There are several strategic issues that employers face while creating a performance management system. This system suggests the measurement of employees’ functions and their overall performance. Employers may face difficulties controlling the process, setting complicated and unclear goals, and insufficient feedback (Mello, 2014). These are significant issues that the employer might face while generating the management process of job performance. It is also essential to define the essential purposes of the performance management system.
Achieving employee and organizational goals are the main aims of performance management. Indeed, it strives to ensure that employees and employers have similar expectations regarding the work (Mello, 2014). In addition, any company wants to fulfill its organizational aims, and it becomes one more concern of the system. If the organization provides relevant and effective performance management, goals might be realized simultaneously (Mello, 2014). The company should set its clear goals and objectives, guide employees, and give proper feedback to realize several goals simultaneously.
Pay secrecy is a method that might bring multiple benefits to the company. For example, it prevents potential problems which the company may have. It also allows companies to correct pay inequities without receiving adverse reactions from employees. However, some employees can have a false representation of money distribution. Accordingly, it will decrease the trust and loyalty of employees to the company. For owners, secure payment is an excellent choice to protect the company’s privacy (Mello, 2014). For managers, it is an opportunity to “introduce an independent approach” while undermining workers’ level of trust (Mello, 2014, p. 512). It might be suitable for company owners, but it deprives workers of knowledge and limits their authority.
Overall, employers and employees can simultaneously achieve the aims of a performance management system if the organization is proper. It is also important to note that employers might face some challenges while generating the work of the abovementioned system, including lack of feedback and organizational process. As seen, secure payments might be beneficial for owners and employers, but this security might provoke misconceptions in employees.
Reference
Mello, J. A. (2014). Strategic human resource management (4th ed.). Cengage Learning.