Rethinking Performance Management Essay Example | Topics and Well Written Essays - 3000 words

Rethinking Performance Management - Essay Example Behavioral pattern of the suppliers and the clients and concentration in the supply makes entrepreneurs more competitive in the global market. In the market where the customers are diverse, a different approach to the market may be of great benefit to entrepreneur in a new market (Keillor 2011). The trends of innovating products and services in a particular environment have been used by multinational companies in their new products. Taking for instance the travel business in the United States, the business involves serving both the natives and the international visitors. Globalization and liberalization of economies have allowed companies to invent new ideas suitable for the developing markets. Globalization has pressurized companies to continue innovating new ideas of conducting businesses. Though much innovation has been witnessed in the global market, entrepreneurs have found it harder to penetrate the market to ever changing business environment and competition (Griffin 2005). There is more opportunity for growth due to innovation and completion in the global market. Entrepreneurs in the global markets seem to prefer working centrally and doing business from a central position. However Companies benefit international market therefore centralization of business no longer applies in the global markets (Keillor 2011). ... This continuous process entails measurement, appraisal, monitoring, controlling, rewarding and feedback processes (Gary, 2011). Organisational goals are achieved through strategic plans, which are further executed and controlled through effective performance management systems that are applicable for managing performance of the employees, organisational systems and processes. in an ideal state, performance management system is highly beneficial for the company in terms of improving employee motivation and self-esteem; in gaining better understanding of the employees’ abilities and attitudes; achieving better job role and goal clarity; creating appropriate administrative actions; improving employees’ competencies on a continuous basis; better adherence to regulations; introducing better timely interventions to performance improvement; better execution of organisational changes; and in achieving better and predictable growth for the company (Aguinis, 2009). However, Crawf ord’s (2006) article critiques performance management system as a whole by highlighting that performance management related studies indicate otherwise and regard it as a flawed system because the findings from these studies show that despite managing performance, 96% organisations still experience poor performance; very few performance management systems have been proved to be effective; organisations continue to experience huge losses due to poor performance. Crawford (2006) highlighted three main reasons for the failure of performance management: firstly, the notion that performance can be managed is a myth; secondly, performance management has become more of a mechanically driven process without accounting for human factor involvement; thirdly, managers