Continuous performance management system model.
Based on the model above, an employee sets their personal goals, tasks, projects all aligned to the organization’s objectives and goals upon which managers assess and incorporate to make overall KRAs and KPIs. Motivational theories of goal setting, self-determination, self-management, and feedback intervention are incorporated in the system allowing for stronger theoretical support and, when incorporated effectively, ensure the support is witnessed in the organization allowing for productivity. Through continuous communication between employee and management in a transparent, engaging, and flexible manner, the employee can incorporate the expected strategies into their task and performance. Moreover, the manager empowers and motivates the employees through constant communication, thus increasing effectiveness and efficiency. Boosting employee morale also ensures the loyalty of employees to the organization, ensuring low turnover. The system, therefore, focuses on employee and consequent development of the organization as the main priority, thus driven by corporate values and purposes, which are created for the welfare of all involved stakeholders.
Moreover, based on the theory of performance management system, the process is simple with clear goals and criteria understood by all employees since the tool, according to Armstrong and Baron (…). Should be more of a management tool that helps managers’ manage employee rather than a system to be followed as part of the bureaucracy. Incorporating a Performance-related Pay Incentive Plan should be used as a tool of motivation and appreciating employees’ performance; thus should be allocated on a fair and equal basis. The plan and incentive should be agreed upon by employees as well to ensure transparency.
Conclusion and implication
Based on the analysis of the CPL performance management system, the effect of the poor choice and incorporation of the management system has harmed the employees and management ultimately. The Performance-related Pay Incentive Plan and the Forced Distribution Bell Curve Performance Ratings system’s poor incorporation have not only resulted in a drop in company profits but also the loss of morale among employees. Moreover, the situation has created a trend of turnover of driven and talented young, competent employees among employees. Besides, the organization has birthed a culture of nepotism, seeing as the organization neither empowers nor fosters career growth and opportunities.
Therefore, to reduce the above implication, CPL should adopt the following resolutions:
- Allow for employee engagement in matters concerning the organization, especially in management, performance, incentives, and appraisal.
- Training employees and managers on carrying out the objective, unbiased, and reliable evaluations.
- Continuous communication between management and employee to allow for the exchange of views, opinion, and feedback in a manner that is empowering and fosters collaboration among employees in the organizations.
- Providing counseling to staff, especially those with low performance, seeing as sometimes low performance is a result of psychological, mental, and emotional issues that could be beyond the work environment.
- Creating a conducive work environment for both employees. A conducive environment should be more than the working space rather than a culture that fosters growth and collaboration among employees, fair and equal incentives plan, etc.
- Allow for the coaching of performance that deviates or has low performance rather than just monitor and give feedback.
- The overall objectives and goals of the company should be joint to that of the employees, specific, realistic, quantifiable, targeting, and incorporating all staff. This ensures that the consequent determination of KPIs and KRAs is with the agreement of employees in more than just their consent but within their job description as well.