Performance Management System



Performance Management System

Introduction

Performance management (PM) is the process of transforming, strategic corporate, objectives into action, monitoring progress, and, fruitful results. It provides both a coherent management philosophy, and a system for maintaining and enhancing the performance of employees while facilitating their professional development. A concept of performance management system (PMS) is relatively new in management theory and practice. One of the possible definitions of this term formulated by Ferreira and Otley: PMS is the evolving formal and informal mechanisms, processes, systems, and networks used by organizations for conveying the key objectives and goals elicited by management. Thus, for assisting the strategic process and ongoing management through analysis, planning, measurement, control, rewarding, and broadly managing performance, and for supporting and facilitating organizational learning and change. A company's performance management system depends on the complexity of the sequence and linkages among the activities. It is important to understand that performance management a complex matter allows the use of different approaches and concepts (Rogers, 1990). The paper is based on the performance management system of Ernst & Young and PricewaterhouseCoopers with detailed comparison and analysis in terms on similarities and differences. Further, it would extend to weaknesses of the along with its implications on the overall organizational productivity and culture, its future outlook and strategies that may be devised to improve the existing system.

Key elements of performance management

In our view, a system of performance management is reasonable to analyze how three interrelated component elements:

Ethics effectiveness: organizational context, culture and mentality of employees, under which the company aims to achieve reliable results;

Control Systems business outcomes: the systematic processes, procedures and methodological approaches used to assess the performance of the company and reverse action to improve them;

Staff performance management system: processes and incentives used by the company to achieve maximum benefits from employees.

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Discussion

Ernst & Young

Brief Overview

Ernst & Young is a global network of companies, active in the field of professional services firms; the main regions of operation are the review of budget and business consulting, financial, tax and legal. The group employs over 152,000 employees in 2012 at 700 locations in 140 countries with total revenue in the worldwide network of sales in fiscal year 2010/11 to 22.9 billion U.S. $. It is part of the Big Four, or the four largest companies worldwide in the audit market, the other three are PricewaterhouseCoopers, Deloitte & Touche and KPMG. Until 2002, these were added Andersen (formerly Arthur Andersen) before the bankruptcy after the Enron scandal in the United States (Comin, 2011).

The target market was characterized by progressive combinations and mergers between companies, to reach the current levels of substantial oligopoly. According to a recent analysis of Il Sole 24 Ore, Ernst & Young is the second actor in the Italian budget review, with 27.4% market share. Market leader is KPMG with 28.1%, while the chase PricewaterhouseCoopers with 27.3% and Deloitte & Touche with 17.1%. Because of the economic downturn, EY also suffered a contraction in particular the division Transaction ...