Performance Management Systems

This document provides an overview of performance management systems, including their definition, purpose, and tools. It also includes a case study of Qantas Airways, a leading airline organization. The document explores the planning, monitoring, employee development, rating, and rewarding aspects of performance management. Various tools such as key performance indicators, performance appraisals, 360-degree feedback, management by objectives, and reward and recognition programs are discussed. The report concludes by emphasizing the importance of effective performance management in improving employee productivity and organizational performance.

Running head: PERFORMANCE MANAGEMENT SYSTEMS
PERFORMANCE MANAGEMENT SYSTEMS
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Definition of performance management
As discussed by Campion, Campion and Campion (2015), performance management
can be defined as the process that can be implemented for proper development of the work
based environment in which the individuals or employees are able to perform and provide the
best levels of their performances. The performance management system mainly starts with
the proper definition of job designs based on recruitment of the employees and the system
ends when they ultimately leave the organizations (Hassan, 2016).
The process of performance management is developed by the organization and is used
throughout the year in order to manage the ways by which employees are able to perform in
the organizations and the environment as well. Performance management can be defined as
an entire work based system that is able to affect the jobs that are performed by the
employees. The development of performance management systems is considered to be an
important factor that is able to affect the operations of different modern organizations (Huang
et al., 2016).
The organization that has been taken into consideration for analysis related to proper
development of performance management system is Qantas Airways. Qantas Airways is a
flag carrier based organization of Australia, that has been able to develop the topmost
position in the industry with respect to the fleet size and international destinations that are
served as well (Qantas.com 2019). The airlines organization is mainly based on the suburbs
of Sydney with the main hub that is located at the Sydney Airport. Qantas has received 65%
of the share in the domestic market of Australia and has carried more than 14.9% of the total
number of passengers who travel in and out of the country (Qantas.com 2019).
Purpose of performance management

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As discussed by Inkinen (2015), the major purpose of performance management
system is based on the ways by which organizations are able to assess the ways by which
employees are able to perform the duties and responsibilities in an effective manner. The
satisfactory levels of performance of the employees and their productivity levels have a major
impact on the operations of different organizations (Inkinen, 2016). The employees of an
organization are sometimes dissatisfied with the implementation of performance management
systems throughout the year. The ratings that are provided by the organizations the
management to employees are able to affect the ways by which they are able to affect the
performance levels (Katsikeas et al., 2016).
Outline and critical analysis of an organizational model of performance management
The performance management systems that have been developed by Qantas Airways
are based on different activities that include, planning the work process and setting levels of
expectations, monitoring the performance levels, development of employees, rating and
rewarding the employees based on performance.
Planning the work process and setting expectations – The management of Qantas
operates in the environment with the help of a hierarchical structure in which the orders come
from the top level executives. The department of HRM works in the same way and the
planning process of the jobs and duties of employees are based on the expectations of the
supervisors (Mone & London, 2018). The communication of expectations to the employees is
considered to be an important factor that is able to affect the operations of Qantas Airways in
the industry. The process of job allocation by the organization is considered to be an
important factor that has an impact on the performance management systems (Nica, 2016).
Monitoring performance levels – The most significant methods that are used by
organizations in order to development performance management activities include, customer

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opinions, performance appraisals and observations. Qantas Airways has implemented these
methods in order to manage the performance levels of the employees in an efficient manner.
Performance appraisal is implemented by Qantas Airways on an annual basis in order to
analyse the levels of contribution that have been provided by the employees to the
performance of the organizations (Sharma, Sharma & Agarwal, 2016). The pay level increase
based decisions and the decisions that are related to providing bonuses to the employees are
taken with respect to the performance appraisal based activities that are performed (Inkinen,
2016).
Employee development – The development of employee performance is considered to
be an aspect of the performance management system that is developed in the organization.
The management of Qantas Airways aims at developing a high impact based employee
training activities. The skill based gaps that exist in the organization are fulfilled in an
effective manner with the help of performance management system in Qantas Airways (Shin
et al., 2015). The major complaints that are made by the employees in Qantas Airways are
based on the employee development programs that are developed and implemented. The
impact that is provided by the employee training programs is considered to be an important
factor that is able to affect the organizational operations. The expectations of managers are
however not fulfilled effectively with the help of proper employee development programs
(Smith & Bititci, 2017).
Rating the performance levels – The performance levels of the employees are able to
influence the operations of different organizations in industry. The major argument that has
been raised in this case is based on the ways by which the rating based process is able to
affect the performance and mentality of the employees. Relationships that have been
developed among the employees are also influenced by performance ratings offered by the

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management of Qantas Airways. The process of rating that is used in the organization is
considered to be quite tricky as it can have many negative effects as well (Shin et al., 2015).
Rewarding the effective performance of employees – As discussed by Campion,
Campion and Campion (2015), The reward system that has been developed in the
organizations is able to address different areas like, compensation, benefits, appreciation,
recognition. The performance levels of the employees are able to address the goals that have
been set by the organization in order to improve the levels of revenues (Katsikeas et al.,
2016). The rewards that are provided to specific behaviours of employees are able to affect
the ways by which revenues can be gained in the highly competitive airlines industry. The
areas based on performance management can be affected in a huge manner by the focus that
can be provided to employee performance levels. The costs based on labour can be reduced
with the help of proper performance management systems (Smith & Bititci, 2017).
Outlining the tools that can be used for doing performance management
As discussed by Inkinen (2015), performance management systems are able to
support the organizations to improve the levels of profitability and the revenues that are
gained as well. The progress levels of organizations can be measured in an efficient manner
with the help of performance management tools that are used by modern organizations.
Key performance indicators (KPIs) – The key performance indicators are used by
organizations in order to analyse the performance of employees.
Performance appraisals – The performance appraisals are used by organizations in
order to provide appropriate recognition to the employees for services that are provided by
them to the organizations (Smith & Bititci, 2017).

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360-degree feedback – The feedback process is mainly based on the opinions that are
gained by management of an organization from the different stakeholders. The feedback is
able to support the organization to take the decisions in an efficient manner (Hassan, 2016).
Management by objectives or MBO – MBO is considered to be a process that is
implemented in order to define the specific objectives and further deciding the ways by which
they can be achieved with the support provided by the employees.
Reward and recognition programs – The recognitions and rewards that are provided
by organizations to the employees are able to play a major role in the ways by which they can
achieve the objectives. The levels of motivation among employees can also be increased in
the process (Inkinen, 2016).
Personal development plans or PDP – The development of PDP or personal
development plans are tailored based on the needs of the employees. The performance levels
of individuals can be analysed in a detailed manner with the help of proper implementation of
the personal development plans.
The tools based on performance management are able to provide support to the
organization in order to maintain the operations and revenues as well (Katsikeas et al., 2016).
Conclusion
The report can be concluded by stating that the organizations need to implement the
performance management plans in order to manage the employees in an effective manner.
The organization named Qantas Airways that has been taken into consideration is able to
maintain its operations in the competitive airlines industry with the help of performance
management systems. The effective management of performance is considered to be an

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important part of the ways by which organizations can improve the levels of productivity of
employees and the increase in levels of revenues as well.

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References
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management through the use of 360 feedback. Industrial and Organizational
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Hassan, S. (2016). Impact of HRM practices on employee’s performance. International
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Inkinen, H. (2015). Review of empirical research on intellectual capital and firm
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management: A practical guide for managers. Routledge.
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commitment and employee performance. Journal of Self-Governance and
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Qantas.com (2019). Fly with Australia’s most popular airline | Qantas AU. [online]
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