Semester Spring 2014

Performance Management HRM713

Assignment No. 1
(Total marks 20)

Enlist the 5 commonly discussed criticisms on performance management in literature (Chapter 3:
Critiques of Performance Management of ARMSTRONGS HANDBOOK OF
PERFORMANCE).
5marks

Performance management system (PMS) of an organization is discussed bellow:
Beauty Box is a manufacturing company deals in cosmetic products. Company highly depends on its
sales representatives for the promotion and sales of products. No specific guidelines are developed to
direct sales representatives. Sales person is appreciated if he/she is able to sell maximum products
relative to other salespersons. Others, who remain unable to achieve any reward on sales, argue that
their efforts have always been overlooked. Companys manager appraises the salespersons at the end
of each quarter, based on which a fixed amount of monetary reward is awarded. Only minimum target
is defined which is mandatory to achieve for every salesperson. Majority of the employees complain
that the set target is unjustified, top management neither has any idea of local markets nor consider
their feedback while setting such illogical performance targets. According to them high sales cannot be
achieved in situation where inflation is prominent. Dissatisfaction also prevails among the top
performers especially with respect to type of reward they receive. Along with all these grievances, PMS
is still practiced in the organization.
Link these grievances with the criticism made in literature with respect to PMS.
15marks (5marks for each criticism-grievance link)

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