Assignment about What is Performance management?

HRM
Performance management and appraisal
Student’s name
10/15/2019

Introduction
When Cones (2002) talk about performance management, in today’s world, companies in terms
of the competitive advantage mainly focuses on communication, technology, and product
differentiation. As employees through this, feels more committed and responsible for the
functions, which they serve within management. However, these days it is seen that such
practices are adopted by any organizations, but the difference comes with the adoption of people,
as the company with motivated and talented employees is offering outstanding services to
customers who are likely to pull ahead of the competition. Therefore, it is seen that key
organizational resource is labeled by the human capital, which generates organization advantage
over the competition. Further, it is seen that the performance administration structures are
considered as the main aspects, which can be used to alter people's ability and motivation into a
strategic corporate benefit (Bititci, Cocca, & Ates, 2016).
Similarly, when we talk about the XYZ Company, which mainly deals with hardware and
software, and the services provided are essential to computer networking. It was seen that the
company has applied almost 50 different systems to measure performance. Moreover, no
recognition program and more pressure from the competitors were mainly affecting the cost of
managing the human resource. In addition to it, quality an initiative was the driving change in
many areas of the business and mainly affects the people's quality which further affects the
overall performance of the firm at large. From all such aspects, it is considered as uncertainty
and unpredictability are the common issues when a company is planning for human resource
needs. Similarly, in concern to XYZ company longer planning and external entities are mainly
affecting the quality of work at large. Therefore, this report mainly highlights the informal
performance management of XYZ Company and further recommendations made over it.
Performance management
In general terms, Aguinis (2014) talk about the performance management process it mainly
highlights information about the assurance of the set of various activities and outputs, which
majorly helps in fulfilling the organizational goals in an effective and efficient manner.
Moreover, such an aspect also focuses on the performance of an organization, a particular

department an employee or the processes in order to manage particular tasks (Jamil, Mohamed,
2011).
Furthermore, In terms of Aguinis (2014) it is also seen that through the adoption of performance
management, it helps the organization to motivate employees to consider the newer challenges
and generate innovation through the structure process. It also provides new opportunities to
employees for their growth and development in their professional careers. Alternatively,
according to (Cones, 2002) this aspect mainly helps in defusing the grievances and conflicts
among the team members through the adoption of a proper performance evaluation system and
reduces the newly developed challenges. Lastly, Performance management also serves as a tool
of satisfaction, which further helps in contributing to growing self-esteem aspect within
employees. Thus, such an aspect highlights that a successful performance organization structure
is not only limited to employers and workers but it also works for the entire organization for their
success (Rosemann, & vom Brocke, 2015).
Analysis of the performance management process of a company
When we talk about the performance management process, it mainly highlights the six major
aspects, which are highlighted as Prerequisites, performance planning, performance execution,
performance assessment, performance review, and lastly, the process highlights the performance
renewal and re-contracting. In addition, if the entire performance organization is not applied
then the entire working system within the organization badly suffers and thus within operations
are mainly affected which affects the entire organization output.
In the prerequisites aspect, in this, the two main components are considered in which one is
understanding of the administration's operation and planned objectives and secondly the
information of the job in question. Hence, in this the organization loses its objectivity, other than
this, it is also analyzed that in this step the organization needs to clearly define the purpose or the
objective to the existing as well as newer employees so as to make integrated all teams to meet
the companies target. In this, the main motive of the XYZ solution is to define its long term and
short-term goals along with the holistic view and defines the overall objective of the formulation
of the company (Van Dooren, 2011).

The company also applies the number of rating forms of measurement and follows the top-down
command and control approach to direct and manage the individual behaviors and actions within
the company. All these aspects help the XYZ Company in enhancing the strategic decisions and
control, helps in measuring and reporting performances, which generates management a major
instrument to attain or succeed accountability at an employee and organizational level.
Therefore, all such aspects help the company in designing, strategize and develop the
performance management system of the company. Lastly, it also describes the job description,
job specification at every level and delegates the targets to perform in order to achieve the set
organizational objective (cones, 2002).
In the second step, performance planning mainly contributes to the three aspects, the results,
behaviors, and development plan. As a result, the aspect highlights the outcome which is used to
measure the employees' and department's overall performances. Such an aspect basically
provides information about the performance gap and achievements. Another aspect is the
behavior aspect, which highlights the employees' behavior, which highlights the performance
standards, and the strong monitoring by the supervisors can do this (Haines III, & St-Onge,
2012). In XYZ's concern, behavior concern matters, further, the company can be most
benefitted by generating the higher competencies within the employees such as professional
development, management development, future employees and customers’ satisfaction is the
most important. When we see the XYZ solutions the major negative issues which affect the
company at large are the internal competition among the employees and favoritism which
majorly affects the internal behavior and future of the company at large. Lastly, in the
performance planning aspect, by seeing all the issues, a company should focus on maintaining
the development plan to improve the employees’ knowledge, behavior, skills, and attitude, which
further allows employees to take their professional standards to next level, which benefit them as
well as organization at large.
The third step highlights the performance execution, it is one of the most important steps
because it helps in building up the management systems and building up the standards on which
the entire company and its employees rely on. Furthermore, in this, workers' duties and
responsibilities are highlighted along with the committed goals through participating in the goal-
setting and along with this, gathering feedbacks and work over them (Noe, 2008). In terms of

XYZ solutions, they highlight the actual state, which is gathered through the regular attending
meetings so as to access the progress of the company. This supervisor with the senior managers
generates the actual execution and further seeks guidance and feedbacks in terms of issues.
Therefore, such execution generates the regular feedbacks to the employees about their
performances and the improvements so as to develop the individual knowledge and skills in the
long run along with the long term benefit to the organization (Taticchi, Balachandran, & Tonelli,
2012).
In performance assessment, both employees and the managers or the supervisors are
responsible to measure and assess the overall performance of employees against the set targets
by the company. Therefore, the relationship between managers and employees is undergoing a
dramatic change (Cones, 2002). This process basically highlights the individuals' targets,
behaviors and attitudes of the employees during the performance of the appraisals cycles.
Particular ratings are given to employees according to they are worked done and performed
according to the set targets by the company (Campion, Campion, & Campion, 2015). In relation
to XYZ solutions, the assessment is done and according to the ratings are given to each
employee according to the work done or individuals performances. Through the adoption of the
self-evaluation, the company can easily evaluate the employees’ worthiness, effectiveness, and
capability and through the feedback, the company has to know about the various positive and
negative points of the individuals. Hence, there are many issues, which were diagnosed such as
more of internal competition, expenses, and time issues in terms of extra or extensive training to
employees for better performance, career development workshops and lastly, issues of
favoritism, which are adversely, affect the morale and overall satisfaction of the employees at
large. Hence, from all issues, the company generates the feedback system, which in the future
would help the company in enhancing organizational learning and development (Isenhour, et al,
2012).
After an assessment, performance reviewing is done in which lower level and superiors
exchange the performance feedbacks and reviewed the overall performances against the set
targets or the set goals. In this aspect, effective communication plays a major role in between the
employee and the supervisors. Apart from this, the company also discusses the development
plans, training sessions, ways to improve the skills and knowledge of the employees according to

the set targets and the objectives (Daoanis, 2012). Hence, in terms of XYZ solutions,
performance appraisals meetings are taken into consideration on the basis of diagnosing the past
and current performances and make effective solutions for the future of employees as well as the
company in long term. By keeping the records such as workers working information,
accountabilities, achievements and accordingly the solutions are considered such as whether the
company should develop the newer performance improvement plan for the weak performer and
hike salary to those who have good performances (Aguinis,2014).
Lastly, performance renewal or reconstructing of process, in which every organization states
that performance management is the ongoing process which mainly highlights the set plans,
executions, implementations, assessment and reviewing is done. This is all done within the
organization is due to the major changes in the external environment which are never static and
majorly impacts the internal performance of the organization at large. Hence, the issues which
are diagnosed within the system are diagnosed which hampers the success and the growth. In
addition, on that basis, further changes are made in the performance management system of the
company so that company all over again starts with the process and in future sees a reduction in
issues with the attainment of the set objectives and success in the long run (Zaied, Hussein, &
Hassan, 2012).
Conclusion
In this entire report, we can conclude that performance management is the most vital aspect of
every organization. Along with this, it also highlights that with time organizations need to be
consistent, train employees through evaluation, and implement changes day-to-day roles within
the organization. Alternatively, when we talk about XYZ solutions there are many issues such as
ineffective communication with the system, which is the most important aspect for the
company's success. Furthermore, the company also has the risk of internal competition, which
affects employee performance at large. Secondly, the expenses and time issues also affect the
performance in the long run. Lastly the issue of favoritism, which creates dissent and distrust
among the team members, which majorly and adversely affects the morale and satisfaction of the
employees at large within the organization.

Recommendations
In recommendation aspects, XYZ solutions should develop effective communication channels to
expose the entire proper knowledge with the organization and to each employee so that the work
should be carried according to the set targets or the objectives, which are set at the planning
stage.
As the company lacks the effective appraisal concept so, in this concern, the company should
adopt the effective performance appraisals form, which carries the basic information of
employees such as their competencies, their performances, their development achievements and
much more. Furthermore, the company should focus on the appraisal system, which acts as the
tool of motivation and enhance company productivity and efficiency (Aguinis, Gottfredson, &
Joo, 2012).
Moreover, the company should generate rigorous training and make use of extra resources time
so as to retain and helps in career development for every employee within the organization which
not only benefits them in enhancing their skills and abilities. Overall helps the company in
fulfilling the target and attaining the set target and objectives and success of the company in the
long run.
Lastly, at the initial stage, the company should help employees in understanding the link between
their responsibilities and the overall objective of the organization. Such habit or improvements in
the system help the employees and managers to evaluate the overall performance and
accordingly feedbacks are given to generate the success in the long run (Budworth, Latham, &
Manroop, 2015).

References
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