How Organizational Culture and The Use of Performance Criteria and Standards Affect
the Remaining Components of a Performance Management System
According to Valentine et al. (2020), businesses should seriously consider investing in a
performance management system that accounts for the wide range of employee actions
contributing to optimal business results. Recognizing employees for their ethical behavior,
especially when it leads to excellent results for the firm, is one way to drive home the idea that
employee actions and business outcomes matter (Snell & Morris, 2022). Companies can increase
the likelihood that their employees will exhibit the desired behaviors by emphasizing them in
their value statements, raising awareness of the significance of constructive on-the-job action,
and encouraging more.
Valentine et al. (2020) state that performance indicators might be subjective or objective.
For example, an objective indicator may include the number of cars sold, whereas a subjective
may entail the number of bills sold in a particular financial year. Subjective measures are more
challenging to evaluate since they require the evaluator's judgment. For instance, the manager's
opinion of an employee's "attitude" is an example of an intangible quality (Valentine et al.,
2020). Therefore, care must be used while employing either objective or subjective metrics.
Performance measurement requires focusing on the work's most essential features.
Customer service reps' responsiveness may matter more than their ingenuity. Hansen and Pihl-
Thingvad (2019) recommend highlighting and communicating each position's most important
characteristics in job descriptions. Performance evaluation is only flawed with essential duties.
Valentine et al. (2020) advise managers to use only acceptable or contaminated metrics.
However, overemphasizing one metric can be harmful (Snell & Morris, 2022). Hard effort,
timeliness, and organizational contribution should be rewarded (Valentine et al., 2020). Bonuses,
promotions, and other rewards may be granted when goals are met. If an employee
underperforms, they will receive coaching and constructive feedback. Evaluations encourage
staff growth and ongoing improvement.
According to Valentine et al. (2020), organizational cultures include performance stress,
impacting performance criteria, standards, and other performance management system
components (Snell & Morris, 2022). Organizations affect the management system because
performance criteria evaluate employees' most important job duties (Valentine et al., 2020).