Implementation of PMS

This report discusses the implementation of performance management system (PMS) in organizations, focusing on the challenges and recommendations for effective implementation. It also includes a case study of Wesfarmers and its HR activities.

Performance Management System

IMPLEMENTATION OF PMS 1
Contents
Introduction.................................................................................................................................................1
Performance management system...............................................................................................................2
Issues and challenges in implementing PMS...........................................................................................7
Options to implement PMS.....................................................................................................................8
Recommendations how it should be implemented...................................................................................9
Conclusion.................................................................................................................................................10
Bibliography..............................................................................................................................................11

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Introduction
This report starts with several definitions of performance management as assessed by different
authors. The review of this report empowers readers with a lot of information and performance
management theories. However, it can be argued it is a challenging process to implement for any
organizations. Performance management system involves various stages and activities of doing
things, attending to conditions, communicating, processing, reviewing and giving rewards and
achieving objectives (Gruman, 2011). Performance of an employee or an organization is an
actual task that executes to ensure that an organization achieves its mission. Overall performance
management is a process of giving inputs, conditions, elements, outputs result and feedbacks
(Mone, 2018).
Wesfarmers organized in 1914 has now grown as Australia’s leading brand. The company
operates in many sectors like retail, fertilizers, coal mining and other safety products. The
company works with 217000 employees. HR is a key functional area in the company’s business.
The company’s HR team handles the HRM operations helps to achieve well in business
(Wesfarmers, 2018).
This report will include theories and concept of the performance management system, and how
Wesfarmers should implement performance management system with its HR activities. It will
also include the issue and challenges using and implementing this system and it will also provide
recommendations that how Wesfarmers should implement a performance management system.
Performance management system
Performance management cycle is a wide and complex process of organizations, as it
incorporates many actions such as planning or executions, continues progress review, goal

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setting, and communications, giving feedbacks for what has to be done to improve performance
and implementation of the performance development plan and final observing and rewarding
good performances (Towler, 2018).
The job of HR in the current condition has experienced an ocean change and its attention is on
developing such utilitarian methodologies which support effective utilization of the major
corporate techniques. As it were, HR and organizational procedures work in arrangement. Today,
HR progresses in the direction of motivating and improving the execution of the workers by
structure a favorable place of work and giving most extreme changes to the workers for taking an
interest in authoritative placing and basic leadership procedures (Juneja, 2018).
In Wes farmer, all the significant activities of HR are driven towards the enhancement of
superior leaders and cultivating worker stimulation. However The employee of the organization
are industrially engaged cooperative people with prevalent relational abilities and enthusiasm for
conveying results that lead them to be a profoundly drawn in, skilled and submitted workforce
(Wesfarmers, 2019) yet HR should introduce PMS to establish a good environment which
motivates employees to create their own objectives and perform well to accomplish them.
There is no globally accepted concepts and mode for performance management cycle. Various
experts assessed this cycle as per their own ways. Model of PMS has 5 key fundamentals or
stages (Franco‐Santos, 2018), which state how PMS has to be implemented in Wesfarmers in
order to grow its employee and business performance
The stages of the performance management process involve:
 Planning and setting the goals and objectives
 Performance measurement

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 Feedbacks to employees
 Reward system
 Performance improvement plan (PDP)
 Appraisal (Juneja, 2018)
(Source by Author)
Performance planning and setting objectives: This is the first components of any
organizations performance management cycle. During this stage, employee set their objectives
and goals and targets which can be performed during the year. HR of Wesfarmers has to
introduce this system to its employees has to plan for further process and sett objectives for
employee and the company.
Planning and
setting
objectives
Perfomance
measurement
Feedbacks to
employees
Rewarding
them
PDP
New Appraisal
Performance
Management
System or Cycle

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Measuring the performance: This stage is very important and it is also significant to consider
the tools and techniques for an organization that how an employee’s performance can be
measured. This involves the few aspects which help Wesfarmers to measure its employee's
performance such as quality of task done by the employee, attitude, employee’s presentations,
client survey, time management, a random check (Moynihan, 2016).
Feedback to employees: feedback and counseling are given a great deal of significance in the
execution of the performance procedure. In this stage, managers have to give feedback to their
employees. This face phase in which the worker procures mindfulness from the evaluator about
the zones of upgrades and furthermore information and data on whether the representative is
contributing to the normal dimensions of execution or not.
Rewards system: This is a critical segment as this will only consider the work inspiration of an
employee. With this stage, leaders have to recognize the performance of its employee and reward
them for their good performance and contribution. This dimension is extremely touchy for a
worker as this may affect the confidence and achievement orientation (Pulakos, 2018).
Performance improvement plan: In this process, leaders of the company have to set new
arrangement of aims and purpose for workers and new due date is accommodated achieving all
those goals. The worker is obviously conveyed about the regions in which the worker is required
to improve and a required due date is additionally doled out inside which the worker should
demonstrate this improvement (Pulakos, 2018).
Appraisal: Potential examination frames a reason for both sidelong and vertical improvement of
workers. By actualizing competency mapping and diverse evaluation methods, the company can

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perform the following potential appraisal. This appraisal gives critical contributions to
progression arranging and employment pivot (Pulakos, 2018).
There are many theories which assess this concept of PM and the major two theories which
appropriately underlying this concept: The goal setting theory and Expectancy theory.
Goal setting theory: Edwin Locke introduced this theory in 1968. This theory states that the
individual objectives and aims set by an employee play a major part to improve his performance
and accomplish the target (Locke, 2019). By implementing the PMS System company can set
individual goals. This will help workers keeps following their objectives and goals. If the targets
are accomplished and purposes are achieved, they will improve their performance or set higher
targets and make them fulfill.
However, this theory also incorporates several limitations. Often, the organization's purposes are
in strife with the administrative aims. Objective clash destructively affects the task in the event
that it rouses contrary activity float (Juneja, 2018). Difficult and complicated objectives
invigorate more dangerous conduct. In the event that the worker requires abilities and aptitudes
to execute activities basic for the objective, at that point the goals set can come up short and lead
to the dejection of execution. There is no evidence to prove that the goals setting improves work
fulfillment.
Expectancy theory: This theory recommended by victor vrooms in 1964. The theory expresses
that the power of an inclination to execute in a specific way is subject to the force of a desire that
the finishing will be trailed by a good outcome and on the intrigue of the outcome to the person.
This theory centered on the assumption that individual employee developed their behavior in
associations according to the expected satisfaction of valued objectives set by them.

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This theory also satiating that good expected outcome encourages the employee to perform well.
If Wesfarmers would set goals and pay them good rewards, the employee will perform well by
expecting a good outcome. Overall the individual employee adopts their behavior in a way,
which leads him to achieve the goals. This theory underlying the notion of PM as it is assumed
that performance influenced by the opportunities concerning future actions (Hayes, 2018).
AS every theory has their crisis, this theory has its limitations such as the managers can relate the
favored outcome to be pointed execution levels. The leaders have to guarantee that the
employees can accomplish the pointed execution stages. The meriting workers have to be
remunerated for their remarkable performance. The reward framework has to be reasonable and
just in an association. Associations must structure fascinating, testing employments and dynamic.
The worker’s inspiration level ought to be regularly recognized through diverse procedures, for
instance, survey, individual meetings (Juneja, 2018).
Issues and challenges in implementing PMS
Strategic implementations of the performance management system and its execution yield the
required results. The planning and alignment of the goals and objectives are one of the important
are of PMS. There is nothing left perfect or absolute and error free. The execution of
performance appraisal policy is an important aspect of PMS. Poor measurement and judgment by
the leaders, fewer performance feedbacks, and lack of required resources, impractical
expectations, and unfair treatment to staffs are some of the major issue and challenges in
implementing this cycle. Poor management leads an organization to the partial accomplishment
of objectives and poor performance. And HR has to assure that employee is getting fair treatment
or not, all resources are available in the company or not, are employee getting feedbacks on time
and leaders measuring their employee’s performance fairly or not.

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In many cases, senior leaders are so centered on scorecard the executives to recognize
individuals responsible that the formation of the scorecard isn't lined up with organizations
center territories, yet rather various deliverable ventures and undertakings. Apart from this, there
are many challenges such as lack of measurement, wrongly measurement, ignoring changes
needs this system and incompetence (Rajendran, 2018).
Options to implement PMS
It is significant to know for the Wesfarmers that how the performance management system
should be implemented effectively and how seriously mange and employee utilize it.
There are several aspects to implement it effectively in the company, however, at its center is
giving an easy to use, esteem included framework that the two administrators and representatives
can and will utilize successfully. The following segments talk about accepted procedures
dependent on the change the board writing (Pulakos, 2018).
There are several cornerstones of successful implementations. First is the company has to make
sure that it is aligned with the HRM system, second is organizations member whether they are an
employee or board members, has to be motivated to utilize it. After that leaders should
communicate that benefits, this system can bring for the company. 3rd is to automate some
system as automation can greatly facilitate the system and reduce paperwork associated with this
system.
Another significant factor in ensuring effective usage is to guide test the new procedure in two or
three units before huge scale execution. Pilot testing will appear if the framework capacities
easily and proficiently. It will likewise appear if chiefs and workers comprehend and bolster the
procedure, or if further change-the board endeavors are required (Pulakos, 2018).

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The last is to train employee and managers about this system and it will impacts and help to
success. There are many training formats that have to be used for PM. For this company can give
classrooms training and web-based training (Pulakos, 2018). However, Wesfarmers’s technology
systems are upgraded and the company can give training by utilizing their effective technology
system.
Recommendations how it should be implemented
Commitment and motivation are important to the success of the organizations and it has to
introduce procedures to support them. There are five recommendations to Wesfarmers to
implement the new system effectively.
Support and leadership: Management of the company has to ensure that the organization have
the time and proper resources to properly implement this system and must be realistic for the
time and effects of this wide change demands placed on employees.
Strategic planning: This recommendation to involve activities linking the new PMS system to
the company mission, defined strategies, and business vision. The new system should be
implemented according to organizations conditions and market conditions as well.
Planning and implementation: The recommendation is about to identify the issues to change,
as well as factors that will drive it. The company has to involve those activities which motivate
all employees by setting goals and objectives.
Appropriate training and motivation: Training is an important part to implement it. leaders
while communicating about this system should involve points on how to adopt this new system.
Training supports employee and gives them the opportunity to develop their skill and that will
motivate them in return.

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Conclusion
It can be concluded that performance management procedure is important for organizations, and
also it is most important to recognize the issue and challenges in implementing this system.
Many factors develop an effective organizational performance management system. Some are
the most important. First is that the PMS has to align and help the organization’s important and
key factors. The second is well-developed resources which are required to make this user-
friendly. Last and most important is that both employees and managers should utilize this system
that brings visibility, benefits in the stages of planning, PDP, feedbacks, training and
accomplishing objectives. Wes farmer is a leading brand and by utilizing PMS the company can
establish a good culture and ethical environment amongst employees. The employee will get
more opportunities to learn to develop their skills and those developed skills contribute to
success in turn.
Bibliography

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