Maximizing Performance with Performance Management System : Report

Talent management
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Table of Contents
Introduction......................................................................................................................................2
1. Maximise the firm performance..............................................................................................2
2. Improve employee’s development and communication with the use of performance
management system....................................................................................................................3
3. The way Steel co. can integrate performance management system with other human
resources processes.....................................................................................................................4
4. The effectiveness of linking performance to financial reward................................................5
Conclusion.......................................................................................................................................6
Reference.........................................................................................................................................7
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Introduction
The fundamental goal of performance management is to promote and improve employee
effectiveness. It is a continuous process in which employees and manager work together to plan,
monitor and review performance of employees and their overall contribution to the firm. The
present report is based on case study of Steel co. which is falling down because of its poor
performance. It earns less profit due to which it enables to survive in a competitive market. The
employer was forced to freeze all employees’ salary and it also removes incentive and bonus
scheme which was not a perfect step to gain profit. The present report will cover the way firm
can maximize its performance with the use of performance management system. Along with this,
the way Steel co. can integrate performance management system with other human resources
processes will be explained. Apart from this, the effectiveness of linking performance to
financial reward will be evaluated.
1. Maximise the firm performance.
Performance management is known as the achievement of the performance that can be a target
through the effective management of people and the environment in which business is carried
out. Performance management process can directly impact the business its depend on the way
company work to manage its employee's performance (Cascio, 2018. ). As per the case study of
Steel co. performance of the firm is failing employees are demotivated. Therefore, the process of
Steel co. need to be started immediately vertical integration and it needs to proposed new
business strategies for improving employees skills, teamwork etc. Further, it is essential to set
business vision and mission and communicate it with employees at all levels (Shields, Brown
and Plimmer, 2015). One of the main goal of Steel co. is to gain competitive advantage through
cost reduction and innovation. Therefore, the company needs to increase employees engagement
and set SMART objectives to accomplish the goal on time. Team and an individual need to
influence the firm annual corporate and they need to become responsible for the work. Along
with this work performance of employees should be monitored and vision should be explained
and understood by everyone within the business. Along with this individual performance can be
determined by the following factors that are
Motivation, the need of doing job
Ability of doing job
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Organisational positive working environment and information of doing the job.
The energy of performing the job is basically linked with the motivation and expectancy. It
is essential to motivate employees so that they can work hard for the firm. At last, it is essential
to implement a specific strategy which permits goal to be integrated through performance
management in each and every employee (Podgórski, 2015). If HR department hires skilled and
experienced employees then it can easily make innovative products and services for customers.
There is some responsibility of leader that it should allow duty to employees according to their
skills and knowledge.
Performance management process can directly impact the business its depend on the way
company work to manage its employee's performance (Ishizaka, and Pereira, 2016). It is
essential to motivate employees so that they can work hard for the firm. If HR department hire
skilled and experienced employees then it can easily make innovative products and services for
customers
2. Improve employee’s development and communication with the use of performance
management system.
As per the given scenario, poor performance, inappropriate strategy and lack of innovation
lead to negatively impact Steel co. The company started suffering from loss and employee freeze
the salary of its employees for last three years. This was one of the inappropriate steps of the
employer that led firm down. Instead of doing this, the owner should learn different ways of
implementing a performance management system within the firm (Certo, 2015). With the help of
performance, management process firm can easily evaluate the performance of the individual
and optimize productivity. In this company can align a set of objectives for its employees who
can provide visibility and clarity to performance expectation. This approach can help in
documenting the performance of an individual and increase growth. One of the main concerns
was to looks employees problem. This all approach was missed by Steel co. In addition to this
leadership style which was adopted by the company was autocratic in which employees are only
directed toward the work and not involved in decision making process. Due to this reason Steel
co. do not get innovative ideas and opinions of employees that can help in gaining competitive
advantage. As per the view of the owner, employees are not many valuable assets and they are
only cost to business and due to this reason, he invested less on them (Buckingham and Goodall,
2015).
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