Performance Management at Star Entertainment Group

This report analyzes the performance management system at Star Entertainment Group, evaluates its advantages and disadvantages, and provides recommendations for improvement. The report includes a discussion on the importance of performance management, background of the organization, overview of the performance management system, evaluation of the system, recommendations, and implementation.

Running head: PERFORMANCE MANAGEMENT
Performance Management
Name of the Student
Name of the University
Author note

1PERFORMANCE MANAGEMENT
Executive Summary
The report has helped in the entire analysis of the performance management system which is
being used at Star Entertainment Group. The different kinds of advantages and disadvantages are
analyzed which assisted in analyzing and understanding the issues which affected the morale of
the employees. Furthermore, the various kinds of techniques which is inclusive of the KPI and
KRAs having been measured which helped in gaining knowledge on the different other
performance measurement system. Lastly, the recommendations along with options and
implementation have been analyzed and done to become more effective in nature.

2PERFORMANCE MANAGEMENT
Table of Contents
Introduction 3
Background of the organization 3
Overview of the performance management system 3
Evaluation of the system 4
Recommendations 6
Implementation 10
Conclusion 11
References 12
Appendix 15

3PERFORMANCE MANAGEMENT
Introduction
The report will help in analyzing the importance of the performance management system
in the respective organization named Star Entertainment Group. Proper analysis and
identification of the different policies along with procedures related to Performance Management
System will be discussed which will be inclusive of the different kinds of evaluation of the
system inclusive of validity, reliability, cost effectiveness and fairness of the PMS which is being
used in the organization.
Background of the organization
The Star Entertainment Group which was formerly known as Echo Entertainment Group
is one of the leading gaming and entertainment groups. The number of employees working in the
organization is more than 8000 till the year 2015 and the CEO of the company is Matt Bekier
(StarEntertainmentGroup.com, 2018). The company was being founded in the year 2011 and the
vision of the company is to become the leading resort in Australia till the year 2020. Tabcorp
Holdings demerged he operations of casinos and therefore, now Star and Echo are two different
groups.
Overview of the performance management system
The performance management system which is being used at Star Entertainment Group is
inclusive of the following:
● Results Based Measurement which is inclusive of the diversity percentage along with the
workplace complaints

4PERFORMANCE MANAGEMENT
● Behavior Based Measurement is inclusive of customer complaints which is being used at
Star Entertainment Group
Furthermore, the company uses the Star STRIVE framework for performance
management in the organization which acts as the database and contains different data which is
used to automate the process in a proper and effective manner. There are different kinds of
advantages in the current performance management system which is inclusive of the following:
● The performance management culture of organization is effective which affects the
overall performance of the organization (Performance=Ability*Motivation*Opportunity)
● This helps in tracking performance against the KPIs (Akhtar & Mittal, 2015)
● The PMS is flexible in nature and efficient and this can be used for the succession
planning in the organization (Alonso, Moscoso & Salgado, 2017)
Furthermore, there is clear alignment of the STRIVE and balance scorecard with the
vision of the respective company. Moreover, in the current performance management system,
there is involvement of the different staff members who are working in the organization and this
is helpful in tracking the performance against the KPI’s.
Evaluation of the system
Proper evaluation of the system is essential in nature which is required to be analyzed at
Star Entertainment Group which is inclusive of both advantages and disadvantages. Firstly, there
are major three phases of the performance measurement which is inclusive of the following:
● Ignition

5PERFORMANCE MANAGEMENT
● Mid-Year Check In
● End of Year Assessment
Validity is defined as the degree to which a measure measures and what is being
supposed to measure as well. With the implementation of the participative target setting, Star
Entertainment Group has been able to gain profitability in achieving the goals.
However, with the usage of the traditional PMS, there is lack of effectiveness in the
measurement of the performance of employees working in the organization along with issues
relating to the biasness in the subjective kind of performance management system or process
which is being used at Star.
Cost Effectiveness is the other aspect which is required to be judged in terms of the
performance management system which is used in the organization. There is no such cost
effectiveness in the process used at Stars Entertainment Group as the traditional methods are
being used and they are time consuming and expensive in nature as well (Alonso, Moscoso &
Salgado, 2017).
Fairness and Reliability are the other aspects in which the Star Entertainment group is
not efficient in nature. The main reason due to this ineffectiveness is the lack of the capabilities
of leadership and all the decisions are being measured on the basis of the judgment of the
different supervisors who are working in the respective organization.
There are various common errors in the PMS which is being utilized at Star
Entertainment Group which includes the different kinds of judgmental errors such as there is

6PERFORMANCE MANAGEMENT
huge biasness in the reviewing of the employee performance and this lacks clarity among the
different other employees working in the organization.
Recommendations
There are various recommendations which can be taken into consideration for improving
the performance management system of Star Entertainment Group. From the above analysis and
evaluation of the system, this has been identified that there are various kinds of weaknesses
which is affecting the motivation of the employees. Moreover, there is no inclusion of the KPI
and KRA in the PMS which is used in the company in the present scenario.
Tyagi et al., (2016), has commented that there are five questions which are required to be
answered in order to develop an effective kind of framework which will help in managing the
performance of the different employees working in the organization. Furthermore, Podgórski
(2015), has commented that the behavioral approach only deals with analyzing the different
kinds of behaviors of employees working and there is no such review done on the tasks which
are being done by them.
Bednall, Sanders & Runhaar (2014), has opined that the different kinds of core activities
are required to be analyzed in order to achieve the business strategy. From the entire analysis,
this has been analyzed and identified that in Star Entertainment Group, the company only
guarantees the business goals such as finance and the other goals are being measured with the
implementation of behavioral approach (Arnaboldi, Lapsley & Steccolini, 2015).
The different recommendations which can be followed by Star Entertainment Group are:

7PERFORMANCE MANAGEMENT
Firstly, linkage of the performance of employees with the projects and goals will help in
supporting the strategic plan which is deemed critical for the success of the organization. The
traditional approach of performance management is required to be removed and there should be
proper implementation of the 360-degree appraisal system which can take the different reviews
of the outside stakeholders, employees, peers and the higher-level employees as well (Carberry,
2012).
Secondly, there should be inclusion of proper training programs for the different
employees and the employer working at Star Entertainment group. This will be essential and
helpful in nature to understand the process of measuring the performance of the employees and
this will reduce the biasness and validity will be increased (Buckingham & Goodall, 2014). For
instance- Both managers and employees need to understand the schedule, scoring system, usage
of the technology and career advancement techniques and this will be effective in nature to
analyze the different viewpoints of the employees and employers regarding the performance.
Thirdly, in order to reduce the biasness in the performance management system, this is
essential to introduce the Key Performance Indicator in the performance rating or review process
which will help in providing job satisfaction to the different employees and this will improve the
overall productivity of the organization as well. Monitoring and analyzing the KPIs is time
consuming process, but this helps in providing accurate results regarding the performance of the
employees working in the organization (Elnaga & Imran, 2013).
Fourthly, there should be inclusion of the development plan in the performance
management system which will be used in the organization. There is a need of continual learning
and performance appraisal and review is one of the best techniques to spell out the different
details. The managers of the organization need to focus mainly on the different kinds of skills

8PERFORMANCE MANAGEMENT
which are required to be developed by them and then discuss along with document these during
the review meeting (Dhar, 2015).
Performance appraisal is one of the best techniques which can be adopted by Star
Entertainment Group as this will help them in judging the performance of the employees through
a valid and accurate process. Moreover, this will help them in managing their performance
effectively with working on the comments provided to them. McIntosh & Morse (2015), has
commented that making self-review part of the process for everyone is essential in nature which
will help in managing the different performances appropriately. On the other hand, Gerasimov &
Gerasimov (2014), has hypothesized that employees may provide with vital project or the
competency achievement which will be appropriate in understanding their own competencies
and work on them simultaneously.
Lastly, set review dates in advance is the other step which is required to be followed in an
efficient manner which will help in regular reviews at regular intervals which will help in
managing the performance of the different employees in the organization. A well-designed
performance management system process can be positive in nature and this will be a positive
motivator for the different employees. Furthermore, with the implementation of the effective
PMS will be helpful in managing the different performances of the employees in an appropriate
manner (Levashina et al., 2014).
The continuous feedback and reward management system is required to be analyzed by
Star Entertainment Group which will improve the morale of the different employees working in
the company (Bryman, 2014). The reward system should be changed to traditional pay which is
inclusive of the basis of the performance and the competence-based pay which will be helpful in
gaining more motivation while performing the different tasks. Furthermore, with the

9PERFORMANCE MANAGEMENT
implementation of the KPI and KRA, the specific objectives will be measured which is inclusive
of the following:
● To measure the performance of the employees without any kind of inflexibility and
biasness
● To analyze and measure the different feedback development norms which will help in
training of the different employees (Saudi et al., 2015)
● To analyze the different competencies and behaviours which will help in improving and
introducing the new pay system for the different employees working in the organization
The different options which can be taken into consideration are as follows:
There are various kinds of options available for the Star Entertainment Group which will
be helpful in analyzing the different options which can help them in becoming effective in the
tasks which are being performed by them. The implementation of the 360-degree appraisal
system can be included in the organization as this will help in measuring the performance
through a complete process starting from the employees, employer, peers and the outside
stakeholders. This tool is about answering the question which is how well the employees are
performing in the eyes of those who have stake in their performance. This respective tool is
being used for the entire assessment of the performance of the different employees along with
the training and development of the employees in the organization as well.
Moreover, with the implementation of the 360-degree appraisal technique, this helps the
managers along with the different employees in the organization to provide them with different
views and there is no biasness included in the same. The different components of rewards are

10PERFORMANCE MANAGEMENT
inclusive of transactional and relational rewards. This is the best suitable option which can be
analyzed by Star Entertainment group in order to improve the overall performance of the
organization.
Implementation
The respective 360-degree appraisal process can be adopted by the organization Star
Entertainment Group in such a manner which will help in changing the reward system which is
being provided to the employees. There are different options for base pay which is inclusive of
relational rewards and transactional rewards. The options are required to be taken into
consideration in which this is inclusive of person and position-based rating system which will be
adopted in an appropriate manner according to the situation.
There are different kinds of resistance to changes among the different employees working
in the organization. The two models are psychological model and system model of resistance.
These resistances are required to be reduced from the organization by reducing the fear among
the employees regarding the changes which will be taking place. This has been noticed that the
individuals are averse to change which is caused by uncertainty along with lack of tolerance. The
Star Entertainment Group needs to include the employees in the change management process
which will help them in reducing the resistance to change in organization.
On the other hand, there are other issues which is relating to losing of benefits which is
being gained by the employees in the present work environment and they are scared that there
will be changes in the future. This can be noticed that change is not predictable and there can be
different alternatives which can be provided in order to reduce the negativity among the
employees in a positive manner.

11PERFORMANCE MANAGEMENT
These are the different kinds of issues relating to resistance to change among employees
who are affecting their morale and this is affecting the productivity in a negative manner. With
the implementation of the communication and other procedures, this will help in supporting the
competencies of leadership and gain more competitive advantage in the future. Furthermore, this
will assist in preparation along with roll out of EA negotiation in the year 2018. There will be
proper drive of the employee engagement practices at Star Entertainment group which will help
in achieving more than 80% of the results in the future and gain more competitiveness as well.
The measurement system which will be implemented at Star Entertainment Group is comparative
in nature as this will be taking into consideration the different kinds of aspects which will helpful
in managing the different kinds of efficiencies in a competitive manner.
Conclusion
Therefore, this can be concluded that the performance management system plays a major
role in the different organizations which helps in improving the overall effectiveness. With the
implementation of the recommended PMS, the Star Entertainment Group will be gaining huge
competitive advantage. The regular feedbacks will be provided to the employees on the job
which are being performed by them and providing maximum opportunity growth to them as
well.
Moreover, the PMS should be flexible and reliable in nature as this will generate
unbiased results and the employees should be given equal opportunity to put forward their views
which can be done through the implementation of the 360-degree appraisal system and inclusion
of reward system for the excellent performance.

12PERFORMANCE MANAGEMENT
The inclusion of KPI and KRA are required to be taken into consideration which will
enable to improve the growth of the company in an appropriate manner. Lastly, the reward
management system and development of feedback system will be helpful in gaining huge
competitiveness in the entire market.
References
Akhtar, M., & Mittal, R. K. (2015). Implementation issues and their impact on strategic
performance management system effectiveness–an empirical study of Indian oil
industry. Measuring Business Excellence, 19(2), 71-82.
Alonso, P., Moscoso, S. & Salgado, J.F., 2017. Structured behavioral interview as a legal
guarantee for ensuring equal employment opportunities for women: A meta-analysis. The
European journal of psychology applied to legal context, 9(1), pp.15-23.
Arnaboldi, M., Lapsley, I., & Steccolini, I. (2015). Performance management in the public
sector: The ultimate challenge. Financial Accountability & Management, 31(1), 1-22.
Bednall, T. C., Sanders, K., & Runhaar, P. (2014). Stimulating informal learning activities
through perceptions of performance appraisal quality and human resource management
system strength: A two-wave study. Academy of Management Learning &
Education, 13(1), 45-61.
Bryman, A., 2017. Quantitative and qualitative research: further reflections on their integration.
In Mixing methods: Qualitative and quantitative research (pp. 57-78). Routledge.
Buckingham, M., & Goodall, A. (2015). Reinventing performance management. Harvard
Business Review, 93(4), 40-50.

13PERFORMANCE MANAGEMENT
Carberry, E.J., 2012. Making sense of organizational environments: the adoption of employee
stock options in the Indian technology sector. The International Journal of Human
Resource Management, 23(8), pp.1519-1546.
Dhar, R.L., (2015). Service quality and the training of employees: The mediating role of
organizational commitment. Tourism Management, 46, pp.419-430.
Elnaga, A. & Imran, A., (2013). The effect of training on employee performance. European
Journal of Business and Management, 5(4), pp.137-147.
Garavan, T., Watson, S., Carbery, R. & O’Brien, F., 2016. The antecedents of leadership
development practices in SMEs: The influence of HRM strategy and
practice. International Small Business Journal, 34(6), pp.870-890.
Gerasimov, B. N., & Gerasimov, K. B. (2014). Modeling the development of organization
management system. Asian Social Science, 11(20), 82.
Levashina, J., Hartwell, C.J., Morgeson, F.P. & Campion, M.A., (2014). The structured
employment interview: Narrative and quantitative review of the research
literature. Personnel Psychology, 67(1), pp.241-293.
McIntosh, M.J. & Morse, J.M., (2015). Situating and constructing diversity in semi-structured
interviews. Global qualitative nursing research, 2, p.233.
Podgórski, D. (2015). Measuring operational performance of OSH management system–A
demonstration of AHP-based selection of leading key performance indicators. Safety
science, 73, 146-166.

14PERFORMANCE MANAGEMENT
Saudi, M. H. M., Noor, K. B. M., & Poly-Tech, K. (2015). The Effect Of Performance
Management System Implementation: The Case Of A Malaysian Service Organization
From BSC Learning And Growth’s Perspective. Advances In Global Business Research
Vol. 12, No. 1, Issn: 1549-9332, 154.
StarEntertainmentGroup.com., (2018). Retrieved from
https://www.starentertainmentgroup.com.au/
Tyagi, V. V., Pandey, A. K., Buddhi, D., & Kothari, R. (2016). Thermal performance assessment
of encapsulated PCM based thermal management system to reduce peak energy demand
in buildings. Energy and Buildings, 117, 44-52.

15PERFORMANCE MANAGEMENT
Appendix
Figure 1: Performance Management System Cycle
(Source: Dhar, 2015)

16PERFORMANCE MANAGEMENT
Figure 2: Resistance to Change
(Source: Dhar, 2015)
Figure 3: Overcoming Resistance to Change
(Source: Dhar, 2015)