Report on Performance Management

This report provides an overview of performance management practices at Australian Hardware, including target setting, key performance indicators, and expected performance standards.

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Report on Performance Management

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Assessment Task 1
Australian Hardware was founded in the year 1921 by Percy Greenwright and in the year 1982,
the company became a public company listed on the Australian Stock Exchange
(Australian Hardware, 2019a). With more than 138 stores throughout Australia, Australian
Hardware Company provides variety of products in their product categories and their resources
are located in major cities and large regional centers in Australia (Australian Hardware, 2019b).
The mission of Australian hardware is to provide best quality hardware products, Garden
supplies and building materials to Australia and all over the world. The success of the company
is dependent on its people. With the motive of growth and improvement, Australian Hardware
provides opportunities for payment and growth. Employees are an important asset for the
company. They receive individual performance plan at the end of the year and their performance
is reviewed with each subsequent year of employment. Australian Hardware aims at providing
safe working environment free from harassment and discrimination. The company ensures equal
opportunity for the existing as well as the future employees (Lukas City Institute, 2019). The
company has been efficient in terms of hiring the skilled people and retaining them by providing
training and development opportunities for the existing and upcoming staff.
The company puts its effort in making the employees efficient in order to accomplish the
predetermined organizational objectives. Every company has different policies and procedures to
assess the performance of their employees, but universally the performance of employees and
measure by their productivity and behavior. Employees are coping with their individual targets
within the organization, failure to which will require training and development to enhance their
skills so that they can achieve their targets in the given time. Generally, poor performance is due
to lack of skills, knowledge and expertise in their respective areas, and low levels of
productivity. A proper training and counselling session will help employees to achieve the target
but if not, the company will be bound to terminate them. In the following case Australian
Hardware, Wollongong store, the performance of hardware and home products of the store
requires to be managed. The duty of the Hardware and Home Product Manager is to allocate the
work according to the skills and knowledge of employees so that they can provide with the
desired results. The performance of employees is dependent on their productivity level and
adhering to the policies framed by the company. It is often seen that, providing feedback helps in

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improving the future performance of employees. This is because, feedback analyses the mistakes
of employees, improve them inspire to do better in future. It is always not necessary for
employees to achieve performance excellence but employees are required to perform effectively
without any misconduct.
As opined by Cohen (2017), managers ensure that each and every employee has been provided
with developed work plan. A work plan south lists out the job role, goals and expectations
performance of an employee. The employees are required to follow this work plan and take the
support and agreement of the management as and when required. Work plans ensure that
employees perform as expected and this will be discussed with them and necessary feedback will
be given. According to the scenario, the Hardware and Home Products Manager is required to
assess the performance of its Sales Consultants as well as the admin staff as they generate
business for the company. The creation of a work plan or employee development plan should
provide employees with a clear direction and better opportunities to enhance their skills in order
to reach new heights in their career. This will not only benefit the employees but also improve
the overall productivity of the organization. In order to develop plan, managers should consider
the business goals and accordingly align the development goals with the business goals. It is not
necessary that employees will always be motivated and perform according to the set standards,
but having a conversation with them informally will give a better understanding of their career
goals and the challenges they are facing while working. As suggested by Smith, Patmos and Pitts
(2018), this will help both managers and employees to identify the ways to address their issues
and improve the performance. Performance assessment refers to identifying the difference
between the current position of the employee and where it wants to reach. Training and
development is one such effective ways of enhancing employee skills and improving their
performance. Lastly, creating a plan with specific goals will help the manager to get impossible
return on investment. The current work plan for Australian Hardware will comprise of the
following-
1. Legislative framework, regulatory requirements, governing organizational policies and
Procedures, applicable awards and agreements.
Australian Hardware follows proper legislations for the betterment of the employees. The
employees will be provided with equal employment opportunities without any discrimination

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and harassment. There will be policies of anti-discrimination and health and safety of employees.
In order to improve the overall performance of the company, the legislative framework will
include training to the poor performing and new employees. Terminating the employees shall be
considered only at times of serious misconduct. Employees will be awarded with both monetary
and non-monetary benefits depending upon their performance on a regular basis. In the given
scenario, the Sales Consultants will receive equal employment and wages. A certified agreement
will be made between the employees and the employer after negotiating the wages and other
employment related benefits.
b. What is the target for next 12 months?
The target for next 12 months for each Sales Consultant will be to generate $1.25 million for the
financial year. Along with that, the consultants are expected to maintain a transparent working
and ensure better customer engagement aligned with Australian Hardware requirements. For the
next 12 months, the staff will generate leads, contact them, demonstrate and explain the products,
close the sales and maintain a follow up process. The weekly and monthly sales report will be
given by them on the basis of their performance. It will be ensured that the employees undertake
at least two professional development for a year. Tony, Mary, Rod and Jeff will be responsible
for personal selling and Lin, Kate and Su will be responsible for servicing walk-in customers at
the store to generate business.
c. What are the key performance indicators?
The key performance indicators of the Sales Consultants are expected to be their sales revenue
(price per unit sold*number of units sold). The prospecting activities will include meetings with
potential clients, client calls/emails, product demos, and closing the sales will determine the
performance of the Sales Consultants. The number of leads each sales consultant generates and
the conversion rate, closing rate and the amount of target reached will be their performance
indicators. The customer retention rate and the sales growth of each quarter will be analyzed to
check the performance of the sales consultants and check for any further scope of improvement.
In the next 12 months, the performance will be measured basing upon the key performance
indicators and relevant strategies will be framed in case of non-performance of the Sales
Consultants.

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d. What are the expected performance standards?
The expected performance standards which provides the staff members of Australian Hardware
Company to perform specifically will be determined from observable behaviors and actions of
the staff members. The performance standards will be based on the job position of the staff and
specific indicators like communication skill, team building skill and desired performance. The
expected performance standards will include ethical standards, performance standards and
appearance standards. The performance of the staff will be measured on the basis of the quantity,
quality, cost effectiveness and timeliness. According to the standards, the staff members will be
communicated about their responsibilities and the activities they will be engaged. It is also
necessary to communicate the employees about the performance measurement criteria by the
company.
e. Job responsibilities based on skill sets
A skill set is the category of abilities, knowledge and experience of a person required to perform
a job. Each person has a different skill set which requires to be enhanced according to the job
they are doing and the role they are performing. Skill sets are important because they help in
career advancement of an employee. A Sales Consultant is required to be meet with customers to
drive sales of the company by generating leads and converting them into sales. He/she is required
to adhere the rules and policies of the company. Looking at the skills, a Sales Consultant is
required to be time-oriented, possess good communication skills, strategy, sales reports and
giving presentations. They must always look for better opportunities for customer engagement.
f. Unlawful dismissal rules and due process
The employees of any company is expected to behave and perform ethically and not violate any
laws framed by the company. But there can be situations when employees may be terminated
wrongfully by any one or more than one breaches in the contract of employment. Though
employees can be terminated on the basis of their non-performance. The company will ensure
that the no such breaches are occurred from the company’s side. In the employment contract, the
clause of breach on termination will be added for the job security of employees. The due process
will be carried on to identify if there are any further breaches conducted. This review will ensure

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that the employees of Australian Hardware Company are not involved in any discrimination and
other unlawful activities within the organization
g. Timelines to achieve goals
The goals determined are on the basis of achieving them in a period of 12 months. The financial
health of the company will be reviewed on a monthly basis. The training and development
process of employees will be conducted as per the qualification of the candidates and at times of
decrease in productivity among the employees. The human resource management will employ
human resource for the company only when required. Situations like vacancies, urgent
requirement, and need of skilled employees will require the human resource manager to hire
skilled people. Apart from that, the employees will be motivated towards achievement of
organizational goal by making them actively participate in skill building activities at every 3
months.
h. How and when will individual performances be reviewed and monitored?
The individual performances will be reviewed and monitored to determine the productivity of the
employees. Monitoring the activities of an employee should be a continuous process. Proper
monitoring will help employees to work according to the organization goal and find solutions to
the problem. The sales Consultants performance will be measured on the basis of their
conversion rates, revenue generated and customer engagement. A feedback will be provided after
monitoring the performance to make employees have an idea about their own performance. The
company will also provide specific feedback basing upon the gaps in their skill and knowledge.
However, feedback can be good and bad as well. Awards and recognitions will be provided in
terms of thank you emails and verbal congratulations to the deserving employees. A job
performance check shall be useful. The performances will be measured after every 3 months but
specific performances can be reviewed as and required. This will help the companies to
distinguish between the poor performing and good performing employees.
i. How will management support the team members to achieve their goals?
The management of a company has the ability to improve the performance of an employee as
they are going to generate business for the company. Discussing on the skill building activities,
the management will be responsible to conduct activities like soft skill classes, skills to

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understand team dynamics, time oriented skills, and presentation skills. The management will
encourage teamwork and inculcate team building skills that will help individuals as well as other
team members to grow within a team. The management leaders to create a team vision and help
people connect with each other to achieve both team and organizational goals. The focus should
always be to create meaningful relationships through customer engagement. Employees will be
motivated and supported at any phase of difficulty. Rather than micromanagement, management
can give employees some space and opportunity to grow and achieve the desired goals.
j. What performance management records will be maintained for future reference?
Documentation is an important process as this helps to maintain records and their goals,
achievements, disciplinary action, misconducts, positive contributions, performance evaluation,
and rewards and recognition. Records of expected employee behavior will be maintained. The
training and development comprise of the training schedule, training methods, and performance
appraisal reports. The wages and salary records will comprise of the payroll, increment records,
leave records, any benefits received and turnover records. Along with that, the service records of
the employee will include personal information, family background, academic qualifications,
past and present address, and employment records. Health and safety records of employees will
also be maintained which will include their sickness reports, medical history, insurance and
claims and safety provisions. All these will be maintained for future reference.
k. A brief description of staff development strategies and how they are implemented.
As opined by Aguenza and Som (2018), finding talented and skilled people is hard, but retaining
them can be difficult. Therefore, it is important for organizations continually investing in
developing strategies to keep the employees engaged. The first step of employees’ development
is to create an individual development plan for them. The plan will be made after negotiating
with the employer and employee. Quantitative performance metrics can be implemented to check
if the employees are performing or not. The employees must be provided with opportunities to
perform outside their department to increase their knowledge and awareness. This kind of cross
training will help employees to gain success in any role in future. The process of giving feedback
must be specific in terms of for the scope of improvement or evidence of good performance. This
can be achieved by continuously accessing the performance of employees.

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Meeting invitation
To,
The Store Manager/General Operations Manager/ HR Manager
Australia Hardware- Wollongong Store
Subject: Agenda for performance management meeting
Sir,
We would like to present you with the agenda of our performance management meeting agenda
and the details on how and when the meeting will be conducted.
The meeting will be held on 20th May, 2019 in the Conference Room of the company.
Agenda-
1. The meeting will start with offering refreshments and making small talks.
2. The purpose of the meeting is to discuss on the current performance management
practices conducted by the company which will continue for an hour uninterrupted.
3. Positive comments and specific aspects will be discussed.
4. The employees will be given a chance to reflect on the performance since their last
review meeting.
5. The topics of discussion will be performance, appraisals and issues employees are facing.
Sales Consultants will be addressed specifically.
6. The personal objectives of employees will be focused upon.
7. Discussion on previous training and development activities and the perceived usefulness
of those activities from the last performance review meeting will be discussed.
8. Upward feedback will be expected from employees to understand their expectations from
the management.
9. SMART objectives will be suggested to improve the performance of employees by the
next performance management meeting.
10. The meeting will be concluded by addressing any additional question from the
management and the employees’ side.
11. The questions will be open ended and range of potential responses can be expected.

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The meeting is expected to continue for 2 hours, depending upon the questions being asked after
the meeting.
You are expected to attend the meeting on time and share your valuable feedback if you need
any changes in the agenda of the meeting.
Thanking you.
Sincerely,
The Hardware and Home Products Manager
Australia Hardware- Wollongong Store
Email to HR
To,
HR Manager
Australia Hardware- Wollongong Store
Sir,
I would like to share the revised project report based on the feedback received during the
meeting for approval.
The meeting was conducted in your presence as well as the store manager and the general
operations manager. In the meeting, the store manager requested to create activities that would
motivate the Sales Consultants to perform better. Since they have a target of generating $1.25
million for the financial year, it can be difficult at times to cope with the work stress.
The General Operations Manager suggested that the Sales Consultants require better skills in
order to perform and achieve the desired targets. Specifically, the new Sales Consultants might
require better negotiation skills in order to achieve the target set for them.
Apart from that, the questions asked by the employees were quite insightful and the management
has taken a note of it to cater to employee needs.

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It is requested from you to review this and reply back for any further changes and suggestions.
Thanking you.
Sincerely,
The Hardware and Home Products Manager
Australia Hardware- Wollongong Store

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Assessment 2: Report
The session was conducted to understand the performance issues faced by the employees in the
light of current performance management practices adopted by the company. During the session,
positive opinions were provided which few specific aspects that we discussed. Since the topics of
discussion were focused majorly upon performance, performance appraisals and the issues
employees are facing resulting in non-performance. The discussion also focused on previous
training and development activities within the organization and how employees have benefited
from those activities. Employees were given a chance to highlight the issues they were facing.
In order to build an effective sales performance management, the performance of the Sales
Consultants will be scored as a basis for their reviews. A clear communication of the goals will
help them to achieve success. The idea of changing the conversation from forecast and sales
pipelines to improving the capability of the sales team will make sure that the entire team is
contributing to the goals of the organization. Individual career aspirations were also being asked
from the employees. Even when the sales environment remains static, the company will require
better strategic goals to adapt to the changing circumstances and business environment. With a
regular review process, the company will be able to understand the capabilities of each and every
Sales Consultant and accordingly changes will be made for each individual. The sales team will
be communicated of the goals essential to become a performing team. This will help each and
every team member to share a common goal, and ideas within the team rather than just being a
management team. SMART objectives will include using 360 degree feedback method and
Management by Objectives method. The sales target will be based upon the achievability level of
the Sales Consultants in order to not stress them which too much work. Skill building activities
like negotiation skills, communication skills and cross training will help the company to their
target. Poor performance will be determined on the basis of number of leads generated, number
of conversions and number of closings. The good performing employees will be rewarded with
monetary and non-monetary terms depending on the interest of employees.

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Assessment Task 3
1. As opined by Shields, et. al. (2015), performance management system shows its effectiveness
to the organization, its managers and employees. Performance management system improves
the performance of an organization, helps retaining employees, streamlines communication
flow, and improve productivity open organization. It saves time and ensures an efficient and
consistent performance. It is effective for employees for assessing their own performance,
improve the performance and promotes defined career with job satisfaction.
2. In order to develop work plans and allocate work to achieve the desired outcomes, the
following steps must be followed.
a. A right direction requires to be set for the organization and its employees. A common
organizational goal helps the management to work according to the desired manner.
b. Prioritizing activities is an important step which requires the organization to break
down their activities.
c. Work allocation helps to divide the work among employees and teams as per their
skill, experience and performance.
d. After the work is allocated, the progress and quality of work must be monitored.
e. The successful completion of work requires to be assessed and check for any scope of
improvement.
3. Allocating work to team members requires team leader to assess the set of tasks according to
the skills of team members. Assessing the team requires to understand the competence level
of team members before accomplishing the task. Involving the team members in decision
making process creates a link with their performance. Work allocation deals with managing
the tasks and people.
4. According to Grimshaw, Johnson, Keizer and Rubery (2017), Award refers to the minimum
standards an employer is allowed to pay to an employee for a certain work. Awards follow
legal ruling that provides similar employment and wages for both employees and employers.
Certified agreement refers to a workplace agreement that has been made after negotiation
train employer and employees. In order to pass the agreement, majority of employees in a
workplace must sign the agreement. Awards cover payments to employee, leave
arrangements, overtime and special allowances.

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5. Performance standards- Performance Standards are referred as the standards set by an
organizations to improve the quality of work within the organizations. It provides employees
with a set of standards in form of actions and behaviors that are expected for a job
performance (Katzenbach and Smith, 2015).
6. Code of Conduct- It refers to specific behaviors that can either be preferred or prohibited by
an organization in their employees.
7. Performance indicators are the type of performance measurement of the organization and its
departments. Without performance indicators, business leaders will be unable to evaluate
their performance issues and make operational changes to address the issues. Performance
indicators must be communicated to employees at all levels of an organization which will
determine their successful performance. For instance, profit margin, customer acquisition,
and inventory level are performance indicators of an organization.
8. As opined by Haimes (2015), Risk analysis refers to a process identifying and analyzing the
potential risks associated with a business and can have a negative impact on the performance
of the business. Risk analysis is conducted to mitigate the risks identified by framing
strategies and initiatives. While considering organizational plan and legal requirements, risk
management plan will be designed to eliminate and minimize the risk. Firstly, the risk will be
identified which will involve using checklists and a risk breakdown structure. Secondly, the
risks identified will be evaluated to check the degree of threat. Third, the risks will be
mitigated by either risk sharing, transfer, avoidance or reduction. Lastly, a contingency plan
can help in managing the risks.
9. Performance management system must be created considering the objectives and growth
strategy of an organization which is followed by the resources required to support the
objectives. In order to develop a performance management system, it is important to consider
the fact they must align with the strategic objectives. The key performance indicators should
also be identified and analyzed. The use of source data can be beneficial to derive the best
results. Understanding the importance of implementing a strategic performance management
system will lead to enhance the accountability and transparency within the organization. A
well designed performance management system helps in optimizing the organization’s
overall performance.

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10. The manner of providing a feedback also determines the way an organization treats its
employees which helps them to analyze their mistakes, avoid them and inspire to do better in
future. It is not always necessary to provide feedback in a well-constructed manner.
Feedback can be provided informally by way of being specific and problem-focused
(Kerzner and Kerzner, H.R, 2017). Talking about the situation and not the person can be
more actionable. Informal feedback requires to be discussed face to face with a clear agenda
of discussing the issues clearly. The feedback must motivate employees to perform better in
the future rather than sending a formal mail on their performance.
11. According to Petersen, Laumann and Jakobsen (2018), Poor performance refers to poor
standards of work due to lack of sufficient skills or understanding the way of doing a work.
An employee is considered incapable when he/she fails to attain work performance
standards. Lack of qualifications, experience and training need to poorly qualified employee.
If the employee is an alcohol or drug addict, he/she will be unable to perform well. Work
related stress is one of the common causes of poor performance. The performance of
employees can be assessed from their team leaders and immediate superiors. The
performance of employees can be measured by using a 360-degree feedback, graphic rating
scale, Management by Objectives, use of checklists.
12. According to Hoven, et. al. (2016), on the job coaching is a method of teaching the
knowledge and skills required by an employee to perform specific within the workplace. This
kind of training takes place by using the existing budget, equipment, and knowledge to
enable employees effectively perform their job. Coaching deals with delivering training for
the overall career growth and employee development. In order to improve performance, the
coach must work with the manager identify the job training needs and skills that can make an
impact.
13. Performance Excellence refers to an integrated approach of delivering significant value to the
stakeholders, customers and organizational sustainability (Hirano, 2017). It indicated that the
organization is performing well by utilizing its capabilities. Performance Excellence leads to
learning at both at organizational and personal level. Excellence in performance can be
achieved by defining and communicating the goals and performance objective of a company
to its employees. The utilization of performance management software which can be done by
traditional reviews methods or modern 360-degree approach. It can also be measured by

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frequent performance feedback and peer reviews to bring in effective performance
management.
14. As per Budworth, Harrison and Chummar (2019), a structured feedback refers to a
systematic communication process that is mandated across the organization and the team.
This includes the feedback to be delivered in form of performance reviews, team meetings,
employee surveys, evaluation through scoring, and direct one-to-one meetings. The
structured feedback session can be conducted by following these important steps-
a. Identifying the problem behavior among employees and conveying them about their
cause and time of their behavior.
b. The impact of the behaviors on organizations, and their personal self are also required to
be discussed in order to make necessary changes in future.
c. Acknowledging the problems and describing the consequences is an important step.
d. Setting up behavioral goals
e. Monitoring the performance of the employees after the feedback provided.
15. According to Brewster, Vernon, Sparrow and Houldsworth (2016), Human resource
specialists are the people responsible for the process of recruitment, screening, interview and
onboarding the employees. The job of a human resource specialist is to manage the tasks
related to employee relations, training an employee compensation and benefits.
Roles and responsibilities-
a. Act as a consultant to employees to identify their needs
b. Conduct interviews to gain details on employee experience, skills and educational
qualifications
c. Conduct background checks on job applicants
d. Inform applicants about job specifications
e. Conduct employee orientation process
f. Manage employment records and paper work
16. Unlawful dismissal or wrongful dismissal is a situation when the contract of an employee has
been terminated or ended by their employer where the dismissal has not been conducted
lawfully or a breach has been conducted (Kovács, 2016). In such a case, the terms of contract
of employment must be verified in order to find any further breaches. The due process refers

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to the process where the reasons for terminating the employment of the employee are due and
can be linked to discrimination and other unlawful activities within the organization.
17. A serious misconduct refers to any unacceptable or behavior of an employee which requires
the employer to take any disciplinary action (Chaly, et. al., 2017). A serious misconduct may
impact on the trust and confidence between employer and employee and further lead to
defaming the name of the company they are working. Serious Misconduct can be a violent
behavior, harassment, fraud, consumption of drugs at workplace, and bullying. Generally, a
serious misconduct is caused by employees deliberately that must not be overlooked by any
company. For instance, if an employee has stolen some amount from the cash register of their
own bank, this is a serious misconduct. Being a senior employee, they are not allowed to
harass their subordinates in order to get the work done.
18. Staff development strategies are necessary to develop the overall performance of the
employee and improve their productivity so that they contribute to the business. Conducting
a skill gap analysis can be beneficial for organizations and employees to provide the relevant
skills according to their job roles. Ac opined by Kruger, et. al. (2015), Learning Management
Systems can be implemented to evaluate the success of employee training. 360 degree
feedback method can be implemented to evaluate employee performance and focus on
improving their skills and other areas of improvement. All these strategies will help
companies to build a skilled workforce.
19. As opined by Smith (2018), Employee recognition refers to acknowledging the performance
of an employee within the organization. Employee recognition often requires motivation and
praising the work done by employees in order to enhance loyalty, improve productivity and
promote collaboration.
According to Sastresa, CIRCE, Kuiken and Hanze (2016), a skill gap analysis refers to
identifying the existing skills of an employee and the skills the currently require. Skill gap
analysis helps to understand and prioritize the business needs in order to address the gaps in
performance.
As per Holt (2016), Personal development refers to the process of improving oneself through
activities unconscious habits. Personal development plan becomes a guideline for taking
better decisions and managing the important tasks.

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