Limitations in Pms

Topics: Management, Strategic management, Balanced scorecard Pages: 20 (6265 words) Published: June 23, 2013
TERM PAPER - MEASUREMENT CHALLENEGES IN PERFORMANCE MANAGEMENT

Submitted to:
Dr. Tanuja Sharma, PhD-FMS (Delhi University)
Human Resource Management
Management Development Institute (MDI)

Group 4:
Jan Pieter 13RSM01
Abhishek Binani 12PGHR04
Apurv Jain 12PGHR14
Garima Chib 12PGHR24
Mallikarjun Kulkarni 12PGHR34
Ravin Khanted 12PGHR44
Udit Pant 12PGHR54
ABSTRACT
The paper describes the importance of performance management systems in organizations and focuses on the impact of measurement on performance management and the various issues and challenges related to performance measurement. The need to measure performance management is discussed and an insight about the evolution of performance management and the various frameworks like the balance scorecard, the performance prism, benchmarking, results based management etc. that are used for measuring performance are briefly touched upon in this paper. The paper further focuses on different types of measurement challenges in performance management in detail. The various trends in the development of measuring performance and related experiments in the area of performance measurement are described. Later on, some specific information regarding the HR scorecard has been given and its benefits, measurement factors and the need for developing and the related steps for designing the HR scorecard are discussed. The objectives considered in the HR scorecard and the respective measurement methods are cited in the paper.

ACKNOWLEDGEMENT
We would like to thank Dr. Tanuja Sharma, our professor for the subject Performance Management Systems, for helping us gain a deep understanding of the subject and giving us the opportunity to work on the term paper regarding the measurement challenges in performance and the current trends in performance management. She has been a constant source of inspiration to all of us and has motivated us to perform to the best of our abilities. Without her support and guidance, the completion of this term paper would not have been possible. Also, with the tremendous experience she brings to the class, we have been able to develop a solid foundation in this course.

Table of Contents
INTRODUCTION5
THE NEED TO MEASURE PERFORMANCE MANAGEMENT5
EVOLUTION OF PERFORMANCE MEASUREMENT6
ISSUES IN PERFORMANCE MEASUREMENT6
Context issues:7
Process issues:7
Content issues:7
COMMONLY USED FRAMEWORKS7
Total Quality Management7
Benchmarking8
Balanced Scorecard8
Performance Prism8
Results Based Management9
Logical Framework9
MEASUREMENT CHALLENGES10
Methodological Challenges10
Human Factors11
Lack of Investment11
Transaction Costs11
Power and Control11
Culture and Context12
Complexity and Change12
TRENDS IN THE DEVELOPMENT OF PERFORMANCE MEASUREMENT13
Participatory Performance Measurement13
Monitoring and Evaluation in the Humanitarian Context13
Measuring Change Produced by Capacity Building Interventions14
Measuring Core Values14
Culture and Context-Specific Performance Measures15
Understanding Change through Performance Measurement15
LEADING AND LAGGING INDICATORS15
HR SCORECARD16
CONCLUSION17
BIBILOGRAPHY18

INTRODUCTION
Performance management is one of the critical aspects of organizational effectiveness (Cardy, 2004). It is considered the “Achilles’ Heel” of managing human capital (Pulakos, 2009) and should therefore be a top priority of managers (Lawler, 2008). Performance management considers both the measurement of performance and its use by management for decision making and by external parties for accountability purposes. Performance measurement is defined as the process of arranging metrics in order that employees need to meet, and then analyzing and evaluating the actual performance of the employees against...
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