Performance Management Issues at Sainsbury: Detailed Business Report

This report investigates the challenges faced by Sainsbury's in managing employee performance, focusing on issues such as motivation, engagement, and the effectiveness of traditional appraisal methods. It includes a literature review discussing performance management trends and the importance of aligning employee goals with organizational objectives. The report also features a quantitative analysis of data from sources like the ONS, visualizing employee perspectives on performance management practices and their impact on various stakeholders, including line managers, senior management, and the organization as a whole. Key findings highlight the need for improved employee engagement strategies, appropriate benchmarking, and effective training programs to enhance workforce performance and maintain a competitive advantage in the retail industry. The report concludes by emphasizing the importance of ongoing communication and adaptation of performance management practices to meet the evolving needs of the workforce.

Business issues

Table of Contents
Introduction.................................................................................................................................................3
Define business research problem...........................................................................................................3
Literature Review:...................................................................................................................................4
Identify data source from ONS website to address research problem......................................................5
Quantitative analysis of data by using different tools & techniques........................................................6
Visualize the data drawn from quantitative analysis................................................................................7
Findings and conclusion..............................................................................................................................8
Findings...................................................................................................................................................8
Conclusion.................................................................................................................................................10
References.................................................................................................................................................11

Introduction
Performance management is a tool that makes the managers enable to monitor as well as
evaluate the performance of staff members. The main goal of performance management is to
create such an environment where the employees can perform the assigned duties appropriately.
Basically, it refers their abilities so that high quality products can be produced. Performance
management is an ongoing process to maintain proper communication between supervisor and
the employees. Nowadays, it is quite difficult to maintain diligence, motivation & engagement
among workforce. To attain the pre-defined goals, there is requirement to keep the employees
motivated and engaged. However, companies found it difficult to maintain higher level of
motivation among workforce (Grossi and et. al., 2019). In present study, Sainsbury is taken into
consideration. It is a well-known name of retail industry. It offers groceries and other general
products like cloths, mobile phones, accessories and more. The company has nearly 16% share
of retail industry within UK. The report will cover issues the issue that is being faced by the
respective company in terms of managing the employees. Further, literature review along with
several models & theories has also been covered in the following study. Additionally,
quantitative analysis of data and its visualization has also been covered in the given study.
Research Question:
“To identify the challenges faced by the company in managing the performance of the
employees”.
Define business research problem
In the present era, managing the performance has become a major issue for every
company. It is quite complex for the organizations to keep the employees motivated to attain the
pre-defined organizational goals. Apart from this, managers are also required to put significant
efforts to engage the employees in assigned tasks. Lack of motivation directly affects the level of
morale of staff members (Armstrong and Taylor, 2020). They do not perform the assigned duties
effectively. Managing as well as monitoring the performance has become a crucial issue for
every company. In context of the present study, Sainsbury has been chosen as it is a prestigious

organization of retail industry. It provides groceries and several general items to the customers.
Sainsbury is a multinational company. The individuals of different countries are likely to work
together within the organization. Here, it is quite common to arise the conflicts among
workforce. In addition to this, the respective entity also face issue in terms of keeping the
employees engage & motivated. Lack of engagement direct affects the growth potential of the
company. This will significantly affect the enlargement of the respective organization in the
future period of time. Additionally, lack of performance also makes it difficult to maintain the
competitive advantage in market place. Therefore, the performance management is the most
significant issue that is being faced by the respective entity.
Literature Review:
According to Kenny, (2017), performance management is a process of improving the
performance of workforce constantly by setting the stipulated targets. It is a constantly evolving
field wherein human resources are considered as an important part of the company. Now,
performance management trend is emerging day by day. New and evolve techniques are
introduced by the entities. After a particular period of time, employees start to feel less
motivated, engaged. In addition, they also get frustrated by poor performance. In performance
management, it is ensured that organizational goals can be attained by streamlining the
performance of employees with organizational goals. Here, performance management is used to
establish a communication between supervisor and employee which occur throughout the year. It
is a crucial concept of HRM which is used to create such an environment where the employee
stay motivated & inspired.
Management by objective is an approach that is used for the purpose of performance appraisal of
the employees. Here, manager and employees work together to attain the pre-defined goals. In
this, objectives are set by the managers and then communicate to the employees (Rotaru, 2019).
After setting the objectives, employees & supervisor coordinate with each other to achieve the
stipulated objectives in an efficient manner.

It is analyzed that managers set goals by proper planning. Here, they define the
objectives, set control points and choose the accurate timeline to attain the goals. Further, they
monitor the progress of goals by setting necessary benchmarks. Further, they offer feedback to
the employees with an aim to make necessary improvements in the future period of time. At end,
they need to review the performance by collecting the result. Here, the managers collect
outcomes and discuss such outcomes with the employees (6 Practical Performance Appraisal
Methods for the Modern Workforce, 2022). After getting the review, employees maintain
communication with managers to make improvements in the outcomes in the future.
In context of Sainsbury, the business managers set objectives with an aim to assess the
performance of workforce. Here, they analyze the performance of the employees based on the set
objectives. Further, reviews are provided to the employees so that they can improve their existing
performance.
Identify data source from ONS website to address research problem
In British business, effective performance management is related to size of firm. It also
includes human capital. Better management of firms is helpful in improving the overall

productivity to generate advantages over the year. It is analyzed that the pandemic has been
affected the business practices. Now, there is requirement to adopt new & advance mechanism to
maintain high level of performance of workforce. In the present era, it is imperative to
implement effective ways to ensure the consistency of business in the future period of time.
Majority of the companies are likely to follow digital ways to run the business effectively.
Additionally, human capital is related to adopting both managerial as well as non-managerial
practices appropriately. There is requirement to implement certain effective managerial practices
to improve the skill set & capabilities of workforce (Management practices, homeworking and
productivity during coronavirus (COVID-19) pandemic, 2021).
Quantitative analysis of data by using different tools & techniques
After gathering the information from different employees of UK, it is monitored that
employees do not show interest in appraisal. They have feeling that the work they are doing is
time consuming & point less (Azungah, 2018). As per one of the surveys, it is found that the
companies are required to follow agile methodologies so that they can improve the performance
of workforce significantly. Apart from this, it is found that the traditional methods of
performance appraisal are not suitable any longer. To increase the overall performance, it is
imperative to use other indicators like salary increment, promotion, recognition, appreciation and
more. This will help in making improvement in the overall performance standards

From the above-graph, it is monitored that performance management is considered as a
stressful practice by 29% employees. In the present time, the companies are likely to implement
various campaigns in terms of maintaining the better health conditions of the employees. This
also helps in reducing down the stress level of workforce. In the above-graph, it is found that
39% employees consider that traditional methods of appraisal are not meaningful whereas the
performance management is considered as an effective practice by 26% respondents. After
analyzing the above-graph, it is monitored that 15% respondents consider that performance
management is an engaging process. On the other side, there are 11% respondents who think the
respective process as a difficult process. Through the graph, it is also monitored that 3%
employees think that the process of performance management is full of fun & entertainment.
Therefore, different respondents have different perspectives that will affect their response
effectively.
Visualize the data drawn from quantitative analysis
The main reason to conduct the performance management is to ensure that individuals
necessary skills & capabilities to perform the assigned duties in an effective way. Currently,
performance management makes the individuals enable to perform their duties in an appropriate
manner (Masri and Jaaron, 2017). There are ample of stakeholders of the organization who get
benefitted from the performance management practices. The major benefices of performance
management are identified as line managers, individuals, senior management, organizations and
more. It is analyzed that performance management is likely to benefit various stakeholders
within the organization. In the present scenario, response has been gathered from several
stakeholders that will help in terms of taking suitable actions in the future period of time.

From the above-graph, it is analyzed that ample of people get benefitted from the
performance management. It is found through the response gathered by different people. As per
44 respondents, individuals who are working within the company get highly benefitted through
performance management. As per 19 respondents, line managers are the most benefitted
individuals through the process of performance management. Apart from this, 4 respondents
agree that HR department also receive significant benefits through the process of performance
management. Through the above-graph, it is monitored that 11 respondents consider that senior
management people are likely to receive significant benefits out of performance management
practices. After the response gather from respondents, it is analyzed that 16 respondents are in
favor that organization gets benefit out of the approach of performance management adopted by
the company (What is performance management, 2017). There are some other 6 respondents
who consider that performance management practices are likely to generate positive benefits for
all the other people working within a particular organization.
Findings and conclusion
Findings
From the analysis of the above-mentioned information, it is monitored that performance
management has become a crucial problem for majority of the companies. In the present time, it
has become difficult to keep the employees engage in organizational activities. After a particular

period of time, they start losing interest in organizational tasks. It affects the success & growth of
the company in the future period of time. For this purpose, there is requirement to make some
improvements which are given below:
 The respective company is required to assess the needs and requirements of the
employees and offer them necessary monetary & non-monetary benefits accordingly. In
terms of monetary benefits, they need to offer various incentives, bonuses, increment in
salary and more. In context of the non-monetary benefits, there are requirements to offer
acknowledgements, recognition, appreciation and more. This will boost the morale of
workforce in an efficient manner.
 It is suggested that Sainsbury needs to set appropriate benchmark so that the performance
of the employees can be improved. Here, they are required to analyze the actual
performance of the workforce from set benchmarks so that necessary improvements can e
done in the future period of time.
 Training is a crucial way to improve the performance of workforce. To enhance the
potential of the employees, it is required to offer them necessary training. This training
will help in increasing the efficiency of workforce. Further, training will also help in
developing several skills & capabilities with an aim to contribute towards organizational
goals.

Conclusion
With above-information, it is found that performance management is an ongoing process
to maintain proper communication between supervisor and the employees. Nowadays, it is quite
difficult to maintain diligence, motivation & engagement among workforce. To attain the pre-
defined goals, there is requirement to keep the employees motivated and engaged. It is analyzed
that the employees have different perception regarding the performance management. Further, it
is monitored that performance management drives benefits for ample of stakeholders in terms of
individuals, senior managers, line managers and others. Moreover, there is requirement to set
benchmarks to enhance the performance level of workforce. Training will also prove helpful in
improving the performance of workforce.

References
Books and journals
Armstrong, M. and Taylor, S., 2020. Armstrong's handbook of human resource management
practice. Kogan Page Publishers.
Azungah, T., 2018. Qualitative research: deductive and inductive approaches to data
analysis. Qualitative research journal.
Grossi and et. al., 2019. Accounting, performance management systems and accountability
changes in knowledge-intensive public organizations: a literature review and research
agenda. Accounting, Auditing & Accountability Journal.
Kenny, J., 2017. Academic work and performativity. Higher Education, 74(5), pp.897-913.
Masri, H.A. and Jaaron, A.A., 2017. Assessing green human resources management practices in
Palestinian manufacturing context: An empirical study. Journal of cleaner
production, 143, pp.474-489.
Rotaru, C.S.F., 2019. Challenges and opportunities for sustainable finance. Journal of
Contemporary Issues in Business and Government, The, 25(1), pp.1-13.
Online
What is performance management, 2017. [Online]. Available through
:<https://rapidbi.com/what-is-performance-management-cipd-research/
6 Practical Performance Appraisal Methods for the Modern Workforce, 2022. [Online].
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appraisal-method/>
UK employees losing faith in annual performance management cycles, 2020. [Online]. Available
through :< https://www.consultancy.uk/news/17726/uk-employees-losing-faith-in-annual-
performance-management-cycles>

Management practices, homeworking and productivity during coronavirus (COVID-19)
pandemic, 2021. [Online]. Available through :<
https://www.ons.gov.uk/economy/economicoutputandproductivity/productivitymeasures/
articles/
managementpracticeshomeworkingandproductivityduringthecoronaviruscovid19pandemic/2021-
05-17/>