Performance Management & Organizational Effectiveness - Module 5 Case1



Performance Management & Organizational Effectiveness - Module 5 Case1

Introduction

Performance management system is one of the most important factors in each and every organization of the world. This is said because of the fact that performance management system is a tool which helps in identifying the performance of each and every individual working in an organization. Furthermore, through the use of the performance management tool, the performance of the employee is evaluated, after which, the deserving employees are rewarded in different manner. This thus also proves to be a helpful tool in an attempt to keep the employees motivated. Therefore, as the performance of the organization is solely dependent on the performance of its employees, it can be said that the performance management system plays a vital role in the development and success of the organization, as a whole (Boudreau, Ramstad, 2006). We have a US-China investment that will require taking into consideration the new business environment, different culture and other factors that differ with the factor in the United States. Therefore, this paper will deal with the identification the different critical issues that need to be addressed in developing, implementing, and evaluating a performance management system in this US-China joint venture.

Discussion

Factors to be considered

The organization should focus on setting realistic targets that can achieve by the organization in its initial period. This is said because of the fact that firm has been newly established in China and it would require to get started, to function with full efficiency and achieve higher targets. In this regard, it can be said that the organization review the traditional performance system of the country it is operating; the host country. Furthermore, the organization should focus on review the performance of the employees only after the first six months, in order to make sure that the employees are provided with the minimum required time to adjust to the organizations performance system (Boudreau, Ramstad, 2006).

Bowling (1990) stressed on the point that the method for performance review implemented by an organization should always be based on the method that has been traditionally adopted in the host country. Moreover, Black (1992) states the fact that a good performance review system is one that incorporates team from both the home country and the host country, as well.

Apart from the above mentioned issues that an organization needs to address, there are certain other factors to be considered by an organization, as well. Lindholm (1999) states the fact that an appraisal system should always be in accordance with the appraisal system adopted by the host country. For this very reason, it is viable for an organization to study the culture of the host country, before implementing any kind of a performance management system (Boudreau, Ramstad, 2006).

Another important factor in this relation was identified by Dowling (1994), who states the fact that considering the management and environment related constraints that may result into failure is also viable for an organization that wishes to establish ...