Managing Organisational Health: Analysis of Sainsbury's Performance Management System

Running head: MANAGING ORGANISATIONAL HEALTH
Managing Organisational Health
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MANAGING ORGANISATIONAL HEALTH
Table of Contents
Introduction................................................................................................................................2
Analysis of Existing Organisational Performance Management System..................................2
Organisational Performance Management and Performance Measurement..........................2
Communicating Performance to Stakeholders.......................................................................3
Risk Management...................................................................................................................4
Quality Management and Improvement.................................................................................5
Financial Performance............................................................................................................5
Customer and Client Perspectives..........................................................................................6
People Perspectives................................................................................................................6
Implementation Issues............................................................................................................7
Recommendation........................................................................................................................7
Conclusion..................................................................................................................................8
Reference....................................................................................................................................9

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Introduction
The assignment focuses on the current organisational performance management
system obtained by a reputed company. The assignment analysis other attributes such as
communication of performance with the stakeholders, risk management, quality management
along with financial performance and so on. The focus of the assignment is on Sainsbury's, a
retail company in the UK. The assignment analysis the organisational performance
management used in Sainsbury's and provides a recommendation for its improvement.
Sainsbury’s is one of the most reputed retail companies situated in London. It is a
public limited company with a 16.9% share of the supermarket. John James Sainsbury
founded the company in 1869 and within 1922; it became the largest grocery retailer in the
country (Sainsburys.co.uk 2018). Currently, the company has over 1812 stores located all
across Europe and the UK within employee strength of 162,000 (Sainsburys.co.uk 2018). As
per recent reports, the company is listed on the London Stock Exchange with about 21.99%
of the share of the company being held by Qatar Investment Authority. Reports also claim
that Sainsbury’s is the second largest retail company in the UK behind only to Tesco
(Sainsburys.co.uk 2018).
Analysis of Existing Organisational Performance Management System
Organisational Performance Management and Performance Measurement
According to Van Dooren, Bouckaert and Halligan (2015), organisational
performance management and measurement is the most important analysis that brings into
focus the capabilities of a public sector enterprise. It is a systematic approach to improve the
existing quality of performance in an organisation. Normally performance management is
measured by the economic condition, the efficiency and the effectiveness of a particular

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company. In the case of Sainsbury's the organisational performance management system
takes into account the challenges and opportunities of the modern day. These include
technical challenges and financial challenges (Buckingham and Goodall 2015). For
Sainsbury’s the financial capability of the company is stable as it earns a net income of £471
million. This accounts for the company to be financially viable and ensure that the needs of
the employees are fulfilled.
The introduction of new technology in the market poses a challenge for the company,
as timely delivery of information is one of the biggest challenges that companies often face.
In the case of Sainsbury's, this is a threat as the company have its stores spread across the
country. The exchange of information from one store to another need to be done in a proper
manner so that customer and employee satisfaction can be upheld (Pulakos et al. 2015).
Based on this analysis, it can be said that Sainsbury’s the organisational performance
management and measurement system of Sainsbury’s focus on improving the technical
expertise of the company. This is usually done by conducting a proper analysis of the market.
The current system takes into account the environmental challenges that are faced by
companies in the market.
Communicating Performance to Stakeholders
Stakeholders are the group of entities that take into the account the interests of a
company (Shields et al. 2015). It can be in the form of internal as well as external that
provide support for the betterment and existence of a company. The decisions of the
stakeholders can affect the outcome of a business. Likewise, decisions that are taken by a
business organisation also affect the outcome of the stakeholders. Normally, the stakeholders
of a company include the employees, customers, suppliers and traders. The support from
these groups is important as it can provide a company with the necessary requirements for