Performance Management at Network Solutions

Running head: PERFORMANCE MANAGEMENT
CASE STUDY 1-2: Performance Management at Network Solutions, Inc.
Name of the Student:
Name of the University:

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Table of Contents
1. Introduction........................................................................................................................2
2. Company Profile................................................................................................................2
3. Analysis..............................................................................................................................3
3.1 Discussion questions from case study.........................................................................3
3.1.1 Overlap between network solutions and ideal system..............................................3
3.1.2 Features of system implemented...............................................................................3
3.1.3 Advantages and positive outcomes from implementation of system........................4
3.1.4 Disadvantages and negative outcomes from implementation of system.............4
3.2 Performance Management (PM) in the kingdom........................................................5
3.3 SWOT analysis of PM function in Network Solutions...............................................6
3.4 Changing environment of PM in kingdom..................................................................6
3.5 Key issues in PM in the company...............................................................................6
3.6 PM challenges.............................................................................................................7
3.7 Changes and trends in PM because of globalization...................................................7
3.8 Success or failure factors of PM function...................................................................7
3.9 Critical review of PM function in Network Solutions.................................................8
4.0 Conclusion and Recommendations......................................................................................8
References..................................................................................................................................9

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1. Introduction
The case study report is focused on Network Solutions, where there is evaluation of
how performance management system at company is operated in the business functions. The
new system is compared with ideal performance management system to provide with better
assessment of its advantages and disadvantages in the project. There is also discussion on
problems of the Network Solutions using macro and micro business analysis tools. Success
and failure factors of Network Solutions are also analyzed in this paper with critical review of
performance management functions.
The problems of Network Solutions are that the company has no such recognition
program to reward the best performers. Pressure from the competitors was increased cost of
management the human performance unproductively. Most of the employees’ were not
received any performance review.
2. Company Profile
Network Solutions is a worldwide leader in the hardware, software as well as
networking services. The company used 50 various systems for measuring performance of
their business. The mission is to provide IT solutions and networking services to the client.
The vision of Network Solutions is implementing distribution performance management
system in the business. The objectives of Network Solutions are to implement performance
management system so that it helps to link employee’s goals with the organizational goals
(Aguinis, 2015). The strategy of the company is to adopt distribution management system,
where each employee can classify in category based on the comparative performance.

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3. Analysis
3.1 Discussion questions from case study
3.1.1 Overlap between network solutions and ideal system
I. The network solutions is desired to bring into line with employee’s goals.
II. Other overlap is adjustment of performance management system with all departments
of the company.
III. There is encouraged of two way communication such that both managers and staffs
should share their performance data (DeNisi & Murphy, 2017).
IV. Rating system is core part which can evaluate the employees based on rating.
3.1.2 Features of system implemented
Strategic congruence: The designing team is created proposed system by bring into
line the individual’s areas with the business areas as well as focused on development of the
employees.
Standardization: The designing team is convincing the senior leadership to stop
development programs which were around 50 programs, with an idea to standardize of
evaluating performance across various divisions (Aguinis, 2015).
Acceptability and fairness: The employees are known to the fact that they should be
awarded as well as penalized based on their performance as rating scale helps them to
develop their own performance (Gerrish, 2016).
Openness: Network Solutions is encouraging their employees in two way
communicate so that they can share positive as well as negative ideas of performance.

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Reliability: The system is continuous checking for performance of working
employees.
Ideal characteristics of the system which were missing from implementation are as
follows:
i. In the system, there is no process where the employees can able to challenge any
incorrect decisions.
ii. There is no guideline provided that performance evaluation will be conducted on
merit basis (Aguinis, 2015).
Ideal characteristics of the system which needed additional information are as
follows:
It is not certain if the system is mistake free and not provided any incorrect decisions.
Before the appraisal meetings, there is no information that the employee gathered their
performance data (Ahmed et al., 2016).
3.1.3 Advantages and positive outcomes from implementation of system
I. Performance management system should help the workers to link their own
goals with administrative goals.
II. The employees are becoming more competent as the system would help them
to improve their own performance (Cappelli & Tavis, 2016).
III. There is a proper differentiation among good as well as poor performance as
the rating scale helps in identifying best performers and supervisors should
reward and penalize based on performance.
IV. Two way communication would help in improving future performance of the
employees by identifying the past performance (Bititci, Cocca, & Ates, 2016).

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3.1.4 Disadvantages and negative outcomes from implementation of system
Ethicality is one of the disadvantage besides negative outcome due to application of
PM system. There are no possible guidelines provided that based on which the performance
evaluation is done on merit. There is possible that the supervisor should give rating to favour
employees and there is no element of employee’s privacy.
3.2 Performance Management (PM) in the kingdom
Performance Management (PM) is a constant process to classify, measure as well as
progress performance of the individuals as well as project teams to support performance with
strategic areas of business organization (Bianchi, 2016). It is used in the business case of
Network Solutions to measure individual performance of each employees. New system is
consisted of following processes:
i. Building of project team and cascading of organizational goals
ii. Planning of performance
iii. Planning of development
iv. Two way communication for discussion as well as updates among managers
and team
v. Providing summary of annual performance of employees (Aguinis, 2015).

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3.3 SWOT analysis of PM function in Network Solutions
Figure 1: SWOT Analysis
(Source: Aguinis, 2015)
3.4 Changing environment of PM in kingdom
As the quality initiatives are dynamic changes in various commercial areas, therefore
the company decided to recover over quality of people (Richards et al., 2019). Network
Solutions ensured that it is required to meet with the organizational areas by connecting with
the employee’s goals.
3.5 Key issues in PM in the company
1) It is not certain if the system is error free as well as providing any incorrect
decisions on the employee’s performance or not.
2) There are no possible guidelines provided that based on which the performance
evaluation is done (Franco‐Santos & Otley, 2018).
Strengths
- Clear organizational goals
-More competent employees
-Enhancing self-insight and development
-Better communication of performance
from supervisor's views
Weaknessess
-No proper guidelines provided on
performance evaluation
-No process provided of employees can
challenge incorrect decisions
Opportunities
- Standardization of performance
management system
-Monitor unproductive practices and
implement correct policies
- Two way communication
Threats
-Internal competition
- High expenses and more time required
SWOT Analysis

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3.6 PM challenges
a. The employees and staffs of Network Solutions are not trained enough to handle
the new system and check for quality of their performance.
b. Each of the employee are having different learning, therefore no one learn about
same thing makes a longer time to understand it (Gudmundsson, Marsden, &
Josias, 2016).
3.7 Changes and trends in PM because of globalization
Political: Due to political conflict as well as negotiation, it provides influence on the
better implementation of performance management system.
Economic: The PM system requires the employees to be trained to equip with the
system and get skills to manage the proposed system. It requires extra resources, cost as well
as time period in wide training besides career development workshop for each employee’s
division (Cappelli & Tavis, 2016).
Social: Due to rating of the employee, it emerges the individuals those are viewed as
key and entrusted by means of new job roles as well as duties. It creates distrust among group
members affect morality as well as satisfaction levels.
Technological: Digitization of the performance management is not providing precise
data, therefore it provides an influence on management procedures as well as strategic
development for the company (Bianchi, 2016). The PM tools are simplifying evaluation of
the manager as well as turn the employees in active participants in performance review
sessions.
3.8 Success or failure factors of PM function

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The success factor of PM function is that this system helps the employees to
understand link among responsibilities as well as organizational objectives. The system is
provided with greater business efficiency as well as provided with better tool for performance
analysis (Ahmed et al., 2016). The system also adopts in encouraging better communication
among manager and team.
3.9 Critical review of PM function in Network Solutions
The PM function of the system is a motivational tool for the employees as the
employees are rewarded directly to their own performance. It enhances productivity as well
as efficiency of the business organization. The employees are getting know about their
contribution in the work and even their presence is valued or not (Gudmundsson, Marsden, &
Josias, 2016). Communication is encouraged among manager and team to create security
sense for employees as well as help in employee retention. It also fosters culture of Network
Solutions.
4.0 Conclusion and Recommendations
It is concluded that the performance management is vital for each business
organization as it allows the business to meet with its goals and provides training to the
employees. Based on the performance issues addressed by Network Solutions, it lead to more
competition as well as increase in cost to manage employee’s performance. The
implementation of PM system requires performance and development planning, ongoing
discussions as well as updates along with yearly presentation summary.
In order to make the performance management system effective for the business
organization, it is recommended to document individual performance of each employees to
determine its compensation as well as career goal in the business. It is also recommended to
focus on developing of skills as well as creative learning activities. There should require to

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provide simplicity as well as reflectiveness on responsibility that is associated to performance
prospects.
References
Aguinis, H. (2015). Performance Management and Reward Systems in Context.
Ahmed, T. M., Bezemer, C. P., Chen, T. H., Hassan, A. E., & Shang, W. (2016, May).
Studying the effectiveness of application performance management (APM) tools for
detecting performance regressions for web applications: an experience report. In 2016
IEEE/ACM 13th Working Conference on Mining Software Repositories (MSR) (pp. 1-
12). IEEE.
Bianchi, C. (2016). Dynamic performance management (Vol. 1). Berlin: Springer.
Bititci, U., Cocca, P., & Ates, A. (2016). Impact of visual performance management systems
on the performance management practices of organisations. International Journal of
Production Research, 54(6), 1571-1593.
Cappelli, P., & Tavis, A. (2016). The performance management revolution. Harvard
Business Review, 94(10), 58-67.
DeNisi, A. S., & Murphy, K. R. (2017). Performance appraisal and performance
management: 100 years of progress?. Journal of Applied Psychology, 102(3), 421.
Franco‐Santos, M., & Otley, D. (2018). Reviewing and theorizing the unintended
consequences of performance management systems. International Journal of
Management Reviews, 20(3), 696-730.
Gerrish, E. (2016). The impact of performance management on performance in public
organizations: A meta‐analysis. Public Administration Review, 76(1), 48-66.

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Gudmundsson, H., Marsden, G., & Josias, Z. (2016). Sustainable transportation: Indicators,
frameworks, and performance management.
Richards, G., Yeoh, W., Chong, A. Y. L., & Popovič, A. (2019). Business intelligence
effectiveness and corporate performance management: an empirical analysis. Journal
of Computer Information Systems, 59(2), 188-196.