Analysis of Organizational Performance Management System in Asda

Asda consultancy case study
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Table of Contents
Introduction....................................................................................................................................2
Second: Analysis of the existing organizational performance management system in Asda. 2
2.1 Organizational performance management and performance measurement...........................2
2.2 Communicating performance to stakeholders........................................................................3
2.3 Risk management...................................................................................................................3
2.4 Quality management and improvement.................................................................................4
2.5 Financial performance............................................................................................................4
2.6 Customer and client perspectives...........................................................................................4
2.7 People perspectives (HRM)...................................................................................................5
2.8 Implementation issues............................................................................................................5
Third: Recommendations for improvement...............................................................................5
Conclusions.....................................................................................................................................5
References.......................................................................................................................................6

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Introduction
Organization performance management is a technique that can be used in assessing the
performance management impact in an organization. The analysis of performance management
distinguishes between the structural and behavioral factors that affect the level of performance.
The structural features refer to system’s architecture, while the behavioral features refer to the
selected performance management system by the organization’s members. Organizations should
pay equal attention to the structural and behavioral features to create a performance-driven
organization (de Waal and Heijden, 2015, p. 3).
Asda is one of the major retail companies operating in the UK market. It was founded in 1920 by
a group of Yorkshire farmers, then the first supermarket was opened in the 1960s. Then its
operations were expanded to include every retail product that included motor cars and George
clothing in 1989. In 1999, Walmart bought Asda that further expanded through opening Asda
Livings, online grocery, financial services and launching private brands
(ASDA Group Limited, 2013, p. 4-5).
Second: Analysis of the existing organizational performance management system in Asda
2.1 Organizational performance management and performance measurement
2.1.1 Organizational performance management
The performance tools and processes enable managers to monitors the organization health and
predict its future. There are two types of performance management, they are discussed according
to (Lee, Chu and Tseng, 2011, p. 6), as follows:
 Intra-organizational performance management: It ensures the existence of internal
control that monitors the organization performance to achieve its desired goals.

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 Extra-organizational performance management: It involves communicating the
performance of the organization stakeholders for purposes of governance.
2.1.2 Performance measurement
The members of the organization are responsible for their performance results measured by the
key performance indicators (KPIs) of their areas of responsibility and the organizational
performance as a whole (de Waal and Heijden, 2015, p4). KPIs are the statistics used to track the
organization performance that could be formal or informal (D'Silva, 2013, p.19).
In Asda, performance is defined by managers in terms of productivity, behavior and relationships
with customers, colleagues, shareholders and community. For the customers, they are the sales
volume and great service. For the colleagues, it is training, wages and promotion, absenteeism
and turn over level. For the shareholders, it is the profits and returns on investment. For the
community, it is the value of community services (Miah, 2012, p.17).
2.1.3 SWOT analysis
SWOT analysis is a tool used by managers for internal analysis of the organization environment.
It will be used to analyze Asda internal environment according to (Hassan, Sistani and Raju,
2014, p.102), as follows:
 Strengths
Being a Wal-Mart brand, Asda is highly powerful at the market through its focus on saving
money and a wide range of products. It has a powerful IT support and well-trained team of
employees. Its diversification strategy of selling non-food products accelerated its growth in
the UK market.