Implementing a performance management system requires a lot of investment. At times the organization may run out of funds to ensure the system is fully implemented. This challenge can be dealt with by planning the process before implementation. The organization could also borrow a loan to help the implementation process (Jay & Barry, 2011).
Formulation of performance management systems is purely theoretical. At times during the implementation process, some of the systems are not practical. This challenge can be avoided if pilot studies are done to ensure the plans are practical before the organization implements the plan fully (Jay & Barry, 2011).
When assessment results are released, the organization must identify the areas that the organization is not performing optimally. The organization should then start developing a way of ensuring the weaknesses are wiped out. This can be done by developing new strategies to improve performance or by doing away with some sectors that do not promote success in the organization (Jay & Barry, 2011).
An organization could benefit from assessment results by taking advantage of its strong points. If an organization wants to improve its productivity, it could consider optimizing its strong areas rather than improve its weak areas. This is because weak areas require heavier investments than optimization of strong points (Jay & Barry, 2011).
Organization can use the results of the assessment process to provide motivation to its employees. Performance management systems help organizations to determine strengths and weaknesses of their employees. Once the results of the assessment are out, the organization can seek to motivate employees at individual levels by helping them attain their potential ability (Jay & Barry, 2011).
Therefore, communication is one of the most necessary factors when implementing a system of performance management. This is because it makes all stake holders view the performance management system as beneficial to them and the organization. There are some challenges experienced when implementing a system of managing performance in the organization. These challenges must be addressed through proper planning of the implementation process. The assessment results can be used to improve the organization’s productivity depending on the outcomes (Jay & Barry, 2011).
Effective management of the supply chain is always a critical component of TOA’s ability to gear towards meeting their consumer demands. Any disruptions to the existing supply chain can greatly disturb the usual flow of all goods and also materials. This, as a consequence, eminently exposes TOA to operational and also financial risks. TOA should consider all their operating models, in line with designing to define any optimum balance existing between financial efficiency and also assuredness of any stable supply chain. TOA maintained backup inventories and also manufacturing facilities that might expose them to risk as they always concentrated on total working with less redundancy (Jay & Barry, 2011).
The first method that TOA could apply is active risk management. The supply chain risk management always involves mapping of the entire existing supply chain and all its dependencies, understanding, identifying, and assessing all the various existing threats and also risks, identifying any single points of impending failure and finally implementing strategies that are geared towards removing or reducing these. This is considered a continual process and is always generally supported by any specialist software. The supply chain risk management has to be supported by many logistics management systems that should track all the movements of given items along the whole supply chain.
The second applicable method could be by including all the supply chain within that business and continuity management systems of TOA. This approach generally ensures that all important suppliers are never at any risk from any long-term downtime that is caused by disruptive cases and incidents. The normal approach may be to require suppliers of all critical products and also services to develop efficient business continuity plans and procedures and also to make that availability for all the auditing is there.
The final approach would be to use all the insurance. This may be the final resolution.
Communication is very important prior to putting a performance management system into practice. Every associated party in the process of managing performance such as the organization’s shareholders, managers, employees and even associated parties such as clients and partners. Communication helps each of those affected groups must understand every aspect of the performance management process. Shareholders must be informed of the advantages of the whole process towards the organization’s productivity. Shareholders must be aware of the processes taking place in the organization they have invested. This gives them confidence in what the management is doing to improve the organization (Jay & Barry, 2011).
Communication among managers is important because at times some managers may be against the idea of implementing a system that would manage employee performance. They must be made aware of potential benefits of the process to ensure they support the idea before it is implemented. Employees are usually the focal point when implementing a performance management system. If not made aware of the objective of the process, some employees may feel like the management is not supporting them. They could also doubt their abilities. They must be informed that the process is aimed at improving employee performance and no other hidden objectives. Effective communication will help all these groups of people in an organization to unite and cooperate to ensure the performance management system is successfully implemented (Jay & Barry, 2011).
During the process of implementing a performance management system, there are common impediments that are usually experienced. Some of these challenges arise from some employees while others are technical. The organizations must plan on how to deal with these challenges to ensure a successful process. Some of the challenges include the following (Jay & Barry, 2011).
Lack of cooperation
Cooperation is very important in the successful accomplishment of any organizational process. However, implementation of performance management systems can cause misunderstandings hence; some people could resent the process. This is common with some managers who may not agree on some of the processes during the implementation process. At times employees are uncooperative because they feel the process undermines their reputation and abilities. Uncooperative parties must be convinced to take part because it is a beneficial process to the organization.