Question

A central factor that can determine the effectiveness of a performance management system, of course, is whether an employee’s performance is raised, thereby raising the overall performance (and profitability) of the organization. This is accomplished by ensuring that the performance of an employee is directly tied to the organization’s overall strategic goals/objectives.

In this critical thinking assignment, choose any Saudi Arabian company in which you are familiar (it does not need to be one that you have worked for). Research the specific goals or objectives of the organization over the next 5 years, along with the main principles of a performance management system, and then address the following questions:

Give a brief review of the organization you have chosen.

State the 2-3 most important goals/objectives for the organization over the next five years.

As mentioned above, the key to an effective performance management system is to directly tie organizational goals with an employee’s specific goals. If that employee accomplishes those goals, then the organization has an opportunity (collectively) to reach its overall goals/objectives. Given that statement, choose any position you are familiar with in that organization. They develop 3 goals that the person in that position must accomplish over the next years in order to be successful in their position and, as a result, that would allow the organization to be successful.
Below is an example:

Answer 1

The effectiveness of a performance management system is key to aligning an employee's performance with a company's strategic goals. Clear objectives and regular performance appraisals that focus on skill development contribute to both individual and organizational success. Managers and industrial psychologists play vital roles in designing and implementing these appraisal systems.

Step-by-step explanation:

Performance Management System and Organizational Goals

The effectiveness of a performance management system is crucial for the success of any organization as it ensures that an employee's performance aligns with the strategic goals. A well-implemented system aids in raising not only individual performance but also the overall performance and profitability of the company. The principles of performance management include regular performance appraisals, setting specific measurable goals, and providing feedback and opportunities for skill development.

Any Saudi Arabian company aiming to succeed over the next five years should have clear strategic objectives. For instance, some key objectives might be to expand market share, increase innovation, and improve customer satisfaction. Employees should have performance goals linked to these objectives, such as enhancing product knowledge, contributing to product development, and increasing customer engagement, respectively. By achieving these individual goals, employees directly contribute to the organization's success.

A manager's role in the performance evaluation process is also critical. Evaluations often include a discussion of past performance, setting goals for future work, and potentially discussing skill development and growth opportunities. This provides a roadmap for employees to follow and align their goals with those of the organization. Industrial and organizational psychologists can play a role in designing these appraisal systems to ensure fairness and effectiveness.