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THE IMPACT OF PERFORMANCE MANAGEMENT SYSTEMS ON
EMPLOYEE SATISFACTION AND ORGANISATIONAL PERFORMANCE:
A CASE STUDY OF SUBWAY

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Executive Summary:
In contemporary working environment, Human Resource Department is engaging in various
strategic tools that can help in enhancing the production level of a firm along with
increasing the employees’ efficiency rate. In the concerned dissertation, the researcher will
emphasise on the impacts created by performance management techniques over
employees’ performance and organisational performance. Adoption of these techniques by
various managers, here Subway is helping in accessing the level of skill inherent within an
employee and accordingly areas of development is planned for the concerned employee.
The researcher in the present dissertation study has tried to interact with managers and
employees of Subway so that more accurate and specific details of the topic can be
collected. However, with application of appropriate research methodology ease of process
was achieved and a successful dissertation was conducted. Based on the discovered
research gaps, the researcher hasl also cited few recommendations.

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Acknowledgement:
Conducting this research has been one of the most enriching experiences of my life. The
contribution of this research to enhance my knowledge base and analytical skill has been
paramount. It gave me the opportunity to face challenges in the process and overcome
them. This would not have been possible without the valuable guidance of my professors,
peers and all the people who have contributed to this enriching experience. I would like to
take this opportunity to thank my supervisor ----------------------- for the constant guidance
and support provided to me during the process of this research. It would not be justified if I
did not thank my academic guides for their important and valuable assistance and
encouragement throughout the research process. I would also like to thank my friends who
had provided me with help and encouragement for collecting primary data and valuable
resources. Finally, I would like to thank the professionals from the fast food retail industry
who have participated in the research survey and provided with valuable inputs into the
subject. The support of all these people has been inspiring and enlightening throughout the
process of research in the subject.
Heartfelt thanks and warmest wishes,
Yours Sincerely,

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Table of Contents
Chapter 1....................................................................................................................................8
Introduction ...............................................................................................................................8
1.1 Introduction .........................................................................................................................8
1.2 Research Aim: ......................................................................................................................8
1.3 Research Objective: .............................................................................................................8
1.4 Research Questions: ............................................................................................................9
1.5.1 Background of the Topic:..................................................................................................9
1.5.2 Background of the Company: Subway..............................................................................9
1.6 Rationale of the Study:.......................................................................................................10
1.7 Purpose of the Study:.........................................................................................................10
1.8 Structure of the Study:.......................................................................................................11
1.9 Summary: ...........................................................................................................................12
Chapter 2..................................................................................................................................12
Literature Review.....................................................................................................................12
2.0 Introduction: ......................................................................................................................12
2.2 Performance Management Systems:.................................................................................13
2.2.1 Elements of Performance Management: .......................................................................14
2.2.2 Performance Management Techniques: ........................................................................15
2.2.2.2 Future Oriented Methods:...........................................................................................17
2.3 Employee Satisfaction:.......................................................................................................18
2.3 Motivation Theories:..........................................................................................................19
2.6.3 Expectancy Theory:.........................................................................................................21
2.7 Job Description and Job Profile:.........................................................................................22
2.7.1 Job Description:...............................................................................................................22
2.7.2 Job Profile:.......................................................................................................................22

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2.8 Organisational Performance:.............................................................................................23
2.9 Relationship between Performance Management and Employee Performance: ............23
2.10 Conclusion:.......................................................................................................................24
Chapter 3..................................................................................................................................25
Research Methodology............................................................................................................25
3.1 Introduction .......................................................................................................................25
3.2 Method Outline..................................................................................................................25
3.4 Research Philosophy ..........................................................................................................26
3.4.1 Justification for selection of the chosen Philosophy: .....................................................27
3.5 Research Approach: ...........................................................................................................27
3.5.1 Justification for selection of the chosen Approach: .......................................................28
3.6 Research Design:................................................................................................................28
3.6.1 Justification for selection of the chosen Design: ............................................................28
3.7 Data Collection Procedure: ................................................................................................29
3.7.1 Data Sources: Primary and Secondary............................................................................29
3.7.2 Data Techniques: Qualitative and Quantitative .............................................................29
3.8 Population and Sample:.....................................................................................................30
3.8.1 Sampling Technique:.......................................................................................................30
3.8.2 Sample Size: ....................................................................................................................30
3.9 Ethical Considerations:.......................................................................................................30
3.10 Research Limitations:.......................................................................................................31
3.11 Summary: .........................................................................................................................31
Chapter 4..................................................................................................................................32
Research Results......................................................................................................................32
4.0 Introduction: ......................................................................................................................32
4.1 Quantitative Analysis: Employees of Subway ....................................................................32

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4.2 Qualitative Analysis: Managers of Subway........................................................................43
4.3 Conclusion:.........................................................................................................................45
Chapter 5..................................................................................................................................46
Analysis and Discussion............................................................................................................46
5.0 Introduction: ......................................................................................................................46
5.1 Data Interpretation for Employees of Subway ..................................................................46
5.3 Summary: ...........................................................................................................................50
Chapter 6..................................................................................................................................51
Conclusion and Recommendations .........................................................................................51
6.1 Conclusion:.........................................................................................................................51
6.2 Linking with the objectives: ...............................................................................................51
6.3 Recommendations:............................................................................................................53
6.4 Future Scope of the Study: ................................................................................................54
Reference list: ..........................................................................................................................55

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List of Figures:
Figure 1: Company Logo...........................................................................................................10
Figure 2: Conceptual Framework.............................................................................................13
Figure 3: Maslow’s Hierarchical Needs....................................................................................20
Figure 5: Employees’ sustainability at Subway ........................................................................33
Figure 6: Satisfaction level with the work atmosphere of Subway as an organisation...........34
Figure 7: Rating for the work culture at Subway .....................................................................35
Figure 8: Employees are appraised at a genuine level within Subway....................................36
Figure 9: Leaders at Subway are capable of encouraging you in positive manner .................37
Figure 10: Rate the performance appraisal techniques that are adopted at Subway ............38
Figure 11: As a source of employee satisfaction, which element is more crucial for you as an
employee within Subway?.......................................................................................................39
Figure 12: Positive impacts of performance appraisal techniques at the work place ............40
Figure 13: Areas that needs more focus while adopting performance management systems
..................................................................................................................................................41
Figure 14: Performance management systems at Subway need modifications and alterations
..................................................................................................................................................43

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List of Tables:
Table 1: Employees’ sustainability at Subway .........................................................................32
Table 2: Satisfaction level with the work atmosphere of Subway as an organisation............33
Table 3: Rating for the work culture at Subway ......................................................................34
Table 4: : Employees are appraised at a genuine level within Subway ...................................35
Table 5: Leaders at Subway are capable of encouraging you in positive manner ..................36
Table 6: Rate the performance appraisal techniques that are adopted at Subway ...............37
Table 7: As a source of employee satisfaction, which element is more crucial for you as an
employee within Subway?.......................................................................................................38
Table 8: Positive impacts of performance appraisal techniques at the work place................39
Table 9: Areas that needs more focus while adopting performance management systems..41
Table 10: Performance management systems at Subway need modifications and alterations
..................................................................................................................................................42

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Chapter 1
Introduction
1.1 Introduction
Ahmad, (2008) stated that the ‘Employee Satisfaction’ survey is done, the topics to be dealt
are compensation, work pressure, perception of the management, flexibility of the company
and the employees, team work raw resources of the company and many more. The
company does this to see the work culture and the response of the employees. According to
Armstrong and Appelebaum, (2007) if the employees of the company are happy the happier
will be the environment of the company. The responsible people for the performance
management are the managers and the supervisors of the company.
1.2 Research Aim:
In the present study, the researcher will aim to put emphasis on the performance
management systems so that its impact over employee satisfaction and organisational
performance can be evaluated. However, this broad topic is narrowed with a specific
observation of a chosen company, Subway.
1.3 Research Objective:
According to research aim, the researcher has listed few research objectives that can help in
better research process. These objectives are as enumerated below:
 To understand the need of performance management systems in an organisation
 To critically analyse the factors behind employee satisfaction and organisational
performance
 To examine the impact of performance management techniques over employee
satisfaction and organisational performance
 To address the challenges faced in implementation of the performance management
techniques

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1.4 Research Questions:
In a dissertation study, research questions helps in bringing more focus to the key questions
that are ideally helpful in extracting the most relevant information for the research topic.
List of research questions are as mentioned herewith:
1. Why implementation and need of performance management techniques are
increasing within organisational environment?
2. What are the factors that bring and leads to employee satisfaction and
organisational performance within an organisation?
3. How performance management techniques create an impact over level of employee
satisfaction and organisational performance?
4. What are the challenges and barriers faced by an organisation during the
implementation process of the performance management techniques?
1.5.1 Background of the Topic:
Performance management system is the main factor that determines the organizations
long-term success and failure. If there is ineffective performance then the individual, the
organizational performance, and the productivity can go down. An employee satisfaction
survey via performance appraisal and evaluation is done to measure the satisfaction of the
employees regarding the job roles.
1.5.2 Background of the Company: Subway
Subway is an American based restaurant that is categorised under fast food retail chain. This
company first opened in United States of America in Bridgeport, during the year 1965.
Subway took its first step in United Kingdom in the year 1996. In 1996, Murray and Maria
Speirs opened their first Subway in United Kingdom’s city Brighton. In the year 2007,
Subway was ranked 15th time ‘Franchise 500’ in just past 19 years.

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Figure 1: Company Logo
(Source: SUBWAY - Eat Fresh, 2014)
In the year 2012, the company Subway promised to open 2000 stores in both United
Kingdom and in Ireland. By this action, the company can create a buzz of 6000 job vacancy
in the United Kingdom and in Ireland market. In the year 2012, there were 1423 stores of
Subway in United Kingdom. Subway is five times expanded from the year 2002 to the year
2012. Within Subway, the fast food restaurant, employees enjoy a healthy working
environment and are supposed to be retained effectively by the organisation (SUBWAY - Eat
Fresh, 2014).
1.6 Rationale of the Study:
Performance management is an essential element of an organisation. Performance
management gives a clear detail of the performance of the employees. The employee gets
the detail of their performance that how and by following what methods can the employees
gear up themselves (Bernardin, 2008). If the employee gears himself or herself then the
company can be benefitted.. In spite of all the problems and confrontation performance
management is to be there in every organisation. According to Arthur, (2008),the
performance management gives the worth and position of the employees. The position
where the employees stand is the most important thing an employee needs to know. The
place the employees need to cover to reach to the best position.
1.7 Purpose of the Study:
Daley, (2007)stated the reasons why the researcher has chosen performance management
is with the reference of performance the systematic planning can be done. Bohlander and
Snell, (2009) stated the worth of the employees can be seen after the management. Every

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employee gets clear understanding of the roles and personal jobs. Thus, performance
management is very essential for every organisation to deal with the lacking points and
increasing more and more of the better points (Cardy and Dobbins 2008).
1.8 Structure of the Study:
The researcher has tried to segregate the research study into specific chapters so that each
chapter can add an element in the research topic and quality (Darke, 2008). Based on these
six chapters, the structure of the research dissertation is emphasised.
Chapter 1: Introduction This initial chapter lists the research aim and objectives that are
further crosschecked in the dissertation study. S an introductory chapter, this chapter gives
a brief outlook about performance management systems and its impact over employee
satisfaction and organisational performance.
Chapter 2: Literature Review As a chapter of theories and literature, this chapter involves a
critical discussion of all the related concepts so that researcher and readers can have much
knowledge about the topic. In this chapter, concepts related to performance management
and employee satisfaction is included.
Chapter 3: Research Methodology Research methodology will enlist the selected list of
research tools and techniques that were involved in research of the concerned topic.
Chapter 4: Research Results Respondents’ involvement and their feedback is recorded in
this chapter that can help the researcher in better understanding of the research topic.
Chapter 5: Analysis and Discussion According to the collected data and information, the
researcher interprets the data that helps in extraction of the result and helps in reviewing
the research topic.
Chapter 6: Conclusion and Recommendations The final and concluding chapter throws light
on the overall topic and finally gives an overall conclusion to the study of performance
management system and its application in organisation, Subway.

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1.9 Summary:
This chapter tried to display the role of performance appraisal techniques when implied in
an organisation. If the performance and the management of the performance goes on the
right track then the organizational performance increases. Listing of research objectives and
questions, as per research aim has helped the researcher in understanding of the focus
areas and will help in detailing these mentioned areas as well. In the following chapter,
literature review, the related theories and concepts will further throw more light of the
chosen topic.
Chapter 2
Literature Review
2.0 Introduction:
Literature review as a section of research dissertation deals in explanation of the theories
and models that can be helpful in giving detail description of the study. Davis, (2007)
mentioned that role of literature review is also capable of highlighting the researcher’s
capability of critically accessing the theories and models. In the present research work, the
theories related to performance management, employee satisfaction and organisational
performance would be critically discussed so that much value and quality on the research
and findings can be collected.
The particular chapter is all about focusing upon the establishment of the good then the
better and the best working force of an organisation. Performances are recorded, and then
calculated then appraisals are given. After the appraisals are given then the most important
step comes, that is, the upgrading of the working force by giving feedback in the lacking
points, showing the ways and means with the help of which the employees gets to know
their mistakes and they get planned for not repeating the mistakes all again.
2.1 Conceptual Framework:
Conceptual framework in a literature review chapter helps in achieving the research
objectives based on the key tools and theories. In the concerned research study, impact on

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employees’ performance will be studied via application of various performance
management techniques.
Figure 2: Conceptual Framework
(Source: As created by the Author)
In the above diagram, illustration for performance management system and process is
deeply researched. Through study of various theories, models and concepts, the research
topic will be minutely criticised and evaluated to gain much penetrated thoughts and
concepts. Relationship that is formed between employees’ performance and performance
management techniques are helpful for better quality research on the topic.
2.2 Performance Management Systems:
Performance Management System (PMS) are complicated and comprises of various
processes (Eichel, and Bender, 2007). This system has become widely popular due to a
variety of social n economic pressure. In 2002, William identified globalisation, increase in
competition and increase in individualistic view instead of group of employee relationship.
These are some of the major parts contributing highly increasingly visibility of performance
management system. It is like facing fast moving and competitive environments. The
companies constantly are searching for some new unique ways from which they can
differentiate themselves searching for unique ways in which to differentiate them from the
Performance
Appraisal Systems
Organisational
Performance
Employee
Motivation

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competition. They are looking towards their “human resources” which will provide this
differentiation (Ferris, 2008).
According to Ganong, (2008) the critical roles are played by the Line managers in managing
the performance of their teams, and therefore are very crucial to the implementation of a
successful PMS. This paper considers the vital role of line managers in achieving the motives
of the PMS at Tool Co has been considered in this paper. This is achieved, firstly, by
considering the theoretical aspects. This also includes the PMS model, which has to be
investigating. PMS processes were originally implemented by the line managers at Tool Co.,
will then discuss and will make corrections as to how Tool Co. could more successfully
implement its PMS (Camardella 2007).
2.2.1 Elements of Performance Management:
Performance management system as a process if comprised of various elements that in an
integrated manner are held responsible for success of the appraisal techniques.
Talent Management: Chan, and Lynn, (2008) stated talent Management is just like
investment. Every company wants to have the best and have the brightest employees, and
with Talent Management this goal can be easily achieved. The most costly item is its work
force in the company. As a company's workforce is the highest cost to it, it does make sense
to invest in it. With Talent Management it develops a more skilled workforce and attracting
a higher calibre of new employee (Daley, 2006). Recruiting the people who are correct, and
keeping a talented workforce is a first priority in today's business environment. Having a
talented group of employees has always been a key to success. It will translate into higher
productivity and saves a lot of money. Talent Management is the investment that will play a
major role over the course of its use (Glaser, 2008).
Compensation: Compensation is another way of saying wages earned. Dewberry, (2010)
commented that companies pay to their employees for providing a service to the business.
Compensation means to provide money or benefits in place of something, which has been
damaged or lost. It is a way of compensating to someone (Jordan, 2007).
Employee Experience Survey: An organisation adopts Employee Experience Survey (EES) so
that addressable of employees can take place. The perception as framed within the

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employee is visualised via EES. Goel, (2008) defined that these techniques are adopted via
both hard copy and online version where employees address their viewpoint regarding
organisation, leaders or the work experiment.
2.2.2 Performance Management Techniques:
It is important to use a variety of performance management techniques to regularly review
and measure the performance of your team. Some key methods it includes are performance
review meetings and performance objectives. Performance appraisal or review meetings are
an important element of the performance management cycle (Ferris, 2008). This allows
considering individual team members whose performance is based on a regular routine as
well as letting each person know how it is being performed and where and how it can
improve. Performance objectives should provide each team member with sufficient
challenges to make the best of their skills and abilities for contributing to the goals of
department and the wider organisation (Grote, 2008) Setting performance objectives should
be a vice-versa process of discussion and agreement with each team member. Ensure that
review objectives regularly so that they remain in line with wider team and as per the
department goals (Gruenfeld, 2009).
2.2.2.1 Past-Oriented Methods:
Few of the traditional methods are included that aims to implement performance
management system in an organisation. However, within these techniques, various Human
Resource experts to better fit the changing working scenario do many modifications and
alterations.
Rating Scales: The rating scale is the simplest and the most common form of technique for
the employees’ performance. According to Handerson, (2008), the rating system consists of
different rating scales. Every rating scale represents every assessment criteria of the job. The
scale ranges from excellent to poor. As the point will be high, the higher may be the salary.
The criteria are reliability plan production, present approach, co-operation and many more
(Tam, 2008).
Benchmarking Process: In the late 1970's however, it took a wider meaning (Hickman,
2007). It was applied to an organization, which said benchmarking is a process to determine
whom else does a particular activity the best and considering what it does to improve

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performance. It has a particular significance in technology, where the rapid change of the
business season can leave a company out. The observations are marked for keeping the
track of the actions of the employees of an organisation. Later on, it is sum up to the
calculations and at the end, the result is declared for the orientation (McCarthy, 2009).
Critical Incidents Methods: Collections of different observations of human behaviour are
done with critical incidents method. Observations are done to keep a track of the incidents
that helps in solving problems of practical life of the job. this information’s can be gathered
from many different ways but generally the employees are asked about the experience of
their work in the Organisation. An incident that is very critical in respect to the
performances can be stated to make a contribution that can be either positive or negative.
There are five major areas of the CIT method.as stated by Pearsoan, (2006) the first area is
the understanding of the incident and then reviewing it. Then the next process is fact-
finding, which involves collecting the details of the incident from the participants. When all
of the facts are collected, the next step is to identify the issues. Afterwards a decision can be
made on how to resolve the issues based on various possible solutions. Roberts, (2006)
stated that the final and most important aspect is the evaluation, which will determine if the
solution that was selected will solve the root cause of the situation and will cause no
supplementary struggle.
Behavioural Anchored Rating Scales (BARS): Expansion of BARS assessment have need of an
in detail thoughtful of apiece position’s key tasks, all along by means of an understanding of
the full assortment of behaviours put on show by individuals in carrying away such everyday
jobs (Rangone, 2008). Organisation rates this behaviour for every employee of the
organisation. Each of the behaviour is rated on the rating scale of the past oriented method.
The BARS fasten each one performance for pointing out up on a rating scale, which will be a
sign of whether the performance is outstanding, first-rate, entirely knowledgeable, or else
not up to scratch (Bianchi, 2014). The result is found up on a rating scale for each one’s job.
McConnell, (2007) states behaviour is rated for every employee. The rated behaviour sets
the position of an employee of an organisation.

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2.2.2.2 Future Oriented Methods:
Unlike traditional methods, future-oriented methods are framed with various strategic
needs so that a specific area of assessment can be targeted and more precise appraisal can
be conducted.
Management By Objectives (MBO): MBO is also stated as MBR that is Management by
results. The process of defining objectives of an organisation that the employees need to
follow to take an organisation to its peak is done by MBO. Aiming for the improvement of
the job of MBO is to set up the job choosing the course of action and the decision-making.
When employees themselves have been involved with the goal setting and choosing the
course of action to be followed by them, they are more likely to fulfil their responsibilities
(Cranfield University, 2014). According to Kerzner, (2008) the system of management by
objectives can be described as a process whereby the superior and subordinate jointly
identify its common goals, define each individual's major areas of responsibility in terms of
the results expected of him, and use these measures as guides for operating the unit and
assessing the contribution of each of its members.
Psychological Appraisal: The Psychological appraisals of the employees are done upon this
method. This evaluates the behaviour, personality, capabilities to draw using the
combination of the provided techniques. This evaluation is now a day done in many
different areas. During legal situations, educational situations the appraisals are done.
Detailed reports are submitted that include hiring and development recommendations,
advice on long-term implications, detection of potential problem areas and provision of
specific behavioural questions for subsequent interviews. It is about appraising of an
employee not in monetary terms but in motivational terms (Gray and Carroll, 2006). The
employees get encouraged with the psychological appraisals
Assessment Centres: personal attributes and skills of the candidates are weighed up at a
centre, which is called as assessment centre or selection centres. The large organisations
use the assessment sectors for the evaluation of the candidates. Assessment centres are the
most reliable methods of assessing the candidates any other method that is used for the
assessment can be 15% accurate or even lower than that. A large centre may book a training

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centre or a hotel for the assessment with all the trained psychologists. The assessment
process can go as long as 2 days. An organisation operates an assessment centre where
employees are analysed on a list of skills both hard and soft. Based on the assessment, the
employee is evaluated as per the performance level.
360-Degree Feedback: 360 Degree Feedback is an arrangement or method. In the particular
method the employees of an organisation takes the delivery of, not to be disclosed,
unidentified response on or after the individuals who work around them. 360 Degree
Feedback characteristically takes account of the employee's manager, upper class and direct
information. A mixture of about eight to twelve people fill out an anonymous online
feedback form that asks questions covering a broad range of workplace competencies. The
feedback forms include questions that are measured on a rating scale and ask them to
provide written comments (Gray and Carroll, 2006). The person receiving feedback also fills
out a self-rating investigation with the intention of including the same survey questions that
others take delivery of in their outward appearance.
2.3 Employee Satisfaction:
Satisfactions of the employees are very essential for an organisation. The lower the rates of
the turnover the higher the contentedness employee rate, both are directly related to each
other. There should not be high stress lack of communication and too much of
professionalismin an organisation. As of Gray and Carroll, (2006) all the feature leads to lack
of recognition, less growth opportunities of the organisation. All this leads to the downfall of
the organisation. Management should actively seek to improve these factors if they hope to
lower their turnover rate. Even in an economic downturn, turnover is an expense best
avoided Employee satisfaction or job satisfaction is, quite simply, how content or satisfied
employees are with their jobs. Employee satisfaction is measured by doing a survey with the
employees of an organisation. According to Ferris, (2008) another process use to determine
member of staff contentment is gathering in the midst of small groups of workforce and
enquiring the equivalent questions in words. Depending on the culture of the company,
either method can contribute knowledge about employee satisfaction to managers and
employees. Exit interviews are another way to assess employee satisfaction in that satisfied
employees rarely leave companies.

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In the survey, many questions are asked from the employees to check and understand the
satisfaction level of the employees. the survey address to many of the topics like
reimbursement, work pressure, insight for the administration rank, elasticity, team effort,
recourses and many more similar matter of concern. Things are the important matter of
concern for those organisations who wants to keep the employees satisfied and keep the
turnover lower. The satisfactions of the employees are just the part of the total problems
within an organisation. The satisfactions of the employees are not the dealings of complete
care and rest for the employees. it just deals with the basic needs of the employees.
Employee satisfaction is a word that describes that the employees are satisfied with the
basic needs of their desire that are to be fulfilled by the organisation. According to Ferris,
(2008)many measures assert with the intention of, that the member of staff contentment is
a factor in employee inspiration, employee ambition accomplishment, and
constructive member of staff self-esteem in the administrative centre.
Factors contributing to employee satisfaction include treating employees with rrespect,
providing regular employee recognition, empowering employees, offering above industry-
average benefits and compensation, providing employee perquisites and company activities,
and positive management within a success framework of goals, measurements, and
expectations (Fink, 2009). Unspecified member of staff satisfaction surveys administered
periodically that gauge employee satisfaction often measures employee satisfaction.
Member of staff satisfaction is looked by the side of many areas of the organisation. The
areas are like management, understanding of mission and vision, empowerment, teamwork,
communication and Co-worker communication.
2.3 Motivation Theories:
2.6.1 Maslow’s Hierarchy of Needs: there are five theories of needs of Maslow. The Maslow
pyramid gives the notion that the workforce need to think about the basic things first and
then should go higher (Cranfield University, 2014) The higher the employees go, the more
self actualized is the employee. The five needs are physiological needs, security needs, social
needs, esteem needs and self-actualizing needs

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Figure 3: Maslow’s Hierarchical Needs
(Source: Roberts, 2006, pp. 543)
 Physiological Needs: The physiological need of an employee is the basic
requirements of a common human. Water, food and air to breath, these are the
basic requirements of an employee.
 Security Needs: The second need of an employee is the need of safety and
assurance. The assurance from the employers that the employee is safe in the
company and the job in which he is there that is also safe.
 Social Needs: An employee should be able to other employees and get social to
others. This reduces the work pressure in the work atmosphere. The employee
should be free to make friends, get into love. All these are the components of the
social needs.
 Esteem Needs: When the first three needs of an employee are satisfied esteem
needs becomes more and more important for an employee. In this things that
shows self-respect, self value. After gaining the three human feels to be
respected. Thus, this need comes into the matter.
Physiological Needs
Security Needs
Social Needs
Esteem Needs
Actualizing Needs

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 Actualizing Needs: At this level an employee, understand the potential in himself
or herself. This level describes the desire within an employee that he wants to
get and even gets the desired things by the self will power.
2.6.2 Herzberg’s Motivation/Hygiene Theory: Herzberg’s motivation/hygiene theory is also
known as the two-factor theory. According to Herzberg the employees are not satisfied with
the basic needs of Maslow (Tam, 2008). The employees look ahead for the fulfilment of the
higher-level needs that are concerned with the achievements and with their level of the
work. The two factors are motivators and hygiene factors.
Motivators: motivators are the employees of the same organisation. The co-workers
motivates the employees and they all work as a team force. As stated by Lunenburg and
Ornstein, (2011) the examples are challenging work, recognition, responsibility that gives
positive fulfilment, taking place from the built-in conditions of the job profile.
Hygiene Factors: The examples are position, work security, salary, extra perquisite, work
conditions that do not give positive satisfaction, though dissatisfaction results from their
absence. These are extrinsic to the work itself, and include aspects such as company
policies, supervisory practices, or wages/salary.
2.6.3 Expectancy Theory:
According to Vroom, the relationship connecting people's performance at job and their
objective was not as simple as was first story bound by other scientists. Vroom stated that
an employee's performance is based on individuals’ factors such as personality, skills,
knowledge, experience and abilities.
 Valence: It is the emotional behaviour of the employees when the employees get
rewards or benefits. These are the extra requirements of an employee. For this, the
management must take out the values of the employees for the extra requirements.
 Expectancy: Every employee has an expectation with the work and a confidence up
o the work that the employee is doing. For polishing the employees, management
must see the needs of an employee in terms of betterment of them in their work as
of the better and effective training.

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 Instrumentality: The perception of employees as to whether they will actually get
what they desire even if a manager has promised it. As stated by Lunenburg and
Ornstein, (2011) management must gain the confidence of the employees that the
fore said benefits are provided by the organisation.
2.7 Job Description and Job Profile:
Job profile and job description are two components that explains the work culture to the
employees and further helps in evaluating themselves as per their assigned roles and job
profiles. Performance management system crosschecks fulfilment of the assigned tasks and
responsibilities and results in a much successful appraisal process.
2.7.1 Job Description:
The description of the job is that it defines the role of the employee. The things that are to
done and covered is the description of the job. The correct description of the jobs gives the
basic idea of the task that the employee needs to do. The recruitment of new candidates is
done based on the description that the job deals in the particular areas. The new employees
work is to handle the given works fluently, patiently and efficiently. As of Lunenburg and
Ornstein, (2011) Job description is the tool of the recruitment process. The description helps
in advertising the job role of the desired candidates. Job descriptions should be very clear
and accurate so that the staffs can easily understand the task. While writing the job
description the job title should be present. The rate of pay for the vacancy should be
mentioned in the description of the job. The main location of the job should be clearly
mentioned in the description of the job. A job description should be very clear, precise,
crisp, and accurate so that every concerned person can be clear with the concept that is
provided in the job description (Kansal, 2006).
2.7.2 Job Profile:
Job profiling is done by both the employees and by the employers too. The job profile is
different from the viewpoint of the employers and the employees. According to the
employers, the job profile is the general idea of the information of the job applier for the
vacant position in an organisation (Somerick, 2009). The employer frames the basic apt of

23
the applicant with the job profile. For the employee the job profile is the general picture
description of the past jobs and the positions in the previous organisation. The profile
should content the details of the older job experiences, salary, job description and the
reason of leaving older jobs. A job profile should be created by a candidate in a manner that
the employee gives all the relevant professional details of himself or herself and the
employer understand every detail clearly and quickly (Jackson, 2010).
2.8 Organisational Performance:
The employees working together in a team with team spirit in them are the ones who
comprise the performance of the organisation are the Organisational performers (Kroon,
2008). The organisational performer performs work together in a team. If the employees of
the organisation works efficiently and effectively all together then the company will be in its
peak time in not less than one year. As stated by Lloyd, (2009) the performance of all the
employees of an organisation together is the work that gives the term organisational
performance. When an organisation applied to one’s business, it really wants everyone
working together in supporting you to build a great business. Further, it needs everyone
pulling in the one direction and employees loves it when they enjoy their work, are focused
and innovative. This is a high performance business (Norton, 2014). The process, which
captures both quantitative and qualitative data, will allow the employees to identify and
priorities opportunities for improvement and create a supporting action plan, built on best
practice (McCrie, 2006).
2.9 Relationship between Performance Management and Employee Performance:
Demands and expectations of employees compared to the job they perform, the
possibilities of progress, the ways of controlling their work, as well as compensation,
become more and more determined and higher. Mani, (2007) stated the expectations of
highly educated workforce and their satisfaction with the workplace and the assignments
they full fill is a very important factor of the success of the organisation. At the same time, it
is expected that the success of the organization change along with the employee
satisfaction. In order to achieve the higher dedication of employees, multidisciplinary
knowledge is required, that has to be encircled by the team of process management

24
(Longenecker, 2008). The outcomes of employee performance management are, among
others, keeping the best employees, and identification of the worse workers. It is also
emphasized that one of the significant outcomes and impacts of employee performance
management is the level of employee satisfaction in organizations. Employees’
performances inks between performance measurement and overall results of companies,
including the ones connected with employee satisfaction. Kane, (2008) stated the process
management manages the performance of the employees. The application of performance
management creates an impact over a level of employee performance. The level of
employee’s performance depends how the process management does the management of
the employees and then how the employees work in the present days by rectifying the old
mistakes and trying to be more and more up to the mark of the best level of the workforce
of the company (Krug, 2006).
2.10 Conclusion:
The researcher has observed that the chapter literature review enables the researcher to
get the knowledge and the impacts of performance management within an organisation. An
appraisal is considered as the most important function in the performance management.
Processing the performance of the employees in a report gives the performance and
improvement chart of the employees. The better the employees work and the better the
employees are satisfied both are directly related to each other. The more the employees
work the more benefits the employees will get from the organisation. The appraisals
depend upon the performance of the working staffs.

25
Chapter 3
Research Methodology
3.1 Introduction
For knowing the complete detail result of the process research methodology is adapted.
Research methodology is appropriate in getting the full detail results. Veal (2006) discussed
that the theories and the concepts that are followed in research methodology gives the best
analysis of the research topic. For understanding the process that is adapted in the
consumer research, the information that is gathered from research methodology. In one
way going into detail of the process of the research topic, is a barrier, as there occurs
common errors. The researcher has tried to apply all the research methodologies in detail
so as to get the better analysis of Subway’s impact of performance management systems,
influence in the decision making process of all the consumers.
3.2 Method Outline
Analysing of performance management techniques on the basis on employees’ satisfaction
and organisational performance is researcher in this chapter, with context to Subway. The
selected positive philosophy will help in gathering information correct based on logics and
evaluation. Deductive approach will be allowing the researcher to conduct the study based
initially on secondary sources that can help in studying the impact of performance
management techniques over employee satisfaction and organisational performance.
Descriptive design will help the researcher in defining the used and applied concepts in the
detail manner further helping in defining the impact of study as well. Application of primary
and secondary sources will help in much details of the research topic and will bring better
quality of analysis.
3.3 Research Onion
For arranging the major parts of the research with an ability of successful analization,
research onion is a tool of methodology that does the proper task. Levine (2005) for the
students research onion is very helpful as it leads the students follow a proper format and

26
the step by step stages of the process and thus getting proper result of the process.
Research onion is categorised in six divisions namely philosophies, approaches, strategies,
choices, time horizons, techniques and procedures.
Figure 4: Research Onion
(Source: Saunders et al. 2009)
As depicted from the above diagram, the research onion helps in studying each layer
enabling best research and lots of information from the analysis. Researcher needs to follow
every layer of the research onion so that the proper format and steps are followed for the
research process.
3.4 Research Philosophy
Research philosophy, a part of research methodology gives the determination of the correct
way of getting the details of the research topic. Ellis and Levy (2009) discussed that research
philosophy helps in explaining the assumption process undertaken by a researcher while
conducting a research topic. As the process of thinking of evaluation may vary so, the
selection of the research philosophy needs to be in a proper and systematic manner. The

27
broad and common parts of philosophy are positivism, interpretivism and realism Cameron
(2009).
Positivism as a subject of philosophy helps in application of logic that can help in analysing
the hidden facts and information in a scientific manner. Although dominated by scientific
method, positivism tries to rejects metaphysics so that detail observation and knowledge
collection is enabled. Interpretivism as a mode of epistemology supports the concept of
complex structure involved in a social world of business and management activities. Finn et
al. (2000) described that interpretative study aims at defining the things with concepts of
natural law that to certain extent discards the scientific approach as well. Apart from
interactions, a researcher under interpretative study actively takes part in interpreting the
data or the result of the study to suit the need of the study. Lastly, realism is a mixed
approach of positivism and interpretative and thus involves characteristics of both the
philosophies. Realism describes application of human beliefs and helps in studying the
interactions of humans along with the realities.
3.4.1 Justification for selection of the chosen Philosophy:
Positivism since functioned in the current scenario gives a judgemental analysis of the
unseen evidence and information associated with consumers’ buying-process and impact of
performance management systems over it. Beside this, the type of study is limited to the
time boundaries therefore realism study was leftover as for the choice of research
philosophy. Even the selection of positivism philosophy binds the researcher’s role in
changing or extracting the information that leads to minimisation of data errors too.
3.5 Research Approach:
For studying the topic, an approach is required. The approach needs a format to the
revealed study. The research topics can be studied in two ways. The two ways are deductive
and inductive approach. Saunders et al. (2009) stated that inductive approach is a study that
helps in studying a research topic when enough data on the chosen one is not available. The
basic step of inductive approach is to observe. Observation helps to get relevant
information and builds the path of the research accordingly. However, Cameron (2009)
noted that inductive approach helps in serving and making new theory making process of

28
any research study. Conversely, deductive approach is used as a process that describes the
practical application of the theories studied to gain access to content of the research paper.
Deductive approach aims to build a theory with more specifications and concepts of data
analysis. However, depending upon the nature of the study and research topic, the selection
for research approach is made that can help in better analysis of the topic.
3.5.1 Justification for selection of the chosen Approach:
In the researcher’s study, the topic will try to study the concepts related to performance
management techniques or process with the help of various theoretical knowledge.
Concepts and techniques of performance management required a selection of approach
that can help in understanding at a much precise and clear manner. However, inductive
approach fails to be implemented in the present topic as no new concepts or theories is
emphasised by the researcher. Further, impact of performance management systems in
employees’ decision-making process helps in understanding the concepts in a detailed
manner.
3.6 Research Design:
Gomm et al. (2000) illustrated that research design helps in explaining the framework of the
research topic that will help in selection of the collection and analysis pattern. During the
process of data collection, a particular kind of approach is applied that helps in better
description of the research design. Kinds of research design used in academic research
pattern are exploratory, explanatory and descriptive.
3.6.1 Justification for selection of the chosen Design:
Application of explanatory was avoided as it supports the concept of longitudinal study that
was not possible with the particular topic. Apart from that, descriptive design was able to
define the detail process involved in the application of performance management systems.
The extent of influence imparted by impact of performance management systems over the
employees’ decision-making process is aptly scrutinised with the help of descriptive design
as being the selected research design.

29
3.7 Data Collection Procedure:
Data are considered as useful collection of information and facts helpful in studying any
research topic with better details. Cameron (2009) mentioned that data collections are
helpful in deriving accurate results to a research process and enables standard format of
research work.
3.7.1 Data Sources: Primary and Secondary
Data sources helps in getting the extraction of research topic. A data resource helps in
gathering the information according to the research topic. There are the two types of data
sources that provide materials that help in achieving details of a particular research topic.
The two types of data resource are primary and secondary. Ellis and Levy (2009) illustrated
that primary data are the data that are raw and are found for creating the base of the
research that is the data are used in the beginning of the research study. The firstly
collected data collection needs explanation of dependability and authority. While with the
case of secondary sources, the data that are collected are used in broadening the study of
the research topic, which also may facilitate better study of the topic. The study is more
based on the data description.
In this present study, Subway sources includes the interface sessions with the customers
and managers of Subway who helped in gaining information as per the research objectives.
Apart from that, literature sources of the dissertation can be considered as output of
information gained via secondary sources. Tools of secondary sources include both the
online and offline sources like journals, articles, books, websites, blogs and others.
3.7.2 Data Techniques: Qualitative and Quantitative
The oral form of data is easily recorded in the Qualitative data form. Levine (2005)
mentioned that qualitative data helps in adding up of the theoretical knowledge for the
practical job area. Unlike quantitative procedure, qualitative data is a better mode of
understanding of the topic. In this research, both the quantitative along with qualitative
method are functional. Employees will be into consideration for the quantitative method of
the research procedure while the managers will be into consideration for the qualitative
method of the research procedure.

30
3.8 Population and Sample:
The total number of persons that are directly or may be indirectly involved in the research is
stated as population (Veal, 2006). In the research work, customers and employees of
Subway are considered as the population of the study that are widespread within and across
the nation, UK. However, the researcher cannot consider every customer so smaller
representation of the population is considered termed as sample.
3.8.1 Sampling Technique:
Sample taken for researching impact of performance management systems for the
employees’ decision-making process are smaller in number that can suit the criteria of the
research topic. The sample for employees was simple random probability sampling where
no criteria for selection were considered. On the other hand, managers of Subway were
considered for non-probability sampling technique.
3.8.2 Sample Size:
Qualitative and quantitative techniques are two divided forms for the sample size. For
studying the quantitative research techniques, 55 employees of Subway were considered
and were interacted with the help of online questionnaire forms. Conversely, managers of
Subway stores were considered for qualitative technique that will be 5 in number and will
be considered for interview sessions. Therefore, the sample size of the research study is 60,
taking both the qualitative and quantitative forms.
3.9 Ethical Considerations:
During the process of research methodology, a researcher needs to follow a code of conduct
that helps in identifying the wrong and right set of behaviours required to be adopted
during the process Cameron (2009). The researcher for analysing the impact of performance
management systems on the employees’ decision-making process tried to follow the basic
ethical considerations that can help in adding standardisation to the research topic.

31
3.10 Research Limitations:
Ellis and Levy (2009) commented that limitations within a research topic are natural that
also defines the area with restricted scope and abilities. In the particular research work,
areas encountered with research limitations are enlisted as following:
 Reliability: respondents are not pressurized or they are not into any kind of
influence in case of their answers. On the other hand, employees and managers of
Subway can be biased towards the organisation that may affect the findings of the
research topic. Thus, issues related to reliability are present in the study.
 Time-restriction: as the study was cross-sectional, the researcher had time
restriction that led to study of the work within a short time. Further details of the
study was not analysed due to cross-sectional study that also erupted as a cause of
research limitations for studying the organisation, Subway.
 Budget-limitation: With a limited budget, the researcher faced few limitations in the
study of the research topic the budget should be appropriate; else, it becomes a
great issue for the research conduction.
3.11 Summary:
The chapter states the different research apparatus of selection that can help in better
analysis of the topic. With the help of the chapter, the researcher tried to align the nature of
the study along with the available research techniques so that possibly the best research
methodology is framed out. The tools more appropriate to analyse the concepts of
performance management systems in employees’ decision-making process is emphasised
with reference to Subway.

32
Chapter 4
Research Results
4.0 Introduction:
Research result in the concerned chapter will deal in the survey result that involves
respondents for the concerned topic, which is employees and managers of Subway
restaurant, UK. Based on the data analysis, the researcher will gather information related to
the performance management system and its impact on the employees’ satisfaction and
organisational performance. Ellis and Levy (2009) described that data analysis need to have
much information relate to the research objectives so that more focussed and better quality
of research is obtained.
4.1 Quantitative Analysis: Employees of Subway
In this section of analysis, employees of Subway are involved. The researcher via
quantitative analysis has tried to gather the feedback or response of the employees who are
55 in sample size.
Question 1: How long have you been employee of this organisation, Subway?
Table 1: Employees’ sustainability at Subway
OPTIONS NO. OF
RESPONDENTS
TOTAL
RESPONDENTS
RESPONSE RATE (IN
%)
LESS THAN A YEAR 15 55 27
LESS THAN 2 YEARS 14 55 26
MORE THAN 10 YEARS 5 55 9

33
Figure 5: Employees’ sustainability at Subway
Findings:
As observed in the above chart, less than a year and less than 2 year is opted by 15% and
14% of the respondents respectively. Apart from that, less than 5 years and less than 10
years are chosen by 12% and 9% of the respondents. Apart from that, more than more than
10 year is selection of 5% of the respondents.
Question 2: How far are you satisfied with the work atmosphere of Subway as an
organisation?
Table 2: Satisfaction level with the work atmosphere of Subway as an organisation
OPTIONS NO. OF
RESPONDENTS
TOTAL
RESPONDENTS
RESPONSE RATE (IN
%)
STRONGLY SATISFIED 18 55 33
SATISFIED 10 55 18
NEUTRAL 9 55 16
DISSATISFIED 7 55 13
STRONGLY DISSATISFIED 11 55 20
LESS THAN A YEAR,
15
LESS THAN 2 YEARS,
14 LESS THAN 5 YEARS,
12 LESS THAN 10
YEARS, 9
MORE THAN 10
YEARS, 5
0
2
4
6
8
10
12
14
16
LESS THAN A YEAR LESS THAN 2 YEARS LESS THAN 5 YEARS LESS THAN 10
YEARS
MORE THAN 10
YEARS
How long have you been employee of this
organisation, Subway?

34
Figure 6: Satisfaction level with the work atmosphere of Subway as an organisation
Findings:
As observed in the above chart, 33% of the employees are very satisfied with the work
atmosphere and 18% of the employees are just satisfied. 16% of the employees are neutral;
they are neither against nor for the satisfaction topic. 13% of the employees are dissatisfied
and 20% of the employees are strongly dissatisfied.
Question 3: How would you rate the work culture at Subway?
Table 3: Rating for the work culture at Subway
OPTIONS NO. OF
RESPONDENTS
TOTAL
RESPONDENTS
RESPONSE RATE (IN
%)
EXCELLENT 16 55 29
GOOD 14 55 26
AVERAGE 9 55 16
SATISFACTORY 11 55 20
NON-SATISFACTORY 5 55 9
STRONGLY
SATISFIED, 18
SATISFIED, 10 NEUTRAL, 9
DISSATISFIED, 7
STRONGLY
DISSATISFIED, 11
0
2
4
6
8
10
12
14
16
18
20
STRONGLY
SATISFIED
SATISFIED NEUTRAL DISSATISFIED STRONGLY
DISSATISFIED
Satisfaction level with the work atmosphere
of Subway as an organisation

35
Figure 7: Rating for the work culture at Subway
Findings:
As observed in the above chart, most of the employees rated as excellent and good. 29% of
the employees rated as excellent, 26% as good. 16% of the employees rated to be average.
Even for 20% of the employees it is satisfactory and for 9% it is not satisfactory.
Question 4: How far do you agree that employees are appraised at a genuine level within
Subway?
Table 4: : Employees are appraised at a genuine level within Subway
OPTIONS NO. OF
RESPONDENTS
TOTAL
RESPONDENTS
RESPONSE RATE (IN
%)
STRONGLY AGREE 20 55 36
AGREE 16 55 29
NEUTRAL 14 55 25
DISSAGREE 3 55 6
STRONGLY DISAGREE 2 55 4
EXCELLENT, 16
GOOD, 14
AVERAGE, 9
SATISFACTORY, 11
NON-SATISFACTORY,
5
0
2
4
6
8
10
12
14
16
18
EXCELLENT GOOD AVERAGE SATISFACTORY NON-SATISFACTORY
Rating for the work culture at Subway

36
Figure 8: Employees are appraised at a genuine level within Subway
Findings:
As observed in the above chart, among 55 surveyed employees 36% of the employees are
strongly agreeing, 29% of the employees are agreeing and 25% of the employees are neutral
with the appraisal at the genuine level. Apart from his, 6% disagrees and 4% strongly
disagree with the appraisal at the genuine level.
Question 5: How far do you agree that leaders at Subway are capable of encouraging you
in positive manner?
Table 5: Leaders at Subway are capable of encouraging you in positive manner
OPTIONS NO. OF
RESPONDENTS
TOTAL
RESPONDENTS
RESPONSE RATE (IN
%)
AGREE 16 55 29
NEUTRAL 15 55 27
DISSAGREE 6 55 11
STRONGLY AGREE,
20
AGREE, 16
NEUTRAL, 14
DISSAGREE, 3 STRONGLY
DISAGREE, 20
5
10
15
20
25
STRONGLY AGREE AGREE NEUTRAL DISSAGREE STRONGLY
DISAGREE
Employees are appraised at a genuine level
within Subway

37
Figure 9: Leaders at Subway are capable of encouraging you in positive manner
Findings:
As observed in the above chart, 14 26% of the employees agree strongly and 29% of the
employees agree that the leaders at subway are capable of encouraging the employees in a
positive manner. 27% were neutral at the point. Moreover, 11% of the employees disagree
and 7% of the employees strongly disagree that the leaders at subway are capable of
encouraging the employees in a positive manner
Question 6: How would you rate the performance appraisal techniques that are adopted
at Subway?
Table 6: Rate the performance appraisal techniques that are adopted at Subway
OPTIONS NO. OF
RESPONDENTS
TOTAL
RESPONDENTS
RESPONSE RATE (IN
%)
EXCELLENT 5 55 9
GOOD 14 55 25
AVERAGE 18 55 33
SATISFACTORY 16 55 29
NON-SATISFACTORY 2 55 4
STRONGLY AGREE,
14
AGREE, 16 NEUTRAL, 15
DISSAGREE, 6 STRONGLY
DISAGREE, 4
0
2
4
6
8
10
12
14
16
18
DISAGREE
Leaders at Subwayare capable of
encouraging you in positive manner

38
Figure 10: Rate the performance appraisal techniques that are adopted at Subway
Findings:
As observed in the above chart, 9% of the employees rated excellent and 25% of the
employees says good that the Rate the performance appraisal techniques that are adopted
at Subway. 33% of the employees says it to be average. Moreover, 29% of the employees
rated satisfactory and 4% of the employees says non-satisfactory that the rate the
performance appraisal techniques that are adopted at Subway.
Question 7: As a source of employee satisfaction, which element is more crucial for you as
an employee within Subway?
Table 7: As a source of employee satisfaction, which element is more crucial for you as an
employee within Subway?
OPTIONS NO. OF
RESPONDENTS
TOTAL
RESPONDENTS
RESPONSE RATE (IN
%)
COMPENSATION &
BENEFITS 9
55 16
TRAINING AND
DEVELOPMENT 13
55 24
INVOLVEMENT AND 16 55 29
EXCELLENT, 5
GOOD, 14
AVERAGE, 18
SATISFACTORY, 16
NON-
SATISFACTORY, 20
2
4
6
8
10
12
14
16
18
20
Rate the performanceappraisal techniques
that are adopted at Subway

39
EMPOWERMENT
SCOPE FOR CAREER
PROGRESSION 14
55 25
OTHERS 3 55 6
Figure 11: As a source of employee satisfaction, which element is more crucial for you as
an employee within Subway?
Findings:
As observed in the above chart, around 16% of the respondents chose involvement and
empowerment and scope of career progression was choice of 14% of the respondents only.
Around 13% of the respondents chose training and development whereas, 9% of the
respondents went with compensation and benefits. Apart from that, 3% of the respondents
selected others.
Question 8: What are the positive impacts of performance appraisal techniques at the
work place?
Table 8: Positive impacts of performance appraisal techniques at the work place
Findings:
COMPENSATION &
BENEFITS, 9
TRAINING AND
DEVELOPMENT, 13
INVOLVEMENT
AND
EMPOWERMENT,
16
SCOPE FOR CAREER
PROGRESSION, 14
OTHERS, 3
0
2
4
6
8
10
12
14
16
18
COMPENSATION &
BENEFITS
TRAINING AND
DEVELOPMENT
INVOLVEMENT
AND
EMPOWERMENT
SCOPE FOR
CAREER
PROGRESSION
OTHERS
As a source of employee satisfaction,which
element is more crucial for you as an
employee within Subway?

40
OPTIONS NO. OF
RESPONDENTS
TOTAL
RESPONDENTS
RESPONSE RATE (IN
%)
BETTER EMPLOYEE
RELATION 14
55 25
BETTER WORK CULTURE 13 55 24
CAREER DEVELOPMENT 11 55 20
BETTER PRODUCTION
LEVEL 15
55 27
OTHERS 2 55 4
Figure 12: Positive impacts of performance appraisal techniques at the work place
Findings:
As observed in the above chart, better production level is choice of 15% of the respondents.
On the other hand, better employee relation and better work culture is opted by 14% and
13% of the respondents. Career development is choice of 11% of the respondents and 2% of
the respondents went with others.
BETTER EMPLOYEE
RELATION, 14
BETTER WORK
CULTURE, 13 CAREER
DEVELOPMENT, 11
BETTER
PRODUCTION
LEVEL, 15
OTHERS, 2
0
2
4
6
8
10
12
14
16
BETTER EMPLOYEE
RELATION
BETTER WORK
CULTURE
CAREER
DEVELOPMENT
BETTER
PRODUCTION
LEVEL
OTHERS
positive impacts of performanceappraisal
techniques at the work place

41
Question 9: What are the areas that needs more focus while adopting performance
management systems?
Table 9: Areas that needs more focus while adopting performance management systems
OPTIONS NO. OF
RESPONDENTS
TOTAL
RESPONDENTS
RESPONSE RATE (IN
%)
ENGAGING EMPLOYEES 5 55 9
FEEDBACK PROCESS 8 55 14
UNBIASED APPRAISAL
TECHNIQUES 12
55 22
MOST SUITABLE
APPRAISAL TECHNIQUES 15
55 27
ACTIVE PARTICIPATION 13 55 24
OTHERS 2 55 4
Figure 13: Areas that needs more focus while adopting performance management systems
Findings:
ENGAGING
EMPLOYEES, 5
FEEDBACK
PROCESS, 8
UNBIASED
APPRAISAL
TECHNIQUES, 12
MOST SUITABLE
APPRAISAL
TECHNIQUES, 15
ACTIVE
PARTICIPATION, 13
OTHERS, 2
0
2
4
6
8
10
12
14
16
ENGAGING
EMPLOYEES
FEEDBACK
PROCESS
UNBIASED
APPRAISAL
TECHNIQUES
MOST SUITABLE
APPRAISAL
TECHNIQUES
ACTIVE
PARTICIPATION
OTHERS
Areas that needs more focus while adopting
performancemanagement systems

42
As depicted in the chart, a most suitable appraisal technique is the chosen topic by 27% of
the respondents. Unbiased appraisal techniques is the chosen one among 12% of the
respondents. On the contrary, feedback process and engaging employee is chosen by 8%
and 5% of the respondents. However, active participation and others is adopted by 13% and
2% consecutively.
Question 10: How far do you agree that performance management systems at Subway
need modifications and alterations?
Table 10: Performance management systems at Subway need modifications and
alterations
OPTIONS NO. OF
RESPONDENTS
TOTAL
RESPONDENTS
RESPONSE RATE (IN
%)
AGREE 5 55 9
NEUTRAL 17 55 31
DISSAGREE 19 55 35
STRONGLY AGREE,
3
AGREE, 5
NEUTRAL, 17
DISSAGREE, 19
STRONGLY
DISAGREE, 11
0
2
4
6
8
10
12
14
16
18
20
DISAGREE
performancemanagement systems at
Subway need modificationsand alterations

43
Figure 14: Performance management systems at Subway need modifications and
alterations
Findings:
As illustrated in the above chart, majority of the respondents are disagreeing with 19%
whereas neutral and strongly agreed is adopted by 11% of the respondents. Apart from
that, agree and strongly agree is the chosen option of 5% and 3% of the respondents
respectively.
4.2 Qualitative Analysis: Managers of Subway
Managers of Subway are considered for the qualitative analysis so that much discussion on
performance management techniques and it impact can be analysed. Interview with
managers helped the researcher in better understanding the practical implications of
performance management techniques at Subway.
Q1. At Subway, what is the role of Performance Management techniques?
Answer to Q1:
Performance management techniques at Subway are helpful in better analysis of the
employees and their working efficiency. The service sector, first and fourth manager stated
needs much quality based service so that customers are retained. However, second and
third manager commented that Subway aims to adopt performance management
techniques so that as per time and requirement, the employees can keep a record of their
development as observed within the organisation. Lastly, fifth manager mentioned that
performance management is also capable of increasing the efficiency level of an employee
where morale or a boost to perform and score better exists.
Q2. What are the factors that help in betterimplementation of Performance Management
System?
Answer to Q2:
As answered by first and third managers, competent and involved managers are one of the
key components for successful implementation of performance management system as it

44
helps in better analysis of the employees. Apart from that, second and fifth managers stated
that acknowledgment of the most appropriate technique depending on the job profile and
group of people is much helpful in appropriate conduction of the performance management
systems. Lastly, fourth manager opined that employee acceptance level is crucial for
successful implementation of the technique as it needs participation of the employees so
that better quality of analysis and observation can be the outcome.
Q3. How performance management is linked with employee satisfaction?
Answer to Q3:
According to third and fifth manager, performance management displays the level of skill or
competencies available in the concerned employee that helps them in recognising their
level as an employee for the organisation, Subway. Apart from that, first and fourth
manager noticed that at Subway, employees are able to access the areas where
modifications and development is required so that they can perform better. Such
recognition is worth a place for satisfaction as they get informed and observed. However,
second manager stated that impact if performance management has a limited impact on
employee satisfaction as it is more useful for the management to recognise the competent
and skilful employee. On the contrary, other employees or colleagues might get jealous with
competent employees within the Subway.
Q4. What are the impacts created by performance management system over
organisational performance?
Answer to Q4:
As a tool of HRM (Human Resource Management), performance management system is
supposed to streamline the business goals along with the employees’ production level. First
and third manager remarked that performance management techniques are considered to
bring positive impacts over organisation by increasing the production level at Subway.
However, second and fifth manager opined that performance management is yet another
way of minimising the cost of organisation as by increased level of employees’ performance
better and more service level is extracted at the same level of cost as recorded earlier.
Organisation as mentioned by fourth manager under the influence of performance

45
management techniques gets much motivated and encouraged set of employees that also
brings a competition level within the employees creating positive impact on the work
environment as well.
Q5. What are the challenges faced during implementation process of performance
management system?
Answer to Q5:
Implementation of performance appraisal process is bounded by several limits and barriers
that restrict the application process to certain extent. The change is obvious in very
organisation including Subway, thus the need of performance appraisal is varying as per
time. Second and third manager opined that changing environment and trending work
culture at Subway creates a certain level of restrictions in implementation of performance
management technique. Apart from that, first and fifth manager pointed that selection and
choosing the most appropriate performance technique is yet another crucial factor that
creates barrier for the organisation. Managers need to have detail knowledge of each
performance management technique along with being genuine and fair so that unbiased
result of the technique can be achieved.
4.3 Conclusion:
Performance management system is a tool that helps Subway in better implementation of
the organisational activities. With the help of performance management techniques,
managers aim to enhance the organisational effectiveness and further attempts to improve
the working culture of Subway. A successful execution of business strategy at Subway is
formulated with the help of performance management technique. Apart from that,
employees with the help of this appraisal tool are able to access their skill and competency
and accordingly recognise their worth in the organisation, Subway.

46
Chapter 5
Analysis and Discussion
5.0 Introduction:
The researcher with the help of qualitative and quantitative technique has gathered the
relevant information relating to the performance management system and the effect
created over level of employee satisfaction and organisational performance.
5.1 Data Interpretation for Employees of Subway
Interpretation of the data will be helpful in better discussion and research of the concerned
topic and will also help in better understanding of the topic. Statistical data is analysed here
by the researcher for better study of the survey.
Discussion 1. Stability of Employees in Subway:
The presence of the new as well as the old employees is there in the organisation, Subway.
The presence of the new and the old employees shows that the company, Subway is
implementing the performance management efficiently and effectively. This helps the
employees know their worth in the organisation. The employees get the benefits in the
organisation. Both the benefits and the worth of the employees help Subway a lot in
retaining the people. The retention of the employees shows that the organisation is capable
enough in rendering good behaviour towards the employees. There is a link starting from
the stability of the employees. the more satisfied the employees will be the better will be
the performance of the employees. The better the performance of the employees the high
will be the satisfaction of the consumers. The higher will be the satisfaction of the
consumers the more will be the retention of the consumer will be there in the organisation.
The more the retention of the consumer will be there in the organisation the more will be
the turnover of the organisation.
Discussion 2: Satisfaction Level with the Work Atmosphere of Subway as an Organisation
The organisation is getting a mixed review from the employees from the organisation
regarding the satisfaction level with the work atmosphere. As the company sells fresh food

47
so the environment of the organisation is. The company Subway needs to look ahead into
the matter of satisfaction of the work atmosphere. Many employees in the organisation are
in favour of the work atmosphere. There are many on the other side too. The employee
complains that the employers do not look into the matter of their good work. The
employees’ works for many years and even after gets no increments. According to the
employees of Subway, the managers of the departments are too rude. The rude employee
creates the bad ambiance of the organisation.
Discussion 3: Rating of the work culture at Subway
Work culture at an organisation is helpful in creating the working behaviour of the
employees. With better adoption of work culture, a professional environment is enabled
that seeks much alignment of organisational objectives. However, with adoption of
appropriate performance management techniques, employees are provided with their best
fit-in job that supports the concept of work culture ideally at Subway. Thus, the organisation
Subway, receives a mixed responses in terms of the work culture. The company should
enhance the work culture of the organisation. All the employees work together as a group
and the spirit of team work is there in the organisation, Subway.
Discussion 4: Employees are appraised at a genuine level within Subway
The rates of employees are higher in terms of agreeing the fact that the employees are
appraised at a genuine level. The rates of employees are appraised at the genuine level
within the organisation Subway. The employees are appraised when needed. The employee
gets motivated with the appraisals. Thus, it shows that the employees are appraised at a
genuine level within Subway. The rates of employees are higher in terms of agreeing the
fact that the employees are appraised at a genuine level. The company recognises the good
work of the employees. The employees get satisfied with the appraisals from the
organisation. The higher level of the satisfaction of the employees will led to The higher will
be the satisfaction of the consumers the more will be the retention of the consumer will be
there in the organisation the retention of the employees within the organisation
Discussion 5; Leaders at Subway are capable of encouraging you in positive manner
the ratings shows that the leaders at Subway are capable of encouraging you in positive
manner as the ratings are towards the favour of the positive response. The positive

48
response of the employees towards the behaviour of the employees shows that the
relationship between the lower level and the higher levels of the employees. There is good
means of communication and bonding between the employees and the managers.
Therefore, the leaders of Subway are helpful and are the encouraging power of the
employees. The more the leader encourages the more the employees work within an
organisation. Thus, the motivational power is necessary for the employees to work more
efficiently. The motivation of the managers leads to the continuous good work of the
employees. The employees get appraisals, promotions and increments with good work.
Discussion 6: Rate the performance appraisal techniques that are adopted at Subway
The rates of the performance appraisal techniques that are adopted at Subway are not
good. According to the employees, the appraisal techniques are not genuine. The
techniques are irrational. Subway should be unbiased in terms of unbiased appraisal
techniques. As the most of the employees gives their view toward the most suitable
appraisal techniques, so the company should choose the most suitable techniques for the
appraisal of the employees. Regardless all the matters discussed are important so the
organisation should look into all the matters according to the ratings of the employees. The
rate of the performance appraisal technique should be right and correct within Subway.
Discussion 7: As a source of employee satisfaction the elements that are more crucial for
an employee within Subway
According to the employees of Subway, the employees face many satisfaction criteria in the
organisation. Most of the employees say that there is lack of involvement and
empowerment of the employees. This should be practised in the organisation. Scope for
career progression is lacking in the organisation too. The organisation lacks in proper
training and development of the employees in the specialization. There are many other
problems like compensation and benefits and any other problems are there too within an
organisation.
Discussion 8: Positive affects of performance appraisal techniques at the work place
Performance appraisal technique is helpful in understanding the existing working conditions
of the employees along with their inherent skill as per their job profile. However, inclusion
of performance management techniques at work place like Subway is helping in bringing

49
positive work culture where production level that is service quality of employee is observing
growth. The organisation Subway should look into the positive impacts of performance
appraisal techniques at the work place the areas are better employee retention, better work
culture, career development, career development better production and many other small
impacts. Apart from that, employees feel that major areas of career development is
recognised via performance appraisal techniques and further initiates bright career for an
employee. Recognition of potentiality increases good vibes within the employees and thus a
healthy and good employee relation is promoted within Subway.
Discussion 9: Areas that needs more focus while adopting performance management
systems
Subway should be unbiased in terms of unbiased appraisal techniques. As the most of the
employees gives their view toward the most suitable appraisal techniques, so the company
should choose the most suitable techniques for the appraisal of the employees. : The
organisation should think of engaging employees in their decision making process. In the
day-to-day activities, the employees should be involved. The employees are the basic
proforma of an organisation. The authorities might take the employees’ feedback. The
feedbacks from the employees might make the bonding between the higher-level
authorities and the lower level employees strong. The employee works on the set paths of
the authorities. Employees are involved in running shifts at Subway that can cause an
impact on the health of the employees. However, company could focus on Healthcare
facilities so that employees at work place can feel secure and perform better as well.
Performance with much focus on extra benefits also helps in leveraging the employees’
satisfaction level. Regardless all the matters discussed are important so the organisation
should look into all the matters according to the ratings of the employees.
Discussion 10: Performance management systems at Subway need modifications and
alterations
Performance management system at Subway is excellent as it is helping the employees is
recognising their core areas of strength. Apart from that, this system also helps in
recognising the areas where much improvement and development is ideal. In such a work

50
culture, performance management technique is adding a source of inspiration to the
employees. However, with much of the modification such as less time involved and much
specific result oriented research could have been better as per respondents’ feedback. Few
of the respondents agree that the management systems at Subway need modifications and
alterations.
5.3 Summary:
The interpretation of qualitative and qualitative data helped the researcher in recognising
the importance of performance appraisal techniques in an organisational environment. The
researcher tried to analyse feedback on a through basis so that the internal environment of
Subway can be visualised. However, application of theoretical concepts and models were
much helpful in gathering relevant data details and better understanding of the topic as
well.

51
Chapter 6
Conclusion and Recommendations
6.1 Conclusion:
Performance management process is an evaluation of seeing the focus of the employees
over the work. Performance management helps in gaining the mission and vision of the
company. Different kinds of systems are there in the performance management. However,
performance management is important but, still neither the manager likes to evaluate nor
the employees like to be evaluated regarding the performance. No managers like to give
continuously feedback. Giving feedback seems too boring to the managers and listening for
so long the managers seems boring to the employees. After performance management,
easy perception towards the organisational goal can be seen. Performance management
encourage bonding between the managers and the employees.
Subway as an organisation is an emerging one; it is growing both the customer base and
employee base on a rapid manner. However, implementation of various strategic
techniques such as performance management system is getting crucial for the organisation
so that with market growth better service delivery can be in balance. Leaders and managers
of Subway are trying to gather the feedback of the employees so that as and when required
most suitable techniques for appraisal can be utilised and implemented. The internal
scenarios of the organisation further seek much involvement of the leaders or managers in
the technique so that better quality pf assessment for employees can be conducted.
6.2 Linking with the objectives:
The researcher will try to link the objective with the findings and analysis so that success
rate of the dissertation study can be determined.
Linking Objective 1: To understand the need of performance management systems in an
organisation
Performance management system at Subway is ideal way of ensuring that organisational
objectives are attained efficiently. Performance management provides much focus on the

52
key activities that can help an organisation in increasing the production level along with the
increase of job quality of the employees. As observed in Part A, Table 4, around 65% of the
respondents are in favour for genuine level of performance management technique
implementation. Subway utilises performance management technique in providing
satisfaction to the employees as they are better able to have a cross-check on their
performed list of activities. Apart from that, as noted in Part A, Table 5, major section of
respondents, 55% are agreeing with the fact that performance management technique
helps in providing positive encouragement to the employees of Subway. Thus, one of the
crucial need of performance management system is to bring positive growth and motivation
within the employees.
Linking Objective 2: To critically analyse the factors behind employee satisfaction and
organisational performance
Employee satisfaction along with organisational performance is result of successful
performance management appraisal. As seen in Part A, Table 1, Subway is successfully
retaining both the new and old employees that illustrates a successful implementation of
the performance management systems. Apart from that, work culture as analysed in Part A,
Table 3, are creating positive frame of performance appraisal techniques and helping
Subway as being a better organisation in maintaining healthy employee relation. An overall
emphasis on employee satisfaction and organisational performance as Subway is also
drawing focus on the factors that are bringing success to the performance management
techniques.
Linking Objective 3: To examine the impact of performance management techniques over
employee satisfaction and organisational performance
Employee satisfaction and organisational performance are crucial component of
performance management system. As seen in Part A, Table 7, factors such as compensation
& benefits, training & development, involvement & empowerment and career progression
are few of the elements that are positive impacts of performance management system
creating positive impacts on the work environment of Subway. Further, positive impacts in
Part A, Table 8, can be cross-checked for performance appraisal techniques such as
employee relation, work culture, career development and production level as well.

53
Linking Objective 4: To address the challenges faced in implementation of the
performance management techniques
Adoption of performance management systems and its implementation is recognised by
every organisation but is involved with various challenges as well. Depending on the nature
of organisation and working environment, challenges and barriers frame various shapes. As
described in Part A, Table 9, few of the areas as stated by employees of Subway think needs
better attention and focus. These areas are engaging employees, feedback process,
unbiased appraisal techniques, most appropriate appraisal technique, active participation
and others. Further, in Part A, Table 10, few of the respondents feel the need of alterations
in the performance management systems at Subway that highlights the area of
development of the chosen techniques and processes.
6.3 Recommendations:
As of the scrutiny as well as outcome of the research study, the researcher has figured out
proposals, which may assist in connecting the breach between the issues and the proposed
solutions. According to the topic of the study, the researcher has suggested few criteria that
can help in better process management of Subway that can help in upbringing the relation
between the employees and the organisation.
Employees’ involvement in the decision-making process: The organisation should think of
engaging employees in their decision making process. In the day-to-day activities, the
employees should be involved. The employees are the basic proforma of an organisation.
The employees deals with the problems so the higher authorities should involve the
employees so that the employees can come up with the remedies sooner, faster and better
than the higher authorities. The employees can give the best solution to the problem as
they deals with the problems every day.
More focus on the Feedback and Grievances of Employees: The authorities might take the
employees’ feedback. The feedbacks from the employees might make the bonding between
the higher-level authorities and the lower level employees strong. The employee works on
the set paths of the authorities. Therefore, the feedback of the employees gives a clear
vision of the rules and regulations set by the authorities. The authorities could make out

54
from the feedback of the employees that how far the rules and regulations implementations
are successful. Feedbacks of the employees are for the betterment of the organisations.
Thus, Subway might take the feedback from the employees.
More Focus on Healthcare Facilities: Employees are involved in running shifts at Subway
that can cause an impact on the health of the employees. However, company could focus on
Healthcare facilities so that employees at work place can feel secure and perform better as
well. Performance with much focus on extra benefits also helps in leveraging the employees’
satisfaction level.
6.4 Future Scope of the Study:
Based on the survey result and findings of the research topic, the research area has
developed few parameters that can be developed with much emphasis on certain sections.
As the research topic was merely involved in study of Subway could have been of much
quality with involvement of other competitive firms like McDonalds, Pizza Hut, Burger King
and others. Apart from that, a specific store of Subway if could have been selected for the
research topic then the narrow form of topic could have helped in better penetration of the
research study.

55
Reference list:
Books:
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Elsevier.
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London: Prentice Hall.

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Ferris, G. R. (2008) Handbook of human resource management. 7th ed. London: Prentice
Hall.
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Harlow: Pearson Education.
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Gomm, R., Hammersley, M. and Foster, P. (2000). Case Study Method. London: Sage.
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River, NJ: Prentice Hall.

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Lloyd, K. (2009) Performance appraisal and Phrases for Dummies. 4th ed. London: McGra-Hill
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Process,” Journal of Management Accounting Research, 57-87.
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Review of Public Administration, 23, 201-214.

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