Proposal for a Performance Learning System

1796 Words Sep 19th, 2012 8 Pages
The Current Situation at Alto Company.
The performance management system (PMS) is still a work in progress: Performance metrics need to be assigned for each job and linked to the position agreement in the job description. Then, employees will be able to self-monitor performance on their own dashboard displaying their contribution (Cokins, 2010), which is linked to their job evaluation. Before the PMS is finalized the following considerations are offered, followed by a plan to implement a holistic performance learning system that incorporates the considerations.

Focus on Management Not Measurement.
The PMS shares common data, allowing for transparency, and because metrics cascade from one dashboard to another, the system reveals the
…show more content…
To achieve predictable results management employs controls, which according to Anthony & Govindarajan (2007) include (a) planning (budgeting and forecasting), (b) organizing (processes and line of reporting), (c) staffing, and (d) directing employees (training and coaching). Under this view, management takes the objectives of the strategic plan, and establishes financial goals for each department through the forecasting/budgeting system. Then management administers control over employee performance via the evaluation process. Hence, the classic view concentrates on the results of the department over the company as a whole and focuses on the amount of work done by an employee (efficiency) versus the resulting contribution of the employees work toward the company’s objectives (effectiveness). It also emphasizes managerial knowledge over tangible assets, human resources and the financial imperatives (Bontis, 2001).
To prevent a silo from developing, managers must nurture their skills that encourage a performance-oriented culture. Kinicki, Jacobson and Prussia (2011) developed a model of performance management leadership (PML) outlining processes to manage goal cascading, alignment and the bypassing traditional channels of communication. The PML model agrees with the 10-year study by Gostick and Elton (2009) which described a three-stage criterion for boosting staff morale and involvement:…