UTS Managing Strategic Performance: Aussie Foods Case Study Analysis

This case study analyzes the performance management system at Aussie Foods Company, where the HR Manager identifies and evaluates problems arising from a newly implemented system. The assignment delves into the theoretical underpinnings of performance management, including definitions, models like the ABC Model and PM Model, and their practical implications. The analysis reveals employee dissatisfaction due to factors such as discouragement, increased workload, and wasted resources. The study then proposes two practical solutions: implementing an automated system with continuous feedback loops to streamline processes and benchmarking the performance feedback system to identify areas for cost-effectiveness and improvement. The case study draws on relevant literature to support the findings and recommendations, providing valuable insights into enhancing performance management within the organization.

Running head: AUSSIE FOODS COMPANY: CASE STUDY
AUSSIE FOODS COMPANY: CASE STUDY
Name of the student
Name of the university
Author Note

1AUSSIE FOODS COMPANY: CASE STUDY
1. As the HR Manager of Aussie Foods Company, identify and analyze the problems at the
company in relation to performance management, drawing on relevant performance
management theories and concepts.
In the given case study, the subject of performance management can be observed. The
case study brings in a problem or a fallacy in the process of performance management system
and its outcome. Before analyzing the fallacy, the definition, theories and concepts of
performance management system is needed to be defined, comprehended and analyzed.
Performance management is an integral part of organizational management, especially, in the
arena of human resource management. Performance management can be strictly defined as an
ongoing process of communication between a supervisor and an employee that occurs
throughout the year, where the performance of the employee is evaluated by the supervising
team in order to support and accomplish the strategic objectives of the organization as a whole
(Buckingham and Goodall 2015). Performance management system is essential for a business to
run properly and smoothly. Formal and informal performance management systems and
processes help to synergize the talent and capabilities of the employees to meet the strategic
objectives and goals of the organization. Performance management is a continuous process
which evolves every moment bringing in new sets of objectives and strategies for the employees
to influence their performance and meet the demands of the organization (Cardy and Leonard
2014). The characteristics of performance management are mentioned hereafter. Firstly,
performance management is a continuous process, which involves a never ending procedure of
setting of goals and objectives, observing, analyzing and interpreting performance and providing
as well as receiving all kinds of reactions and feedbacks of the employees. Secondly,
performance management has direct link with the strategic as well as immediate objectives of the

2AUSSIE FOODS COMPANY: CASE STUDY
organization. Thirdly, performance management has its links with performance appraisal which
is indeed one of the most important factors of human resource management. Performance
management is based on three stages, namely, coaching, corrective action and termination. The
first phase of coaching includes the processes such as orienting, training and encouraging the
employees. The second phase of correcting action includes the processes by which the faults,
fallacies and shortcomings of the employees are identified, realized and worked upon, providing
them an opportunity to realize their fallacies and rectify them. The third phase of termination
includes suspending as well as terminating the unproductive employees whose performance has
been relatively inferior for a longer period of time even after training and effective coaching.
According to the case study mentioned, the problem which the employees of Aussie Foods
Company have been facing was the factors such as discouragement and wastage of time and
resources. The new Chief Executive Officer of the respective organization who had built the new
performance management system had proved to be insufficient and less efficient and therefore,
ironically, was a hindrance to the performances of the employees in the organization. Therefore,
it can be realized that even if performance management system has a plethora of advantages,
however, there are disadvantages too in the respective field. One of the biggest disadvantages is
discouragement and wastage of time and resources. One of the most significant performance
management models is the ABC Model of behavior change and PM Model (De Waal 2013). The
ABC Model of Behavior Change has three elements, namely, antecedents, behavior and
consequences; the model revolves around influencing and manipulating the behavior of the
employees. The PM model of performance management is a new and latest model exclusively
made for the private sector organizations as a systematic and data oriented approach to manage
people at work that largely relies on optimistic appraisal incorporation to synergize and optimize

3AUSSIE FOODS COMPANY: CASE STUDY
their performance (Pollitt 2013). Apparently, in the respective case study, the chief executive
officer had chosen the PM Model of performance management for the respective organization.
The resultant outcome of the performance management system was that the employees were
highly dissatisfied with it. The employees felt that they were under too much hectic
pressurization since they had to discuss about and evaluate about their performances all the time
inside as well as outside the organization. Such factors had bestowed them with unnecessary
burden of work and they were not able to balance their work and personal life even. The
employees were fatigued of giving as well as receiving frequent reviews and updates which
subtly demoralized them and became monotonous, apart from that, they were also losing their
time and resources during the occurrences. Therefore, the main difficulty the employees were
facing was psychological saturation, discouragement, work burden and wastage of time and
resources.
2. Recommend two practical solutions for Aussie Foods Company to help in refining and
improving their performance management system.
The two practical solutions for Aussie Foods Company to help in refining and improving
their performance management system have been mentioned hereafter.
Firstly, the usage of an automated system to develop a continuous feedback loops can be
implemented in the performance management system strategy in order to make it more effective,
efficient, sustainable and time as well as resource saving. The automated system of continuous
feedback loops would ensure that the automated weekly employee progress reports are efficient
ways by which tracks can be kept on all the employees. Automation of performance management
is one of the most important and significant areas meant for the improvement of the performance

4AUSSIE FOODS COMPANY: CASE STUDY
management system of an organization. The automation of performance management system
would not only save time, cost and other resources, but also increases efficiency and capabilities
of the employees as well. Firstly, the usage of performance management solution software and
applications would enable to automate, simplify and create more effective goal setting process.
The goal setting and the goal tracking software and applications provide managers and the
employees to set targets that would help in immediate as well as strategic development of the
organization holistically. For instance, the automated performance management system
applications can provide the employees and managers with regular and periodic alarms and
reminders to motivate and encourage them to fulfill their target and responsibilities towards the
organization for a particular period of time. Such initiatives would help achieve business grow
faster prolifically with efficiency. Secondly, an automated performance management system
would boost and evoke the team collaboration by streaming and aligning goals across the
departments to collaborate the employees into a team and motivate them to work towards the
objectives of the organization. Thirdly, through an effective automated performance management
system, the organization can increase the productivity of the employees, improve and enhance
employee retention by providing them with premium training sessions and motivational
incentives, and lastly, reduce turnover of the organization (Patel, Messersmith and Lepak 2013).
The second practical solution to improve the performance management system of Aussie
Foods Company is by benchmarking their performance feedback and appraisal systems in order
to make the system more cost effective. Benchmarking in performance management system in an
organization is the process of comparing the factors of the respective organization with a set of
standards in the business arena (Patel, Messersmith and Lepak 2013). Benchmarking in
performance management system of a particular organization while analyzing the factors such as

5AUSSIE FOODS COMPANY: CASE STUDY
cost incurred, resources utilized, outcomes achieve, if compared with the other peers or
contemporary organizations would enable the respective enterprise to identify and understand
their shortcomings and drawbacks, the fallacies they might have committed or not, the areas or
factors in the organization where they have gone wrong, the competitive advantage it has or it
doesn’t have over the other organizations, the cost, resources and other factors their peers have
utilized. Such comparisons would enable them to make judicial decisions regarding their
utilization of revenue, finances, resources and other materials for the organization and its
management. The human resource management of the respective organization (Aussie Foods
Company) should make a solemn attempt to benchmark the business strategies and processes of
other organizations and compare them with the respective enterprise in order to provide the
enterprise with the best and the most optimum and sufficient strategy for the benefit of the
enterprise. Benchmarking has been proven to be the most important factor while checking and
revisiting the cost factor of the organizations. In the arena of fierce and global competition, every
organization in public as well as private sectors have used and are also utilizing different
innovative methods to improve themselves in the market. In such situation, it is an important
factor for the organizations to carry out benchmarking in cases of costing, finance and resource
management as they are crucial for an organization and should be utilized judiciously.
Benchmarking would provide organizations with ideas about the market condition and intellect
to create and optimize themselves according to the vogue of the business market (Drucker 2013).
Therefore, with an effective benchmarking standard and strategy, Aussie Foods Company can
effectively utilize its finances and resources in the performance management system strategies in
order to receive optimum and adequate services for the benefit of the company.

6AUSSIE FOODS COMPANY: CASE STUDY
References:
Buckingham, M. and Goodall, A., 2015. Reinventing performance management. Harvard
Business Review, 93(4), pp.40-50.
Cardy, R. and Leonard, B., 2014. Performance Management: Concepts, Skills and Exercises:
Concepts, Skills and Exercises. Routledge.
De Waal, A., 2013. Strategic Performance Management: A managerial and behavioral
approach. Macmillan International Higher Education.
Drucker, P., 2013. People and performance. Routledge.
Patel, P.C., Messersmith, J.G. and Lepak, D.P., 2013. Walking the tightrope: An assessment of
the relationship between high-performance work systems and organizational ambidexterity.
Academy of Management Journal, 56(5), pp.1420-1442.
Pollitt, C., 2013. The logics of performance management. Evaluation, 19(4), pp.346-363.