Performance Management System
This is Performance Management System.
Case Analysis
Keng Finance Company is a lending firm with 38 locations throughout the Philippines. It is a highly centralized organization with its headquarters in Cebu City. It conducts performance evaluations twice a year, every six months. Every position has a standardized performance appraisal tool. The following are the performance indicators for PA tools:
- The number of times the employee has been late or absent.
- The number of times the employee has made an error in their reporting.
- How often has it failed to submit its deliverables on time?
- If the employee has had any problems with their coworkers.
Once every six months, the supervisor conducts a one-on-one interview with each of their employees to address the topics indicated on the employee's performance appraisals, including their strengths and flaws. During this one-on-one meeting, the supervisor usually conducts most of the talking, and the employees listen and sign the performance appraisal.
The employer gives employees a Performance Bonus. Employees receive a consistent performance bonus, which means they all earn the same amount of incentive each year. Supervisors and managers receive an additional 5,000 pesos on top of their PB. The management claims that the standard amount of PB is given for justice and equity so that there are no complaints from their rank and file about the amount received.
Make your analysis of Keng Finance Company's Performance Management System based on the situation described above. Discuss whether you agree or disagree with their approach to PMS. Give explanations and arguments for your position, and mention ideas and concepts covered in the course to back up your claim.
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