Msc.

Business Psychology

Page 1
 Table of Contents

1.0 Introduction..........................................................................................................................3

2.0 Client Need Assessment.......................................................................................................3

3.0 Proposal One........................................................................................................................4

References..................................................................................................................................7

Page 2
1.0 Introduction

Performance management is considered as an important aspect of human resource

management of the contemporary organisations. Over the years, different scholars and
experts have offered several definitions of the performance management (Zulystiawati,
2014). According to Aguinis (2005) performance management is defined as “a continuous
process of identifying, measuring and developing performance in organisations by linking
each individual’s performance and objectives to the organisation’s overall mission and goals.”
Based on this definition of performance management, it can be comprehended that the
performance management in an on-going that involves series of processes including setting
measurable goals, observing performance as well as giving and receiving feedback and
coaching on continuous basis. At the same time, it is understand offers managers in the
organisations with suitable means to ensure that performance of the employees in the
organisation are congruent with the missions and visions of the organisation (Noe, et al,
2003). Against this backdrop, this report critically evaluates the different approaches of
performance management and proposes two alternative options in the caste study.

2.0 Client Need Assessment

“Get it right” an IT software consultancy employing 40 people is ascertained to be interested

in introducing a more structured model of performance management with the objective of
developing leadership with the firm. Accordingly, the consultancy firm is interested in two
alternative approaches to performance management so that they are able to make the most
appropriate choice for the performance management approaches that is capable to provide it
with clear sense of direction to all individuals associated with the organisation. Moreover, the
organisation further aims to ensure that the new performance management approach is
capable of sharpening the skills of all individuals in the organisation so that they are able to
provide useful advice and sell its new software. Moreover, the organisations wants that the
new performance management system is evidence based and grounded on sound research.

“Get it right” being a family owned business, the CEO of the organisation, Rachel Austen
does not want the performance management system that feels like a control mechanism. At
the same time, she also does not want the system which is pay-related. Correspondingly, she
want the performance system that focuses more on gaining support and encourages
discussion and sharing of ideas as well as she wants to make sure that the new system clearly

Page 3
demonstrates the needs of the business to the people in the organisation and also provides
quality feedback about the performance of the organisation and those of the performance of
the people working towards the accomplishment of the organisation goals and objectives. In
addition, the organisation in past have small size but is now growing steadily and it is also
anticipated that there would be greater need for managers to take senior management roles. It
is for this reason that Rachel wants to make sure that the new performance management
system prepares the individuals and managers in the organisation to take leadership role in
achieving business objectives.

Based on the above need assessment of the organisation, two proposals for performance
management system are prepared so that it best meets the client’s needs and expectations.
Accordingly, the new proposals are developed with the view of growing business size of the
organisation and its increasing needs for leadership to guide and direct the operations of the
organisations that would help the people in the organisation to take the business to new
heights. The subsequent section presents the two alternative proposals for performance
management system that the organisation can implement to support its business objectives in
the next year.

3.0 Proposal One

Performance management can be argued to be much more than assigning ratings.

Correspondingly, the proposal for the performance management system is based on five stage
performance management cycle that include components such as planning, monitoring,
developing, rating and rewarding (United States Office of Personnel Management, 2017).

Planning

Planning involves establishing performance expectations as well as goals for individuals and
teams to direct their efforts towards accomplishing the objectives of the organisation (Alam
& Banerjea, 2013). Correspondingly, three important goals are identified for this
performance management system proposed for “Get it right”. First, develop and enhance
leadership skills and quality of individuals and team members. Second, enhance the general
skills of individuals and team members that they need to advice their customers and sell their
software. Third, create and maintain inclusive environment within the organisation that
values diversity and provides everyone in the organisation with opportunity to demonstrate
their highest potential.

Page 4
In order to measure the extent to which the individuals and team archive the aforesaid
objectives certain standards are identified. In this regard, the performance of individuals and
team will be measured based four fundamental standards. First, the individuals and team
demonstrate a sense of responsibility for rendering their services to different clients. Second,
the individuals and team plan effectively, anticipating issues and exerting efforts to address
the issue and developing innovative solution to resolve issues. Third, the employee
demonstrates high degree of commitment for their co-workers and team member’s success by
sharing information as well as providing assistance whenever required. Fourth, individuals
and team members demonstrate ability to determine problems, present alternative as well as
creative solution and assess both negative and positive consequences.

Monitoring

Monitoring involves consistently measuring the performance as well as providing feedback to

individuals and team regarding their progress towards achieving their goals (Javidmehr &
Ebrahimpour, 2015). The line manager will engage in continuous observation of the
performance of the individuals and team members in the organisation. In this regard the line
managers will be motivated to build trusting relationship with the individuals and team
members and will also be responsible for creating opportunities for feedback sessions
throughout the year. In addition, line managers will meet individuals and team members in
the organisation least quarterly to independently assess the progress of the each individuals
and team members. On the other hand, individuals and team members will continuously seek
feedback from the line manager. They will also participate in one-to-one performance review
with the line managers. In addition, they will also be required to establish performance and
career goals in order to discuss with line managers. The line managers will further conduct
360 degree assessment to provide feedback to individuals and team members in the
organisation regarding their progress and achievement (Basu, 2015; Daoanis, 2012).

Developing

Developing in this context implies enhancing skills of individuals and managers to increase
their capacity to perform by introducing training and development programs that helps them
to acquire new skills and motivate them to take higher responsibilities (Pulakos, 2004).
Correspondingly, one of the main objectives that Get it right intends to achieve through new
performance management system is to develop leadership among the individuals in the

Page 5
organising to take up senior management roles. Thus, this proposed performance
management system will incorporate Leadership Development Program (LDP) that will be
based on five fundamental factors including influence, communication, self-awareness,
critical thinking and problem solving, and resiliency (Packard & Jones, 20130. In addition to
proposed LDP, the proposed system will also include diversity and inclusion programs for
individuals and team in the organisation to promote collaboration among the team members
from diver cultural background, different nationality and gender (Dobbin & Kalev, 2007).

Rating

It is useful for ‘Get it right’ to summarise the performance of individuals and team as it helps
the organisation to compare their performance over a time. In this regard, rating technique to
evaluate the actual performance of individuals and team against the standard will used to
draw a summary rating of record (Toppo & Prusty, 2012). Correspondingly, five-level
performance scale is considered to for its use in ‘Get it right’ as this scale is the most
commonly used by the contemporary organisations (Lunenburg, 2012). Furthermore, numeric
rating scale will be used such as 5=Significantly Exceeded Expectations, 4=Exceeded
Expectations, 3= Successfully Met Expectations, 2=Met Most Expectations / Developing in
Role and 1=Did Not Meet Expectations.

Rewarding

Rewarding in the context of performance management is related with recognising the

employees individually or as a member of team for their performance (Gudla & Veni, 2012).
Accordingly, the ratings obtained for each individual will serve as fundamental criteria for
identifying the best performers. At the same time, in order to eliminate any sort of biases in
the performance measurement and to ensure that fair approach to recognition of performance
is carried, 360 degree multi-rater reviews will be used that include acquiring input about the
performance of individuals and team members from different parties (Javidmehr &
Ebrahimpour, 2015). The individuals and team members who significantly exceed the
expectations will be offered with financial rewards such as bonus, promotions and fringe
benefits in order to motivate them to continue performing exceptionally.

Proposal Two

Page 6
Conclusion and Recommendations

Page 7
References

Aguinis, H. (2005). Performance Management. Edinburgh Business School.

Alam, P. A. & Banerjea, S. (2013). Performance Management System: A Conceptual

Framework. Business Studies, 1-10.

Basu, T. (2015). Integrating 360 degree feedback in to performance appraisal tool and
developmental process. Journal of Business and Management, 50-61.

Daoanis, L. E. (2012). Performance Appraisal System: It’s Implication To Employee

Performance. International Journal of Economics and Management Sciences, 2(3), 55-62.

Dobbin, F. & Kalev, A. (2007). The Architecture of Inclusion: Evidence from Corporate
Diversity Programs. Harvard Journal of Law & Gender 30(2), 279-301.

Gudla, S. & Veni, V. S. K. (2012). The Study of Performance Management System In IT

Organizations. Journal of Business and Management, 6(3), 37-52.

Javidmehr, M. & Ebrahimpour, M. (2015). Performance appraisal bias and errors: The
influences and consequences. International Journal of Organizational Leadership, 4, 286-
302.

Lunenburg, F. C. (2012). Performance Appraisal: Methods and Rating Errors. International

Journal Of Scholarly Academic Intellectual Diversity, 14(1), 1-9.

Nankervis, A. et al. (2005). Human resource management: strategies and processes (5th ed.).
Nelson Australia Pty Limited.

Packard, T. & Jones, L. (2013). An outcomes evaluation of a leadership development

initiative. Journal of Management Development, 34(2), 153-168.

Pulakos, E. D. (2004). Performance Management: A roadmap for developing, implementing

and evaluating performance management systems. SHRM Foundation.

Toppo, L. & Prusty, T. (2012). From Performance Appraisal to Performance Management.

Journal of Business and Management, 3(5), 1-6.

Page 8
United States Office of Personnel Management. (2017). A Handbook for Measuring
Employee Performance. U.S. Office of Personnel Management.

Zulystiawati. (2014). Performance Management System: The Practices in the Public

Organization in the Developing Countries. Information and Knowledge Management, 3(4),
126-135.

Page 9