Importance of Effective Performance Management at Hamleys

This report discusses the importance of effective performance management at Hamleys, a global toy company. It explores the benefits of performance management, such as providing fair feedback, linking results to remuneration, and offering learning and development opportunities. The report also analyzes different performance evaluation approaches, including Paired Comparison, Behaviorally Anchored Rating Scale, and Management by Objectives. Based on the analysis, it recommends the use of Management by Objectives for Hamleys.

Developing Individuals Teams and Organizations

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

INTRODUCTION
It is important for companies to assess performance of employees in an effective manner. In
order to do so there are a range of methods and approaches which are applied by companies (Kar
and Corcoran, 2017). The project is based on a company that is Hamleys. This company works at
a global level and sell toys. In the report role of performance management and different
approaches are explained.
MAIN BODY
a) Explain why effective performance management is so important to Hamleys.
Performance management- Performance monitoring is a technique for organizational
management that lets administrators track the work of staff and assess them (Chen and Liu,
2017). The aim of performance development is to establish an atmosphere where individuals can
perform most reliably and consistently to the best of its ability to deliver the top quality work. In
the context of Hamleys company, this is important to them to apply effective performance
management approaches. Below some key advantages of performance management in the
context of Hamleys are explained:
 Providing fair and inclusive job feedback to staff on a regular basis- This is one of the
key importance of performance management as it gives accurate and right feedback to
employees as per their actual outcome. As in the context of above Hamleys company, this
can be useful in order to assess real and accurate performance of their employees.

 Creating a new connection between results and remuneration- In addition to this,
performance management plays a key role in order to make a balance between outcome
and salary. In other words, it contributes in paying financial benefits to employees in
accordance of their work.
 Giving greater opportunities for learning and development by trying to represent the staff
in leadership training, etc.
 Consistently improving on a fair and equal grounds and transferring compensation and
rewards.
(b) Analysis of each performance evaluation approach:
Paired Comparison- The Paired Comparative Approach is a valuable judgment tool as it
defines and contrasts values. When employees have different ones and are far away task than, it's
always hard to pick the right one. All possible choices are if any, leading to an analysis that
reveals the correct choice automatically.
Advantages: If few workers are to be ranked, this method is quick and simple to use. Supervisors
generally favor this approach or Compulsory Sharing because they equate two workers to each
other at a time rather than all staff.
Disadvantages- The downside of using this strategy is that vast numbers of workers require time;
another downside is that workers are also only compared to each other on an average output
basis.
Behaviorally Anchored Rating Scale- Behaviorally Anchored Performance Scales (BARS) are
intended to add to the employee evaluation system the advantages of both qualitative and
quantitative results. BARS compares the success of a person to particular behavior examples that
are attached to numerical scores (Pandey, 2016).
Advantages- Provides a sharp emphasis on employee success appraisal as well as it also
contributes to know about behavior of an employee during performing a particular task or any
role.

Disadvantages- One of the key issue under such approach is that it consumes too much time and
cost. This is so because it is focused on individual employees which lead to too much processing
time.
Management by Objectives- Management by objectives (MBO) is a systematic technique to
boost an organization's efficiency. It is a mechanism in which the organization's priorities are
identified and communicated by leadership to the company and its members with the aim of
gaining each objective. It has some benefits and drawbacks which are as follows:
Advantages- It gives the workers a good picture of what is required of them. For any member of
the staff, the managers set targets, and a list of special assignments is given for every employee.
Disadvantages- More focus is placed on priorities and objectives in such a system. The
executives placed immense pressure on the workers to meet their goals and forgot about the use
of MBO for commitment, ability to participate, and management development.
In accordance of above done analysis, this can be inferred that above Hamleys company needs to
apply a suitable approach and this is MBO. The rationale behind choosing such method is that it
plays a significant role to assess performance of employees as per determined objectives by
management. These objectives act as standard in order to make comparison with performed
outcomes in real. Tis can be understood by an example that by help of such method they can set
object for finance department to achieve net profit of $50000 in a quarter and by actual net
margin they can assess performance of respective department.

REFERENCES
Kar, A. and Corcoran, P., 2017. A review and analysis of eye-gaze estimation systems,
algorithms and performance evaluation methods in consumer platforms. IEEE Access, 5,
pp.16495-16519.
Chen, M. and Liu, P., 2017. Performance Evaluation of Recommender Systems. International
Journal of Performability Engineering, 13(8).
Pandey, H.M., 2016. Performance evaluation of selection methods of genetic algorithm and
network security concerns. Procedia Computer Science, 78, pp.13-18.