Introduction:

Performance Management System is defined as the strategic process with the help of which

an organization measures the performance of their employees to reward their contribution

towards the growth and success of the organisation (Amritesh, 2018). It is important for the

organisation to constantly develop the skills and managerial capabilities of the employees to

improve the efficiency of their employees (Amritesh, 2018). Earlier performance

management was just considered as a process to manage and review the performance of the

employees at the end of the year based on the goals provided to them by the manager but now

there is the evolution of performance management system and now the managers are required

to continuously check and review the performance of their and monitor their performance to

find out if there is need of any training or development to improve the efficiency of

employees (Amritesh, 2018). In this case, we will study what is performance management

system is and how we will implement the performance management system into a fast-food

restaurant, what performance competencies we will consider and how we will measure and

how often we will review the performance and also how we will ensure that the performance

management system will be painless and will motivate the employees with help of various

performance management techniques and tools available.

What is a Performance Management system:

Performance Management System is a system that provides a structured approach for the

managers to:

 establish a business strategy which is to be communicated to the employees,

 setting expectations and standards for the employees which means what they are

required to do,

 continuous reviewing and monitoring their performance,

 compare the performance with the set standard and to find out deviations if any and

then give healthy feedback to the employees regarding their performance (Tsheten,

2012).

Importance of Performance Management System:

The performance management system plays a vital role in any organization because of

the following reasons (White, 2021):

 It helps to find out the training and development needs and strategies.

 It helps to provide a clear picture to the employees regarding their roles and

expectations (White, 2021).

 It is a futuristic approach because it involves consistent monitoring and

management of employee performance.

 It helps to increase employee retention by continuously rewarding and

recognizing the employees in the organization through the monitoring of

performance (White, 2021).

Performance Management process:

The steps involved in the performance management process are:

 Setting goals and expectations: The first step in the performance

management step is to set the goals and expectations of the employees and

communicating the goals to them and mutually setting goals for the

employees will help to achieve better results as the employee will feel

motivated and work more efficiently towards the goals (Lalwani, 2020).

 Monitoring and reviewing the performance: The next step is to

continuously monitor the performance of the employees using various

performance management software and reviewing the performance using

 various methods such as 360-degree appraisal system, checklist method,

assessment centre etc. which can help to provide ratings and to find out

whether there is any need for training and development for improved

performance (Lalwani, 2020).

 Providing feedback and rewarding the employees: Once the

performance is reviewed and rating is done based on that the managers and

the employee will sit together and the manager will provide the feedback

to the employee based on their performance. The managers are also

required to reward the employees based on their performance which will

increase employee motivation and will ensure that the performance

management system was painless for the employees (Lalwani, 2020).

Implementing Performance Management System in a Fast Food Restaurant:

Some various methods or techniques that can be used to implement the performance

management system in an organization like ranking scales method, checklist method, 360-

degree performance appraisal method, management by objectives, assessment centre etc. In a

fast-food restaurant, I will implement the 360-degree performance appraisal management

technique which is considered to be the most effective technique of performance appraisal.

In this method, the performance of the employees is appraised based on the feedback taken

from every employee and every person who has an interaction with that employee and it

involves the feedback from multiple people at the time of developing the comprehensive

review of employee performance (Upadhyay, 2020). The employee-manager, employee

subordinates, employee’s team members, customers and suppliers are all part of the

performance appraisal of an employee under this method (Upadhyay, 2020).

To implement a 360-degree performance appraisal fast food restaurant, a questionnaire is

framed in which the various competencies related to the employee will be included and the

participants are required to rate the performance of the employees based on their observations

regarding that employee (Talapatra, 2012). The questionnaire will include the details related

to the various skills and capabilities of an employee such as the:

 communication skills,

 meeting expectations and deadlines,

 team working skills,

 leadership skills,

 energy and determination skills,

 decision making and problem-solving skills.

The rating is being done based on the rating scales used i.e. poor, satisfactory, good and

excellent. The questionnaire is also filled by the appraisee itself in which the appraisee

will be asked questions related such as:

 Has the past year be considered poor/ satisfactory/ average/ good to you?

 What element of your job provides you with most of the interest?

 What are the most difficult elements you find in your job?

 What are your likings and disliking regarding the restaurant?

 How will you improve your current performance or what actions will you take to

improve your performance?

The appraiser will fill in the details regarding the skills and competencies of the appraisee

in the questionnaire and provide ratings as per the rating scales and will also review the

appraisee’s discussion points as mentioned above and will then provide his/her feedback
and based on their feedback it will be determined that whether there is any training or

development required (Talapatra, 2012). I will conduct the performance appraisal after

every 3 to 6 months because it will keep the employees motivated towards the job as their

performance is being monitored continuously they will be more focused on their work

and continuous performance appraisal will also help to find out if there is any need to

conduct training and development sessions for the employees if there is any decline in the

current performance of employee (Worrad, 2019).

360 Degree Appraisal Feedback Form

This form will assist the management in preparing the performance evaluation of the

individual listed below and as you work with this individual daily and your feedback

regarding his/ her performance will help review the overall performance of the employee.

Employee Name:

Relation to employee:

Your name (optional):

Key skill/ Unsatisfactory Satisfactory Good Excellent

capability area

Work to full

potential

Work

consistency

Communication

Quality of work
 Teamwork

Leadership

Punctuality

Attendance

Creativity

Documentation of employee performance:

The documentation of employee performance serves as proof that the issues related to the

performance whether positive or negative are discussed with the employee timely and it

includes all the details of the actions of the employee, manager during the time of providing

feedback (M.Heathfield, 2019). The managers are required to document the overall

performance of the employee both positive and negative performance and also what the

manager did and said at the time of meeting or conversation as well as the employee. I will

do the documentation immediately after the conversation or meeting because procrastinating

documentation will affect the quality of the documentation as it is based on what you

remember and it is better to write immediately after the meeting (M.Heathfield, 2019).

How Performance Management system will link to company goals and employee

motivation:

Performance management is highly linked with the motivation of the employees because

performance management aims to provide feedback to the employees based on their

performance and the feedback can be positive or negative (Lang, 2018). If an employee’s

performance is more than the desired standards that means the employee performed well and

in such cases, I will provide rewards to the employees in form of any incentive or a bonus or

provide recognition to the employee because it will increase the morale of the employee
(Lang, 2018). If the performance of the employee is less than the desired standards, it shows

that the employee’s performance has declined and in such case, I will not insult the employee

in front of everyone rather I will discuss the issues of reduced performance with the

employee by conducting a meeting or will have a conversation with him personally. I will

discuss the causes of the failures with him/her and rather than punishing or insulting I will try

to provide him with ways or solutions through which the employee can improve their

performance and in this way the employee will not feel demotivate or insulted and the

performance management will not turn out to be painful to him/her (Lang, 2018). Thus

performance management should be conducted in such a way that it forces or motivates the

employee to set goals by themselves and works towards them to reach their goals and

improve their performance (Lang, 2018).

Conclusion:

This report tells us the meaning of a performance management system in an organization and

how to implement a performance management system in a restaurant and how its

implementation turns out to be successful for the organization. Performance management

aims to provide feedback to the employees based on their performance in the organization but

this feedback can be positive or negative and thus choosing the right method for performance

appraisal will help to find out the deviations in performance if any. The manager should

ensure that he/she should provide feedback to the employees timely and feedback should be

provided in a way that should turn out to be painless for the employees and should always

boost their morale.

References:
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system-12238903.

White, D. (2021). Importance of Performance Management in an Organization |

Techfunnel. Techfunnel. Retrieved 8 September 2021, from

https://www.techfunnel.com/hr-tech/importance-of-performance-management-in-an-

organization/.

Lalwani, P., 2020. [online] Toolbox.com. Available at:

<https://www.toolbox.com/hr/performance-management/articles/what-is-performance-

management/> [Accessed 8 September 2021].

Upadhyay, I. (2020). 12 Modern Methods Of Performance Appraisal For Every HR

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https://www.jigsawacademy.com/blogs/hr-analytics/performance-appraisal-methods/.

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from https://www.slideshare.net/abhijeettalapatra/360-degree-final-ppt.

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Lawpath. Retrieved 8 September 2021, from https://lawpath.com.au/blog/how-often-

should-employees-have-performance-reviews.
M.Heathfield, S. (2019). Know How, Why, and When to Document Employee

Performance. The Balance Careers. Retrieved 8 September 2021, from

https://www.thebalancecareers.com/how-to-document-employee-performance-1917911.

Lang, D. (2018). How Does Performance Management Impact Employee Motivation?.

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performance-management-impact-employee-motivation.