Performance Management in Banking Industry of UK

Performance Management in
Banking Industry of UK

ACKNOWLEDGEMENT

ABSTRACT

CONTENTS
CHAPTER 1 – INTRODUCTION...........................................................................................................1
1.1. Overview...........................................................................................................................1
1.2. Structure of the research...................................................................................................3
1.3. Focus and Purpose of research..........................................................................................5
1.4. Research Question.............................................................................................................6
1.5. Framework and Analysis..................................................................................................6
1.6. Potential significance of research.....................................................................................7
CHAPTER 2: LITERATURE REVIEW...................................................................................................9
2.1 Introduction............................................................................................................................9
2.2 Meaning of Human Resource Management.........................................................................10
2.3 Significance of HRM...........................................................................................................11
2.4 Meaning of Performance Management................................................................................13
2.5 Significance of performance management...........................................................................14
CHAPTER 3: RESEARCH METHODOLOGY.......................................................................................16
CHAPTER 4: DATA ANALYSIS AND FINDINGS................................................................................17
CHAPTER 5: CONCLUSION AND RECOMMENDATIONS....................................................................18
CHAPTER 6: REFLECTIVE STATEMENT...........................................................................................19

TABLE OF FIGURES
Figure 1: Performance Management Model..................................................................................21

CHAPTER 1 – INTRODUCTION
“The process of motivation for employees is designed by setting goals, analyzing
progress, coaching for enhancement of performance, providing feedback and offering rewards
for achievement. Performance management is both an integrated and strategic approach to
deliver successful outcomes in corporate by enhancing the performance of the workforce and
developing capabilities in team and individuals” (Davidson, 2011).
1.1. Overview
The roles and responsibilities of human resource in the current scenario has undergone
with massive amount of change and its main focus is now on evolving such functional strategies
that enable effective enforcement of major corporate strategies. Human resource management
today work towards enhancing and facilitating the performance of workforce by designing a
favorable work environment and offering maximum opportunities to employees to participate in
organizational planning and decision making process (Chadwick, 2008). In the present era, all
the major activities of human resource are directed towards development of efficient leaders and
encourage employee motivation.
In organizations, performance management is the current buzzword and is the main need
in current times to sustain in the cut-throat competition and the organizational scuffle for
leadership. Performance management is a much broader concept and a complicated function of
human resource management as it includes several activities such as communal goal setting and
regular progress (Avery and et. al., 2007). The process of performance management begins with
aligning up of a new incumbent in a system and ends when an individual leaves the organization.
Performance management in today’s era is considered as a systematic process through which the
overall performance of a firm could be enhanced within a team framework. It is basically
considered as a means to promote superior performance by meeting the anticipations, explaining
the roles and setting an achievable target (Locke and Latham, 2001). According to Armstrong
and Baron (2005) – Performance management is an ongoing consistent process i.e. carried
between the senior level personnel’s and employees throughout the year. This terminology has
acquired popularity in the late 80s when several different quality management programs received
utmost significance for the achievement of superior level standards and manage quality in
performance (Dent and et. al., 2010).
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The chief purpose of performance management in organizations is that it aids in assessing
the effectiveness of performance in the company and also evaluates the need for training and
majorly encourages motivation towards work (Principles of Management, 2012). Every firm has
a set of functions and the main goal is to achieve the desired functions and objectives. It can only
be attained if the workforces are well acquainted with their roles and responsibilities and acts as
an asset for the organization. In the past few years, firms were very much concerned about the
growth and development of their employees and also considering the benefits of performance
management (Bakker and et. al., 2006). Now, companies are following the novel pattern of
working and in order to achieve the best in technological revolution many of the firms are
enforcing the importance on the implementation of new methods for performance management.
Corporations have identified the significance of performance appraisal and it has been
observed that many of the global companies have implemented the performance appraisal system
to enhance the productivity of its workforce (Frey and Jegen, 2002). There is range of situations
available of distinguished perspectives that give confirmation on the usefulness of performance
management and its measurement. Every organization should present an accurate and fair view
of performance management to acquire trust of the workforce, their job satisfaction and loyalty,
which is the main core in organizational success. However, even today many firms and their
seniors do not get the conception of performance management appropriately (Guest, 2007).
Several authors like Douglas McGregor, Abraham Maslow and Philip Kotler have analyzed its
significance and developed many theories and models to spread the benefits of this term in the
current workplaces.
Nevertheless, the enormous amount of changes had taken place in both employees and
the work associated policies and practices of companies. All these changed factors manipulate
the perceptions and anticipations of the employee of 21st Century. These include the growing
focus on employee commitment, empowerment, job satisfaction, professional development
prospects and work life balance (Work motivation overview, 2002). The current research paper
aims to explore the performance management system adopted in the banking sector of London
with respect to the expected fairness system. This research paper will also analyze the effects of
performance appraisal on the workforce considering job satisfaction, motivation and loyalty of
employees in the human resource functions. Managing the performance of employees effectively
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has become a critical factor in the present dynamic business conditions (Garg and Rastogi,
2006).
In order to achieve increased productivity, firms must consistently monitor the team
performance and offer their subordinates meaningful suggestions. This research focuses on
acquiring the significance and method adopted by the UK banking sector for performance
management of its employees (Kirstein, 2010). The present research study will play a major role
in determining the aligned elements with perceived justification for performance management
system, which will aid in better accomplishment of this practice. Many of the articles and reports
define that several banks in UK have implemented the performance management system, which
is specifically designed with well accepted practices and procedures and structure that have been
formulated (Griffin and Moorhead, 2009). The primary research will be mainly done in one of
the leading banks of UK i.e. Standard Chartered bank.
The banking industry of UK has a strong international orientation and is represented by
significant number and considerable assets of foreign banks i.e. operating in London in both
investment and commercial banking sector. The banking industry of UK represents a major and
essential component of the UK economy and contributes significantly to the growth of this sector
(Morgan and Harmon, 2001). Standard Chartered has developed and put into practice a well
documented and complete deployment, offerings and selection policies i.e. oriented towards
analyzing the most suitable talent and providing opportunities for growth and development. The
bank is also well acquainted with the effectiveness of performance management and a complete
process is being included in its management to monitor the performance of its workforce (Deci
and Ryan, 2008).
The performance management system sets the platform for rewarding excellence by
associating every individual employee’s accomplishment with organizational objectives and
mission with specific job requirements to realize the consequences. By setting up clear
performance anticipations, the behaviors and action will help in the employees to comprehend
the exact expectations from their job.
1.2. Structure of the research
The present research moves ahead in a sequential manner as every chapter is associated
to each other and the succeeding chapter can only be accomplished after its preceding chapter.
The structure of the present report is as follows:
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