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Arguments Against The Implementation Of Performance Management Commerce Essay

Performance direction is one of the tools human resource directors can use to prosecute employees and squads to accomplish their ends and actuate them to accomplish high degrees of organisational public presentation. Nowadays, HR directors are faced with a assortment of competition and concern environments that are invariably altering persons ‘ values and life styles. Hence, the HR troughs need to understand the procedures that can assist employees accomplish the ends set by their organisations.


The intent of this study is to measure human resource direction, in peculiar, public presentation direction by concentrating on three general intents viz. , strategic, development, and administrative. Arguments are made sketching the advantages and disadvantages of implementing public presentation direction systems. Furthermore, beginnings of public presentation information used to measure the gross revenues aid of ANZ Bank are examined. Finally, an rating of the equity of public presentation direction is provided. Relevant literatures will be reviewed and discussed to back up the thoughts presented within this papers.


This study discusses, evaluates and in some instances, criticizes bing researches covering with public presentation direction and besides shows the relationship between different researches toward public presentation direction, including the advantages and disadvantages of implementing this system. Besides, ratings of the public presentation information that can adequately mensurate the public presentation of ANZ ‘s gross revenues aid along with the equity of public presentation direction systems are provided.

The General Purposes of Performance Management

Normally, the intent of Performance Management is to accomplish an organisation ‘s ends or aims. For case, Walters ( 1995 ) states public presentation direction is the procedure of bettering the quality and measure of work finished and alining all the activities involved with an organisation ‘s aims. Similarly, Armstrong ( 1998 ) recommenced public presentation direction as the strategic and incorporate attacks to present the successful to organisation by better the public presentation of employees by developing the capablenesss of squads and single subscribers. Furthermore, William ( 2002 ) states that public presentation direction marks persons within an organisation and aims to direct and better their public presentation and finally heightening the organisation ‘s aims. Schuler, Fulkerson and Dowling ( 1991 ) claimed that Performance direction is an indispensable concern driver to assist concerns achieved coveted consequences. Generally, Performance Management is an on-going procedure that needs to be monitored throughout the twelvemonth. The Performance Management intents, which chiefly includes countries such as, strategic, developmental, and administrative. Therefore, the overall outlooks and public presentation aims are reviewed as followers:

2.1 Strategic Purposes:

Armstrong ( 1999 ) pointed out that the of import characteristics of PM are end scene and feedback coupled with the development of single features every bit good as the development of organisation ‘s schemes.

Using the thoughts presented within several literature reappraisals, the major functions of Strategic Performance Management can be classified as follows: ( i.e. Atkinson, 1998 ; Dumond, 1994 ; Sink, 1991 ; Martinsons et Al, 1999 ; and Neely, 1998 )

Overlooking the procedure of scheme execution by measuring if the scheme is being put into pattern as planned. Directors and higher-level forces issue aims and ends and non merely guarantee that these schemes are implemented but besides that the contents of the scheme are up to day of the month.

The place cheque and choice employees by looking at whether the consequence of public presentation outlook is achieved

University of California, Berkeley introduced the communicating procedure that includes clear uping outlooks, puting aims, placing ends, supplying feedback, and measuring consequences. Consequently, to assist employees understand and run into the company end provided the clearly of direct communicating by base on balls the information to employees about the outlook of single to be achieved, and besides provides the feedback including benchmark ‘s public presentation in difference section, squads, single by study as the whole sing their public presentation with regard to expected end have been consider.

Documentation procedure that enable line director and employees to see the public presentation direction as a portion of day-to-day workplace behaviour.

2.2 Development Purposes:

Performance direction is an on-going procedure. After a set of work aims and organisational ends are agreed upon, the HR start with a clear understanding based on the scheme, end, step, and public presentation end to be implemented. Organization coaching and developing procedure by rating of employees ‘ attending to these schemes and point out employee ‘s strength and failing when the employees non perform good as they should. Therefore, the public presentation direction seeks to better these employees public presentation. Furthermore, organisation has to guarantee the employees achieved the measuring consequences through the feedback so employees know where they stand. De Cieri et Al. 2008 suggested that to construct a public presentation civilization by set up the procedure to promote public presentation direction feedback each twenty-four hours instead than the procedure that occurs throughout the twelvemonth. As the consequence, the reviewed of public presentation yearly more likely deformed and forgotten in order that organisation should come on proctor regular and supply employee feedback after each peculiar event finished. At the terminal of public presentation period, appraisal is made against aims, means or behaviors demonstrated. Plus, new aims for the following public presentation period possibly established ( The University of California, Berkeley ) .

Furthermore, Kaplan and Norton ( 2001 ) argued that employees at degree demand to larn the rules of the system, its steps, tools and processs. Therefore, the organisation encourage betterment and acquisition by provided valuable information to assist place single developing demand to improved employee public presentation and construct up the potency of employee for farther promotion. Furthermore, Performance direction system focuses on the accomplishments that are required to execute a peculiar occupation and preparation will assist employees to accomplish that accomplishment employee will acquire preparation that are required and have better places and compensation offers within the organisation.

2.3 Administrative Purposes:

De Cieri et Al. 2008 described the studied of PM can assist the organisation in peculiar to administrative determination doing such as salary, publicity, keeping, and expiration and acknowledgment of single public presentation. The organisation can specify employee salary toward their public presentation, the individual who greater public presentation will acquire the greater salary. The successful of public presentation direction procedure ( well-conceived and well-implemented ) can actuate employee through fiscal with the compensation and besides can actuate by non-financial wages such as positive feedback and chances to development ( Armstrong, 1999 ) . Therefore, the wages can actuate employee via their attempts that wagess can be fiscal and non-financial by fundamentally wagess provide base on the organisation ability to pay and legal ordinance as the company take the action by usage the public presentation step to cipher the wagess.

As the consequence, it can state the wages can actuate and promote edifice short term and long term inducements of engage public presentation. As the consequence, compensation can actuate the individual to execute good by the good compensation bundle will increase the employees productiveness and satisfaction degree of the employees. In extra, some organisations award the wage and fillip base on their public presentation.

Armstrong and Baron ( 1998 ) demonstrate that public presentation can be affected by several of factors, all of that should be taken into history when managing, mensurating and honoring public presentation.

3.0 Arguments For and Against the Implementation of Performance Management

Argument For:

Increasing Productivenesss

A cardinal facet of public presentation direction is developing and developing new techniques that can assist organisations better person, squad and organisational public presentation. For illustration, ANZ develop their employees to be successful in their functions, by hosting developing plans in a broad scope of countries such as developing animating leading qualities, supplying acquisition and development chances and by developing and retaining talented employees who want to set about ambitious assignments. As a consequence of all these plans, trained gross revenues aid units are able to market new merchandises online to increase client convenience and satisfaction ( Corporate Responsibility Review, 2008 ) . As on-line functionality improves with clip and attempt, clients are provided with concise and timely information such as involvement rates, currency exchange rates and so on, ensuing in an increased figure of clients using these services and higher s productivenesss.

Produce Meaningful Measurement of Employee Performance

Performance direction can assist guarantee that employees receive a just assessment based on their public presentation, by utilizing assorted methods to measure employees. Organizations so inform employees of the consequences, in the signifier of constructive feedbacks. Organizations besides take attempts to better facets of employees ‘ productiveness by supplying clear information of what is expected of them and aline these outlooks with the overall company ends and marks and besides by hosting quality preparation and development plans. Consequence, the measurings are utile for organisation scene criterions for comparing with similar organisations or old old ages ( Hyndman and Anderson, 1997 )

Increased Retention Rate

Performance direction systems are implemented non merely to measure employee public presentation but besides to understand the basic demands of employees. It helps senior troughs to understand what employees are looking for, in footings of occupation satisfaction or how he/she is executing in their several occupations. It helps to increases keeping rates in organisations. Employees are cognizant of what is required of them and concentrate their end product harmonizing to these particulars. For case, ANZ ‘s concern scheme of recruiting and retaining employees has resulted in an addition in the figure of employees from 8,810 to 9,245 between 2008 and 2009 ( ANZ, 2010 ) .

Performance direction besides can assist guarantee that employees receive just intervention because public presentation direction assessments are based on consequences. Analyzing these consequences can take to enhanced occupation satisfaction, increased productivenesss and so on. Additionally, public presentation direction can ease on-going, constructive communicating between supervisors and employees, all the piece concentrating on accomplishing organisational ends and marks.

Armstrong and Baron ( 2003 ) besides suggest that the successful execution of public presentation direction systems can ensue in desirable civilization alterations and avoid jobs such as, deficiency of apprehension and enthusiasm.


High Cost

Recently, organisations have been forced to cut down cost due to the planetary economic crisis. The determination of whether or non to develop employees has been a effect of this phenomenon. Even though preparation is the best manner to retain and keep employees, the effects of economic recession have led to organisations cutting down on preparation plans. During periods of economic recession, organisations are faced with a higher than normal rate in employee turnover. ( Glance, Hogg and Huberman, 1997 ) .

External Factors

Performance direction model and systems do non straight take into consideration external factors such as, planetary recessions or natural catastrophes. As such, when such a scenario does originate, public presentation direction system may hold to undergo heavy alterations to counterbalance.

Unrealistic Performance Targets

Sometimes organisations are despairing to accomplish organisational ends and as a consequence, unrealistic public presentation degrees may be set for employees. These marks are frequently hard and unachievable, and as a consequence, dissatisfied employees may make up one’s mind to go forth their occupations.

Actual Performance versus Target Performance

Failing to efficaciously implement public presentation direction systems may give rise to a oversight between existent and mark public presentations. A director ‘s inability to conform to processs such as carry oning regular meetings to discourse employees ‘ public presentation and supplying them with necessary preparation may take to a dislocation in the full system. Therefore, an employee ‘s deficiency of apprehension of what is exactly required of them can greatly impact an organisation ‘s public presentation as a whole.

4.0 An Evaluation of the Performance of ANZ ‘s Gross saless Aid

Like any successful organisation, ANZ bank takes its corporate duties really earnestly by following responsible concern patterns and by describing and updating their Corporate Responsibility ( CR ) Performance. ANZ ‘s CR Reporting follows the guidelines set by the planetary best pattern criterions.

In 2008, ANZ Bank implemented a new, streamlined attack, known as the Global Performance Management Framework, to ease enhanced monitoring of their employees ‘ public presentation and to use their forces ‘s full potency. As such, the simplified and globally homogeneous attack they adopted utilizes a construct known as ‘balanced scorecard ‘ , which measures and evaluates the public presentations of their employees across four chief company aims, viz. , Financial, Customer, People and Process, and besides the benchmarks of behavior and risk/compliance that are exhibited throughout the twelvemonth.

The Performance Management at ANZ is divided into three phases: Performance Planning, Performance Coaching and Performance Assessment.

Performance Planning: This phase involves puting clear and mensurable aims and marks at lower degrees of the organisation. Strong accent is placed on the impact that accomplishing these ends have on the organisation ‘s broader concern ends and precedences. Employees and directors are unified under a common set of extremely ambitious, yet realistic and accomplishable ends from the beginning so that each single understands the importance of his/her function and how he/she can lend to the overall success of the organisation. One of the cardinal focal points of this phase is guaranting that employees have a clear apprehension of the behavior and risk/compliance criterions expected of them.

Performance Coaching: At this phase of Performance Management, directors conduct regular meetings with employees to train and develop them. Directors are required to measure employees ‘ public presentation and measure their current position in regard to the public presentation degrees expected of them by carry oning mid-year public presentation treatments. A cardinal facet of this phase is to guarantee that directors provide employees with sufficient support and acquisition chances that can enable them to win at their functions.

Performance Appraisal: At this phase, higher degree forces provide lower degree employees with an rating of their public presentation at the terminal of the twelvemonth. The results of this phase are linked straight with the company ‘s wage and wagess strategies. ( Corporate duty reappraisal, 2008 )

Following these guidelines, the Performance Management Framework provides each person within the organisation with a clearly defined set of aims and ends and ensures that they understand exactly what is expected of them. Gross saless aid involves managing everyday client questions in all sections of the company ‘s aims. Therefore, the tools and instruments employed in keeping the organisation ‘s new Performance Management Framework, can efficaciously measure the public presentation of gross revenues aid in ANZ Bank, particularly when coupled with elaborate and enlightening one-year CR Reports.

In add-on to supplying one-year public presentation studies, ANZ besides maintains a Corporate Responsibility web site and issues one-year CR Interim studies and monthly Corporate Responsibility updates to stakeholders. The information contained within all these studies and updates can adequately measure the public presentation of forces, and more significantly, supply elaborate information on specific subdivisions of the company ‘s sections, like gross revenues aid.

ANZ has been describing on its CR Performance since 2004. Each twelvemonth, the organisation ‘s ends and work plans include high-priority issues affecting their industry, clients, employees and the community.

Harmonizing to the 2008 CR Report, by September 2008, ANZ had witnessed the first rise in client satisfaction statistics in over six months. The organisation had set six customer-oriented ends:

Implement a new Personal Division policy and processes to help retail clients confronting fiscal trouble

Keep their place as the figure 1 Lead Bank for major Corporate and Institutional clients

Achieve Equator Principles describing for 100 % of ANZ ‘s Project Finance minutess

Continue to better their retail client satisfaction and fit the public presentation of community and regional Bankss

Meet or transcend the public presentation criterions set out in their Customer Charter and carry on a reappraisal of its committednesss

Implement Institutional societal and environmental loaning policies for woods, excavation, energy and H2O.

The first three ends in the above list were successfully achieved, while the latter three ends were partly satisfied.

There were five employee-oriented ends set by the organisation for the twelvemonth 2008, and merely one of these ends – puting adult females in managerial places in Australia and New Zealand – was unattained, although, the existent statistics merely marginally trailed the mark figures. The end of using 100 Autochthonal Australians, as portion of the Indigenous Employment Strategy was successfully accomplished, as 106 Autochthonal trainees were employed by ANZ in 2008. The three other set ends that were partly achieved are: Closing the spread on wage derived function between work forces and adult females at all degrees of the organisation, Reducing their Lost Time Injury Frequency Rate by a farther 20 % in Australia and New Zealand and study public presentation globally, and better their public presentation in the ANZ Engagement and Culture Census.

Of the four community-oriented ends that were set, all four were successfully accomplished. The ends included: Release ANZ ‘s bi-annual fiscal literacy research, Meet their fiscal literacy and inclusion plan marks, Achieve 70,000 hours of staff volunteering across the Groups and 15 % engagement in paysheet giving, Achieve the committednesss in our Reconciliation Action Plan including staff preparation, fiscal literacy and helping to construct the capacity of Autochthonal organisations.

The figures and results in these studies provide equal information towards measuring the public presentation of assorted subdivisions in assorted sections.

5.0 Evaluation of the equity of public presentation direction

One of the most of import maps of human resource direction is Staff Performance Management. As discussed earlier, ANZ Bank employs a direction tool known as the Global Performance Management Framework to supervise, measure and heighten the public presentation of its employees. One of the cardinal facets of Performance Management is to explicate a set of ends and precedences that serve as marks and guidelines for employees to better understand their several functions and how each person ‘s public presentation impacts the organisation as a whole.

The employee public presentation direction system encompasses the undermentioned basic purposes:

Direct employees in order to accomplish the aims in the assorted sections and subdivisions present within an organisation.

Appraise, evaluate and supervise the public presentation of employees and heighten communicating between employees and direction forces.

To supply tracts and formulate strategies for developing employees.

Throughout this study, assorted research stuffs are sited back uping the fact that public presentation direction, if implemented decently, can guarantee an organisation ‘s success. This subdivision of the study attempts to associate public presentation direction with other Human Resource Management maps to determine and measure the equity of public presentation direction.

Figure 1: The nexus between Performance Management and other HR Functions

For a public presentation direction system to be effectual and functional, certain elements are usually incorporated into the system:

Open and just

Oriented towards the competence of employees

An on-going procedure ( HRM civil service agency, 1999 )

Open and Fair

This component of the public presentation direction system seeks to accomplish equity in public presentation assessment by promoting employees to be outspoken and constructive in their feedbacks. Additionally, directors are besides encouraged to be unfastened and nonsubjective in their assessments of the employees. The undermentioned methods can be instrumental in carry throughing this:

Explicating comprehensive and elaborate aims and marks.

Promoting higher-level employees to carry on treatments with employees refering to their public presentations and supplying guidance and preparation when necessary.

Making equal chances available to all staff members, in footings of publicities, wage and wagess bundles and preparation and development.

Forming a panel, whenever possible, to ease equity in public presentation assessments.

Oriented Towards the Competency of Employees

The competence of employees can be loosely classified into two sub-categories ; nucleus competences and functional competences. Competency relates to the cognition, attributes, attitude and accomplishments that are required for an employee to win in his/her function. Core competences include a set of accomplishments necessary for an employee to satisfactorily execute his/her responsibilities in their several sections. Functional competences include specific sets of accomplishments required by an single to execute his specific function in the organisation.

Making usage of a system that is competency-oriented greatly enhances the beginning phases of public presentation direction, where ends and aims are formulated. Employees at different degrees of the organisation are able to understand what is required of them due to the well-structured occupation demands that align each person ‘s function in the organisation ‘s concatenation of bid.

An Ongoing Procedure

Performance direction systems are an on-going enterprise that requires changeless attending and monitoring. Failing to keep set criterions on a regular footing may take to a diminution in the quality of the company ‘s public presentation and end product. This procedure involves:

Performance planning: This phase involves the valuator and the appraised, in that, the former informs the latter of the duties and aims they are required to fulfill, by puting realistic, precise and quantitative marks as comprehensive guidelines for them to follow.

Coaching and development: Here, peculiar accent is placed on giving acknowledgment to good public presentation and supplying helpful feedback and counsel to employees. Acknowledging notable public presentations can be a good manner of hiking morale and promoting employees to endeavor for excellence. Supplying uninterrupted guidance and advice can guarantee that employees are up to day of the month in the organisation ‘s on-going pursuit for success and retaining the degree of success, once it is achieved.

Interim reappraisal: An interim reappraisal purposes to measure employee public presentation. It is a formal interview or treatment where the evaluating forces identifies public presentation consequences and undertakes appropriate actions, buttockss development and preparation plans, place any defects or barriers that prevents employees from making their full potency and do alterations to the aims required of the employee.

Human Resources forces bridge the spread between employers, directors and employees. Therefore, in add-on to their other undertakings, HR forces can guarantee the equity of the employee public presentation assessment processs by understanding the employees ‘ construct of equity and encouraging helpful feedback from employees, therefore easing better communicating between higher-level forces and lower-level employees.. A carnival and transparent system promotes and encourages employees to execute at their best, as the possibilities of accomplishing publicities and benefit bundles are of all time present and realistic.


Obviously, PM is one of the most of import maps of HRM which links persons ‘ aims and organisation ends. Therefore, PM can be a really effectual and efficient direction tool if applied decently. An organisation should supply its employees with the clear information of the organisation ‘s purposes, occupation outlooks and actuate employees to execute better by concentrating on the coveted consequences, bettering communicating, and developing the accomplishments and attitudes of employees to better enable them to accomplish organisational ends. Furthermore, the execution of public presentation direction models can be both advantageous and disadvantageous for an organisation. Analyzing ANZ bank ‘s beginnings of public presentation information shows that the execution of a solid PM model, coupled with their globally recognized describing methods enables the organisation to adequately measure the public presentation of ANZ ‘s assorted sections and sectors, including the gross revenues aid unit. Finally, equity in measuring and measuring employees ‘ public presentation within an organisation can actuate employees to heighten their public presentation. Organizations can accomplish this by supplying equal chances for their employees towards publicity options, entree to wage and wagess strategies, training/counselling/mentoring/advising, supplying clear, concise information and stipulating occupation undertakings and so on.

7.0 Recommendations

Organizations should go on to reexamine their schemes on a regular basis by concentrating on public presentation direction. Organizations should endeavor to take actions that can ease betterments and employee preparation and besides concentrate on the development of schemes to warrant any spreads, if present, between the organisation ‘s existent public presentation and mark ends.

Fairness plays an of import function in actuating and steering employees. Although, the construct of equity may change from one person to another, there are certain political orientations, nevertheless, that remain changeless. For illustration, it is normally understood in a workplace that an employee should be rewarded based on his/her public presentation within the organisation. The facets of equity that may change from one person to another are feelings of how one was treated by his/her employer or director in respects to a peculiar scenario. Therefore, it is of import for directors and employers to determine how their employees perceive equity. This can be accomplished by supplying employees with questionnaires that will enable them to show their return on equity. This will assist higher degree forces to understand their employees more closely and orient their wage and wagess bundles and developing chances consequently.

In public presentation direction, the employees are capable to be reviewed by their directors. Employees will straight have feedback from the members of their squad. The squad members will detect each other and so describe to directors when public presentation jobs occur. Subsequently, the directors should unite the feedback gained from their squad members and so set about the necessary disciplinary steps.

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