[PERFORMANCE MANAGEMENT] October 20, 2011

School of Business and Law Assignment On

Performance Management

Name ID Semester Group Module Lecturer Due Date

Md. Kamal Hossain B0687MHMH0411 MBA1 C Managing Human Capital David Hall and Rajendra Kumar. 20th October 2011

WORD LIMIT: APPROXIMATELY 3000

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Table of content: 1.0. Introduction..04 2.0. Objective of performance management..04 3.0. Principles of developing a performance management plan.05 4.0. Process of performance management:...05 4.1. Planning..05 4.2. Monitoring05 4.3. Developing..05 4.4. Rating..05 4.5. Rewarding...05 5.0. Literature review..06 6.0. Example and critical analysis07 6.1. Example:.07 6.1.1. LIoyds TSB.08 6.1.2. ASDA..08 6.1.3. KFC..08 6.1.4. McDonalds..09 6.1.4.1. Individual performance plan09 6.1.4.2. Individual development plans..09 6.1.4.3. Annual measurement...09 6.1.4.4. Performance calibration seminar09 6.1.5. International Retailer....10 6.1.6. Dell10 6.1.7. Fords10 6.1.8. Inter Continental Hotel Group (IHG):.......10 6.1.9. Marks and Spencers.10 6.1.10. Unilever..11 6.1.11. Motorola.11

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7.0. Conclusion11 8.0. REFERENCES and BIBLIOGRAPHY12

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1.0. Introduction: In the real world, we could not won our employer's goal successfully, except being supervised, developed in any mode. Without any information, monitoring, guidance and control employees would not do their job that our company wants. In addition, company needs to know what their employees performances are. Are they doing well? Are their employees on the right track or the company can make their job perfect way? For maintain all this issue company need some kind of system. Performance management is the one of process for companies to measure their employees' ability to gain their goal. In 1980s, performance appraisal had replaced by the phrase Performance Management. As a number of drawbacks, the business organization focused on performance management. Performance management is, an analyst may view the performance of the whole company and measure the business value. In another intellect Performance management is the process for evaluating the member of staff to attain in the concern objective. The transform is essential things to continue in a competitive market. For the transform, performance management can help the business what is obligatory to improve by the business. By the performance management, workers and managers can get together for sharing their individual opinion, and then their manager can choose the best opinion to make their aim structure to reach there. The measurement of employee performance is one of the most important way for any business organisation to toward their business goal. Performance management is a system where the management measures the workers' performance. Performance management allows a business to characterize planned goals, assess, and supervise performance along the goal. Performance management systems involved number of activities; they are more than simply review what an employee has done. Several of years ago, performance valuation was designed primarily to tell the employees how they had done over the period and let them know what they would be getting. This was mechanism implies. Specifically performance valuation should also address documentation concern. Performance management must convey to employees how well they perform towards specific goals. 2.0. Objective of performance management: 1. 2. 3. 4. 5. 6. 7. Build up the relationship between management and employee. Simplify the task, purpose, errands, priorities and prospect. Recognize and tenacity the performance difficulty. Give a necessary for management assessment such as promotion, succession. Recognize excellent performance. Generate and continue the reasonable stage of the act. Give the employee a strong growth and development in their task.

3.0. Principles of developing a performance management plan: 1. 2. 3. Performance management measured a process not an event. It is a major communication way. Any way of process for a specific job should be specific. -4-

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4. 5. 6. 7. 8. Official recognition: the process of creating a paper trail to record data. Objective or result: report of what an employee is supposed to attain. Ongoing performance communication: no surprises. Performance review: refers to a meeting to review and evaluating performance. Performance appraisal: the yearly system for evaluating the employees' activities.

4.0. Process of performance management: 01. Planning. 02. Monitoring. 03. Developing. 04. Rating. 05. Rewarding. 4.1. Planning: For attaining the goal of any single business, the company or business needs to make a plan for that. There is some specific way for every specific goal. Planning means setting up the process for gain business goal, involve the employee in the process and help them to understand their job, what they need to do, why they need to do that, and how well they should do that. Employees task should be flexible so they can do their job easily. 4.2. Monitoring: Any effective company monitored their organizational actively. Monitoring means observing the continuous project. How the project going on? How the employee going towards with their specific job. By monitoring any unacceptable process can be removed, easy to identify the useful contents and can give the proper instruction to the employees. 4.3. Developing: Development is an important process for an organisation. All organisations should evaluate and addressed the employee development. In this sense, developing means improvement of their works by giving them training, giving them proper instructions, encourage them in their task, help them in their work when they work in their working place. 4.4. Rating: for every single period of time, effective organisation measures the employees performance whatever they have done within the period. This method can be useful to equating the performance of all employees over a period of time. Rating means measuring the workers' performance by given the individual task, rate them by applying the companies won appraisal and record the all data about all of individual workers. Rating should be done within every time period. 4.5. Rewarding: Rewarding means greeting workers separately and as a grouping. A basic principle of effective administration is that all activities are controlled by its consequences. Superior performance is documented without delay for nominations for recognized awards to be solicited.

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By using those processes, an effective company can achieve their main target. They can also find out best worker who can do their job in a perfect way in which way want. Management can take decision what type of training their employees need, how they can make them better worker. Overall, by these five processes effective company can manage the effective performance management. 5.0. Literature review: Performance management is a more liberal and meaningful idea then performance measurement. It involves both qualitative and quantitative methods to measure the performance. Performance management is the way of making of a business achieve faith from first to last defining business aim and take a decision about useful and capable use of organisational resources (johns), 03/2005

Performance management is the professional person find out the weaknesses in their line of attack and fundamental viewpoint. Workers are not happy with the method of performance management and managers are always in trouble to manage this with their workers. It is possible for the managers to overcome this matter if they give the workers different types of benefits and give them the proper design of their tasks. There are some ways of deciding the performance measurement criteria. Armstrong and baron are mentioned two central propositions used to measure the performance assessment: 01. People put their best endeavour into the stage well if they know and recognize what is expected of them and have had the surroundings in specifying those expectations. 02. Worker skill meets expectation is based on: a) Individual levels of ability. b) Different types of support from management. c) Availability of schemes, resources and processes from the organisations. Performance management systems: There are several functions of the performance management method: Strengthening of the organisations worth and norms. Consolidation of character purpose with those of the organisation. Give them a chance to apply their own view. Sharing the belief between management and workers about their expectations. In a most important review in British, 20 percent says that they have a system, 65 percent says they had some performance management processes and 15 percent says they had no system (Bevan and Thompson, 1992). (Alan Price), 2007 Performance management should start with the individual employee performance by taking a justification. The performance management process starts from the top level of -6-

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management in any company and its end is end level of workers. Company has an individual objective for their achievement and align the objective to the workers. Management should give the idea about their goal and process to the workers. Then worker can meet their main objective and they can perform in a better way. Without giving any information or by giving wrong process workers cannot achieve or cannot go so far from their starting point. The main objective is to motivate the workers, because by motivating them company can push them in the right way and then they can catch their main target. (Sowa Jessica, Seiden Sally) Robert Bacal (1999) defined Performance Management as: An in progress statement process, undertaken in partnership, between an worker and his or her immediate manager that involves establishing clear expectations and accepting about the jobs to be done. Performance management is the main way by which company ensure a line of vision among tactical aims and separate movement and behaviours: It is regarding creating a lineof-vision between what the individual does and what the organisation needs (CIPD, 2009). Performance management should not be a work concentrated method but should occupy an assured point of conversation among managers and workers at a number of stages of the procedure. These are surroundings the objectives, half year and year end review and right the way through the year as workers need route and progress and managers supply in progress performance response. By exploring the remuneration of appraisals for measuring performance and the views of line management & employees, it will be possible to consider the various weaknesses and arguments of abandonment and alternative contemporary approaches of interpreting performance management. In business all of the worker gets the chance to prove their performance. Performance management makes a diagram for individual works towards objectives within a set plan. A sequence of review right through the year with the line manager ensure that the individual is monitored, managed, coached and guided in the direction of victorious achievement of those objectives. (Adcock, F. & Birth, I. Trivitt, 1988: 403-404).

6.0. Example and critical analysis: Performance management is a positive joyride for any business organisations. By considering the performance management company can achieve their goal also it can fulfil the individual satisfactions. The aim of this objective is to define the companys wants; they can set up their task to do the job. In this task, any business follows some objectives like as What should be their expectation? How they can art their way? How they can give the responsibility to their workers? Who will do the task?

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Performance management works also as an individual satisfaction. When companies do the performance management, they consider the all over the performance of an employee. Along the performance workers get the feedback. Company influence them in different ways, give them individual response. For inspire the worker different company follow the different way. Individual business has their individual rules and regulation for doing their performance management. Here some example of different type of business and their process of performance management. 6.1. Example:

6.1.1. LIoyds TSB: LIoyds TSB uses a balanced scorecard to evaluate and supervise worker performance. The scorecard takes into account the needs of customers, employees and shareholders and measures individual performance against a range of factors, including financial success, contribution to the long-standing development of the company, client service, risk management and personal growth. LIoyds TSB balanced scorecard goals to show workers how their performance blow their workmates and clients and how this, in rotate, translates into their in general performance. It ensures that people understand how their personal objectives relate to their policy, and how their performance contributes to the Groups performance. All workers get official reviews and advice on performance twice per year. 6.1.2. ASDA: Performance Management system of ASDA: As an effective organisation ASDA always want an inspiring, demanding and pleasing workplace. ASDA certifies that their employ conditions and the workplace situation assisted in attracting, guidance and retaining skilled and faithful team. Agency bonus: agency performance considered aligned with the KPIs and functioning deliverables as being 82.1 percent. Individual bonus: individual performance management structure, is recognized as growth factor, was reviewed and enhanced. Growth factor contains a high level of employee commitment also importance some improvement. Peer recognition: peer condition smoothed out ASDAs commitment to acknowledging and gratifying excellent performance.

6.1.3. KFC: Why KFC does the performance management? 01. For achieving their goal.

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02. Management can get a clear idea about their employee, that they do their job, which is company expectation. 03. Employees are able to obtain the information about their work. 04. Employees get Payment raise and promotion by rating their performance. 05. If employees are not doing well they get that information also. The process of performance management: KFC management follows some steps to measure their work performance: 01. Management always observes the employee when they are working on their individual job. 02. They try to push them more than that what they can do. 03. Management observe that are they on the right track. 04. Management always communicates with the employees. 05. Management also gets the information from a senior worker about the others workers. After getting the performance informations about the employer's management gives them pay rise, promotion and also some rewards, that depends on the performance. I agree with the KFC performance management process because in my view, if they do this type of performance management, for this reason the workers could be interested to make their job more smooth way also other workers who dont get good feedback they could try to do the best performance. So company can get more benefit from them.

6.1.4. McDonalds: 6.1.4.1. Individual performance plan: 01. Managers work with the workers to generate an IPP to line up their aim for next years. 02. Worker is active about their job. 6.1.4.2. Individual development plans: individual development plan McDonalds focused on the individual task for the present and future position. They do the mid-year check In the end of July. Worker and management do their review of business goals based on shifting business priorities. 6.1.4.3. Annual measurement: workers give their own opinion to their managers. Managers make the direct discussion about: a. What is done by workers. b. How they have done that. 6.1.4.4. Performance calibration seminar: managers present the success in the seminar as a. Exceptional performance. -9-

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b. Significant performance. c. Improvement required/unacceptable. After doing all of these task managers make a final agreement for the workers: Ready now for doing individual task, Ready for the future, New to position and current level. 6.1.5. International Retailer: This company plans a three-phase performance management scheme. 01. Developed the performance criteria, descriptions and forms to be used for people performance management; 02. The system piloted in one geographic area; 03. A complicated system role out nationwide. The company follows the first phases by which they can do the activity assessment of their employees and there were four employee level. The performance management planned in three levels, behaviour, activities and results. 6.1.6. Dell: At Dell, the key point of success is the swiftness and stability. Dell chief financial officer Meredith told balance is especially significant in performance management. The CFO looks after the employee how they could influence the cash conversion cycle (CCC) process. Dell uses return on invested capital (ROIC) as an evaluation of worth formation, and linked the ROIC metric to the inconsistent recompense of all executives. 6.1.7. Fords: In Fords which one is second largest business organisation. In this organisation, the management measures the performance of the workers and give them the rating about their performance. The management gives the chance that a worker who has a poor rating. For example, management doesnt give any bonus or pay rise for one year and demotion within two years to those workers whose rating is c and give them a chance for recovering themselves. 6.1.8. Inter Continental Hotel Group (IHG): IHG management make their workplace friendly to innovate and motivating foe their all workers. Their key point is try to understand the employee and give them the proper instructions. They always meet with their workers problem in a fair way and give them the fair opportunity to do their task.

6.1.9. Marks and Spencers: In view of M&S management, the performance management is a process, which is developed by employee and managers. They make the written report about an employees performance, what is going on? If there is a problem how they can improve that. They do that every year. They do the re-evaluate to check the efficiency of workers. - 10 -

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They have performance related bonus and they do that every 3 months. If the store achieves their target, they give the bonus. They also do the individual bonus like as gift card, 20% discount format. 6.1.10. Unilever: Individual and line manager in roundtable chat fixes goals. Company do review of performance one time per year about the productivity and efficiency. They check that which jobs are done properly and which one are not done in a given way. From the mistake they make their next plan about employees career. By considering all of example we can see that companies need is achieve the target if worker can do that then they can get the benefit from the company. Simply if you want to get something at first give something then you can get whatever you want. 6.1.11. Motorola: Motorola management and workers believe in these key points of the performance management plan: 01. Workers must do their given task. 02. Task must do by proper way. 03. Workers must know about the reason of task. 04. What is the proper time to do the individual task? Management gives the workers proper tools, extra money, like as a bonus, apparatus or as giving them some others opportunity to solve their task of project. Company gives the workers timely feedback so they can understand at which stage they are standing and how they cover their all steps.

7.0. Conclusion: Performance management is an effective way for a company to achieve their goal also a good way to get better performance from the employees. In any business PM consider some common objectives such as assign the goal, make a plan, train the workers for the specific goal, give them feedback about their job what they have done. PM is the only one process to manage the business in the right way. Business target should be in range, thats should be achievable, also it should be in touch of workers. Another thing is management should give the workers proper payment for their work, they should get more than that what they expect from the company. If companies can come to this decision then they can easily achieve their target.

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REFERENCES and BIBLIOGRAPHY:

01. julie beardwell & tim clydon Human resource management (a contemporary
approach)sixth edition

02. Armstrong M & Baron A. (1998) Performance Management: the new realities.
Institute of Personnel and Development: London

03. Beardwell I & Holden L (1997) Human Resources Management, A contemporary

Perspective, second edition, Pitman: London

04. gary dessler Human resource management (eleventh edition) 05. State of Oklahoma Office of Personnel Management, Performance Management
Process Handbook,1990.

06. Maund L (2001) An Introduction to Human Resources Management: Theory &

Practice , Palgrave Macmillan: Basingstoke

07. Performance Management and Appraisal in Human Service Organizations:

Managernent and Staff Perspectives By Sally Seiden, PhD, and Jessica E. Sowa, PhD 08. International Journal of Management Reviews (2009) doi: 10.1111/j.1468-2370.2008.00237.x 09. http://site.ebrary.com/lib/westminsterintl/docDetail.action?docID=10103412&p00=perf ormance+management((Author: Coaffee, Jon )) Publisher: Emerald Group Publishing Ltd Original Publication Date: 03/2005

10. Randall S. Schuler, John R. Fulkerson, Peter J. Dowling (article) Strategic

performance measurement and management in multinational corporations(Article first published online: 2 NOV 2006)

11. Marilyn repinski, Maryjo bartsch Performance improvement (12th February 2007). 12. Martinez, Veronica Radnor, Zoe, International Journal of Productivity and
Performance Management. Published 08/2007

13. Bratton J & Gold J (2003) Human Resources Management: Theory & Practice, third
edition, Palgrave Macmillan: Basingstoke.

14. Leopold J, Harris L & Watson T (2005) The Strategic Managing of Human
Resources, Prentice Hall: Essex.

15. Taylor S (2005) People Resourcing, third edition, CIPD: London 16. Torrington D & Weightman J (1994) Effective Management People and
Organisations, Pearsons Education, Essex.

17. Chartered Institute of Personnel Development (2009) Discussion paper: Performance

Management. CIPD: London

18. http://www.scribd.com/doc/29189809/Performance-Management. 19. http://www.auburn.edu/administration/human_resources/compensation/ccp/pmsupvsi

ntroprework.pdf 20. http://www.turningpointprogram.org/toolkit/content/pmcaselearn.htm 21. http://www.opm.gov/perform/overview.asp - 12 -

[PERFORMANCE MANAGEMENT] October 20, 2011 22. http://www.strategydriven.com/2011/08/03/human-performance-managementintroduction/ 23. http://www.hrmguide.net/hrm/chap10/ch10-preamble.htm 24. http://www.coursework.info 25. http://www.businessballs.com/performance_management.htm 26. http://www.scribd.com/doc/45157726/Lecture-Notes-Performance-Management 27. http://web.ebscohost.com/ehost/detail?vid=15&hid=25&sid=b61bc161-7680-42a19e5255d54a9359b1%40sessionmgr13&bdata=JnNpdGU9ZWhvc3QtbGl2ZQ%3d%3d#db =buh&AN=44284091 28. http://www.asada.gov.au/publications/annual_reports/asda_annual_report_2003_04/ people.htm 29. http://web.ebscohost.com/ehost/pdfviewer/pdfviewer?sid=99c4ba31-c335-4ed4b343-37161b0bfc1f%40sessionmgr4&vid=13&hid=15 30. http://www.ga-training.com/news/more/Performance-Management/Workplacemanagement-benefits-Nestle/18515236 31. http://hrguide.applezoom.com/category/performance-management/ 32. http://www.performance-measurement.net/news-detail.asp?nID=12 33. http://www.coursework.info/University/Business_and_Administrative_studies/Human_Res ource_Management/Performance_Management_L884880.html 34. http://www.projectsjugaad.com/project/Motorola-Performance-Management.html

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