Performance Management System Establishment

Establishing the Performance Management System

It is obvious that the performance is one of the key aspects of any organization; it has three main purposes that include documentation of the processes in the company, feedback with regard to the working conditions, results, and the level of the employees’ satisfaction, and development of working capacities, training programs, and the company’s potential. Motivation, encouragement, and punishment for poor performance, if any, can be considered the most productive ways to organize the working process in accordance with certain principles appropriate for the company. Strategies and measures introduced in order to increase productivity and get feedback from the employees in terms of efficiency facilitate the relations between the management and employees. As suggested by Kaplan & Norton (2007), translating the vision, communicating and linking, business planning, and getting feedback and learning are basic elements of the management performance strtategy.

Employees and management should share problems and ideas in order to cooperate successfully and benefit from this mutual cooperation. Managers should evaluate the situation and relations with employees and “reconsider their shared conclusions about market conditions, customer value propositions, competitors’ behavior, and internal capabilities” (Kaplan & Norton, 2007, p. 13). Complex strategies and turbulent environment are very important elements of the modern management performance, moreover, the management system ca be considered one of the fundamental issues in terms of operation and maintenance of companies. As management deals with organization, evaluation, and appraisal of the efforts performed by employees, it is necessary to establish certain systems of relations and attitudes in order to keep the balance between the necessity, appropriateness, and opportuneness and components, suchlike capabilities, labor unions, working conditions.

Establishing Rewards and Pay Plan Employee Benefits

Rewards and appraisal are elements of the commonly shared practise which presupposes that every work and every effort should be evaluated. Different companies take different measures in terms of evaluation, pay planning, and establishment of possible benefits for employees. Poor management leads to inefficiency of training, motivation, and perspectives for growth. In this respect, it is necessary to take into account the measures taken by managers with regard to the potential of growth, training appropriateness, and issues to be included while planning. As suggested in the studies by Folger & Bies (1990); Leventhal (1980); Lind & Taylor (1988); Sheppard et al. (1992); Greenberg (1996), some control which can be given to employees in terms of choosing the form of compensation can happen to be beneficial for both employees and employers, though the decision-making process is generally attributed to the area of management; thus, employees can be engaged into the decision-making process “to participate in the design of a compensation system, to voice the results of compensation decisions, … [which] can produce a strong sense of process justice and a more positive attitudes to the results and the organization” (cited in Tremblay, Sire, & Balkin, 1998, p. 3).

Job satisfaction can be increased with the help of involving employees into the decision-making process. It is natural that employees that are satisfied with their job in general, and working conditions and type of motivation (benefits, rewards, and compensation) in particular, perform their duties more effectively. The effectiveness of employees’ performance is dependent on the effectiveness of the management performance. Consequently, management can influence production growth and employees’ satisfaction with regard to certain strategies and measures taken to introduce different training programs, plans, and issues that can help to increase productivity.

Ensuring a Healthy Work Environment

Healthy work environment is very important in terms of management performance because it is management performance which can solve problems related to the employees’ satisfaction, establishment of appropriate benefits, motivation, and labor relations, engagement of employees into the decision-making process, and different other issues which influence the work environment. Some issues, suchlike job safety, training, benefits; compensation, recruitment, as well as “…the development and maintenance of appropriate organizational climates and cultures” can differ with regard to the nature of manufacturing (Jackson & Schuler, 1995, p. 252). It is necessary to choose and introduce appropriate strategies which would fit perfectly the type of manufacturing and service.

As a rule, cultural issues tend to influence the healthiness of working environment. Thus, aspects of national culture should be considered as well as industry characteristics. It is important to establish different rules and compensation to provide employees with healthy environment as well as motivation to work effectively. The globalization and multicultural companies are numerous in the modern economic world, so, it is necessary to develop employees’ and management awareness of the importance of cultural and social differences among representatives of different ethnic minorities acting in the same company.

The labor diversity should be recognized and introduced while regarding the problems of healthy working environment. This became one of the most burning issues of the modern manufacturing with regard to the globalization and spread of different cultures. Multicultural society is a common practise as well as the multicultural working staff in different companies. It is important to introduce management performance strategies which would fit employees representing different ethnic or cultural minorities.

Understanding Labor Relations and Collective Bargaining

Labor relations are an integral part of the working process because it is necessary to establish healthy working environment and choose appropriate strategies which would be successfully introduced with the help of the management performance. As it was already mentioned, poor management performance can be considered a failure of the whole company because it influences the working process in terms of the employees’ satisfaction, benefits, compensation, training programs, and other important issues which are essential for normal maintenance of the company. As suggested by Shulman (1955),

In an enterprise in which collective bargaining is just making its appearance, if the law in its administration surveys the course of the apparent bargaining and determines that it is apparent rather than real, because of the scope of the demands for unilateral discretion, the law may well be merely enforcing the duty to bargain rather than shaping the content of the bargain.” (p. 171)

Some companies are likely to slow or stop representation of labor unions, though it is easier to negotiate with a team representing the whole working staff instead of trying to cooperate with separate workers.


Kaplan, R. S., & Norton, D. P. (2007). “Using the balanced scorecard as a strategic management system.” Harvard Business Review, Reprint R0707M, 1-14. Web.

Tremblay, M., Sire, B., & Balkin, D. (1998). “The role of organizational justice in pay and employee benefit satisfaction, and its effects on work attitudes.” Sirano: Scientific Series, 23, 1-24. Web.

Jackson, S. E. & Schuler, R. S. (1995). “Understanding human resource management in the context of organizations and their environments.” Anna Reviews, Reprint, 46, 237-264. Web.

Shulman, H. (1955). “Reason, contract, and law in labor relations.” Harvard Law Review, 68, 169-198. Web.

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