Performance Management

Running Head: Performance Management 1
Performance Management
Name:
Institute:

Performance Management 2
Executive Summary
Many businesses in the contemporary world start with great performance and quality of
service but as the number of customers increase the performance and quality declines. This in
turn leads to reduced number of customers and can even lead to closure. One of the proven ways
of maintaining high performance or increasing performance is conducting performance
management. Performance management is a key aspect of maintaining a high quality of service
output to consumers and entails reviewing employee performance as well as achievement of
strategic goals (Smith & Bititci, 2017). This study paper is aimed at reviewing the performance
management system of Coral Cape Lodge. The paper will outline the strengths and weakness of
the performance management system and provide recommendations. The study is important as it
offers the reader an insight into workings of performance management as well as how to
properly implement it.
Strengths and Weaknesses of Coral Cape Lodge’s Performance Management System
According to a survey conducted by Coral Cape Lodge, the quality of meals has declined
over time according to customers. This observation is indicative of a problem existing within the
department. In the survey conducted on Coral Cape Lodge employees it was found that one of
the new chefs has been employed for the past eight months but has not had her performance
appraisal conducted. According to the same survey a majority of company employees do not
clearly remember their primary job requirements and key requirements. The above information
demonstrates that the Coral Cape Lodge’s performance management system is not adequate or
being adhered to. Recent research has shown that in order for a performance management system
to work it has to be comprehensive and include training sessions on areas that require

Performance Management 3
improvement (Van Dooren, Bouckaert & Halligan, 2015). From the survey conducted by Coral
Cape Lodge’s performance management system, 90% of employees think they require formal
training. The training has also never been offered by the business for its employees.
Management is vital when trying to improve general performance in any business. It is
management that comes up with performance targets and strategies then passes this information
to other employees. Management is tasked with effectively communicating the company’s goals
as well as each person’s individual responsibility and requirements (Shields, Et al, 2015). The
management of Coral Cape Lodge has failed in its mandate to provide appropriate performance
indicators to its employees. This can be observed from the fact that 60% of the company
employees indicated that they are unsure of the business’s goal or objective. It can also be noted
that only 10% of the business’s employee could recall their primary job requirement.
Coral Cape Lodge has come up with a clearly defined timeline for conducting
performance appraisals and it occurs twice in a year. In this aspect the performance appraisal
system is in line with effective performance management standards that states appraisal meetings
should be performed regularly (Noe, Hollenbeck, Gerhart & Wright, 2017). The efficiency of the
appraisals is, however, below expectations in terms of effectiveness. From the survey
approximately 60% of all Coral Cape Lodge employees think that the appraisal process and
meetings are a waste of time. This clearly demonstrates the amount of miscommunication and
lack of understanding on how appraisals are meant to work. Employee feedback is also an
important aspect in increasing the performance of employees and increasing the quality of
service offered (Mone & London, 2018). According to Coral Cape Lodge strategic plan feedback
is meant to be collected, however, the business has not collected the views and opinions on the