Design and Implementation of Performance Management System

Introduction

“The time for performance management is finally coming’, this was claimed by Paul Epstein
over two decades ago [ CITATION Eps84 \l 1033 ]. The prediction made can be realized coming true
as the adaption and application of both performance measurement and management system has
upsurge in the continuing era. Many public managers and planners all over the globe have seen
the worth of implementation of performance management system. In addition to this, we cannot
overlook the fact that implementation of performance management and measurement system are
multifaceted and dicey processes. Therefore, they require to be well managed to ensure the
appropriate integration into the company’s progression and edifice.

Dubai Electricity and Water Authority is a UAE based company providing basic utilities to the
consumers. The study assists the company in designing and implementation of performance
management system. The most significant stage throughout the development is analysis. This is
as well the very primary step in the designing which eventually sets the nitty-gritties for the
subsequent segments. Expectations of the administration and boundaries of real-life face each
other in the designing process until a model or concept ascends as a solution. The model is then
further tested before implementation. Execution then further follows into a full-scale system
which in the end aids the administration to run the organization. [ CITATION Ver09 \l 1033 ]

Performance Management System

Performance Management System can be defined as the process involved in building a shared
understanding of what is to be achieved at an organization level. This aligns both the objective of
the organization with the individual agreed measures, skills, development plans and delivery of
work. Improvement in the performance is the most focused area which is achieved through
learning and development which further helps in achieving the business strategy of an
organization.

Requirements
Performance Management System is a systematic approach which an be used by Managers to get
the members of the team achieve objectives of the team, targets, develop performance
capabilities, review individual as well as team performance. There are few requirements which
are needed to use the subject management system. These requirements are delineated under:

 Identifying Tasks and Capabilities

 Defining Competencies
 Ensuring the Required Competencies
 Having in Place a System to Develop Competencies
 Timely Feedback
 Accomplish Tasks and Achieve the Goal
 Motivating Effective Performance
 Corrective Methods otherwise

Process
There are four broader categories in the process of performance management system. Each
category has its own importance and when they are combined, they form backbone of company’s
management process. These four categories are as follows:

1. Planning
2. Coaching
3. Reviewing
4. Rewarding

Planning:
The management process starts with planning as a primary step. Management including HR are
responsible to define the job goal be it long term or short-term. In addition to this identification
of clear objectives and development of assessment metric which will further be used to assess the
goals and objectives defined. Goals needed to be clear and done in acceptable SMART (Specific,
Measurable, Attainable, Relevant, Time-Based) format and performance standards should also
be set accordingly. When management is done with defining stage then employees should be
giving an opportunity to give an input. They accompany the key insight because they are the
ones doing jobs and hence will input the competencies, skills, goals will assist the company to
achieve the organization goals.

When all the inputs are collected than there is the need of agreement of both the employees and
the management in defining the objectives, goals and role. Therefore, this primary step becomes
collaborative. This collaboration puts a feeling to the employees that they are involved in the
goal setting for the company.

Coaching:
Once the primary step is completed which includes defining the job role, skill and competencies
then the next step begins. This step is also holding a key importance in the whole process.
Therefore, it needs to be done on regular basis. Meetings should be held quarterly which are
acceptable but however, monthly meetings are more ideal. The goal of these meetings should be
providing solutions and coaching opportunities rather than disciplinary measures for poor
performance. On the other management should also be able give and take feedbacks and work
together with the employees instead of adopting combating stance. Management here should pay
attention to provide development opportunities. This can be done by reviewing overall
performance of the employees and how successfully this worked out. This also includes the
rewarding part if thins go well and this is also an important part of the subject segment.

Reviewing:

Reviewing can be described as how well the employee performed throughout a defined span of
time. If the reviews are held monthly that it can help the employee stay on the track toward the
achievement of business goals. This helps assessing how well the workforce is focusing on the
goals of the organization. Both longer- and short-term goals be taken into consideration to asses
where and how the improvements and coaching can be applied. Here comes the key part of this
segment which is feedback on the process going on and how management can do well on their
end.
Action:
The last step involved is the action. It further includes reward and recognition. This is what keeps
the employees going. It can be both monetary recognition and appraisal. These rewards may
include bonuses and compensations etc. Here the process ends with the final feedback for the
following year to do better. This feedback then helps in doing better and well achieving the goal.
[ CITATION Val \l 1033 ]

Challenges:
There are many challenges that organization is most likely to face. As we know various types of
tools are used in the designing process that may be traits based and based on behavior based.
When it comes to providing feedback then it could be regular and irregular. A well-defined
energy is required in getting the goals and measures in the right direction. This can go otherwise
which may result in divergence from the path toward the goal and thus required effectiveness of
the workforce may not be obtained. Some of the major challenges that are most likely to be faced
are delineated below: [ CITATION Uni18 \l 1033 ]

1. Complications in the Design

2. Lack of Integration
3. Lack of Leadership and Commitment
4. Ignoring Change Management
5. Incompetence

DEWA (Dubai Electricity and Water Authority)

The company was found in 1992 with a primary role of providing water and electricity to the
residents of Dubai. The company always aimed to provide best customer support by providing
high quality of service. As the company’s prime goal is to be the leader through professionalism
and relying on the workforce. DEWA can achieve the goals and the mission by only using the
workforce more efficiently and effectively. Therefore, many management systems like Employee
Performance Management System, Performance Management System.

Appraisal System of DEWA

DEWA has adopted appraisal system to appraise the performance of the workforce in
contribution to the goals and objective of the company. This also helps nurture the leaders in the
organization from bottom to top level. Therefore, this also helps in assessing the performance of
the workforce efficiently and effectively. This system also involves the training opportunities
which surge the skills in the workforce. This is the part of the development strategy of DEWA.
Reward system and career progression in the company are strictly based on merit.

Performance Planning

DEWA uses performance planning to use the workforce effectively in the favor of the goals and
missions defined. This also indicates when to evaluate the performance of the employees. For
this purpose, all the departments working under DEWA are notified about the forthcoming
performance assessment. It is pertinent to highlight that both management and employees discuss
the current strategic competencies at appropriate levels. The company has always encouraged the
employees to keep their scorecard up throughout the year. [ CITATION Obe13 \l 1033 ]
Performance Reviews

Performance of the workforce are also reviewed in DEWA. For the said purpose, Talent
Department of the company work together with other departments to conduct the evaluation.
Performance Management is taken twice a year. This performance evaluation considers Target
level, expected level and current level of competencies. [ CITATION Obe13 \l 1033 ]

Performance Assessment

This is the formal process of evaluating the performance reviews in the company. A meeting is
held with the employees for the said process. In the process many head of organizations are also
taken into the process for better evaluation. This assessment is not limited to employees only
even the departments at DEWA are also evaluated. The performance gaps are in the end
identified by the talent department and the report is submitted further to the training department
of DEWA. Training department further develops the coaching need for and implements the
desired actions after the performance assessment. [ CITATION Ivy20 \l 1033 ]

Performance Reward
When the employees perform well during the evaluation then they are further rewarded by
DEWA under the reward program of the company. This is the last stage in the process in vogue
at DEWA. In this performance of employees are equated with the goals and mission of the
company.[ CITATION Ivy20 \l 1033 ]

Conclusion
The above study and the example of DEWA reveals the fact that enough amount of time and
hard work is required to enhance the performance of the employees. Many organizations may
have the same plans and implementation but that will be only fruitful for the company if
implemented effectively and efficiently by the managers. Above study about DEWA reveals that
all the department heads and managers participate in the process to ensure the effectiveness of
the implementation. Furthermore, the performance evaluation shows how employees and
organization is aligned to the objective of the company. This is what has made DEWA an
industrial leader. Therefore, it is necessary for any organization to implement the Performance
Management System in more effective and efficient way that it benefits the company to the
maximum level attainable. DEWA has understood the importance of Performance Management
System well and the system developed by the company is well implemented in every way and
spends a considerable amount of resources and time to ensure the success.

Recommendations

Even though a continuous improvement is required throughout the PM&M System, but the
implementation could be made more effective with the help of Peer reviews. These Peer reviews
are also termed as 360-Reviews. This will help the employees of the organization to highlight the
positive aspects of the co-employees and indicate the areas and skills which need improvement
and coaching. This also becomes exemplary for other employees working regardless of the
departments to improve their skills and work according to the goals set. A complete care is
required on the peer reviews as no review should go unnoticed. In addition to this, goals of the
company should be properly communicated with the employees. All the managers and head of
departments should be held accountable for the proper communication and display of the goals
and objectives of company in workplace. This will ultimately help employees keep going on
track. A proper training of managers and head of departments should also be conducted to lead
the employees with the company’s objectives in an effective manner.
 References
Epstein, P. D. (1984). Using performance measurement in local government: A guide to improving.

IvyPanda. (Jul 1st, 2020). Dubai Electricity and Water Authority: Employee Performance Report. Dubai.

Oberoi, M. a. (2013). What Your Performance Management System Needs Most.” . Gallup Business
Journal.

Unito. (2018). implementing-performance-management. Retrieved from unito.io:

https://unito.io/blog/implementing-performance-management/

Valamis. (n.d.). performance-management-process. Retrieved from www.valamis.com:

https://www.valamis.com/hub/performance-management-process

Veronika Packová, P. K. (04 December 2009). Designing and Implementing Performance Management
Systems. Business Performance Measurement and Management, 241-242.