Individual Assignment

Key Management Issue of OMRAN Company

MBA/19/5371 K.M. ITHREES

Sub Group No: 04

Course : MBA 501: Managing Organizations

Instructor : Prof. Ajantha Dharmasiri

Postgraduate Institute of Management

University of Sri Jayewardenepura

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 Declaration

Iamfullyawarethat,thestatementofplagiarismstatedinthechapter6ofthePIM
Handbook,andIherebydeclaredandconfirmedthatIhavestrictlyobservedthelaw
relatingtointellectualproperty,copyrightandplagiarisminthisexercise(Student
Handbook,2018:25)

Name : K.M.Ithrees

Student No : MBA/19/5371

Group : G-4

Signature :

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1. Introduction

Organizations regardless of their institutional size and industry affiliation need to

continuously adopt and evaluate performance results in the attainment of goals and objectives
of the organization. The organization under study is an OMRAN (Oman Tourism
Development Company) is Government Company. This report illustrates about key issues
related to Performance management of OMRAN.

2. Issues and Gaps Identification

It was observed that the company is encountering some issues on planning difficulty,
Leadership style to motivate staff is low, Job responsibilities and description is not properly
designed, and allocation of resources is not balanced, and there is no appropriate tool to
measure performance of staff. Because of all these aspects that is happening, the company
has experienced some negative impact on the following:

2.1 There is no plan designed to check staff performance on a timely basis, and this sum up
to non -identification of any activities for the future. There is a gap between current plan
to future activity.

2.2 Directing employees and to motivate them is very low. As discussed in the succeeding
parts, monetary consideration is one of the root causes as this is the main source of staff
survival, their salary.
2.3 It was noted that there is an overlapping of responsibilities among staff, as staff are
performing similar task of the same output. A gap is evidenced here in the form of
resource allocation.
2.4 Employee performance measuring tool is not employed in the organizations since the
very start of the function. Rewarding staff has become an issue in the organization as
there is no basis for the said award. Staff started to compare and react on the differences
they are getting.
2.5 Finally, the organization is not allowing to send foreign employee for the training and
only sent locals. The gap is evidenced here continuous development of foreign employee
is not supported by company. Enthought if any employee wishes to go training he should
pay his own and no recognition.

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3. Discussion
Different authors have defined “Management” in several ways. “To manage is to forecast
and plan, to organize, to co-ordinate and to control, another definition is as a distinct
process consisting of planning, organizing, leading and controlling to determine and
accomplish the objectives through the utilization of people and overall resources of the
organization.

Figure Number 1
Functions of Management
(Adopted from Riaz,M.N. 2016, p.2)
3.1 Planning
Planning in many instances encompasses the many decision making about the goals and
activities to be attained by the organization. It assesses the current situation and tries to
anticipate future activities to enhance organizations operation. The activities involved are
evaluated to decide the best strategies to be adopted. However, the Tourism Development
company under study has a gap of not foreseeing the future competition of Tourism
Development in their field of services offered. A plan that needs to see the company’s
position in the growing market of services provider.
3.1.1 Performance Planning
The benefits of performance planning most often observed are; it ensures individual team
member alignment, role clearness and transparency, probability of performance focus. These
are vital from among others mentioned because all has an implication in the alignment of
organizational goals. However, there are also barriers aligned to these and it is very common

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to any type of industry. These obstacles that are often reduced in the performance planning
positive impact. Hence, according to Barth and De Beer (2018 p.30), in such case where the
organizational strategy and initiative are not clearly interpreted, these results to inadequate
output of performance planning, management commitment is lacking, clarity of context that
often leads to lack of understanding on some key result areas and priority objectives of the
organization support system.
On the other hand, Mulwa and Weru (2017, p.2) states that performance management
comprises the managing of employee hard work according to individual dignified measured
performance outcome. It was viewed also that with merit assessment of how employee
performs, it would further evaluate how much an employee has contributed to the
organization overall performance and productivity. As a result, performance management
system helps organizations/institutions uplift the employee’s commitment, in a way they
know that their performance is examined and will be evaluated and assessed at a specified
period. Pradhan, R.K. (2017), added that performance or task performance embraces job
responsibilities as specified in the job description. Although performance management is not
a perfect tool for appraisal, but a good measuring tool to performance in identifying factors
for a better quality of employees output.
Task Performance

Employee Performance

Contextual Performance Adaptive performance

Figure Number 2
The Triarchy Model of Employee Performance
(Adopted from Pradhan 2017,p.6)

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This Model emphasize the capability of individual to adopt situations in any organization.
Task performance denotes and involves fundamental job responsibilities assigned, adaptive
performance is where an employee can adopt to his job situation and perform accordingly,
and the contextual performance is towards the demonstrated behavior of an individual along
with his job in the organization. These performances can give a clear picture of how an
employee demonstrate his overall capability with regards to his assigned task.
3.2 Organizing

Job responsibilities and Resource allocation are vital in Organizing. It caters assembling and
coordinating of all the resources available in the organization. Proper allocation will hinder
failure in the operation process of the company. It was observed that OMRAN Tourism
Development company that sometimes there is an overlapping of duties performed by staff.
Resource allocation has not been managed carefully. The expertise of each staff is not
utilized carefully, knowledge know how of staff differ from one another, thereby makes staff
sometimes inefficient in the delivery of the tasks. Another thing to mention is that there is no
regular meeting conducted for some updates and follow up on development and the
organization progress.

3.2.1 Job Description

Job description is inclusive of job title that will underpinned the persons responsible and in
some cases for job grading. Similarly, Job scope and content are clearly defined, the degree
of work involved, and nature of responsibility like for people and other resources in the
organization. Authority and responsibility are vital as the person will know his extent of
duties in relation to his job. Hence, the conditions of employment and opportunities are
mentioned with expected results that may come during the appraisal stage. Formal
qualifications of the position are required in order to facilitate fair information to employees
during internal recruitment or promotion.
3.2.2 Team Conflicts/ Characteristics of People
Perhaps the most difficult resource to manage in an organization are its people/employees.
The main issue to consider is people/individual differences, these factors associated to this
issue are very common in the Sultanate of Oman, qualified staffs are from different countries.
The background, culture, gender and race with its abilities and intelligence greatly influence

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individual personality. Therefore, management of people/staff would have been easier if all
staff are of the same race and culture, however it is not always followed as there are
differences in talents and abilities and other grounds of considerations. This issue is taken
true in the company, as the staff are mixed of different gender and nationalities. Although
expertise may be common, but belief and intelligence vary among them.
3.3 Leading

Motivation with regards to monetary and material aspects is minimal in the company under
evaluation. As observed, the company has poor motivational impact to staff simply because
of its business size. The organization merely and greatly depends on fees from Ministry of
Finance/Ministry and investors, and therefore there is no assurance that payment to be made
on time. Also observed that there is no proper scheduling of accounts receivable, in this way
salary of staff are coming late. With these few observations, a leader cannot direct well the
staff to motivation if there is a low impact as to their means of survival.

3.3.1 Compensation and Benefits/Rewards Management

This aspect explains the directing function of management where it inspires employee to
perform at his best whether individually or in groups. This is dependent on how harmonized
the organizations objective is. Motivating and Leadership are great factors under
consideration.
Armstrong, M. (2014), states that Compensation and Benefits/Rewards Management is all
about the creation and execution for the purpose to reward employees according to proposed
organizations policy and values through fair, equitable and consistent reward to the
organization. People are happy when they are well rewarded with what they create for the
good of the organization. It creates a positive impact as to behavior, retain employees, and
loyalty of employees that helps both parties enjoy the achievement of the organization.
Shazadi, I. et al (2014), states that motivation is deliberated as a vital aspect that influence
employees to attain a goal and objective of the organization. Similarly, motivating people
will lead them to work well the way the organization expect them to do. The company has an
average technique in the motivation of its staff. It needs to evaluate further what can be done
to keep staff motivated, promoted and to efficiently attain aim and vision of the company.
Employee performance therefore in this context comprises quality and quantity of output.

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3.4 Controlling
Management function- Monitoring and Controlling is the stage that the organization observes
the progress and evaluate possible changes to be made to guarantee that organization
objectives were achieved like the setting of performance standard, staff performance
evaluation and inclusion of identifying staff problems and decision for corrective actions.
Proper control measures like performance appraisal during a specified period can be applied
in the company in the event management wants to evaluate and upgrade the standard of its
performance, provide corrective measures and actions applicable to correct the current
problem if there is.
3.4.1 Performance Appraisal
Shah,F.T. and Aslam, M.M. ( 2016 ), The many researchers conducted regarding
performance appraisal, many did not work for employees because end results show that
managers cannot bring out honest feedback as they don’t want to create conflict. On the other
hand, biased are often observed in performance appraisal and these can lead to a decline of
overall performances because of consequences and performance feedback.

Manager

Peers Individual Internal

Customers

DirectReports
Fi
Figure Number 3
360 Feedback Model
(Adopted from Armstrong, M. p.522)

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The above figure will help in the assumption of some discrepancies between our judgment
from other peoples’ judgment, enhances self- awareness that lead to be a building block for
management programs in the organization. This 360-feedback model will reduce the biased
formed sometimes in the organization during appraisal and feedback collection. This model
has been defined by Armstrong, M. ( 2014 ) as “the systematic collection and feedback of
performance data on an individual or group derived from a number of stakeholders on their
performance”. The company simply doesn’t have any corrective measure for employee
performance monitoring guide. Each evaluated only on its case handling of which result will
be win or lost basis.

4. Analysis

Issue Recommendation Timeline Output Outcome

Performance Planning Mid-year/annual Short Consistency All team members

performance review to term of purpose are aligned like all
cater performance and guide of the team are on
development works efforts the same page.

Team -Proper staff Medium Reliability Enhanced

Conflict/Characteristics development program term and camaraderie
of People to enhance their teamwork among staff
coordination with one
another in the
organization.

-A regular meeting to
raise issue encountered
and to seek
cooperation of all

Job Description - Specialization should Medium The number Excellent

be identified to handle term of cases a performance as to
cases according to his staff can delivery and

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 expertise for better handle defend of Tourism
performance. according to Development suit
his cases
-Contingency
specialization
representative should
be ready to handle
cases if a staff is on
leave or on vacation.

-staff job description

Compensation and A proposed bracket to Long How much Satisfying the

Benefits/Rewards determine the basic term monetary financial
Management salary and other perks aspect to be expectations of
and incentives that the extended the staff and other
Tourism company can incentives if there
provide, the is.
recognition and
rewards, or as
prescribed under the
labor Tourism
Development for both
Expats and Omanis.

Performance Appraisal -Adopt a 360-degree Short Range of To have a clear

feedback to avoid term corrective constructive
biased evaluation on measures feedback to
staff performance and applicable enhance the
feedback. performance of

- A defined period to staff

conduct performance
evaluation

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 -provide corrective
actions if there has
been a problem found

Table Number 1

5. Conclusions
Overall, these mentioned items can help in the enhancement of the company employee
performance. The current performance is on an average scheme; hence, the adoption of
these recommended items can put them more on top and thus having an edge in the
market competition. In general, management will encompass managing of all resources
under stake, men, machine, method, money, material and market. From among the
resources, MEN are the resources that is most difficult to manage and handle, and
therefore a defined guide must be implemented to cater them to give their best what is
expected in the attainment of any companies’ objectives.
6. Recommendations
As seen on the simple observation of the OMRAN under study Tourism Development, it
is evident on the different issues that the Tourism Development company needs to change
and modify the way it manages its employee performance. Current trend of competition
for services in the market has increased, thereby a need for enhancement in the system. It
is recommended that the company should provide the following:
a. Performance evaluation on specified period
b. Staff Development program
c. Staff Job Description
d. Defined salary bracket
e. Application of the “360 degree feedback”
7. References
Mulwa, M.N. and Weru, J.M. ( 2017). The Influence of Performance Management System on
Employee Performance in Commercial banks in Kitui Town, Kitui County, Kenya.
International Journal of Humanities and Social Science, Volume 7, Issue 6, pp 1-12.
Available @:http://www.ijhssnet.com/journals/Vol_7_No_6_June_2017/6.pdf( Accessed 16
April 2019 )

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Pradhan, R.K., and Lalatendu, K.J. ( 2017). Employee Performance at Workplace:
Conceptual Model And Empirical Validation. SAGE Business Perspective and Research,
Volume 5, Issue 1, pp 1-17. Available
@:https://www.researchgate.net/publication/311650540_Employee_Performance_at_Workpl
ace_Conceptual_Model_and_Empirical_Validation ( Accessed 23 April 2019 )
Riaz, M.N. ( 2016). Define Management and Explain Functions of Management Suitable
Examples FromYour Area of Work. pp1-6. Available
@:https://www.researchgate.net/publication/307931813_Define_management_and_explain_t
he_functions_of_management_with_suitable_examples_from_your_area_of_work (
Accessed 20 April 2019 )
Shah, F.T. and Aslam, M.M. ( 2016). Impact of Employees Performance Management
System; To Achieve the Objectives of the Organization. 2nd CBRC conference paper, pp 1-7,
Available
@:file:///C:/Users/User/Downloads/IMPACTOFEMPLOYEESPERFORMANCEMANAGE
MENTSYSTEM.pdf ( Accessed 23 April 2019 )
Shazadi, I, Javed, A., Pirzada, S.S., Nazreen, S. and Khanam, F. ( 2014 ). Impact of
Employee Motivation on Employee Performance. European Journal of Business and
Management, Volume 6, Number 23, pp 1-9. Avaiable
@:https://pdfs.semanticscholar.org/4cbe/a9607d00a242b54a4bc9270b74352038e40f.pdf
(Accessed 18 April 2019)
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Edition, Philadelphia, PA,USA. Kogan Page Limited. pp239-240, 521-522.
Barth,A.L. and De Beer, W. ( 2018). Performance Management Success: A Best Practices
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