Importance of Performance Management in Hamleys

This report assesses the role of performance management and analysis of various kinds of approaches of performance management in the context of Hamleys, a global toy retailer.

Developing Individuals, Teams and Organizations

Contents
INTRODUCTION.....................................................................................................................................3
MAIN BODY.............................................................................................................................................3
REFERENCES..........................................................................................................................................6

INTRODUCTION
The report is based on assessing the role of performance management and analysis of various
kinds of approaches of performance management. These all aspects are addressed in the context
of Hamleys company which is a global toy retailer.
MAIN BODY
(a) Explain why effective performance management is so important to Hamleys.
Performance appraisal is the process of guaranteeing that the aims of the study are met in
an efficient manner by a sequence of tasks and outcomes (Aguinis, 2019). Performance
management can concentrate on the organizational culture, a unit, an individual, or the
procedures in place to handle various tasks. Below some key importance of performance
management in the context of Hamleys is explained in such manner:
Helps in boosting morale- The best setting to formalize and record praise is given by
performance evaluations. But feedback is not always about setting targets for the portion
to come. It can also provide a direct supervisor with an opportunity to consider
employees on their staff. In the context of above Hamleys, this plays a significant role in
order to boost morale of employees.
Helps with identifying the right employees for promotion- All staff is going through the
same thing of performance assessment. The administrators will help assess them in the
same, clear way for advancement, pay raises or relocation. This will not only help to
ensure that the best person is selected for promotions, but it will also allow the hiring
process to be more open and equitable. With rationale to above company, this plays a
significant role in order to promote right employees as per their skills and nature.
(b) Evaluation of each approach:
Paired Comparison- In selected work ability groups, the paired comparative approach
bases judgments on the results of an individual compared to his or her colleagues

(Frederiksen and Lange, 2020). The appraisal of an employee would be the sum of their
compensation which would be the source of a quantitative rating.
Strengths-This is helpful for those companies in which there are more number of
employees and possibility of higher conflicts.
Weakness- This method does not work in the context of those areas in which there is lack
of effective standard of comparison.
Behaviorally Anchored Rating Scale- This method is used to rate success which are
behaviorally grounded assessment on scales. By attaching a quantitative scale with clear
story descriptions of strong, moderate, and bad results, it is an evaluation tool that seeks
to incorporate the advantages of descriptions, critical events, and measurable scores.
Strengths- One of the key advantage of such approach is that it is clear to apply and less
complex.
Weakness- This approach is costly because it needs to applied on each kinds of
employees which lead to more number of expenses.
Management by Objectives- Goal management is a strategy implementation model that
seeks to maximize an organization's efficiency by explicitly identifying targets decided
by both management and workers (Sardi and Sorano, 2019).
Strengths- This approach is useful because under its objectives are set in accordance of
skills of employees which lead to effective performance evaluation.
Weakness- It is not suitable in the context of those conditions in which there is possibility
of change.
In accordance of above done analysis of various kinds of performance evaluation
approach, this can be inferred that Hamleys needs to go with Management by Objectives
approach because it is an effective approach to assess performance of employees. For
example, if above company will adopt in their evaluation plan than they can set
objectives of each department like sales department and then can compare actual result

with assumed targets. If they will do so than their performance of employees will
definitely enhance.

REFERENCES
Aguinis, H., 2019. Performance management for dummies. John Wiley & Sons.
Frederiksen, A., Kahn, L.B. and Lange, F., 2020. Supervisors and performance management
systems. Journal of Political Economy, 128(6), pp.2123-2187.
Sardi, A. and Sorano, E., 2019. Dynamic performance management: an approach for managing
the common goods. Sustainability, 11(22), p.6435.