Issue With Performance Management of Organizations



Executive Summary

This paper discusses the current HR issue about performance management system. It gives the overview of problems with performance management system of organization and their impacts on the organization; it further discusses the dynamics of the performance management of organizations. Additionally, the paper contains the major trends of Human Resource in the business industry and an interview with Russ Campanello- Senior Vice President of Human Resources of IRobot. Moreover, the paper contains the critical analysis of fast food industry and the HR audit of McDonalds. The paper also gives an overview of how McDonalds create value and competes with its rivals. Furthermore, the paper contains McDonald's Human resource strategy that is how they link the human resource with it's business strategy that leads to the growth of the organization. It also includes the recruitment procedure of McDonalds and problems which the organization faces. Further, recommendations are given for McDonalds to make it's HR more effective and efficient that is managers at McDonalds need to be trained in handling different types of biases such as halo effect, recency error, horn effect, central tendency error, leniency or excessive stiffness error, central tendency, and spillover error. Further employees should meet the employees often. Communication between employer and employee should be open, make the documentation of the appraisals. Moreover, McDonalds should integrate the management system of franchises abroad into the main stream HR.

Issue With Performance Management of Organizations

Introduction

The performance management system is the backbone of effective work management. There are three basic principles of a performance management. First, it has to provide feedback to each and every employee about his or her performance. Second, the performance management system has to help with the behavioral changes of an employee and to change his or her habits. Third, it has to provide adequate data to the managers to judge the performance of the employees and reward or compensate them accordingly.

However, one of the biggest challenges that every organization faces is the development of such a perfect performance management system which helps in making the leaders, managers and employees of the firm it's supreme asset. Designing and implementing such a complex system of performance management that links the performance of individual employees, departments and the organization as whole to achieve the goals and objectives of the organization. Implementing the performance management system with the ideas and principles of the performance system at all levels increases the efficiency of employees, managers, leaders and organization.

A large number of organizations use the old and traditional futile performance management system which negative affects the efficiency of the work-force and organization. What they do in the traditional performance system is that, first; the employer gathers material and resources required for the employee to do the job. Second, the employees connect themselves to activities to complete the job. Third, the employer evaluates the performance of employee and simply allots rewards and benefits. This old traditional performance system was the child of the industrial ...