Management and Organistaions in Global Enviornment

Question: Discuss about the Management and Organistaions in Global Enviornment. Answer: Introduction In todays globalized world, it has become easy for companies to accomplish latest technology in their organization. This is due to the fact that internet and communication facilities have provided a wide platform for the companies to deal in international market and expand their operations and functions. For many industries, differentiation in product and services is no longer a competition and challenge. In order to have competitive advantage, companies are bringing effective and efficient manager of the human resource, raw material, labor, technology, etc. (Busi, and Bititci, 2006) There are many factors that make a business successful and a key to have competitive advantage in the company. The key factors are people and their performances. This report is all about the implementation and design of the performance managements system to an organization. The performance of each and every individual plays a vital role in the growth and development of a company. An organization whose people are motivated and well organized can perform better as compared to the other people who are non laborious and having no potential. Today, the aim of every company is to fulfill the demands and needs of the customers by providing them higher level of services and good quality of products. This can be achieved through talented, skilled and managed employees in the organization. The customers of todays world have become very advance as they want their services in their hands and answer on the right time. The fact is that only the human resource of a company can bring competitive adv antage (Cohen, 2007). In order to manage the performance of the employees and to have effective management, performance management tools are used in which identification of performance, measurement, development of the performance takes place. The aim of this process is to inter-relate the goals of the organization by the goals and objectives of the employees. In this way, the overall objective can be accomplished. The process of performance management is very critical and it used to change according to the size and nature of the organization like non- profit or profit making organization, big or small organizations, domestic or international organization, etc. it is true that the growth of the organization depends on the performance of the employees and other people related to it (Martocchio, 2008). The performance management of an organization is related to the HR department and human resource working with an organization. In this report, the focus will be put on the relevancy of performance management in the organization. This report is all about the implementation and design of the performance managements system to an organization. In simple words, it concentrates on the applications and implementation of performance management policies and strategies to a company. The process of performance management is a continuous and pervasive process (Bartunek, Rynes, and Ireland, 2006). In this study, the main focus is on the performance management and its context with the relevant theories of management will be mentioned. There are many positive and negatives outcomes of each and every approach which will also be discussed in details, besides this, there will be a brief description on the management by objective (MBO), its revise and agrees, 360-degree feedback, comparison and contrast between the strength and weakness of cohesive versus non-cohesive teams and the application to High Performance Organisations, performance management according to the control theory perspective and many other research topics related to performance management and its importance (Shane, and Ulrich, 2004). Performance Management in the context of identifying the relevant School of Management Theory First all of, there is a need to understand that what is performance management? performance management refers to a continuous process whose focus is to identify, measure, develop and growth in the performance of the individuals by inter relating the goals of the company with the goals of the employees so that the entire mission and vision can be accomplished effectively and efficiently (Emrouznejad, Parker, and Tavares, 2008). There are various major components of performance management like it is a continuous process; it is a link between the mission and goals of the employees and organization, focus on employees growth as well as organization growth, etc. (Franco, 2007) The management theory explains that to have competitive advantage in a company, the human resource departments have to focus on the performance management of the employees. There are various ways through which it can be achieved. It can be achieved through evaluation of the performance of the employees and providing them feedback according to their performances (Grnroos, 2001). The process will continue with the coaching and training of the employees so that their performance can be improved. The managers should control the performance of the employees by observing them and their work. There should be a combination of performance management and performance appraisal to have a win-win situation from both sides. Performance appraisal is a small part of performance management in which the strengths, weakness, potential, etc. of the employees are evaluated and then the results will be discussed with the same (Paranjape, Rossiter, and Pantano, 2006). Positives and negatives in the approaches to performance management Conversation is based on the performance of the employees- It is a process through which managers have to interact with the employees as they have to observe the performance of them. It provides them platform to analyze the performance of the employees (Scott, and Einstein, 2001). Targeted staff development- It is the responsibility of the managers to target the development of the employees as they are the part of the company and the development of employees is positive for the development and growth of the company (Brown, Hyatt,. and Benson2010). It acts as an encouragement of staff- It is observed that performance appraisal is a celebration for all the members of the organization who performed well and gave their efforts to the company. It is a big encouragement to staff as they get benefitted financially and morally. There are some particular tricks by which the appraisal of the employees can be calculated correctly. It is by observations and focus on the work of the employees (Cook, and Crossman, 2004). It provides rewards to the staff that well performed their job- The performance appraisal of the employees results in rewards, financial benefits, etc. the pay of the employees is tied with the performance appraisal process. The staff members realize the value of financial rewards and performance appraisals. It helps in the motivation of the employees so that they can perform better (Turk, 2008). The under performers are easily identified and eliminated- The effectiveness of performance appraisal is that the employees who are inefficient to work are identified and eliminated from the organization. It allows the managers to ask the employees to give answer for the poor performance (Van Fleet, McWilliams, and Siegel, 2000). Documentation of the history of the employee performance- It is very relevant for the orgnaistaion to maintain a record of the history of the employees. Such documents are kept with the HRs file. The aim of doing so is to maintain a record of the history, journey of the employees performance of the members working with your organization (Colarelli, 2003). Growth and development of the employees- The performance management and performance appraisal of the employees acts as a motivation tool for the employees. The motivated employees work with their full efficiency and capability (Ovando, and Ramirez Jr, 2007). Time taking- It takes and consumes a long time of the managers Hr professionals to manage the performance of the employees. Discouragement of the employees- Many of the employees get discouraged due to the performance appraisal. Inconsistent information- Many times, the managers are unable to gather and collect enough information about the employees. This results in inconsistency of the information and data. Biasness- It is the fact that there is biasness in performance appraisal procedure as it is very structured and objective in nature. MBO (Management by objectives) The approaches of performance management are usually context with framework of management by objective. MBO is a type of information and knowledge that helps the organization in setting the objectives and goals, communication of expected results by the employees, establishment of time frame to achieve those targets, and methods how to accomplish the goals (Ledingham, Bruning, Ki, and Kim, 2000). The context of management by objective and performance management is run side by side in the organizations. The combination of these two approaches refers to the individuals management whose first step in to initiate the communication about the expected result. The goals of employees are to reach to higher level as soon as possible (DeNisi, and Kluger, 2000). To avoid such situations like job hopping to be happened in the organizations, the managers should develop the sense of responsibility. The main focus of the employers is to teach the employees that they should accomplish the development objectives for a longer period of time. The requirement of management by objective to distinguish between the star workers and the other workers, provide support to the average workers and proper feedback to the poor and inefficient workers (Simmons, 2002). The aim of management by objective is to set targets and objectives for the employees so that they can feel challenged and achieve them in a proper way. In this, daily feedbacks are provided to the employees and the feedbacks results in rewards and penalties (Dolin, Cashman, and Bland, 2002). The emphasis is put on the personal growth and development of the employees instead of spreading negative impact on them. It is a tool that must be utilized by using various types of management by objectives (Giacalone, and Rosenfeld, 2013). The first step is determination of organizational goals and objectives on the company. It can be done by reviewing the mission and vision of the organisation. The next step is translation of the organizational objectives to the employees. It can be done through application of SMART goals (Benbasat, and Zmud, 2003). In the third step, there is a stimulation of the participation of the employees in setting the goals of the organization. After the settlement, the plan and objectives are shared with top to bottom level of management. Managers must encourage and help the employees in adjustment and application of new goals and objectives (Eisenhardt, and Graebner, 2007). The next step is to observes and monitor the performance of the employees and to identify and compare between the desired output and actual outputs. At, last the performance is evaluated and rewarded as in this step a positive and honest feedback is delivered (Ghorpade, 2000). Review and agree Review and agree refers to measurement of employees performance through reviewing their data and information collected by the peers, managers, colleagues, team members, etc. It is an easy way to generate ideas and values of the performance of the employees. There are various methods that come under the review and agree method like gear review. In the agree part of review and agree, the degrees of agreeing any review are provided to the employees so that they can identify the places where they are lacking in their performance (Morgeson, Mumford, and Campion, 2005) 360-degree performance appraisal It is also known as multi rated feedback, multi source feedback, multi source feed backs. The meaning of this feedback is to collect the information and data of the employees from each and every source from which the data can be collected (Hambrick, 2007). It provides managers an overall growth and development of the performance of the employees. It helps the Hr managers of the company to analyses the performance and gives feedback to the employee (Ryan, and Bernard, 2000). The data is collected from the peers, colleagues, team members, managers, top level team, etc. there are various types of varieties form which the data is collected of the employees. It is one of the traditional methods of performance appraisal. It is one of the most used methods in the performance management of the companies. This method of performance appraisal always generates accurate and correct results for the employees (Toegel, and Conger, 2003). Comparison between strengths and weaknesses of cohesive versus non-cohesive teams and the application to High Performance Organisations Contrast and comparison between cohesive teams Strength Weakness Shared values Team loyalty Familiar to each other Smooth working Common goals Effective communication Varied skills Fill each others lack of skills and knowledges Group conformity Potential hazards Disagreements Arguments Lower productivity due to inefficient working environment Rely on others Less ability to make decisions, Contrast and comparison between Non-cohesive teams Strengths Weakness No group conformity No potential hazards No Disagreements No Arguments Higher productivity due to efficient working environment Rely on others Ability to make decisions, No Shared values Lack of Team loyalty Employees are not Familiar to each other Strict working No Common goals Ineffective communication Skills have no variations No one can fill each others lack of skills and knowledges The application of both on the High Performance of Organisations The applicability of cohesiveness leads in we-ness in the organizations. It helps in bringing and uplifting the employees working with the company. It acts as a pride to the company that their employees are working with cohesion. There is a commitment in the work of the employees and they are inter-related to each other. So, it can be said that cohesive teams are better than non cohesive teams. Performance Management from a Control Theory Perspective It is very relevant for the company to control the performance of the employees by the method of performance management. It is a part of control theory. From the perspective of control, performance management is one of the effective ways. It can be done through analyzing the performance of the employees and giving them feedback so that they can bring improvements in their performance. In this way, the performance management is a part of control theory. The goals of employees are to reach to higher level as soon as possible (DeNisi, and Pritchard, 2006). To avoid such situations like job hopping to be happened in the organizations, the managers should develop the sense of responsibility and bring control. The main focus of the employers is to teach the employees that they have to accomplish and develop objectives for a longer period of time. The requirement of control is to distinguish between the star workers and the other workers, provide support to the average workers and proper feedback to the poor and inefficient workers (Anderson, Ones, Sinangil, and Viswesvaran, 2001). The Balanced Scorecard Approach It is an approach used in the performance management of the employees. it is a type of strategic planning and also management system which is used by almost all the organizations, like government, industry, nonprofit organization, etc. it helps in alignment of the business activities with the vision and mission of the company and the employees objectives and goals. It helps to bring internal and external communication (Ordez, Schweitzer, Galinsky, and Bazerman, 2009). It also monitors the performance of the employees according to the set standards. The main motive of balance score card is to analyze the difference between the actual output of the performance and the desired output of the company. The balance scorecards retain the traditional methods of performance appraisal and financial methods (Antonioni, and Park, 2001). There are two main functions performed by the balance score card are- Strategic planning in the organization Management system Conclusion At last, a conclusion is conducted to provide a summary of the present report that is the importance of performance management. To overcome the problems, issues and challenges related to the performance, there is a need to develop an environment in which all the members of the organization continuously manage the performance of ach other timely. It can be achieved through injecting team spirit, developing interest of the employees in the work, inducing of feeling towards the responsibility towards the organizational goals and objectives, etc. there must be a feeling of involvement so that they can take interest in the decision making, sharing of ideas, etc. in this way, the employees and their performance results in the success of the organization up to a large extent. We have discussed many techniques that can help to improve the performance of the employees and it is the fact that these techniques are very effective. The performances of the employees are directly related to the organizational success of the company. There should be a sensible balance between the performance of the employees and also strategic planning. The interest of the business and interest of the human resource must be managed in a balanced way to reach to the operational level of the company. 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