Performance Management System Analysis: Brick Co. Case Study Report

This case study analyzes the performance management system at Brick Co., a manufacturing company with 130 employees. The report explores the role of performance management, its alignment with HR processes, and its impact on organizational performance. It examines the use of teams and team-based rewards, discussing their benefits and challenges, particularly the ineffectiveness of the existing bonus system. The study also addresses how performance management can enhance employee commitment and engagement, identifying issues like lack of training and inappropriate team rewards. The report suggests improvements, including designing training programs and implementing financial and non-financial team-based incentives to overcome these challenges and improve overall performance. The conclusion emphasizes the importance of performance management, teamwork, and strategic rewards in achieving organizational goals.

Case Study
Performance
Management at Brick
Co

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY ..................................................................................................................................3
1. Role of performance management system, explaining how it can be implemented with other
HR process to improve organisational performance. .................................................................3
2. Use of teams and team based rewards for improving Brick Co performance........................4
3. Performance management system can be used for improving employees commitment and
engagement. Along with the challenges company is facing with ways to overcome.................6
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
Performance management is an ongoing process of communication within supervisor and
staff which occurs throughout the year for accomplishing strategic objectives of business. Within
this communication process involves setting objectives, clarifying expectations, identifying
goals, providing feedbacks as well as reviewing results (Ahmed and et. al., 2016). In simple
term, performance management is corporate management tool which provide assistance to
manager in monitoring and also evaluating work of staff members. Moreover, goals of
performance management is to create an environment where people perform best of their
abilities for producing the highest quality work in most efficient as well as effective manner.
This report is based on Brick Co. which is an manufacturing company which run by an
owner manager. Respective firm was established for 20 years and currently employs 130 peoples
which as full time, permanent, semi skilled as well as unskilled. It will going to discuss role of
performance management system and how it can be implemented for improving performance of
organisation. In addition to this, uses of team and team based rewards also discuss which help
Brick Co in improving their performance. Moreover, performance management system uses for
improving staff commitment and engagement will elaborate.
MAIN BODY
1. Role of performance management system, explaining how it can be implemented with other
HR process to improve organisational performance.
Performance management system is the systematic approach which utilise by
organisation for measuring performance of their personnel. Through this process company will
be able to aligns their mission, objectives, goals with resources which are available such as
material, manpower and so on (Bititci, Cocca and Ates, 2016). Their are several roles which
performed by operation management system in organisation. Explanation are as follows :-
 Aligns Goals – Performance management system help staff in understanding that how
their work will leads to company's strategies as well as goals. With the understanding of
this Brick Co. will be able to keep their employees focused as well as also make sure that
their work offers real value to business.
 Facilitates employees learning & Development – This should be ensure by
performance management that employees are continuously developing their skills as well

as capabilities as per the changing needs of business (DeNisi and Murphy, 2017). By
providing opportunities to employees for grow Brick Co. will be able to build strong
workforce which can achieve goals of business.
 Boost productivity and engagement – Performance management and development
program enable personnel in identifying new skills as well as interest area and providing
them opportunities for expanding their horizon. When staff members are motivated as
well as positive result in reducing employees turnover.
Thus, for managing performance of Brick Co. it is important for Human resource manager to
design training and development session for their employees (Eaidgah and et. al., 2016). As it
will help them in building skills as well as capabilities which result in improving overall
performance of organisation. In addition to this investment which company do on their
employee's make them feeling like valuable part of business. With the assistance of this, staff
member get motivated and perform effectively which result in accomplishing goals as well as
objectives of business.
2. Use of teams and team based rewards for improving Brick Co performance
Team is group of people in which each and every member have different skills as well as
knowledge. In team, people work together on common project, services as well as goal with
meshing of function and mutual support (Gerrish, 2016). In simple term it can be said that, team
is made up of two or more people who work together in organisation for accomplishing common
goals. Within business world team are becoming more common because effective team result in
increasing employee motivation as well as business productivity. For Brick Co. it is essential for
build proper team because effective team result in improving productivity of organisation and
also help in accomplishing predetermined goals and objectives. There are several uses of team
for employees as well as Brick Co. explanation of these are as follows :-
 Uses of team for employees – For staff working as part of team is beneficial in several
manner as it provide opportunity for expanding to individual for expanding their
professional knowledge by collaborating with different expertise. Employees of Brick
Co. will be able to perform daily basis operations in effective manner without any burden
on individual. Along with this, in company there are some rewards which based on
accomplishing team goals it will also motivate team members to perform their work in
proper manner.

 Uses of team for organisation – Employees working as well as well integration result in
good morale within team which help in increased productivity (Gudmundsson, Marsden
and Josias, 2016). Along with this, teamwork encourage boosts morale, product
innovation, increases productivity as well as create more accountable staff. In Brick Co.
teamwork result is promoting collaboration, motivation, commitment, dependability and
also accountability within staff members. Through team work respective manufacturing
company will be able to manage performance of their employees in effective manner.
Rewards are the benefits which given to individual or team for maximising work outputs as well
as productivity. Team based work is increasing which result in developing team based rewards
and behind this intention is to maximizing performance and satisfaction in team. Moreover, team
based rewards are commonly defined as formal incentives which provided to working team or
one of its member (Kearney, 2018). Furthermore, rewards are based on performance of team,
organisational and also for many other outcomes such as profit, customer satisfaction, sales etc..
In relation of Brick Co. divisional director decided to use team based reward system for
performance management purpose. In this, bonus payment will triggered when target achieved
by team. But by this also their was no improvement in productivity and quality of work. As most
of the employees was earning bonuses in 7 months out of 12 which hadn't change their life. They
are saying that payment made that was not sufficient and don't have wide impact on their living
standards. This result in dissatisfied staff members and have no positive impact on company. To
Division manager of Brick Co. it has been suggested that they have to implement several other
team based rewards because it will help in raising their living standards and also making them
satisfy. Explanation of these are as follows :-
 Profit sharing – It is team based incentives plan in which company pay to their
employees some percent from overall profit (Mone and London, 2018). Profit sharing
technique result in building sense of ownership within personnel as well as also
encourage performance level of team. With this plan divisional manager of Brick Co. will
be able to encourage their employees and manage performance.
 Gain Sharing – same as profit sharing, gain sharing is also team based incentive plan in
that organisation rewards their employees for measurable and non-financial achievement
within pre-established areas. This type of incentives is for staff members for recognising
the role which they played in continuous running of business in their key areas.

 Goal based incentives – These rewards only provided when team reach to specific goals.
Goal based incentives will be more effective for Brick Co. because for performance
management they started working in team (Schleicher And et. al., 2018). This approach
result in encouraging teamwork and help in accomplishing targets given to them. Goal
based incentives plan is good for small business because it result in promoting team
work.
 Financial vs. Non-Financial incentives – It is also type of incentive plans in which both
financial as well as non-financial incentives provided to employees. If cash rewards for
small business is much Brick Co. can also pay other incentives such as free company
services, holidays and many more.
3. Performance management system can be used for improving employees commitment and
engagement. Along with the challenges company is facing with ways to overcome
Performance management is an ongoing process of communication within supervisor and
staff which occurs throughout the year for accomplishing strategic objectives of business.
Moreover, goals of performance management is to create an environment where people perform
best of their abilities for producing the highest quality work in most efficient as well as effective
manner. Within this communication process involves setting objectives, clarifying expectations,
identifying goals, providing feedbacks as well as reviewing results (Tweedie and et. Al, 2019). In
simple term, performance management is corporate management tool which provide assistance
to manager in monitoring and also evaluating work of staff members.
By using performance management Brick Co. improve their employees engagement as
these both have strong combination with each other. It shows that all staff members are dedicated
towards the operations of company and engagement of staff develop culture within that they feel
excited and feel satisfied with work. Within performance management Brick Co. was facing
issues as they are not providing training session to employees as well as their team base rewards
was also not appropriate (Van Berkel and Knies, 2016). Due to this, respective organisation is
not able to manage performance in proper manner and facing several issues. Thus, there are
several ways through which company can overcome with the challenges they are facing while
performance management. Explanation of these are as follows :-
 Divisional manager of Brick Co. have to design training and development session for
their staff members which help them in developing their skills as well as capabilities as

per the current requirement of business environment. It is simple that several
modification take place in competitive world in which for long term sustainability there is
requirement to learn something new.
 Apart from this, Brick Co. have to focus on team base rewards that can be financial and
non-financial both (Sharma, Sharma and Agarwal, 2016). Because this is the best tool
which help in motivating employees and they will always try to accomplish assigned
target.
These are the ways by implementing it company will be able to minimise challenges which Brick
Co. is facing within effective manner.
CONCLUSION
After going through above discussion it has been summarised that, it is essential for an
organisation to implement performance management in their working. As it is ongoing process
of communication within supervisor and staff which occurs throughout the year for
accomplishing strategic objectives of business. Within this communication process involves
setting objectives, clarifying expectations, identifying goals, providing feedbacks as well as
reviewing results. For improving performance company have to use several tactics such as
rewards, team building and many more. These will motivate employees which help in enhancing
their performance and give positive outcome in performance of company. In addition to this,
now a days in business environment team work playing important role because it help company
in enhancing their productivity as well as accomplishing predetermined goals and objectives in
effective manner.

REFERENCES
Books and Journals
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DeNisi, A. S. and Murphy, K. R., 2017. Performance appraisal and performance management:
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Eaidgah, Y. and et. al., 2016. Visual management, performance management and continuous
improvement. International Journal of Lean Six Sigma.
Gerrish, E., 2016. The impact of performance management on performance in public
organizations: A meta‐analysis. Public Administration Review. 76(1), pp.48-66.
Gudmundsson, H., Marsden, G. and Josias, Z., 2016. Sustainable transportation: Indicators,
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Kearney, R., 2018. Public sector performance: management, motivation, and measurement.
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Mone, E. M. and London, M., 2018. Employee engagement through effective performance
management: A practical guide for managers. Routledge.
Schleicher, D. J. And et. al., 2018. Putting the system into performance management systems: A
review and agenda for performance management research. Journal of Management.
44(6), pp.2209-2245.
Tweedie, D. and et. Al, 2019. How does performance management affect workers? Beyond
human resource management and its critique. International Journal of Management
Reviews. 21(1), pp.76-96.
Sharma, N. P., Sharma, T. and Agarwal, M. N., 2016. Measuring employee perception of
performance management system effectiveness. Employee Relations.
Van Berkel, R. and Knies, E., 2016. Performance management, caseloads and the frontline
provision of social services. Social Policy & Administration. 50(1), pp.59-78.