Performance Assessment Implementation Challenges

Performance Assessment Implementation Challenges

Charles F. Coniglio

University of Phoenix

Performance Assessment Implementation Challenges

This paper addresses the challenges of implementing a performance assessment system in an organization. The research for performance assessment systems is included in a PMS (PMS).  Those terms are used interchangeably in this paper.  It includes an assessment of the importance of communication prior to implementing a PMS, the common challenges of implementing a PMS and ways organizations can use assessments results to enhance productivity. This paper builds on previous week's assignments.  The research for this paper looked at large organizations, small organizations, domestic European, Asian, Indian, commercial and government organizations to determine if there are common challenges faced by these different organizations.  

Importance of Communication During Implementation

Implementing a performance assessment system is a significant change to an organization.  Nolan (2013) found that leaders who implement regular communications with an open and honest approach conveying information and answering questions a major resulted in what the organization believed was a "safe" transition.  Communication from the top and then down through the organization structure is a critical factor in implementing a performance assessment system.  Singh (2012) found that frequent communication between Human Resource personnel and line management during implementing and executing a PMS with related training and workshops would provide greater understanding and system effectiveness. Bevanada, Sinkovic, & Burrie (2011) performed a case study implementing a performance measurement system from scratch in Croatia.  The success of the implementation was due to how the implementation was  developed consultants forming teams with managers and workers to determine the criteria and design of the PMS.  The consulting team communicated the advantages and characteristics of a PMS.  The system was linked to the vision, mission, and strategy of the organization resulting in a PMS that fit the organization’s structure and goals.  Bourne, MIlls, Wilcox, & Platts (2000) studied three companies and their implementation of a PMS system.  The process started with meetings with senior management to analyze their businesses.  Then a set of measures were developed based on the analysis.  These measures were communicated with management through the company.  Changes were made and communicated back to senior management.   This back and forth communication provided the opportunity for line management and workers to review and comment on the measures used before their system was implemented.  Joxhem, Menrath, & Landgraf (2010) present a similar approach to develop and implement a PMS.  They discuss an integrated quality-oriented PMS development approach. The resulting measurement system is discussed with managers and coworkers before it is adopted.  This communication and buy-in before implementation is key to the success of the system.  The organization then executes the resulting step-by-step implementation plan with full knowledge of its content.  de Waal & Counet (2009) points out that one factor in failed implementation of PMS is when every management team member is not communicating the importance of the new system especially the non-financial measures.  Employees will look at the system as a new financial control tool and resist implementation.  

Common Challenges in Implementing Performance Appraisal Systems

The challenges faced by different organizations in the research for this paper consisted of common and some unique challenges based on location, culture, industry and government agency.  Mucha (2011) lists eight key challenge in implementing  PMSs in United States and Canadian government organizations: Overcoming organizational fears, overcoming elected officials’ fears, finding appropriate levels of resources to devote to the effort, avoiding strategic planning process overload working around limitations of existing financial systems, making consistent use of data, focusing on what is really important, and computing performance management as a temporary trend. Bevanada, Sinkovic, & Burrie (2011) list similar  Challenges in their Croatian study. The challenges included culture challenges, they could that challenge the existing autocratic style of management, limits on organizational resources, delegation of authority and employee empowerment and responsibility are directly contrary to the organizational culture and nature of Croatian. Singh (2012)  Discusses challenges associated with Indian industry. To single out development of key performance indicators for a software company. This relates to Mucha (2011) of focusing on what is  important to measure. Mucha (2011)  Also related that another challenge of implementation was associated with line managers. Line managers did not devote adequate time for the performance assessment of their teams. This corresponds to find the right resources to do the performance appraisals. Prahu & Hegde (2012)  Presented a study that looked at an organization that failed to implement the PMS. One of the challenges that they face was finding the right people to develop and integrate the new system into the organization. They struggled with having an outside consultant or using internal people to develop and implement the system. The fear was that an outside consultant does not understand the company and that the organization would not accept the system developed by the consultant. This organizational fear resulted in the implementation of the system that was not accepted by the organization.   They also had the challenge of finding appropriate level of resources to apply to the development effort.