Performance management system


Performance Management Case Study 1 You have recently been appointed Manager of a team of 10 employees. Your initial impression is that you have an employee Paul, who shows potential and ambition to progress within the department but has no previous supervisory experience which is an essential skill if he is to progress within the department team. It has also come to your attention that Joe is lacking positive interpersonal skills but has extensive business knowledge and has a Six Sigma Green Belt. Your division manager feels that your department is not aligned with the company objectives. She introduced the current performance appraisal process and is reluctant to change it. The Human Resource Manager has mentioned that the behaviours and competencies displayed by the team are not consistent with the company culture. You have decided to introduce a performance management system and have the support of the human resources team to do this. The Human Resource Business Partner and you must now make a case to your division manager advocating the introducing of performance management to your organisation and department. a) Outline to your division manager what the new performance management system would entail and how it differs from a performance appraisal. (40 marks) b) Using a process flow chart identify and explain briefly the key stages of your proposed performance management system and explain to your division manager the benefits of this for the organisation. (30 marks) c) Explain the key benefits of your proposed performance management system for Paul, Joe and the other organisations managers. (30 marks) Complete either ‘Case Study 1 Performance Management’ OR ‘Case Study 2 Resourcing’.

Performance management system focuses on individual asset income, contribution to the organization. The performance management system aligns the single asset income with rigid strategies to boost work output per organization. As a result, it should evaluate an individual’s potential and ability by enhancing team’s and individuals’ performance to ensure organizational goals and objectives. The performance management system should ensure continuity and inclusivity to allow the smooth flow of the processes involved. With this, the system will serve for a relatively long and form a cohesive leadership, executive and upper-level management framework. The division manager and the Human resource team must also ensure that all the various departments’ managers can deliver result-oriented performance management daily. The system should adapt customer-centric performance management programs and software’s to maximize users’ functionality and visibility of their activities.

The main difference between performance management and performance appraisal is that performance appraisal regularly evaluates an employee’s results. In contrast, performance management calculates the value and input of every single asset of an organization. Performance appraisal happens once a year. On the other hand, performance management is a continuous process that does not occur occasionally. An organization built on the performance appraisal system shows an employee’s ability to climb up the rank; it also shows the employee’s potential for future growth.  On the other hand, performance management measures progress based on the performance of an individual asset of an organization. Organizations that run and operate under the performance management system can modify, alter, and change certain aspects of the system to meet the organization’s goals and ambitions.

Conversely, performance appraisal is anchored on rigid, inflexible subsystems that cannot be altered. In terms of purpose and goal, the performance appraisal system focuses on quantitative aspects. All the findings, results are presented in quantitative form while the performance management system utilizes qualitative elements to measure and evaluate individual assets’ input.

The performance management system cycle has four main phases: planning, coaching, reviewing, and rewarding. The first phase involves the compilation and documentation of the goals and objectives. During this stage, the employees and managers agree on the goals and objectives to accomplish, to what standard, and outline the key performance indicators. The coaching stage involves organizing meetings, seminars on a timely, regular basis to guide and train managers and employees on the necessary skills needed to achieve organizational goals. Coaching provides an opportunity for employees and managers to offer and receive honest feedback. The reviewing phase includes evaluating and analyzing a team’s performance, performance management system, and the existing goals’ status. Finally, the management gives actionable feedback. The performance management cycle’s final phase involves reward and recognition and comprehensive analysis of next year’s performance management cycle.

A performance management system solves conflicts between peers and subordinates, thus improving work output per production. Therefore plays a significant role in retaining the workforce in the organization (MEA, 2015).

Regarding Joe, the system will establish platforms to help him understand the value of his input and contribution to achieving organizational objectives. The system will also provide tools to sharpen his communication and interpersonal skills to establish good working relations with his colleagues and client. As for Paul, the performance management system will identify the skills needed and train and develop the necessary skills required to perform the job.

Reference List

MEA, 2015. What Are the Benefits of a Performance Management System?. [Online]
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