Impact of Internal and External Factors on Performance

This assignment explores the impact of both internal and external variables on individual and organizational performance within the context of Tesco. It highlights the significance of motivation as a driver of individual performance and examines how factors like resources, work environment, and organizational culture influence overall business success. The analysis delves into various performance management tools utilized by HR managers at Tesco, including KPI matrices, performance appraisals, 360-degree feedback, and management by objectives.

Discussion- Performance
Management 1

Table of Contents
INTRODUCTION...........................................................................................................................2
MAIN BODY...................................................................................................................................2
CONCLUSION................................................................................................................................4
REFERENCES ...............................................................................................................................5
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INTRODUCTION
Performance management is defined as the procedure which assists management team in
ensuring that all the activities in an enterprise are beneficial. It is also considered to be as tactical
actions performed by employees in an organisation which are helpful in driving firm towards
achievement of business goals as well as objectives. Performance management aids manager in
identifying the unnecessary operations and planning the tactics to improve the same. It also
supports manager in formulation of strategies, policies as well as plan for improving business
performance. Performance management enables manager to identity performance gap and
formulate the suitable strategy or plan to improve the same. Purpose of performance
management is to develop the strong relationship between workers and management.
The purpose of the project is to identify the factors which have effect on the individual or
organisational performance in context of Tesco. It also emphasises on developing the
understanding about the way in which several internal as well as external variables impact
employees as well as business performance.
MAIN BODY
Performance management is considered to be the very beneficial procedure as compared
to the other tool which are used for measuring the performance. This technique includes both
quantitative and qualitative methods for evaluating or measuring performance. There are
basically several internal as well as external variables which have direct effect or impact on
business as individual performance at workplace (Edgeman,Bourne,Bititci and Nudurupati,2017)
Some variables that have direct impact on employee performance within an enterprise are
motivation, competencies, ability, role perception, resources, working environment etc. All
these elements have direct influence on individual performance. Motivation is considered to be
an important factor that drives a person to action. This factor plays significant role in inspiring
people to increase their potential or willingness to execute specific task or to assist firm in
achievement of business goals as well as objectives. Motivation influence person to adopt goal-
directed behaviour which assist individuals in satisfying their needs. It is the important factor
which plays crucial role in job promotion. Human Resource Management (HRM) supports
business entity in achieving success and fostering growth. Effectiveness of employees could be
judged on the basis of their ability, skills, knowledge etc. It is required by human resource
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manager in Tesco to develop attractive reward or incentive system. This will support
management in encouraging the employees to improve their performance at workplace. As it has
been identified the demotivation in employee has negative effect on the quality of work. This
factor also has direct and significant influence on the working environment as well as on the
culture within an organisation. Highly motivated workers support an enterprise in bringing
innovation and expansion of business operations.
Employee’s performance within a company is also greatly impacted by individual ability
to conduct particular activity or execute particular operation. Competencies are defined as the
extent to which a person regards himself confident in executing or performing specific job. This
factor represent the extent of control that individual have on the activities performed by them or
other person inside or outside the company. It has been identified that individuals who have
control on their activities have internal locus of control and such people are greatly affected by
the things or activities surrounding them. There people perform well within an organisation
(Bianchi, Bovaird and Loeffler, 2017)
Ability is another important factor which has major impact on individual as well as
organisational performance. In context of business, ability is the potential of business to deal
with uncertain as well as complex situation. It also indicates the power to maintain position in
market .In context of human being, ability is also recognised as the knowledge about specific
field which is very important in order to improve performance and great satisfaction from work.
Experience and skills allows individual to execute task in systematic as well as effective manner.
Performance of a person is affected by his role perception. It indicates a person thinking about
himself with reference to business activities. If the person has knowledge and awareness about
their roles as well as responsibilities that an individual will able to execute their task in an
effective manner. If in case, employees are unaware about their tasks, then this factor has adverse
impact on their performance at workplace (Kearney, 2018)
Resources are the factors that might lead to the conflict among workers and may further
lead to compromise in the quality of work. It also has great influence on individual behaviour
and motivation level to perform specific task.
Tools and techniques for performance management
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There are several tools that can be used by human resource manager in Tesco for
performance management these are key performance indicator matrix, performance appraisal,
360 degree feedback, management by objectives, performance management framework etc. Key
performance indicator is an appropriate tool for performance management. Key performance
management matrix offers a technique to measure the way companies , employees , project are
performing in context to their strategic objectives as well as goals. Performance appraisals are
the most commonly used performance management tool that can be utilise or adopted by the
human resource manager for assisting person in aligning their goal with business objectives 360
degree feedback allows employees to seek suggestion, advice or support from their leaders which
further help them in improving their performance within an enterprise. This tool enables workers
to feel motivated and get recognition for their performance by manager.
Balance score card is considered to be the strategic business planning tool which is used
by management team for identifying the performance gaps and creating the plans or strategies to
improve the same (Asare and Conger, 2018)
CONCLUSION
The project has concluded that there are several internal as well as external variables
which have effect on individual and organisational performance. It has been concluded from
assignment that motivation is the factor that has positive impact on individual performance.
Some factors such as resources, working environment and organisational culture have great
effect on business as well as employees performance.
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REFERENCES
Books and Journals:
Kearney, R., 2018. Public sector performance: management, motivation, and measurement.
Routledge.
Bianchi, C., Bovaird, T. and Loeffler, E., 2017. Applying a Dynamic Performance Management
Framework to Wicked Issues: How Coproduction Helps to Transform Young People’s
Services in Surrey County Council, UK. International Journal of Public Administration,
40(10). pp.833-846.
Edgeman, R., Bourne, M., Bititci, U.S. and Nudurupati, S., 2017. Remastered, reinvented and
reimagined: evolving and merging performance management and measurement paths.
Measuring Business Excellence, 21(3), pp.209-213.
Asare, E. and Conger, S., 2018. Analyzing the Impact of Strategic Performance Management
Systems and Role Ambiguity on Performance: A Qualitative Approach. In Developments
and Advances in Intelligent Systems and Applications (pp. 15-27). Springer, Cham.
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