Assignment on Performance management

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Assignment on Performance management

  1. 1. [PERFORMANCE MANAGEMENT] October 20, 2011 School of Business and Law Assignment On Performance ManagementName Md. Kamal HossainID B0687MHMH0411Semester MBA1Group CModule Managing Human CapitalLecturer David Hall and Rajendra Kumar.Due Date 20th October 2011 WORD LIMIT: APPROXIMATELY 3000 -1-
  2. 2. [PERFORMANCE MANAGEMENT] October 20, 2011Table of content:1.0. Introduction……………………………………………………………………………………..042.0. Objective of performance management……………………………………………………..043.0. Principles of developing a performance management plan……………………………….054.0. Process of performance management:……………………………………………………...05 4.1. Planning………………………………………………………………………………..05 4.2. Monitoring………………………………………………………………………………05 4.3. Developing……………………………………………………………………………..05 4.4. Rating…………………………………………………………………………………..05 4.5. Rewarding……………………………………….……………………………………..055.0. Literature review………………………………………………………………………………..066.0. Example and critical analysis…………………………………………………………………07 6.1. Example:……………………………………………………………………………….07 6.1.1. LIoyds TSB………………………………………………………………….08 6.1.2. ASDA………………………………………………………………………..08 6.1.3. KFC…………………………………………………………………………..08 6.1.4. McDonalds…………………………………………………………………..09 6.1.4.1. Individual performance plan……………………………………09 6.1.4.2. Individual development plans…………………………………..09 6.1.4.3. Annual measurement…………………………………………...09 6.1.4.4. Performance calibration seminar………………………………09 6.1.5. International Retailer……………………………………………………....10 6.1.6. Dell……………………………………………………………………………………10 6.1.7. Ford‟s…………………………………………………………………………………10 6.1.8. Inter Continental Hotel Group (IHG):………………..………………..…...10 6.1.9. Marks and Spencer‟s……………………………………………………………….10 6.1.10. Unilever……………………………………………………………………………..11 6.1.11. Motorola…………………………………………………………………………….11 -2-
  3. 3. [PERFORMANCE MANAGEMENT] October 20, 20117.0. Conclusion………………………………………………………………………………………118.0. REFERENCES and BIBLIOGRAPHY………………………………………………………12 -3-
  4. 4. [PERFORMANCE MANAGEMENT] October 20, 20111.0. Introduction: In the real world, we could not won our employers goal successfully,except being supervised, developed in any mode. Without any information, monitoring,guidance and control employees would not do their job that our company wants. In addition,company needs to know what their employees‟ performances are. Are they doing well? Aretheir employees on the right track or the company can make their job perfect way? Formaintain all this issue company need some kind of system. Performance management is theone of process for companies to measure their employees ability to gain their goal.In 1980s, “performance appraisal” had replaced by the phrase “Performance Management”.As a number of drawbacks, the business organization focused on performancemanagement. Performance management is, an analyst may view the performance of thewhole company and measure the business value. In another intellect Performancemanagement is the process for evaluating the member of staff to attain in the concernobjective. The transform is essential things to continue in a competitive market. For thetransform, performance management can help the business what is obligatory to improve bythe business. By the performance management, workers and managers can get together forsharing their individual opinion, and then their manager can choose the best opinion to maketheir aim structure to reach there. The measurement of employee performance is one of themost important way for any business organisation to toward their business goal.Performance management is a system where the management measures the workersperformance.Performance management allows a business to characterize planned goals, assess, andsupervise performance along the goal.Performance management systems involved number of activities; they are more than simplyreview what an employee has done. Several of years ago, performance valuation wasdesigned primarily to tell the employees how they had done over the period and let themknow what they would be getting. This was mechanism implies. Specifically performancevaluation should also address documentation concern. Performance management mustconvey to employees how well they perform towards specific goals.2.0. Objective of performance management:1. Build up the relationship between management and employee.2. Simplify the task, purpose, errands, priorities and prospect.3. Recognize and tenacity the performance difficulty.4. Give a necessary for management assessment such as promotion, succession.5. Recognize excellent performance.6. Generate and continue the reasonable stage of the act.7. Give the employee a strong growth and development in their task.3.0. Principles of developing a performance management plan:1. Performance management measured a process not an event.2. It is a major communication way.3. Any way of process for a specific job should be specific. -4-
  5. 5. [PERFORMANCE MANAGEMENT] October 20, 20114. Official recognition: the process of creating a paper trail to record data.5. Objective or result: report of what an employee is supposed to attain.6. Ongoing performance communication: no surprises.7. Performance review: refers to a meeting to review and evaluating performance.8. Performance appraisal: the yearly system for evaluating the employees activities.4.0. Process of performance management:01. Planning.02. Monitoring.03. Developing.04. Rating.05. Rewarding.4.1. Planning: For attaining the goal of any single business, the company or business needsto make a plan for that. There is some specific way for every specific goal. Planning meanssetting up the process for gain business goal, involve the employee in the process and helpthem to understand their job, what they need to do, why they need to do that, and how wellthey should do that. Employees‟ task should be flexible so they can do their job easily.4.2. Monitoring: Any effective company monitored their organizational actively. Monitoringmeans observing the continuous project. How the project going on? How the employeegoing towards with their specific job. By monitoring any unacceptable process can beremoved, easy to identify the useful contents and can give the proper instruction to theemployees.4.3. Developing: Development is an important process for an organisation. All organisationsshould evaluate and addressed the employee development. In this sense, developingmeans improvement of their works by giving them training, giving them proper instructions,encourage them in their task, help them in their work when they work in their working place.4.4. Rating: for every single period of time, effective organisation measures the employee‟sperformance whatever they have done within the period. This method can be useful toequating the performance of all employees over a period of time.Rating means measuring the workers performance by given the individual task, rate them byapplying the companies won appraisal and record the all data about all of individual workers.Rating should be done within every time period.4.5. Rewarding: Rewarding means greeting workers separately and as a grouping. A basicprinciple of effective administration is that all activities are controlled by its consequences.Superior performance is documented without delay for nominations for recognized awardsto be solicited. -5-
  6. 6. [PERFORMANCE MANAGEMENT] October 20, 2011 By using those processes, an effective company can achieve their main target. They canalso find out best worker who can do their job in a perfect way in which way want.Management can take decision what type of training their employees need, how they canmake them better worker. Overall, by these five processes effective company can managethe effective performance management.5.0. Literature review:Performance management is a more liberal and meaningful idea then performancemeasurement. It involves both qualitative and quantitative methods to measure theperformance. Performance management is the way of making of a business achieve faithfrom first to last defining business aim and take a decision about useful and capable use oforganisational resources (john‟s), 03/2005Performance management is the professional person find out the weaknesses in their line ofattack and fundamental viewpoint. Workers are not happy with the method of performancemanagement and managers are always in trouble to manage this with their workers. It ispossible for the managers to overcome this matter if they give the workers different types ofbenefits and give them the proper design of their tasks. There are some ways of deciding theperformance measurement criteria. Armstrong and baron are mentioned two centralpropositions used to measure the performance assessment: 01. People put their best endeavour into the stage well if they know and recognize what is expected of them and have had the surroundings in specifying those expectations. 02. Worker skill meets expectation is based on: a) Individual levels of ability. b) Different types of support from management. c) Availability of schemes, resources and processes from the organisations.Performance management systems:There are several functions of the performance management method:Strengthening of the organisations worth and norms.Consolidation of character purpose with those of the organisation.Give them a chance to apply their own view.Sharing the belief between management and workers about their expectations.In a most important review in British, 20 percent says that they have a system, 65 percentsays they had some performance management processes and 15 percent says they had nosystem (Bevan and Thompson, 1992). (Alan Price), 2007Performance management should start with the individual employee performance by takinga justification. The performance management process starts from the top level of -6-
  7. 7. [PERFORMANCE MANAGEMENT] October 20, 2011management in any company and its end is end level of workers. Company has an individualobjective for their achievement and align the objective to the workers. Management shouldgive the idea about their goal and process to the workers. Then worker can meet their mainobjective and they can perform in a better way. Without giving any information or by givingwrong process workers cannot achieve or cannot go so far from their starting point. Themain objective is to motivate the workers, because by motivating them company can pushthem in the right way and then they can catch their main target. (Sowa Jessica, Seiden Sally)Robert Bacal (1999) defined Performance Management as:“An in progress statement process, undertaken in partnership, between an worker and his orher immediate manager that involves establishing clear expectations and accepting aboutthe jobs to be done”.“Performance management is the main way by which company ensure a „line of vision‟among tactical aims and separate movement and behaviours: „It is regarding creating a line-of-vision between what the individual does and what the organisation needs” (CIPD, 2009).Performance management should not be a work concentrated method but should occupy anassured point of conversation among managers and workers at a number of stages of theprocedure. These are surroundings the objectives, half year and year end review and rightthe way through the year as workers need route and progress and managers supply inprogress performance response. By exploring the remuneration of appraisals for measuringperformance and the views of line management & employees, it will be possible to considerthe various weaknesses and arguments of abandonment and alternative contemporaryapproaches of interpreting performance management. In business all of the worker gets thechance to prove their performance.Performance management makes a diagram for individual works towards objectives within aset plan. A sequence of review right through the year with the line manager ensure that theindividual is monitored, managed, coached and guided in the direction of victoriousachievement of those objectives. (Adcock, F. & Birth, I. Trivitt, 1988: 403-404).6.0. Example and critical analysis:Performance management is a positive joyride for any business organisations. Byconsidering the performance management company can achieve their goal also it can fulfilthe individual satisfactions. The aim of this objective is to define the company‟s wants; theycan set up their task to do the job. In this task, any business follows some objectives like asWhat should be their expectation?How they can art their way?How they can give the responsibility to their workers?Who will do the task? -7-
  8. 8. [PERFORMANCE MANAGEMENT] October 20, 2011Performance management works also as an individual satisfaction. When companies do theperformance management, they consider the all over the performance of an employee.Along the performance workers get the feedback. Company influence them in different ways,give them individual response. For inspire the worker different company follow the differentway. Individual business has their individual rules and regulation for doing their performancemanagement. Here some example of different type of business and their process ofperformance management.6.1. Example:6.1.1. LIoyds TSB:LIoyds TSB uses a balanced scorecard to evaluate and supervise worker performance. Thescorecard takes into account the needs of customers, employees and shareholders andmeasures individual performance against a range of factors, including financial success,contribution to the long-standing development of the company, client service, riskmanagement and personal growth.LIoyds TSB balanced scorecard goals to show workers how their performance blow theirworkmates and clients and how this, in rotate, translates into their in general performance. Itensures that people understand how their personal objectives relate to their policy, and howtheir performance contributes to the Group‟s performance.All workers get official reviews and advice on performance twice per year.6.1.2. ASDA:Performance Management system of ASDA:As an effective organisation ASDA always want an inspiring, demanding and pleasingworkplace. ASDA certifies that their employ conditions and the workplace situation assistedin attracting, guidance and retaining skilled and faithful team.Agency bonus: agency performance considered aligned with the KPIs and functioningdeliverables as being 82.1 percent.Individual bonus: individual performance management structure, is recognized as growthfactor, was reviewed and enhanced. Growth factor contains a high level of employeecommitment also importance some improvement.Peer recognition: peer condition smoothed out ASDA‟s commitment to acknowledging andgratifying excellent performance.6.1.3. KFC:Why KFC does the performance management? 01. For achieving their goal. -8-
  9. 9. [PERFORMANCE MANAGEMENT] October 20, 2011 02. Management can get a clear idea about their employee, that they do their job, which is company expectation. 03. Employees are able to obtain the information about their work. 04. Employees get Payment raise and promotion by rating their performance. 05. If employees are not doing well they get that information also.The process of performance management:KFC management follows some steps to measure their work performance: 01. Management always observes the employee when they are working on their individual job. 02. They try to push them more than that what they can do. 03. Management observe that are they on the right track. 04. Management always communicates with the employees. 05. Management also gets the information from a senior worker about the others workers.After getting the performance information‟s about the employers management gives thempay rise, promotion and also some rewards, that depends on the performance.I agree with the KFC performance management process because in my view, if they do thistype of performance management, for this reason the workers could be interested to maketheir job more smooth way also other workers who don‟t get good feedback they could try todo the best performance. So company can get more benefit from them.6.1.4. McDonalds:6.1.4.1. Individual performance plan: 01. Managers work with the workers to generate an IPP to line up their aim for next years. 02. Worker is active about their job.6.1.4.2. Individual development plans: individual development plan McDonalds focused onthe individual task for the present and future position.They do the mid-year check In the end of July. Worker and management do their review ofbusiness goals based on shifting business priorities.6.1.4.3. Annual measurement: workers give their own opinion to their managers. Managersmake the direct discussion about: a. What is done by workers. b. How they have done that.6.1.4.4. Performance calibration seminar: managers present the success in the seminaras a. Exceptional performance. -9-
  10. 10. [PERFORMANCE MANAGEMENT] October 20, 2011 b. Significant performance. c. Improvement required/unacceptable.After doing all of these task managers make a final agreement for the workers: Ready nowfor doing individual task, Ready for the future, New to position and current level.6.1.5. International Retailer:This company plans a three-phase performance management scheme. 01. Developed the performance criteria, descriptions and forms to be used for people performance management;‟ 02. The system piloted in one geographic area; 03. A complicated system role out nationwide.The company follows the first phases by which they can do the activity assessment of theiremployees and there were four employee level. The performance management planned inthree levels, behaviour, activities and results.6.1.6. Dell:At Dell, the key point of success is the swiftness and stability. Dell chief financial officerMeredith told balance is especially significant in performance management. The CFO looksafter the employee how they could influence the cash conversion cycle (CCC) process. Delluses return on invested capital (ROIC) as an evaluation of worth formation, and linked theROIC metric to the inconsistent recompense of all executives.6.1.7. Ford’s:In Ford‟s which one is second largest business organisation. In this organisation, themanagement measures the performance of the workers and give them the rating about theirperformance. The management gives the chance that a worker who has a poor rating.For example, management doesn‟t give any bonus or pay rise for one year and demotionwithin two years to those workers whose rating is c and give them a chance for recoveringthemselves.6.1.8. Inter Continental Hotel Group (IHG):IHG management make their workplace friendly to innovate and motivating foe their allworkers. Their key point is try to understand the employee and give them the properinstructions. They always meet with their workers problem in a fair way and give them thefair opportunity to do their task.6.1.9. Marks and Spencer’s:In view of M&S management, the performance management is a process, which isdeveloped by employee and managers. They make the written report about an employee‟sperformance, what is going on? If there is a problem how they can improve that. They dothat every year. They do the re-evaluate to check the efficiency of workers. - 10 -
  11. 11. [PERFORMANCE MANAGEMENT] October 20, 2011They have performance related bonus and they do that every 3 months. If the store achievestheir target, they give the bonus. They also do the individual bonus like as gift card, 20%discount format.6.1.10. Unilever:Individual and line manager in roundtable chat fixes goals. Company do review ofperformance one time per year about the productivity and efficiency. They check that whichjobs are done properly and which one are not done in a given way. From the mistake theymake their next plan about employees career.By considering all of example we can see that companies need is achieve the target ifworker can do that then they can get the benefit from the company. Simply if you want to getsomething at first give something then you can get whatever you want.6.1.11. Motorola:Motorola management and workers believe in these key points of the performancemanagement plan: 01. Workers must do their given task. 02. Task must do by proper way. 03. Workers must know about the reason of task. 04. What is the proper time to do the individual task?Management gives the workers proper tools, extra money, like as a bonus, apparatus or asgiving them some others opportunity to solve their task of project. Company gives theworkers timely feedback so they can understand at which stage they are standing and howthey cover their all steps.7.0. Conclusion: Performance management is an effective way for a company to achievetheir goal also a good way to get better performance from the employee‟s. In any businessPM consider some common objectives such as assign the goal, make a plan, train theworkers for the specific goal, give them feedback about their job what they have done. PM isthe only one process to manage the business in the right way. Business target should be inrange, that‟s should be achievable, also it should be in touch of workers. Another thing ismanagement should give the workers proper payment for their work, they should get morethan that what they expect from the company. If companies can come to this decision thenthey can easily achieve their target. - 11 -
  12. 12. [PERFORMANCE MANAGEMENT] October 20, 2011REFERENCES and BIBLIOGRAPHY: 01. julie beardwell & tim clydon Human resource management (a contemporary approach)sixth edition 02. Armstrong M & Baron A. (1998) Performance Management: the new realities. Institute of Personnel and Development: London 03. Beardwell I & Holden L (1997) Human Resources Management, A contemporary Perspective, second edition, Pitman: London 04. gary dessler Human resource management (eleventh edition) 05. State of Oklahoma Office of Personnel Management, Performance Management Process Handbook,1990. 06. Maund L (2001) An Introduction to Human Resources Management: Theory & Practice , Palgrave Macmillan: Basingstoke 07. Performance Management and Appraisal in Human Service Organizations: Managernent and Staff Perspectives By Sally Seiden, PhD, and Jessica E. Sowa, PhD 08. International Journal of Management Reviews (2009) doi: 10.1111/j.1468-2370.2008.00237.x 09. http://site.ebrary.com/lib/westminsterintl/docDetail.action?docID=10103412&p00=perf ormance+management((Author: Coaffee, Jon )) Publisher: Emerald Group Publishing Ltd Original Publication Date: 03/2005 10. Randall S. Schuler, John R. Fulkerson, Peter J. Dowling (article) Strategic performance measurement and management in multinational corporations(Article first published online: 2 NOV 2006) 11. Marilyn repinski, Maryjo bartsch Performance improvement (12th February 2007). 12. Martinez, Veronica Radnor, Zoe, International Journal of Productivity and Performance Management. Published 08/2007 13. Bratton J & Gold J (2003) Human Resources Management: Theory & Practice, third edition, Palgrave Macmillan: Basingstoke. 14. Leopold J, Harris L & Watson T (2005) The Strategic Managing of Human Resources, Prentice Hall: Essex. 15. Taylor S (2005) People Resourcing, third edition, CIPD: London 16. Torrington D & Weightman J (1994) Effective Management People and Organisations, Pearson‟s Education, Essex. 17. Chartered Institute of Personnel Development (2009) Discussion paper: Performance Management. CIPD: London 18. http://www.scribd.com/doc/29189809/Performance-Management. 19. http://www.auburn.edu/administration/human_resources/compensation/ccp/pmsupvsi ntroprework.pdf 20. http://www.turningpointprogram.org/toolkit/content/pmcaselearn.htm 21. http://www.opm.gov/perform/overview.asp - 12 -
  13. 13. [PERFORMANCE MANAGEMENT] October 20, 201122. http://www.strategydriven.com/2011/08/03/human-performance-management- introduction/23. http://www.hrmguide.net/hrm/chap10/ch10-preamble.htm24. http://www.coursework.info25. http://www.businessballs.com/performance_management.htm26. http://www.scribd.com/doc/45157726/Lecture-Notes-Performance-Management27. http://web.ebscohost.com/ehost/detail?vid=15&hid=25&sid=b61bc161-7680-42a1- 9e52- 55d54a9359b1%40sessionmgr13&bdata=JnNpdGU9ZWhvc3QtbGl2ZQ%3d%3d#db =buh&AN=4428409128. http://www.asada.gov.au/publications/annual_reports/asda_annual_report_2003_04/ people.htm29. http://web.ebscohost.com/ehost/pdfviewer/pdfviewer?sid=99c4ba31-c335-4ed4- b343-37161b0bfc1f%40sessionmgr4&vid=13&hid=1530. http://www.ga-training.com/news/more/Performance-Management/Workplace- management-benefits-Nestle/1851523631. http://hrguide.applezoom.com/category/performance-management/32. http://www.performance-measurement.net/news-detail.asp?nID=1233. http://www.coursework.info/University/Business_and_Administrative_studies/Human_Res ource_Management/Performance_Management_L884880.html34. http://www.projectsjugaad.com/project/Motorola-Performance-Management.html - 13 -

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