Performance Management System Memorandum

MEMORANDUM

To: Keith Randall, CEO

From: Hiram Phillips, CFO

Re: Performance Management System

Date: March 03, 2019

The primary objective of any Performance Management System is to ensure that any institution is well-set so that its goals and objectives are met in an effective and efficient manner. Therefor, such a system should pay attention to the components that are vital towards meeting its major goal. The recently conducted analysis on the performance management system that was put in place gives an indication that everything is working properly although a detailed analysis give very different results that are contrary to the assertions presented by the surface and simple analysis.

Reasons for Failure

Different findings are made when a detailed and extensive analysis which offer reasons as to why it is not working appropriately and effectively. To begin with, Rainbarrel Products has been loosely ran. In other terms, the company’s management has not been able to employ leadership models that appeal to the structure and the goals of the institution. As a result, when the new performance appraisal management was put in place, it was also poorly managed and instilled considering that it was the same management that was tasked with the responsibility of managing it as well as it outcomes. Thus, any given organization, such as Rainbarrel Products needs to be able to have an administrative body that employs transformative and empowering leadership that allows the overarching goals to be met while at the same time encouraging employees to work towards meeting the mission and vision of an organization. All in all, laxity in leadership is one of the factors is described as one of the reasons as to why the current system is not working. It is at this given juncture that the role and input by the CEO should be focused. Initially, you (the CEO) was described as aspiring and innovative. Thus, the company requires a leader to adopt these dynamics in that they should be innovative and aspiring to come up with solutions to the current challenges and offer a sense of direction that would bring about a change in the organizational behavior and the mannerism of the performance appraisal management system.

Another aspect that makes the system unable to function in an effective and efficient manner is the fact that it is one-sided. It is one-sided in the sense that it does not pay attention to the culture of performance of the company. Additionally, the system needs to be able to pay attention to the strategic goals of the system which it also fails to do. Thus, there is failure by the system to deploy service activities in an effective manner and in the case of Rainbarrel Products it is causing the performance management system to be unreliable and poor in its functioning. It is very critical that a performance management system to reflect the presence of service activities and the fact that the current one does not meet this obligation; it is therefore rendered unhelpful and unbeneficial to the institution. Lastly, the failure of the system can be explained by its inability to assess, review, and evaluate processes within the organization. Performance appraisal is only successful if there is effective evaluation, assessment, review, and implementation of the issues relating to the performance of the company’s processes. However, the current system does not adopt all these aspects making it ineffective.