Case Study: Performance Management at Network Solutions, Inc.

Course: HRM522

Submitted To-

Dr. Md. Mesbah Uddin

MBA, PhD (Durham, UK), AFHEA (UK)

Adjunct Faculty

East West University

Submitted By-

Asikur Rahman

ID: 2017-3-95-024

Section: 1

Semester: Summer 2020

Date: July 19, 2020

Q1. Overall, what is the overlap between Network Solutions’ system and an ideal system?
The overlap between Network solutions and an ideal system is that the Network solutions want to
align their employees’ goals with the organizational. Which includes developmental programs for
the employees to increase their overall performance. Another overlap was the standardization of
the PM system at all divisions within the organization. Two-way communication was also
encouraged. Because it enables managers and employees to share positive and negative feedbacks
about the performance. The rating system which was the catalyst, which evaluates each employee
with a rating of 1, 2 or 3. 20% of all employee belongs to rating 1, 70% of them to rating 3 and the
rest falls into rating 3 with an average of last 10% of total employee. To rectify the policies and
practices continuous checks were also made at different intervals.

Q2. What are the features of the system implemented at Network Solutions that correspond to the
features described in the chapter as ideal characteristics? Which of the ideal characteristics are
missing? For which of the ideal characteristics do we need additional information to evaluate
whether they are part of the system at Network Solutions?

The features of the system implemented at Network Solutions correspond to what is described as
ideal characteristics are as follows:
Coherence with the Strategy: According to these characteristics, the system should be coherent
with the unit and organization’s strategy. The first task for the design team was to bring down the
organization strategy into each employees individual work. The design team aligned individual
goals with organizational goals.

Thorough Understanding: In Network Solutions system employees are evaluated by the

execution of annual objectives and job requirements as well as by a comparison rating of others at
a similar level.

Practicality: Systems that are too expensive, time consuming will not be effective. Simple, easy-
to-use systems are available for managers to help them make decisions.
Meaningfulness: Standards and evaluations for each job function are important and relevant and
the results should be used for important administrative decisions.

Clarity & Specificity: A good system should be specific. It should provide detailed and clear
guidance to employees about what is expected of them and how they can meet these expectations.
Identification Of Effective And Ineffective Performance: The system should allow for
distinguishing between effective and ineffective behaviors and results. There is also a plan to
monitor for and correct any unproductive practices and implement correcting policies and
practices.
Reliability: A good system should include measures of performance that are consistent and free of
error. Network Solutions planned on continuous check on performance of all employees.

Validity: The measures of performance should also be valid. In this context, validity refers to the
fact that the measures include all relevant performance facets and do not include irrelevant
performance facets. Network Solutions considers facets like the execution of annual objectives
and job requirements as well as by a comparison rating of others at a similar level.
Acceptability and Fairness: Employees perceive the performance evaluation and rewards received
relative to the work performed.
Openness: HR Centers of Expertise of Network Solutions continue to educate employees about
the system to ensure that they understand that Network Solutions rewards good performance.

Correctability: When employees perceive an error has been made, there should be a mechanism
by which error can be detected. There is also a plan to monitor for and correct any unproductive
practices and implement correcting policies and practices.
The ideal characteristics which were missing and needed to developed:

 Inclusiveness: There was no such information given in the case regarding that the
employee himself gather their performance data before the appraisal meeting.
 Standardization: Good systems are standardized. This means that performance is
evaluated consistently across people and time but here Individual performance are
determined by the execution of annual objectives, not in a consistent manner.
 Ethicality: There may be a chance that supervisor will may give more favor to one
employee and the element of employee privacy is not there.

Q3. Based on the description of the system at Network Solutions, what do you anticipate will be
some advantages and positive outcomes resulting from the implementation of the system?

Implementing the new PM system, Network Solutions Inc. can anticipate some positive outcome
in achieving their organizational as well as individual goals. It'll help them to gain advantages over
their competitor. Let's see how this will happen over time:

 There won’t be any need to employ new PM system randomly like before. Which will
reduce the cost of operation of the organization.
 Proper recognition of performance and rewarding it will be possible throughout the
organization. Employees will see their work appraised and rewarded. Thus increasing the
organizational productivity.
 Effective and efficient PM system will help the organization to keep pace with the tough
competition in the market.
  Employee turnover will be reduced and identification and retaining of high potential
employees will be possible.
 Achieving organizational goal will be easier and less hectic due to bringing it down to into
pieces and place them upon each individual employee.
 Appropriate rating system will help to identify the low-productive employees, bright stars
and employees who are of average quality but can be improved in near future.
 Proper PM system will help the to cut cost, retain employees, result better performance and
achieve long-term goals- thus improving the whole organization with one effective and
upgradable way.

Q4. Based on the description of the system at Network Solutions, what do you anticipate will be
some disadvantages and negative outcomes resulting from the implementation of the system?

Every coin has two sides. This is why the newly implemented PM system of Network Solutions
Inc. has some negative impact on the organization. One may ask how it’ll happen and what
disadvantages it will cost. To answer that, let’s put some light on some aspects:

 Employees who doesn’t have self-confidence will think they’ll belong to the rating scale
of 3 and it’ll affect their work performance as mental pressure will pile up on them over
time.
 It’ll has the possibility of dividing the unity of the employees. Higher rated employees will
tend to distance themselves from the lowly rated employees. Thus affecting the harmony
of the organization and inter-departmental relationship.
 The system requires sheer focus and constant attention from both managers and employees.
A human being can possibly not maintain the same level of mentality through the year.
 Even in the new system, manager’s bias may affect the efficiency and correctability of the
result as they are the one who’ll provide the bigger chunk of input.
 This system lacks several characteristics of and ideal PM system, e.g: Acceptability and
Fairness, Correctability and Ethicality. It will affect the the performance management
system itself if not updated on time.