Performance Management Review Essay

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What issues might arise as they attempt to merge their respective performance management systems?



Performance management systems play a significant part in the everyday operational success of an organization. When a firm acquires another firm, there are fundamental issues that might emanate as they try to merge their corresponding performance management systems. One of the key issues is that some of the metrics being employed by one company may not be suitable or efficacious for the other company. Majority of the organizations have a performance management practice and procedure that they utilize to measure and assess personnel on objectives delineated by human resources and ascertain bonus payments and compensation. Therefore, the lack of compatibility of the performance management systems of the companies whilst merging implies that the companies may fail to properly assess and manage the performance of the new set of employees and therefore give them the wrong set of dues and also compensations (Eckerson, 2010). The managers of one organization may carry out an ineffective and substandard job in the evaluation of personnel of the other organization. In addition, the performance incorporation and integration may come about devoid of the assimilation of compensation, development, movements and placement within the organization as well as rewards. Moreover, the form that is employed for the merged firm might not be appropriate for all personnel (Besanko et al., 2009).

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Another issue that is likely to be faced in the course of a merger is misalignment. In particular, mergers and acquisitions generate a fascinating sequence of issues concerning performance management, and especially aspects such as performance reviews. For instance, if the business restructuring or transition takes place just before the performance appraisal phase, then there is a likelihood of encountering instances of the incumbent firm manager letting go of the preceding performance review and also the incoming manager from the acquiring firm having no knowledge whatsoever regarding the performance of the employees (Marr, 2006).



What might be the risks for the combined firm?



There may be some risks that come about from the combined firm. One of these risks is failing to provide proper and detailed information regarding the acquisition and the merging of the two firms. Failing to disclose information to the personnel as a whole regarding the positions that may be affected in the business restructure might be a significant risk taken by the firm. As a result, this might give rise to law suits from some of the employees (Grimshaw & Co., 2016). Another risk that can be faced in the course of the merger is the vague and imprecise alignment with the corporate cultures of the firms.….....

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References

Besanko, D., Dranove, D., Shanley, M., & Schaefer, S. (2009). Economics of strategy. (Fifth ed.). Hoboken, NJ: Wiley.

Eckerson, W. W. (2010). Performance dashboards: measuring, monitoring, and managing your business. John Wiley & Sons.

Grimshaw & Co. (2016). The Legal Pitfalls Surrounding Restructuring and Performance Management. Retrieved 8 June 2017 from: http://www.grimshaw.co.nz/2016/06/13/how-to-understand-the-legal-pitfalls-surrounding-restructuring-and-performance-management/

HR Management Guide. (2017). Performance Management Risks. Retrieved 8 June 2017 from: http://www.simplehrguide.com/performance-management-risks.html

Marr, B. (2006). Strategic performance management: leveraging and measuring your intangible value drivers. Routledge.

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