Performance management system refers to the collaboration of managers and employees with the purpose of enhancement of an organisation’s business success and the implementation of strategic plans and models ensuring the achievement of particular objectives (Keeping the Right People n. d.).
The efficiency of the employees and the optimisation of their working process is the primary goal of the performance management system. For that, the results showed by the workers are to be carefully researched, monitored, and analysed as the performance of the workers comprises the viability of the whole company (Enhancing Employee Performance 2015).
Tyrion Lannister, the Human Resources vice president at Verve ideal Medicates (VIM), faced a problem represented by ineffective process management that was predicted to become a source of a future organisational failure even though generally VIM was rather successful. Lannister perceived that the chain of success caused irresponsible performance management that needed to be improved.
VIM has spent a lot of effort promoting their products and earning a strong brand image. Now it needs better product quality, which means the performance of product designers and engineers has to be improved. If I were assigned responsible for VIM’s performance management system, I would focus on the evaluation of the current results to specifically identify low -performers.
For that, I would simplify the grading system reducing it to only three marks (A, B, C). Besides, only the last category could have plus and minus grades to distinguish between those who need improvement the most. The employees rated with a C would be further monitored as ones with insufficient results. A stricter grading system would be directly connected to the salaries of the workers to motivate those who do not show good results.
The workers with excellent results would get incentives such as monetary rewards or have an opportunity to compete for bonuses fulfilling various performance tasks. The group of low-performers will have a scheduled conversation with the performance managers concerning their results and ways to improve. This will let them know that the organisation keeps an eye on everyone’s work and is willing to help in case of struggles.
This has to be done carefully without scaring the low-performers as VIM has already faced the problem of the workers’ reluctance concerning coaching. Low-performers should not be labelled in a negative way, but should be addressed as the members of VIM team who require guidance. Since people have changed (current employees are mostly Millenials and Generation Y representatives) and became more active, creative and independent, the organisations are to inspire progress instead of enforcing it (Vorhauser-Smith 2012).
The key to high performance is viewed as a combination of ability, motivation and opportunity (Workplace Strategies that Enhance Performance, Health and Wellness 2015). In other words, the needs of the employees need to be addressed to motivate creativity, namely, the needs for approval and recognition.
VIM is to increase its performance without maximising the rates of turnover, so low-performers are to be trained but not fired. Besides, the team of performance managers needs to investigate and identify the causes of the problem such as communication difficulties, vertical pressure, lack of feedback, unfavourable environments, or internal conflicts (Richardson 2014).
In conclusion, VIM’s performance problems occurred due to a chain of success that weakened the control over the employees’ and managers’ results. To enhance its performance, VIM needs to identify the groups of the workers who improve, provide guidance, counselling and coaching without creating an atmosphere of pressure at the workplace.
References
Enhancing Employee Performance, 2015. Web.
Keeping the Right People. Web.
Richardson, F. W. 2014, Enhancing Strategies to Improve Workplace Performance. Web.
Vorhauser-Smith, S. 2012, Three Reasons Performance Management will Change in 2013. Web.
Workplace Strategies that Enhance Performance, Health and Wellness 2015. Web.