Performance Management Employees Will Receive

¶ … Performance Management

Employees will receive absolutely no raises, and performance management is eliminated throughout the economic crises. Therefore employee wages will remain the same, regardless of position held; no performance reviews are given; and there will be no adjustments of missions, goals, and duties during this period.

This is obviously the worst of the three strategies, because of a vast number of reasons. First of all, one need to consider that a performance management system is not formed of a single element, an annual evaluation that each employee undertakes. It involves a larger volume of human resource practices, including a clear job definition, as well as the employee defining the requirements for each individual in terms of what is expected from him or her at work (Heathfield, 2011). Performance management includes training and motivational techniques, including compensation schemes that appropriately work in favor of increasing the employee's effectiveness in the workplace.

With that in mind, the first strategy appears to simply freeze human resource practices during the time of economic crisis. As mentioned, this will not only mean no raises and no performance reviews, but also no change in job specifications to keep up with potential new projects that appear or any other change in the activity of the organization. No performance evaluation would mean that the company will not be able to successfully face any changes in the environment.

At the same time, while this strategy is deemed as a temporary one, lasting throughout the economic crisis, there is a distinct danger that the problems the company is facing may perpetuate after the crisis is over. The reason for this is that the company will have, at the end of the crisis, a sclerotic workforce, one that has not been part of a performance management system, has not been evaluated in order to be improved and is not fit for the challenges of the business community, as the latter presents itself after the economic crisis.

This brings us to the costs that both employees and JVA Corp. will face if this strategy is implemented. The employees will lose because, after the economic crisis, they will find themselves at the same professional levels as before the crisis. As no performance management has been undertaken, there have been no training programs etc. And the employees will simply find themselves not adapted to the challenges of the environment. They will find it difficult to move to another organization or be promoted in the near future.

The costs for the organization are even more significant and the previous paragraphs had hinted towards this. The main cost for the organization translates into the decrease in performance, over time, of its human resource and, indeed, of the overall quality of the personnel. At the same time, an additional cost will be the company's inability to make accurate strategic decisions, since the human resource will no longer be sufficiently well prepared to undertake these. The company will likely find itself in a position where it will not be able to tell how well its employees are able to perform.