Read Case 1-2: Performance Management at Network Solutions, Inc. in the textbook. Write a paper that addresses the questions following the case, as well as those listed here.
Provide a brief overview of the case and detail the overlap between Network Solutions’ systems and the ideal system. Based on the description of the system at Network Solutions, what do you anticipate will be some of the advantages and positive outcomes resulting from the implementation of the system?
Based on the description of the system at Network Solutions, what do you anticipate will be some of the disadvantages and negative outcomes resulting from implementation of the system?
Review of Case
Network Solutions Inc is a prominent company that deals with hardware, software, and different networking services. The quality of products or service is good. However, it has been revealed that the company has not implemented an effective performance management system. It is a fact that the performance of employees in this organization is decreasing with the passage of time. Goals and objectives of employees have not been streamlined. Thus, the company intends to introduce the new system to improve performance and enhance the visibility of the development planning. Regarding performance, employees are to be categorized and evaluated regarding their performance. The distribution performance management enables the employee development in this organization. In distribution performance management, some key processes are to be implemented. These processes are Performance planning, Team building, development planning, effective communication between managers and employees, and annual performance summary. The purpose is to increase the performance of employees and enhance the visibility of the best talent in the company (Adler, et al., 2016).
Overlap Between Network Solutions’ Systems and the Ideal System
The overlap between the network solution’s systems and the ideal system is quite visible. For Instance, the management of the company wants to align different employee’s goals and objectives with the goals and objectives of the organization. The company wants to use this alignment as a roadmap to gain and sustain success. Interestingly, employees are to do the work according to the expectations of the company. Moreover, through the distribution performance management system, performance standardization can be enhanced in all divisions of the company. It seems interesting for the company to enhance the performance level of employees through different development plans. The management understands the ideal system for the company, which can also ensure the less employee turnover. In an ideal system, the company can create different opportunities for employees to identify weaknesses and strengths and make different action plans to improve performance. In an ideal system of this company, the management can rate the employee through a rating of 1, 2, and 3.
Advantages and Positive Outcomes Resulting from the Implementation
Through this implementation, the company can derive some key positive outcomes and advantages. For Instance, through this new performance management system, the company can identify some employees, which are not improved regarding work and contributions. These employees are ranked 3 and provide different chances to improve performance with appropriate planning. Thus, the biggest advantage is equal opportunities for employees in the firm. Furthermore, the most appropriate outcome is the employee’s contribution. With improved performance and lower employee turnover, the company can reach top performance levels. Retaining the best talent and terminating poor performers is a prominent outcome for the company. These outcomes have a direct impact on the performance, and it seems the advantage for the company (Aravamudhan & Krishnaveni, 2016).
Disadvantages and Negative Outcomes Resulting from the Implementation
Through this implementation, the company can face some negative outcomes. For Instance, examining or facilitating each employee’s goals and objective may lead towards the discrimination at the workplace. At the workplace, the employee may contain the perception that the management just wants to retain its favorite employees. The major disadvantage that the company can face due to this consideration is the high cost of the development plan. Low performers may contain severance plans or leave the company. If the percentage of the employees is not rated well, the development planning cost seems high. Apart from it, the company has to hire new employees after the termination of the old ones. Cost of hiring, training, and managing puts a big question mark on this implementation (Cambon & Steiner, 2015).
Question 1- Overall, what is the overlap between Network Solutions’ system and an ideal system?
Overall, the overlap between the company and the idea system can be elaborated through the rating system. For Instance, the company intends to increase the performance of employees. Thus, through 1, 2 and 3 rating systems, the management can meet the purpose. In the ideal system, it is necessary for the company to streamline the performance of top employees. However, streamlining some factors or aspects, which are to be improved, is also the best approach to make the difference. People are expected to work in different teams, having the ability to make decisions and contribute to the success of the company in an effective and lucrative manner. The network solution depicts the culture, which is quite flexible. Thus, the new system can be absorbed or adjusted by the company. The global cross visional HR team can implement this new system effectively without any prominent resistance. The ideal system helps the firm to contain continuous checks at different intervals. It seems a remarkable approach that streamlines the motivation for top performers in the company (Ellington & Wilson, 2017).
Question 2- What are the features of the system implemented at Network Solutions that correspond to the features described in the chapter as ideal characteristics? Which of the ideal characteristics are missing? For which of the ideal characteristics do we need additional information to evaluate whether they are part of the system at Network Solutions?
Interestingly, the attributes of an ideal system that correspond to attributes mentioned in the chapter as ideal characteristics are in the limelight. For Instance, the Strategic equivalence has been observed as a key characteristic. Strategically, the company wants to improve the performance of employees through developing skill level, experience, and assertiveness. The most important thing is to highlight the goals of employees. These goals are to be aligned with the organizational goals. The employee must know his contribution to the organization. It has been revealed that the company may face the high cost of this system. However, employee strategies regarding workability are effective for both employees and the management. Standardization is another feature. For Instance, the leadership team of the company intends to evade all 50 programs. The purpose is to come up with a single performance management program. The leadership team standardizes the system, which can accelerate the performance of the employee. The most important thing for the management is to standardize the performance evaluation process. Another feature of this system is fairness. As mentioned, all employees will be facilitated regarding opportunities. Rewards and promotions are to be provided accordingly. The rating scale, which is to be used by the company to evaluate the employee performance, is generally accepted by all key stakeholders (Mann, Budworth, & Ismaila, 2012).
Question 3- Based on the description of the system at Network Solutions, what do you anticipate will be some advantages and positive outcomes resulting from the implementation of the system?
On the basis of described system, there are some key advantages and positive outcomes. In this modern business era, the implementation of this system can make employees assertive regarding their contributions. Overall, the management can decrease the cost of the performance evaluation process. The distribution performance management system is an alternative to all 50 traditional evaluation methods. Through the rating system, the company can identify the best employees and distribute roles and responsibilities. Terminating poor performers in the company can create space for new talented employees, which is in the best interest of the company. Possible outcomes of this system are the high quality of products and services, productivity maximization, better employee management relations, and immense employee motivation. Through better performance evaluation and improvement, the company can make outputs predictable. A sustainable competitive advantage can be gained by the company in the competitive technology market. Creativity and innovation can also be anticipated. Through this rating system, the creative ideas of top performers are to be streamlined effectively (Aravamudhan & Krishnaveni, 2016).
Question 4- Based on the description of the system at Network Solutions, what do you anticipate will be some disadvantages and negative outcomes resulting from the implementation of the system?
Based on the description of the system, some negative outcomes and disadvantages can be anticipated. The big disadvantage is the possible bias to employees. Interestingly, bias toward certain employees may emerge intentionally and unintentionally. In this company, instead of focusing on the actual achievements of employees, managers or leadership teams usually intend to integrate with styles and personality traits. Some employees, despite having the potential, may leave the company due to unequal opportunities. Bias to employees may create a negative perception, which can hit the reputation of the company. The big disadvantage of this new system in this company is one-sided feedback. This rating system does not support employees providing feedback about performance insights. Managers or leadership teams such as global visional teams may perceive an employee before evaluating and making the decision. The negative outcome is employee turnover and lack of efficiency. Employees may have a lack of motivation that leads to poor performance. Another disadvantage of this implementation is time-consuming, as this performance evaluation method may take a lot of time for the company. Limited results are to be shared with employees, and it creates many hurdles in the improvement process. The disadvantages and negative outcomes are risks for the company, and some appropriate risk mitigation strategies are needed to make it workable and successful (Ellington & Wilson, 2017).
Conclusion
In the end, it is to conclude the network solution can gain and sustain success through effective employee contributions. Contemporary business has to create a strong workforce. It refers to giving a chance to employees to enhance personal and organizational development. Overall, the new performance evaluation method is effective, as far as impact on the company is concerned. The advantages and positive outcomes of the implementation are more than the disadvantages and negative outcomes. Therefore, the company can rationale this system. The strong workforce is triggered by extraordinary organizational performance, and it is the main intention of this firm.
References
Adler, S., Campion, M., Colquitt, A., Grubb, A., Murphy, K., Ollander-Krane, R., & Pulakos, E. D. (2016). Getting Rid of Performance Ratings: Genius or Folly? A Debate. Industrial and Organizational Psychology, 9(2), 219-252.
Aravamudhan, N. R., & Krishnaveni, R. (2016). Establishing Content Validity for New Performance Management Capacity Building Scale. IUP Journal of Management Research, 15(3), 20-43.
Cambon, L., & Steiner, D. D. (2015). When Rating Format Induces Different Rating Processes: The Effects of Descriptive and Evaluative Rating Modes on Discriminability and Accuracy. Journal of Business and Psychology, 30(4), 795-812.
Ellington, J. K., & Wilson, M. A. (2017). The Performance Appraisal Milieu: A Multilevel Analysis of Context Effects in Performance Ratings. Journal of Business and Psychology, 32(1), 87-100.
Mann, S. L., Budworth, M.-H., & Ismaila, A. S. (2012). Ratings of counterproductive performance: the effect of source and rater behavior. International Journal of Productivity and Performance Management, 61(2), 142-156.
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