Assignment About The Performance Management 2022

AN ASSESSEMENT OF PERFORMANCE MANAGEMENT SYSTEM OF
ORGANIZATIONS
Introduction
Human resources development, or the means of acquiring intellectual capital, has
become inextricably linked to the performance of firms in contemporary times. One of
the most powerful instruments for building human assets is a performance management
system, which creates the groundwork for coaching, advancement, workforce planning,
and competence mapping, among other things. The effectiveness and sustainability of a
company's human resource can be determined by evaluating the performance of its
personnel. (Caroll, 2014) This research creates a holistic evaluation of performance
management activities, policies and effectiveness in the organisational settings using a
named company, Baker Hughes. The various tools and techniques used in managing
employee performance in Baker Hughes would be analysed appropriately and its level
of effectiveness in creating value to the firm would be explicitly itemized in the course of
the research report.
Overview of Case Study Organisation
Baker Hughes is a GE (BHGE Company) international industrial service company and is
the third largest oil field service company worldwide, behind Schlumberger and
Harliburton Inc. The company's nearly 40,000 employees work in geo-market
workgroups across more than 90 countries to assist clients in finding, evaluating,
drilling, producing, transporting, and processing petroleum resources, as well as
developing solutions to help manage operational costs, maximize reserve recovery, and

boost overall financial return throughout the life cycle of an oil or gas investment. The
company's operations headquarters are in Texas, USA. (BHGE, 2020)
Planning and Implementation of Performance Management Policies
Performance management, according to Armstrong and Baron (1998), is a planned and
comprehensive strategy to providing sustainable growth to businesses by boosting the
effectiveness of employees and growing the competencies of teams and individual
participants. It backs up the argument that people, not capital, give businesses a
industrial cutting edge (Reynolds & Ablett, 1998).
The objective of performance management is to turn a human resource's potential for
greatness into productivity by eliminating intermediary hurdles and encouraging and
revitalizing the employee (Kandula, 2006). Organizational competitiveness can be
boosted through establishing active employees and successfully training and
developing them (Cabrera & Banache, 1999), which is essentially performance
management. As asserted by (insert citation), the performance management policies of
firms vary across industries and organizational settings. However, the general concept
of policy and strategic planning in designing performance management criteria for
employees of organizations is to purposively and purposefully ensure that there is a
synergy or alignment between the activities of human resource personnel and the
mission/vision statement of the organization. Hence performance management policies
help to ensure that the strategic goals of the firm are infused into the operational and
administrative activities of its employees, with emphasis placed on quality improvement,
quality assurance as well as continued development.

Baker Hughes' performance management measurement (EPM) was investigated
through surveys and analysis of data gotten from magazines, journal publications and
the internet, during the course of a research carried out by Alasgarova (2018). The
examination discovered that the corporation has a performance management
mechanism in place, which is backed up by written policies and standards. The stages
of the procedure appear to be implemented appropriately, based on interview
responses. Collaboration and feedback sessions, on the other hand, have issues. Baker
Hughes has changed to a collaborative and mentoring approach for successful
performance management by creating conversations between production managers
and employees, according to content analysis of the research study undertaken by
Alasgarova (2018). Employees, on the other hand, have a quite different perspective.
According to the Baker Hughes response level, there appears to be little cultural impact
on the planning of performance management policies. Some components of
performance management aren't being executed properly, and the respondents'
responses indicated that these differences aren't due to poor planning but as a result of
changing workplace and the socio-political dynamics of the work environment where the
firm operates. The features of the industry are taken into account as well as
environmental risks and geo-political constraints. Regulations do not provide any
challenges to the organization in terms of performance management implementation.
Industry components are typically examined at a global scale, but not at the municipal
level. (Connexus, 2017)
Application of Performance Management Techniques

There are several techniques and tools used for performance management appraisal in
corporate organizations in contemporary times. The Vision/Mission is a tool used for
accessing the financial and strategic performance of firms. As highlighted by Sorin
(2020), the vision and mission statements are crucial to the high performance of
employees in a firm, as they communicate organizational value and purpose to both
employees and customers alike. These statements of both the vision and the mission
are tools for technical and strategic direction for firms.
Using Balanced Scorecard Analysis to Appraise Baker Hughes
In analyzing and assessing business organizations based on the performance of its
human resource personnel, the internal environment of the firm must be put into
consideration in a bid to achieve competitive edge and gain traction in the industrial
environment where the firm operates. The internal environment of a firm is its strengths
and weaknesses, and a balanced scorecard analysis presents a finite opportunity to
assess the financial and non-financial performance ratings of a firm. (Kaplan, 2010)
As BHGE operates in the international oil and gas industry, an evaluation of its
strengths and weaknesses with respect to the availing opportunities and threats in the
industry would be carried out. This evaluation can be best undertaken using a Balanced
Scorecard Analysis tool, which creates a performance assessment portfolio of BHGE
showing its financial strength, its brand appearance, its internal business process as
well as its strategic development potentials.
Using the four perspectives of the BSC Analysis tool, Baker Hughes as a firm can be
assessed constructively as outlined below: