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This paper is about detailed but precise information on existing and proposed performance management system of an organization name as State Civil Service. This paper initially includes the description of the organization which is under consideration such as the kind of PMS currently exists in the company, what are the different flaws in the current PMS, dissatisfaction of employees with the organizational system. Furthermore paper elaborates features of a good and authentic PMS like advantages of good PMS and what can be the consequences of poorly implemented PMS. Towards the end proposition of a new PMS design which highlights the way it will affect the particular organization and its employees as well. Than different benefits organization will be having through such PMS and the most important by introducing this proposed PMS how much cost can saved. At the end recommendations are made on the basis of problems in the existing system and in order to support those recommendations different authenticated articles have been considered in light to justify the proposed aspects.
To: Jeffrey Macullam, Governor of the State
From: XXXX, HR Consultant
Date: April 3rd, 2011
Subject: Design & Implementation of a Performance Management System (PMS) at State Civil Service
This consultation paper proposes the design and implementation of a Performance Management System (PMS) at state civil service.
The organization key function is to direct and implement the laws of the state. To guarantee the fulfillment of its customers it is required to improvise its receptiveness to the public sector.
I have well thought-out the following points:
Importance of a PMS for the state.
Advantages of a PMS for the state and its employees.
Disadvantages of poorly implemented PMS.
Impacts of implementing a PMS on employees rewards.
Cost and possible cost reserves from implementing a PMS.
The arrangement of this paper follows the five topics acknowledged above. First it is essential to briefly present the findings by analyzing the existing situation at the state civil service.
Overview of organization
The recruitment policy of state civil service is categorized. Organization hires different classification of employees with variable educational background and levels of compensation.
The reporting structure of employees in the organization is multilevel. Employees report to supervisors who further report to program managers and so on in a six-level organizational chain of command. The department directors are running their departments followed by the directions received from the governor. The rest of employees are hired and promoted on a civil service, based on merit.
The state uses a uniform appraisal procedure on quarterly basis (first year only) and yearly basis after on. Supervisors are supposed to measure both results (quantity and quality of work, effort - time) and behaviors (joint effort & devotion).
The employees are paid, through a seven-step pay structure. Their salaries are in contrast to the cost-of-living, receive standard benefits which includes medical and retirement benefits.
Some of the employees are unhappy with the pay and decided to leave, while others are satisfied with the work or with the security of job.
Outline of the PMS Plan:
The following analysis is based on the above findings examined in comparison with the characteristics of an ideal PMS:
Obvious lack of strategic congruence; individual goals are standardized but not aligned with the state and departmental goals
Improper management as system itself is not thorough and inclusive; there is no confirmation that all employees are evaluated; also not all features of the employee's job responsibilities are evaluated.
Lacks of practicality and meaningfulness (once a year, no skills development plans, no visible returns)
Lacks reliability and validity; there is also a lack of Particularity (expectation from them and how they can meet those expectations) as well as openness (ongoing evaluation and feedback).
Employees are less captive to the system (often leave their job).
The system is inconsistent
By putting in a nut shell, the existing system at state civil service is not a real PMS but more of a performance appraisal system, that is only one component of the PMS. Some visible signs of this flawed system are employee turnover (physical leave - immediate or psychological withdrawal - less effort and productivity) and low levels of sensitivity to the public.
The accomplishment of a good PMS at state civil service will address these issues.
Importance of PMS for the state civil service:
The PMS is not a once-a-year process (performance appraisal) but a continuous process that identifies measures and develops the performance of the state civil service employees and aligns their performance with the strategic goals of the organization (Aguinis 2008).
Through the identification of the state mission, vision, goals and strategies and relate them down to department and employee levels, PMS will help the state top management to achieve the strategic goals of the organization.
With the use of valuable information provided by the PMS in the reward system the top management will be able to make informed organizational decisions about the employees.
The PMS will provide information to the employees about company's expectations from employees and how they are doing and where they need to develop in order to align with the strategic goals of the organization.
The PMS will give the supervisors and department heads the chance to coach their employees and help them develop and advance their performance on an ongoing basis.
The PMS will provide top management valuable information for workforce planning and true talent management.
Information received through PMS can be used for various documentation purposes, especially in cases of employees' complaints and litigations.
Advantages of PMS for the state and employees:
There are numerous advantages of a good PMS for the state civil service, managers and for the employees.
State civil service perspective: The PMS main assistance will be: better clarity of the organization and departments goals and its alignment with individual goals; fair and suitable administrative actions, protection from employee's complaints and litigations and input to organizational change.
Technological Advancement: Nobody can deny the importance of technology in every sector. Similarly Brutus (2010, pp 145) acknowledges that new technologies can help more successfully to study, report, and aggregation of qualitative data. It further explains the narrative explanation should have distinctiveness such as valence, domain coverage, and particularity which makes this approach to be more practical (figure2 in appendix)
Author strongly prefers to apply narrative comments attitude in performance appraisal. As different recent researches focused on quantitative performance rating model, this research base document assumes performance appraisal should be followed by open-ended questions and majority gives attention to qualitative format. At this point feedback is an important factor as well. Author tries to improvise the role of evaluators to expert feedback recipients. Towards the end, report indicates that how use of this method can change evaluates attitude and similarly their performance on the job.
By implication of narrative comments rather than just rating employees, like what organizations usually do it, is basically a smarter way to retain the talented staff. Changing from numbers to words in performance appraisal is powerfully associated to send and receive better-off feedback which is the existing issue within EWM. Feedback itself for employees is a booster because as soon as employees receive particular and great amount of feedback ,they are in the position to identify their strengths and weaknesses which gradually motivates them to improve and develop their skills .In this paper author highlighted the importance of giving feedback which is essential step towards developmental process of employees performance (Alder ,2007,p160) and helps us to identify better way to review employees.
Managers' point of view: Another main advantage refers to better awareness of the subordinates and isolation between good and poor performers.
Employee point of view: A good PMS will increase the motivation level, self-esteem and dedication towards the organization; it will give a improved understanding of their tasks and duties such as what is expected from them as well as opportunities for development.
PMS impact on employees' rewards:
The Present reward system at the state civil service (seven-step pay system) has a low reliance on the performance management. Employees usually receive a fixed 5% step increase/ year until they reach step six where they stay for 5 years when they are moved to step seven as a seniority bonus.
Proposed PMS will have an impact on the merit-pay, short-term incentives (bonuses) and long-term incentives which have a high dependence on the past performance. Such reward system will be better aligned with the reward systems already exist in the private sector.
Proposed PMS design and implementation cost & cost savings:
Proposed PMS design cost will cover: HR Consultant cost, time cost of all the state civil service personnel and cost of software on which the performance management will be performed (e.g. PeopleSoft).
The PMS implementation cost will comprise: training sessions for managers, communication cost (planning, meetings, events, posters, leaflets and cost of pilot testing, monitoring) and evaluating the usefulness of the system.
No doubt initial investment in the PMS will be massive but on the other hand the saving costs of implementing such a system are enormous:
Image of the institution alleged as ethical and fair.
Number of satisfied customers will rise which are serviced by satisfied employees.
Reduction in recruitment costs because employees will be satisfied with their jobs.
Less training costs to train the new employees recruited as replacements.
reduced costs from lawsuits and employee complaints
increased productivity of the employees who are satisfied with their jobs
Work relationships atmosphere will be amicable and joint.
Rise in organizational commitment
Improved organizational culture
Impact of a poorly implemented PMS:
The design and implementation of a PMS for state civil service should be properly established in order to avoid negative cost for the state, managers and employees.
Poor design and implementation will lead to such problems.
Waste of money and time
Unfair ratings of subordinates performance and a decrease in their subordinates' performance.
Increase in number of resignations, less motivation to perform and self-esteem, job dissatisfaction and decrease in organizational loyalty, relationship gap with their managers.
Human Resources Department will be confronted with:
Impression of resignations or low performance of employees which will affect the workforce planning along recruitment and hiring decisions
Increase in training requirements it can be either for newly recruited employees or for developing the existing employees who are underperforming.
Complaints in concerns to the compensation and benefits
A poorly implemented PMS will negatively impact all the other HR functions.
Prior text has shown that the implementation of a good PMS at state civil service will have major advantages for both the state and employees. Care is needed to keep away from a poor implementation and its negative penalty for all parties involved. The design and implementation of a PMS will require the contribution of all personnel and distribution of significant resources such as money and time. The cost savings due to implementation of the PMS are huge and will get through the investment made in 3-4 years.
Below are my recommendations for the design and implementation of a good PMS system at state civil service:
Redefining of company's mission, vision, goals and strategies to enable high customer satisfaction (sensitivity to public).
Construct department level mission, vision, goals and strategies aligned them with the state (who: top management, managers, HR)
Modify existing job descriptions to be aligned with state and department mission, vision, goals and strategies (who: managers, employees, HR)
Set-up individual goals (results and behaviors) and developmental plans aligned with the state and department priorities (who: managers, employees)
Implement the PMS: performance execution, assessment, review, renewal and reconstructing (continuous cycle)
In the light of some authentic articles some of the recommendations are:
For every organization leadership is an important ladder towards success because this role carries a heavy significance in itself for organization. Avolio and Hannah (2008, pp336) enlighten the development of leadership can be defined as a major goal in many organizations which triggers them to propose a new structure to accelerate leaders development. As a most important step, authors considered self-concept clarity, efficacy, goal orientation, and cognitive ability as important part which will indicate that to what extent leaders are ready for development. Authors explained in detail about the definitions, effects of the above mentioned points on leader's development and several ways to improvise them in order to smooth the progress of developing process. The second point of the article is working on how organization as a precondition should prepare suitable atmosphere for positive development of leaders
Among the vital factors to hold and keep effective performance management system within the organization is coaching. As McCormick and Burch (2008, pp267) stated:"coaching has become a well-established method of one-on-one leadership development in many organizations". Leadership development can be measured as a key alarm for companies to bring up with better coaches for future. This reference helps out to first be sure whether our leaders are ready to be developed or not. In second phase the reinforcement by the organization on leaders to entail development.
Based on this fact that performance control system (PCS) and performance management system (PMS) are tangled, this reference attempts to build out new skeleton by integrating the above mention two aspects together and name it as a new approach of PMS for the organization. This research paper hypothetically propose the definition of PCS from diverse point of views .In the subsequent step basic characteristics of PM structure of Otley (1999) and Simon' (1995) levers of control framework is discussed and acknowledge, some of the reasons that why they cannot be helpful after the practical implementation of it separately. Although Ferreira and Otley (2009 pp 263-282) in this paper has extended new frame of PMS by introducing tentatively 12 questions and suitable ways to answer these questions (displays in figure1 in appendix). Taking into account organization's structure and culture in PMS process makes this research exclusive and valid for different organizations. Heading towards the end applying this framework in two different organizations in USA prove its validity.
I assume that this new framework is valuable for organization from both macro and micro perspective. As Jones (2010, p91) elaborated that in macro level, the most important aim of all organizations in this unstable and challenging business environment is to gain benefit of resources (employees, goods, customers etc) and persuade other organizations . It has been found in UAE, the country with immense potential due to its planned location for Middle East and gulf countries, can be great prospect for EWM to enlarge their services and branches. But for this expansion, organization needs particular and continuing PMS process. The new elastic framework of PMS can smooth the progress of this enhancement. At micro level, this new PMS approach allows the organization to analysis, plan and manage performances to support and facilitate organizational learning and change (Malmi & Brown, 2008).
For the successful PMS design and implementation it is of the most importance to engage all state civil service personnel in this process, giving them prospect to voice up, express their concerns and receive feedback. In such a way they will be able to understand their input to the state strategic goals.