You are a recently promoted Department Manager for a small manufacturing company, which has experienced ongoing poor results regarding its performance management system. Since your promotion, you have noticed a lack of commitment for the performance management system by managers at all levels including the Human Resource Manager. Many of these managers have suggested that the company abandon the use of performance management systems, as they are only a ‘form filling exercise’ and that they could utilise their time better focusing on profit making opportunities. As a real champion of performance management systems you have questioned whether the current performance management system in place, is suitable for a small manufacturing company such as yours.
As a Department Manager, you see the above situation regarding the current performance management system as detrimental to the future success of the company. The owners of the company have requested that you investigate these issues and to present your recommendations to them in the coming months.
Answer all three questions below:
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Considering the brief case above, examine two advantages and two disadvantages of a performance management system for a small company (use research and examples to support your answer).
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Explore what can be done to reduce/eliminate the lack of commitment for the performance management system by other managers in the company (use research and examples to support your answer).
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Recommend an alternative performance management system, which you would like to introduce in your small manufacturing company and justify your decision for recommending the chosen system (use research and examples to support your answer).
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