Critical Thinking: Performance Management Systems (100 Points)
In a paper, discuss a performance management system (PMS) that you would implement as the human resources (HR) manager of an organization (fictional or real). Be sure to include information that addresses the following aspects of your PMS:
· Organizational Strategy, including description of the organization’s purpose, vision, mission
· Systems, including defining and measuring results, appraisals, compensation
· Implementation Factors, including communication plan, appeal process
· Employee Development Considerations.
Performance Management System
HCM 502 – Organizational Behaviors and Human Resources in Healthcare
Saudi Electronic University
Performance Management System
Performance management system (PMS) is an organized process which is used to communicate the purposes, mission and vision of an organization. It is an important element to improve work productivity and performance in organizations (Panda & Pradhan, 2016). Implementation of effective PMS depends on defined strategies and clear objectives. A well implemented PMS has constructive effects on the employees’ performance and work effectiveness (Rashidi, 2015). An effective PMS can help an organization to achieve its goals and encourage dynamic work based on mission and vision statements. PMS strengthens accountability of employees to work harder to achieve the goals. Also, it monitors employees’ performance and quality of work (Panda & Pradhan, 2016). It assesses work results, rating system and employees’ salaries and compensations. This script is describing a real PMS in healthcare organization, organizational strategy, systems, implementation factors and employee development consideration.
Organizational Strategy in Ministry of National Guard Health Affairs (MNG – HA)
Ministry of National Guard – Health Affairs (MNG-HA) is a governmental hospital that aims to provide healthcare services to Saudi Arabian National Guard (SANG) personnel and their dependents (MNG-HA, 2017). The organizational strategy of MG-HA is defined well into aim, mission and vision. The aim of MNG-HA is to provide safe and high quality of healthcare services to SANG personnel and their dependents. The aim of the PMS should be consistent with organizational goals as well as with employee goals (Panda & Pradhan, 2016). It has a mission to provide best healthcare to SANG personnel and their dependents. Also, to provides outstanding academic opportunities, conduct research studies and participate in community health services (MNG-HA, 2017). Vision of MNG-HA is to be one of the excellent international healthcare centers that promote individual and public health (MNG-HA, 2017).
PMS systems should include performance appraisals, computing results and employee salaries and compensation. Performance appraisals have different structures based on job categories. The performance evaluation of employee is a valued tool and an important element of the organizations’ functions (Fekete & Rozenberg, 2014). Evaluating employees’ performance should include their behaviors, activities, strengths, weaknesses, accomplishments and ability to improve (Selden & Sowa, 2011).
Performance evaluation must not be merely numerical assessment. It should give managers and employees opportunity to recognize strength and assist them to reach optimal performance. The best method to rate employee performance is hybrid rating system. It is important that computing results system should be clear and easy to use. Performance appraisals’ results and merit increase computations should be done annually prior to contracting. Specific policies and guidelines to employees’ salary increase and compensations should be well established in healthcare organizations (Panda & Pradhan, 2016). Human resources department should have clear policies and procedures regarding employees’ performance and their compensations. Compensation action plans should be implemented well in which it reflects actual employee performance.
Interviewing employees and giving them feedback can improve employees’ performance (Rashidi, 2015). Recommendation of employees’ professional growth and development are highly needed. Also, discussing payment, job condition, job status and disciplinary terms can help employees understand their goals and job requirements.
Implementation factors. The effective process for developing the perception of employees in healthcare organization can be done by proper communication, employee involvement and creating importance of PMS for healthcare organization (Panda & Pradhan, 2016). It is important to have proper education and awareness about PMS prior to the actual implementation (Behery, Jabeen & Parakandi, 2014). Implementation factors of PMS are proper communication process, chain of command and application process. Communicating the organizational strategy into operational perspectives of PMS need to be considered (Behery, Jabeen & Parakandi, 2014).
An effective communication plan can be created to explain scorecard results and focus on mission of healthcare organization. It is important to consider quality of information to be discussed in which it can improve manger-employee relationships and recognize the value of information to be communicated. Behery, Jabeen & Parakandi (2014), mentioned PMS and said that “for an organization to successfully implement the potential balanced scorecard (BSC) system or any similar system to manage and measure its overall performance”. (p,33).
Employee development consideration. Human resource manager has a great role to encourage employees work harder and develop proper problem solving skills. Human resource manager need to support and guide employees to achieve their goals, improve their knowledge and professional development. This can be achieved by giving them opportunities and offering them chances to improve their knowledge and skills for better performance (Behery, Jabeen & Parakandi, 2014).
Human resource manager can meet with employees in regular basis to discuss organizational goals, offer feedback and recommendation on their individual goals and give advices for professional growth and development (Behery, Jabeen & Parakandi, 2014). Also, motivation plans can help employees to work effectively. In addition to, rewards system and recognitions of employees’ best work.
PMS is a systematic process which is used to communicate the purposes, mission and vision of an organization. It is an important element to improve work productivity and performance in organizations (Panda & Pradhan, 2016). This script included organizational strategy of MNG-HA, systems, implementation factors and employee development considerations. A strong and effective PMS can reinforce employees’ accountability to work harder and accurately monitors employees’ performance and quality of work provided (Panda & Pradhan, 2016).
Behery, M., Jabeen, F., & Parakandi, M. (2014). Adopting a contemporary performance
management system: A fast-growth small-to-medium enterprise (FGSME) in the UAE.
International Journal of Productivity and Performance Management, 63(1), 22-43.
Fekete, M., & Rozenberg, I. (2014). The practical model of employee performance evaluation.
Human Capital without Borders: Knowledge and Learning for Quality of Life;
Proceedings of the Management, Knowledge and Learning International Conference,
MNG-HA. (2017). About NGHA. Retrieved from:
Panda, S., & Pradhan, P. K. (2016). Sense, essence and essentiality of performance
management system-an analysis. Journal of Contemporary Research in Management,
Rashidi, R. (2015). A review of performance management system. International Journal of
Academic Research, 7(1).
Selden, S. & Sowa, J. (2011). Performance management and appraisal in human service
organizations: Management and staff perspectives. Public Personnel Management, 40(3),