This will effectively avert law suits that would have wasted the resources of the organization.
Another ‘best practice’ with regards to patents is coming up with an effective management team, especially if the area of interest requires high level of technical skills (American Bar, 2012). This will come in handy because the technical team can help in prioritizing the various areas of operation. The team will also ensure that the patent obtained is synchronized with the business objectives, strategies, and goals. The team will also ensure that these rights are not infringed on by others.
Another ‘best practice’ when one wants to secure a patent is to seek advice from a patents’ counsel. The main area of interest can be the infringement of patents held by other people. This is the best option as it will protect the company from law suits filed on the basis of willful infringement.
Conclusion: Applying such Practices
One way of applying such ‘best practices’ is conducting thorough research using information from the websites of patent rights’ issuers (American Bar, 2012). This will help in identifying patents that have already been issued and those that have been applied for. Another ‘best practice’ is to carry out a periodic portfolio review. The portfolio review will help in establishing the present and future values of a patent right and the right time to abandon it. This process is important as it helps the company to eliminate unnecessary patent fees and associated expenses.
References
American Bar. (2012). The intellectual property audit. Web.
Flyvbjerg, B., & Cowi, M. (2004). Procedures for dealing with optimums bias and misinterpretation in planning: Reference class forecasting in practice. European Planning Studies, 16(1), 3-21.
Hongxia, L. (2011). Capital structure on agency costs in Chinese listed firms. International Journal of Governance, 1(2), 26-39.
Jensen, M., & Murphy, K. (2011). Performance pay and top-management incentives. Sydney, Australia: Robert Publishers.