Performance Management System Business and Enterprise

Question: Discuss about the Performance Management System for Business and Enterprise. Answer: Introduction: Implementing an effective and objective performance management system is necessary in an organization as it helps employers to communicate expectations and results to their employees (Buckingham and Goodall 2015). However, this systems has some challenges related to its implementation which are hereby mentioned below, Lack of knowledge: Getting all the managers on board would be highly critical while implementing performance management system. It is possible that not all the managers have idea about this process (Ates et al. 2013). Therefore, the chances are high that an inconsistent system will be applied which will help some employees and others will be affected badly. Resistance to change: Performance management system is expected to provide a transparency in the organization which can cause resistance among employees (Ates et al. 2013). Employees can feel threatened by the new system or they might become paranoid as a result of the failure of any previous system. Linking job description to performance management: It is another challenge that managers face while aligning job description with organizational objectives (Cheng 2012). If alignment is not done then expected outcomes will not be achieved. Eliminating the entitlement mentality: While implementing performance management system, managers will face problems from employees who carry entitlement mentality (Buckingham and Goodall 2015). These types of employees feel that they are entitled to a raise every year, does not matter how they are performing. References Ates, A., Garengo, P., Cocca, P. and Bititci, U., 2013. The development of SME managerial practice for effective performance management.Journal of Small Business and Enterprise Development,20(1), pp.28-54. Buckingham, M. and Goodall, A., 2015. Reinventing performance management.Harvard Business Review,93(4), pp.40-50. Cheng, M.I., Dainty, A. and Moore, D., 2012. Implementing a new performance management system within a project-based organization: A case study.International Journal of Productivity and Performance Management,56(1), pp.60-75. Hvidman, U. and Andersen, S.C., 2013. The impact of performance management in public and private organizations.Journal of Public Administration Research and Theory, p.mut019.