Performance management systems in medium scale industries with the intervention of Trade Unions
Scholarly article
Introduction
The aim of the below scholarly article is to aid us in understanding and solving some of the problems that we have observed in the performance management system of the company that we have visited and studied( Aarush Metal castings limited). Our company is a medium scale enterprise catering to the requirements of its sister concern by providing it with pre machined parts in accordance with customer specification. Some of the key success factors of our company are low cost, higher quality and on-time delivery. Some of the problems that we have observed regarding the performance management system are usage of metrics for the performance appraisal of the workers that are not in alignment with the strategy of the company and are not derived from its critical success factors measured by the relevant key performance indicators and translated into key result areas for process owners, lack of a system for top management, lack of succession planning and over dependence on a few key employees. The following article aims to provide insights into the development of a relevant and effective performance management system for medium size enterprise such as Aarush Metals and also study the effect of industrial relations/trade unions if they come into the picture.
The main aim of any performance management system is to effectively and efficiently measure the performance of individuals, departments, divisions and the entire organization in general and also to help in rectifying errors that the company might be making in the short run so that a feedback system can also be incorporated to avoid future errors. Another important function of the performance management system is to allocate the profits of the company to the individuals and also to determine the increase in the various components of their pay levels. In general, a good performance management system [1] must cover two aspects one being the characteristics by which performance is
Introduction
The aim of the below scholarly article is to aid us in understanding and solving some of the problems that we have observed in the performance management system of the company that we have visited and studied( Aarush Metal castings limited). Our company is a medium scale enterprise catering to the requirements of its sister concern by providing it with pre machined parts in accordance with customer specification. Some of the key success factors of our company are low cost, higher quality and on-time delivery. Some of the problems that we have observed regarding the performance management system are usage of metrics for the performance appraisal of the workers that are not in alignment with the strategy of the company and are not derived from its critical success factors measured by the relevant key performance indicators and translated into key result areas for process owners, lack of a system for top management, lack of succession planning and over dependence on a few key employees. The following article aims to provide insights into the development of a relevant and effective performance management system for medium size enterprise such as Aarush Metals and also study the effect of industrial relations/trade unions if they come into the picture.
The main aim of any performance management system is to effectively and efficiently measure the performance of individuals, departments, divisions and the entire organization in general and also to help in rectifying errors that the company might be making in the short run so that a feedback system can also be incorporated to avoid future errors. Another important function of the performance management system is to allocate the profits of the company to the individuals and also to determine the increase in the various components of their pay levels. In general, a good performance management system [1] must cover two aspects one being the characteristics by which performance is
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