Implementation of PMS

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

IMPLEMENTATION OF PMS 2
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

IMPLEMENTATION OF PMS 3
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