The Various EXPLANATIONS WHY Organisations Exist Business Essay

Organisations exist for a number of purposes. Some produce goods for local or overseas consumption while others provide necessary services for revenue or community gain. However, all organisations count on the availability and effectiveness of several varieties of resources for the several objectives, that happen to be financial, technological and recruiting. Compared with financial or scientific resources, recruiting will be the most unstable (for their complex blend of rational and emotional characteristics) and often the major ongoing cost element in any organisation, plus they may also be thought to be its most effective assets (Nankervis et al. 2011, p3). Performance management program can be an important area of the human tool management and it is an application must be developed if an company is to keep and enhance its efficiency. Claus and Briscoe (2009) point out that when speaking about performance management, many think only in conditions of performance review, whereas this is just one process under the performance management umbrella. In the following article, the performance management and its own various components will be reviewed. Finally, we will discuss about the current performance management of Colbran Medical Institute case study. There are a few particular performance appraisal issues in the Colbran Medical Institute, like the prospect of distortion of appraisals, will be reflected as well, and there are a few proposals for the Colbran Medical Institute and a performance appraisal system that could suit it which can help the institute change the current system and develop the current performance.

Performance management is the process of identifying, evaluating and developing the work performance of employees so that the agency's goals and aims are better achieved. Effective performance management is designed to improve performance, identify performance requirements, provide reviews relevant to those requirements and help with career development. (Davidson et al. 2009) The principal targets of performance management are to aid the business achieve the enhanced standards of work performance and worker to perform their job better, and then for employees to work with the described goals and receive regular responses on performance (Hawkes, 1998). Kathy (2009) concluded some advantages and disadvantages of performance management. You will find two main benefits of performance management. To begin with, it targets personnel development which really is a good performance management system can be a positive way to identify developmental opportunities. Then, it rewards products once and for all job performance and encourage the personnel to work hard. If pay boosts or the bonus deals from the PA, the procedure staff can see a direct link between performance and their prize. So their work performance becomes more efficiency. However, the key drawback is if the performance appraisal system provides some inaccurate feedback maybe triggered by the rater problems like central trend or leniency, it is a warning indication for the organisation.

Performance management has various components such as, performance review or appraisal, staff counselling, employee self-discipline, employees' training and development, termination and remuneration. The performance appraisal is the procedure of obtaining, analysing and saving information about the comparative worth of a worker. (Nankervis et al. 2011) It centers measuring and improving the actual performance of worker as well as the future probable of the employee. The appraisals are usually performed double in a 12 months in an organisation by means of mid reviews and twelve-monthly reviews which is organised in the end of the financial season. (NaukriHub, n. d) The performance appraisal goes to the heart of employees management and demonstrates the management's curiosity about the improvement of the employees. There are several aims of performance appraisal. First of all, it provides opinions to the employees on past performance. Then, it identify the talents and weaknesses of the individuals for the determining working out and development needs of the future. Thirdly, it provides quality of the prospects and duties of the functions to be performed by the employees. Lastly, the performance appraisal provides information to assist the organisation set up the future goals and determine training needs. There are many methods to gauge the performance review, such as ranking scales, assessment methods, peer, self and upwards review and 360-degree feedback (Nankervis et al. 2011). In the case of Colbran Institute, they use graphical scale to measure their performance appraisal.

While performance review is one importance process that under the performance management system, another is the procedure of employee counselling. Employee counselling can be described as providing help and support to the employees when they face the difficult times in life. People have some problems either in their work or personal life whenever in life or profession, which can raise the stress degree of themselves. As a result of that, the efficiency of the performance can be inspired. Counselling is guiding and aiding them to solve their problems every time they need. Counselling of employees is now an important function of the professionals. (Bobinski, 2005) You will discover three various aspects that the managers need to address for their counselling of employees, which are performance counselling, personal and family wellbeing and other problems. Performance counselling is the necessity for worker counselling develops when the staff shows the indication which is the decreasing of their performance maybe caused by the work stress or bad decision-making. Furthermore, personal and family wellbeing counselling is staff carry the non-public or family problems to their work which lead to a terrible affect for their performance. These problems all can be deal with employee counselling and counselling at work place is a means of the organisation to care about its employees. (NaukriHub, n. d)

Furthermore, Employee willpower is another necessary and essential aspect for just about any growing business. Indiscipline employees have poor ability to learn and inefficiency performance in work. Even worse poor disciplined employees can make an undisciplined labor force, can destroy the quality of goods and services, could harm the reputation and the image of company and boost the cost of the business. The goal of the employee willpower is to avoid these bad things happened. The managers can use various ways to maintain the willpower in a firm, such as arranged achievable goals and expectations which can help the employees easy to abide the self-control, alert or even punish the employees whenever their performance is not up to the criteria or targets and reward or compensate every good performance from disciplined employees. (eSalesTrack, n. d, ) These ways are all benefit for develop a good employee willpower and make a good have an effect on for the long run of the business.

Training and development is another factor that can effect the performance management. Most employees need additional training if indeed they wish to know how to execute better in the work which they were hired. Development usually identifies teaching the abilities needed for both present and future jobs. (Davidson et al. 2009) Training of the reviewers is really as important as the management appraisal, because the managers and supervisors need to build up themselves. Performance review training should concentrate on removing the subjective mistakes made by professionals in the score process. Taking the Colbran Institute case study for example, there are rater errors along the way of its performance appraisal. That affects the consequence of the appraisal generalities.

Last however, not least, termination of job is the finish of any employee's duration with the company. It can be initiated by either the staff or the company. There are many types of termination, that are voluntary termination, pension, involuntary termination and termination by mutual agreement. First of all, voluntary termination occurs when absence from work with three or even more consecutive work times without notifying the business. Secondly, old age occurs maybe therefore of the employee's years which is vary depending on various job, or else an injury or other condition forcing early retirement life, such as sports athletes or contractors. Then, involuntary termination is set up by the company. It occurs when employee's unsatisfactory job performance or decrease in staff. Finally, termination by common arrangement is some occupations have contract of the certain age to retire, such as airline pilots. ( HumanResources, n. d, )

Colbran Medical Institution Case Study

According to the case study, some of the particular issues are identified in the current performance appraisal system used by Colbran Institute, which is the prospect of distortion of appraisals. The prospect of distortion of appraisals include unclear performance criteria and ineffective rating instrument, and lack of give attention to management development and improvement. The unclear performance standards and ineffective rating instrument can result in rating inaccuracy, central inclination, leniency and does not indicate that whether the employee's performance effective or not. Having less concentrate on management development and improvement can result in ineffective connect to reward systems. Obviously, the current performance appraisal system in Colbran Institute implies that it has the defective rating system and the lacking determination skills. In the case, Isabel showed the performance appraisal varieties which can be either designated 'good' or 'excellent' to Allan. As outlined by Allan, he thought that is the rater mistakes which like central tendency or leniency and it proved unclearly the real performance appraisal.

The unclear performance criteria and ineffective rating tool, which is the biggest potential distortion of appraisal, can result in inaccurate rating, leniency errors and does not estimate if the employee's performance effective or not. In developing a rating system, a specific reflection of each level of performance must be provided and disseminated to all employees. One of the key steps in developing effective performance appraisal system is to look for the organisation's aims. When performance appraisals are done well, there are a powerful tool for guiding, enhancing and rewarding employees' performance. An effective appraisal system is important for an organisation in the long run.

Recommendation of the Performance Appraisal System

In order to achieve the full potential of performance appraisals, the Colbran Medical Institute need to form part of an integrated evaluation system. Firstly, they have to do the job analysis that your job is split into its components and determines skills, skills and behavior which can distinguish between good and poor employees' performance. The Colbran institute can use job analysis to choose the different level of requirement of good or bad performer. Then, a through analysis is the most crucial step in designing such something. It establishes the partnership between the job and the performance appraisal. Based on this evaluation, performance criteria of related particular job can be developed and communicated in writing to the staff as part of the job explanation. Next, real performance is then assessed and in comparison to standard by using score scales. It uses the enough details to do the score scales as opposed to the generalities of that. The effect is communicated formally by each review period, and the result of performance appraisal should be associated with pay, that is important to ensure the system can reveal accurately the particular staff is producing. So, an integrated evaluation system should be designed and performed carefully, and a fantastic performance appraisal system provides actual responses of the employees' performance on former, enhance the employees' performance more proficiently and thus permit to boost the production and make a permanent broom of the organization.


In bottom line, the performance management takes on an important role of human source management. Effective performance management causes boost employees' performance, identify performance requirements evidently, provide accurate responses relevant to those requirements and assist with job development. Performance management has various components, such as performance appraisal, training and development, remuneration, employee counselling, employee willpower and termination. Performance appraisal is on of the most crucial operations under the performance management. It is give attention to providing reviews to the employees on past performance, talking about their talents and weaknesses, clarifying future performance objectives, establishing future goals and assessing training needs. According to the research study, the Colbran Medical Institute has a prospect of distortion of appraisal which is unclear performance standards and ineffective rating instrument can lead to ranking inaccuracy, central trend, leniency and does not indicate that if the employee's performance effective or not. To be able to achieve the entire probable of performance appraisals, the Colbran Medical Institute need to create part of a built-in evaluation system.

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