Performance Management

TABLE OF CONTENTS

ACKNOWLEDGEMENT                                                                        2

EXECUTIVE SUMMARY                                                                        3

1. Literature Review                                                                        4

1. Analysis of the Companies                                                                7

1. Comparison of the Companies                                                        9

1. Remuneration Reviews of the Companies                                                11

1. Recommendations                                                                        14

1. Conclusion                                                                                16

APPENDIX1- CASE STUDY QUESTION                                                        17

LIST OF REFERENCES                                                                        19

ACKNOWLEDGEMENT

I take this opportunity to express my gratitude to all those who have supported me directly and indirectly towards the completion of this project.

I am thankful to the well experienced and professional lecturer panel and non-academic staff of IPM in providing me a suitable environment and useful guidance for the completion of this project. Especially I would extend my gratitude to Mr. Priyantha Ranasinghe for his continuous support and academic guidance throughout the course duration.

 Last but not the least I would like to thank my friends and family for their continuous support which assisted me to complete the project successfully.

EXECUTIVE SUMMARY

This report provides an analysis and evaluation of Pod’s analysis on three different companies X, Y and Z relating to Performance Management System. All these companies do not consist of a systematic and comprehensive Performance Management System. Failures to link a good reward system for the appraisals have been another weak point of the companies.

Company X has failed to put in proper job descriptions that made the employee’s job harder as well as it had no Performance Management System and lacked in direction for the employees. Company Y consisted of an overly complicated Performance Management System that it made it harder to understand and lacked transparency. Company Z had failed to address poor performance due to weaknesses in its Performance Management System.

The continuous failures to harvest the expected performance levels of the companies were worrisome for the top management. Weaknesses in the managers and Human Resources department and lack of periodic appraisals in a systematic manner were the main causes for the problems in the three companies.

Recommendations discussed include:

• Setting up a proper Human Resource department
• Organizing Training and Development sessions on ‘Performance Management’
• Introducing simple and transparent Performance Management System
• Identifying Key Performance Indicators and critical success factors according to each job role
• Introducing a good reward system to be linked to the Performance Management System
• Introducing Management by Objectives, Balance Score Card and 360 Degree Feedback for performance appraisal

1. Literature Review

Performance Management: Definition

Performance Management is a continuous process of identifying, measuring and developing performance in organizations by linking each individual’s performance and objectives to the organisation’s overall mission and goals.

It is considered as a continuous ongoing process of goal setting, coaching and feedback tracking. This systematic assessment of the performance is an objective examination. This process is used to receive employee feedback and encourage them further more.

Responsibilities of human Resource Management in Performance Management System

• Help manager to develop the Performance Management process
• Provide the required Performance Management skills for the line managers
• Help to align organizational and individual and team objectives
• Develop the skills needed for the business
• Initiate, conduct, close the process of Performance Management  and remove the barriers

Levels of Performance in an Organization

Performance is considered as the results from the inter-relationships between abilities, effort and task perception. Different levels of performance are:

• Individual Performance
• Team Performance
• Departmental  Performance
• Organizational Performance

Key players in Performance Management

The organization is one of the main players. The performance management System must be aligned with organizational goals.

The individual employees are the next key players whose motivation in fulfilling the organizational goals is very much important therefore satisfying their objectives must be prioritized.

Performance management system bridges the task of accomplishing the organizational objectives (profits, market shares, shareholders expectations) and individual employee objectives (salary increases, promotions, job security and better benefits).[pic 1]