Executive Summary
The current changes at Denmix Limited Company require a new performance management system (PMS) to be made internally due to the failure of the existing PMS to meet the standards of the company. The PMS that was made by Techno Consultant Firm had cost the company a lot of money for only a few benefits.
Currently, the PMS available provides performance statements that are customized for each employee to such an extent that they end up in a very detailed evaluation report with many pages. The PMS uses three classes, like proficiencies, behaviors, and competencies. While it is beneficial to have a customized performance appraisal of the employees, the evaluation of detailed individual tasks becomes inconsistent. Most of these statements do not contribute towards the goals and objectives of the company and make it difficult to report the feedback to the employees.
In order for the personnel management to coordinate efforts with employees and managers, updated job-specific performance statements are required to be implemented in the new PMS. For example, the Behaviorally Anchored Rating Scales (BARS) are required.
Objectives of the Project
The intention of the new PMS will be as follows:
- To enable coordination of work between the managers and employees
- To provide two-way communication for employees to improve their productivity
- To provide a clear way for managers to diagnose and solve any problems at work
Scope of Work
The existing PMS will first be evaluated to know what needs to be changed and which areas need to be improved. The specific goals to be attained for the year 2012 will be identified, and all procedures will be simplified (Darufaya, 2009).
Performance expectation for the next year is going to be set on the basis of the time frame required. The employees will then be monitored to check how well they are meeting the targets. The employees will be rated by appropriate values to measure their performance, and after providing them with feedback, new performance expectations can be set.
Project Plan and Description
It is envisioned that the project will be divided into three main phases, namely, pre-plan, designing, and implementation (Geever, 2010). In order for the project to be successful, IT specialists will be consulted to assist in the creation of the template, developing PMS guidelines, and the policy manual.
Once implemented, the new PMS will be unique since it will provide regular and timely feedback on employee performance, which will be a motivating factor to the employees.
Implementation Issues and Challenges
The new PMS will face the following issues and challenges during its development and after implementation:
- It may take a slightly longer period to develop and fully implement it;
- It may take some time for the employees and management to understand it as they have been using the old PMS (Geever, 2010);
- Technical skills may be required in the preparation of the template and policy manual hence need for an IT specialist
Advantages of the new system:
- The system will provide timely feedback on an ongoing basis
- It will be clear to understand the feedback
- It will enable proper coordination between employees and management
- It will facilitate the consistent evaluation of individual tasks.
Disadvantages of the new system:
- The resources required may be very costly to the organization
- The communication may require close attention to ensure effective working
- Resistance from employees who feel that the set standards of performance are too high.
References
Darufaya, C. (2009). Creating a better performance management system. New York, NY: Thomson Learning.
Geever, J. (2010). The foundation center’s guide to proposal writing. Sydney, Australia: Pitman.