Strong performance management plays main role in managing companies during the financial crisis. This report will detail the need for implementing a performance management system during the current global financial crisis. The report will discuss the principles and aspects of performance management and detail several challenges that are presented when implementing a performance management system, or adjusting a current system already in place. In addition, it will analyze the company, DMG World Media, who will be used as a basis for best practices as they are known for their successful positive performance system. Moreover, it will show how a performance management scheme could be successfully introduced in this company. Finally, we will explain and justify the need of implementing the systems especially in time of economic upset throughout the global markets.
DMG World Media is an international exhibitions company which is a leader in home and consumer shows. The company employs fewer than 1,000 employees and is much decentralized and maintains numerous offices in many countries across the world. The company maintains a stringent, yet highly successful, human resources performance management system. Unlike traditional performance management systems that occur yearly and in more of a review format that discusses positives and negatives, DMG has performance reviews based on superior performance after each major event that it has. The executive vice president of HR, Warren Girling, states "We have a culture of how we manage our people to get that high performance. We select groups of highly motivated and developed people who understand their customers and their business. And, we have on ongoing discussion on how we perform" (Varma et al., 2008, p.32). This report will seek to understand the need for implementing a performance management system like DMG where companies currently are seeking to cut costs and increase profits as much as possible during the global economic recession. Employees may feel resentment to such a program as they may feel that the program is meant to cut more hours and jobs of those that may not be over achieving. Implementing a positive reinforced performance management system will help overcome these challenges and help the company to align its performance with its business objectives. First, we must analyze in detail performance management systems and how DMG is considered a best practice company to examine.
Performance Management Systems
Performance management systems integrate human resource activities with the organizational and strategic objectives of the business unit or organization. For DMG, utilizing its strong and successful performance management systems allows for improved performance and therefore stronger sales and profits. Typically, traditional performance systems deal with face to face interactions discussing and planning goals,...