Q The report is for Performance Management in Mazoon LLC in order to plan the work-related expectations from the employees Home, - Performance Management in Mazoon LLC Performance Management in Mazoon LLC Introduction: One of the essential functions of performance management is known as human resource management. The major goal of performance management is to determine the employee activities and further discuss how the employees have to conduct those activities. The office of Personnel Management is United States (2001) once stated that performance management is a systematic process in order to plan the work-related expectations from the employees, it also includes the continual monitoring of the performance, development of the employees and periodically rating the performance and finally rewarding the good performance. The performance appraisal is not meant for evaluating the performance of the employees only, it is also a mechanism for identifying the training and development needs of the employees. Organizations may use the performance appraisal for enhancing the employee performance by monitoring the performance of the employees. The methods for appraising the performance of the employees are using result oriented, also the supervisors should be skilled and expert for appraising the employees (Ekinci and Riley, 2000). The major objective performance management is to ensure the achievement of business goals and also to enhance the strength of the employees. For sustainable growth it is essential that business objectives should be well communicated to all levels of the management. The process of performance management has systematic approach which starts from the development of the objectives and leads to its achievement and evaluation of the objectives. Role of Performance Management in developing a performance culture in Mazoon LLC. The organizational model of Denison is based on four cultural traits known as involvement, consistency, adaptability and mission. These four traits influence the organizational performance and the performance of the employees. These four traits are discussed as following: 1. Involvement: effective organization decentralize the decision making and empower their people, develop teams within the organization and also develop human capability. Managers and employees depict organizational commitment towards the organization. When the organizations empower their employees, the people in the organization feel that they are contributing to the success of the organization as they are involved in the decision making process. 2. Consistency: The organizations which are working effectively have strong cultures, these organizations are well integrated, well-coordinated in their work related activities. When the performance management mechanism is effective then the leaders and followers have the sill of having agreement with each other and with other stakeholders of the business. These organizations are consistent, and assume consistency as their competent resource which enhance the internal integration in the organization. 3. Adaptability: It is usually the case that well integrated organizations have difficulty in adapting to the change. Internal integration and external adaptation are two opposite aspects. Adaptable organizations are influenced by their customers’ choices, they are willing to take risk and have the capability to create a change. They are continuously improving their system by adapting themselves to improved conditions. 4. Mission: The organizations which have clear purpose and objectives then they are successful, as they have clear vision that how they have to run their organization in future. When the underlying mission of the organization changes then the other aspects of the organizational culture also changes. The performance culture is developed on the basis of discipline. When the discipline is ensure, the standards of excellence are promoted in the organization and people are directly accountable to others. Discipline also ensures that the expectations from the employees are always clear. However, if there is lack of agreements in the organizational culture then there is little or no accountability in the organization. When there is performance culture, then the strategy for proactive performance management mitigates and discourages the disruptive behavior and encourages the constructive behavior. In this form of organizational culture people are truly engaged in organization. Similarly in the case study it is depicted that performance work culture is encouraged in Mazoon LLC., where the organization have following observances in terms of culture: • In Mazoon LLC. due to proper performance management system, there is openness and trust among the employees. Openness is encouraged and they are willing to speak on any issue. There is an environment of trust in the organization and these reduces the negativity when there is any kind of issue. People are more honest and they are frequent in providing their feedback and share their ideas. In this way the organization is able to derive talent greater value from its employees and also they will be able to develop competency and can easily contribute to the success of the organization. • At Mazoon LLC, the conflicts are resolved. Due to accountability in the cultural values unfulfilled commitments of the employees are exposed and they can better learn to rectify their mistakes. Employees in the organization express real opinions spontaneously and therefore options and alternatives to different problems are available without any effort. Therefore, in Mazoon LLC. the issues are resolved more effectively. • Due to effective employee feedback in the performance management system, it is clear and precise that what is needed to be accomplished and how it can be implemented. Employees are committed to the organization. • With efficient performance management system, the leaders in Mazoon LLC are aware of the strengths and weaknesses of their people and therefore can effectively match the talent and their tasks to be performed. The leaders are known to the specialties of their employees and how best they can be utilized. The leaders and employees focus on learning new skills and abilities. Performance Management System in Mazoon LLC: In general there are six major steps for the process performance appraisal system in Mazoon LLC: 1. Preparation: the first is the preparation of the performance appraisal. The performance appraisal should be realistic and true representative of the employees. It should be developed according to the set work standards in the organization. During this step in Mazoon LLC. The objectives of the employees are set after the detailed appraisal meeting between the employee and his supervisor. It is realistic to set the quantifiable objectives, which can be evaluated with ease. Also it is the responsibility of the supervisor to ensure that the objectives of the employees should be well explained and communicated (Nel et. Al. 2004). 2. Assessment: Generally in Mazoon LLC. it is highly recommended to the supervisor that he should provide timely feedback to its subordinates. Employees should be aware that how well they are performing and whether they are following the set objectives of not. It is respectful for the employees to deliver the feedback at right time with dignity. Rather than providing the annual feedback to the employees it is important that continuous feed should be provided to employees in order to ensure that they are on right direction and path. Also with the help of continuous feedback the management is able to recognize and reinforce the desired performance from its employees. When the feedback is continuous the poor performance can be recognized on time and remedial actions can be taken in order to save the time. 3. Review of relevant documents: Before evaluating the employee performance and setting the schedule for appraisal meeting in Mazoon LLC. the supervisor should evaluate the review all the relevant documents. Also it is mandatory for the supervisor to review the appraisal form in the employee objectives are set for next appraisal period. 4. Appropriate surroundings: The location of appraisal meeting should be a neutral territory in which both the supervisor and subordinates should be relaxed and can have a conversation with comfort. 5. Delivery of appraisal: The delivery of appraisal should be clear. Effective communication is essential for appraisal. In Mazoon LLC. the supervisor should not exaggerate the feedback in a negative or positive way. 6. Encouragement: At the end of the performance appraisal cycle, which is actually the beginning of the next appraisal period, the supervisor should encourage the employees all the time. Encouraging the employees in mandatory as this is the important purpose of performance appraisal for employee motivation. Encouragement will motivate the employees to work better in the organization (Bowen and Ostroff, 2004). The performance appraisal system of Mazoon LLC includes the strategy of total reward system, which is discussed as following: The components of a total reward system are: • Compensation: The most essential component total reward strategy is compensation. This component includes the base pay of the employees. The base pay should be evaluated and set according to the performance of the employees as the base pay is major determinant of living standard of the employees of Mazoon LLC. • Benefits: The reward along with base pay are known as benefits, these benefits can be financial and non-financial benefits. Non-financial benefits are also called the fringe benefits, medical insurance for family etc. Other benefits include gratuity, company vehicles, holiday trips, sick leaves etc. • Career Development: Another important aspect of total reward strategy for employees is career development. When there is lack of development opportunities for the employees then the rate of voluntary turnover also increases in Mazoon LLC. It is the responsibility of the business to provide ample opportunities to the employees for their career development. Employees should be provided with resources for growth like training etc. Recommendations to enhance the current performance management system at Mazoon LLC.: Following are some of the factors which distorts the process of performance management, it is recommended that Mazoon LLC should avoid these factors when implementing the process of performance management in the organization (Kundu, Malhan and Kumar, 2007): These factors are as following: Stereotyping: It is recommended that stereotyping should be avoided by the evaluators in Mazoon LLC. Some of the evaluators show stereotyping on the basis of religion, race, and ethnicity or on a behavioral trait etc. This kind of stereotyping is not beneficial for both the parties. Similarity: Sometimes it’s the case that employees have the similar work habits like the supervisor and therefore, the supervisor become bias towards that employee and give him high rating. This will falsify the appraisal system in Mazoon LLC., therefore it is recommend that Mazoon should properly guide the supervisor to avoid bias behavior. Lenient Behavior: It is also another bias error which should be avoided by evaluators of Mazoon LLC. Leniency is known as the inclined behavior of supervisor towards the subordinates to give them higher ranking than they deserve. The disadvantage of this behavior is that it is not the true representation of the person rather it is an exaggerated appraisal because of the leniency of his supervisor (Kaya, 2006). Halo and Devil Effect: Another form of distortion for performance appraisal is Halo and Devil effect. This refers to the first impression of the employee on the evaluator. If the first impression is positive and he will get high rankings as the evaluator is watching the employee with “halo” lens. On the other hand if the first impression in poor than the employer will award lower ranks to the employees. Attribution Bias: It is sometimes the case that supervisor may evaluate the performance of employees on certain attributes like his IQ level, social skills, appearances or medical issue etc. The evaluation of employee performance on the basis of these attributes is not recommended (Khatri, 2000). Some of the other recommendations for the performance management of Mazoon LLC. are mentioned as following: • Often the employees are very busy is their daily work routine that they usually forgot the main organizational purpose. Employee performance influences the organizational performance. It is important for all employees to understand the organizational vision and goals; also they should know how their work is important for the organization and how they contribute to accomplishment of organizational mission. This will enhance employees’ performance and his commitment to the organization (Cardy, 2003). • The job expectations should be clear for the employees. Supervisors and subordinates are employees are themselves accountable for their job duties. All the employees have clear and set work objectives. Performance management empower the employees and also clear his role and responsibilities within the business settings (Harrison and Kessels, 2004). • Performance Feedback on Regular basis: For better communication in the workplace regular feedback is important. Performance management facilitates to identify the strengths and weaknesses of employees. Feedback is an opportunity for employees to exchange views and opinions in more informal way. It is a significant way of understanding the employees’ performance and determining how it is evaluated by the supervisor. This enhances the employee confidence and also motivate him to positively contribute to the organizational success. Performance management is a tool for employee motivation for achieving individual and organizational success, therefore, continuous feedback should be provided to the employees (Amaratunga and Baldry, 2002). • It is an effective tool for improving the performance of the employees. Mazoon LLC. should provide advice to the subordinates in order to improve the employee performance. The supervisor should discuss the career opportunities with their subordinates and also provide them career direction. Performance management system provides the employees with the opportunity to plan the future development. It also helps the employees to identify their training needs and develop their succession plans accordingly (Heery and Noon, 2001). • Rewards the employees: Outstanding efforts are always getting noticed in the organizations. When the employees’ performance is recognized in the organization he or she is rewarded for outstanding performance. These rewards are sometimes intrinsic or extrinsic. Appraisals give the employees an incentive to perform well in the organization and they expect to be rewarded for good performance. These rewards motivate the employees, also give them job satisfaction and also open doors for career advancement in future (Pollitt, 2006). Conclusion: There are many different factors that influence the performance management system of the organization, but three important factors are: first the system needs to be aligned with and support the organizational direction and also with its critical success factors. Secondly the system should be well-developed, efficient tool of administration that should be friendly and convenient for the employees and the supervisors. Lastly it is significant to known that both managers and employees must use the performance management system in such a way that it ensures the dominant, value added benefits in terms of performance planning, performance development, feedback and accomplishment of objectives.