An Analysis of Performance Management in Human Resource Report

This report provides a detailed overview of performance management within human resources. It begins with an introduction to HR management, focusing on Tesco's approach. The main body explores two key performance management models: the Performance Management Cycle Model and the PCER model, outlining their advantages and disadvantages. It then delves into relevant theories such as goal-setting, expectancy, and control theories. The report highlights best practices for performance management, including goal setting, ongoing development conversations, continuous 360 feedback, social recognition, and employee involvement. Furthermore, it examines various approaches in performance management, like better training, frequency of feedback, and effective communication. The role of line managers is also discussed, alongside considerations for providing work-from-home facilities. The report concludes with a summary of the key findings and a list of references.

MANAGING HUMAN
RESOUCES

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Performance management models...............................................................................................3
Theories of performance management.........................................................................................6
Best Practices for performance management:..............................................................................7
Approaches in Performance Management...................................................................................8
Role of Line Managers.................................................................................................................8
Preparations when providing Work from home facility to employees........................................9
Approaches taken by Tesco.........................................................................................................9
Managing the employee performance........................................................................................10
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
Human resource is managed by HR department of the organisation. It is managed through
recruiting, selecting and deploying the employees. The resources are managed through
organisation to achieve their goal more effectively.
Tesco is UK based company which deals in groceries in supermarket. The goal of the
organisation is to provide best services to the consumers with effective price. Tesco managing its
staff very carefully. They complete all the basic needs of the employees, so the employees are
always engaged to the organisation.
This report covers the two models of performance management with the merits and
demerits along with the theories. It also includes the approaches and best practices regarding
managing the performance of employee. The roles of line managers are also discussed. In this
report, also discussed that how an organisation prepare its staff at the time of giving work from
home facility and how to manage performance of employees as well as organisation from home.
MAIN BODY
Performance management helps in evaluating and monitoring the performance of
employee. Performance is managed by human resource management, because the organization
wants quality works from employees to increase their productivity.
Performance management models
Performance Management Cycle Model
This model helps the employees and management to achieve the goal of organization
through a well-structured procedure of employee development(Bruskin, and et.al., 2017).
This model works in a cycle which starts with planning and end with rewarding. This cycle
covers four main stages which are as follows:
Planning:
The management team will determine the goals and objectives of the organization. In this
discussion, HR and superiors decide the objectives for the teams as well as for individuals,
including employees duties, specific tasks, targets, actions, behaviours and development
goals(Merinov, Pavlova, and Khayrullina, 2020). The planning stage revolve around setting
performance standards for the employees. In this stage management identified where training
and development programs are needed to strengthen the performance of employees.

Monitoring:
This is ongoing process, which helps in checking the performance of employees. If
monitoring is done once or twice in year then it proves not effective it should be done
continuously. Through monitoring, the HR knows which employee needs training or not.
Reviewing:
If proper monitoring was done, the HR and management knows about the performance of
employees that how was they doing during the whole year. The employee receive feedback from
HR about their performance and if any issues come there then it will be discussed between
employee and employer.
Rewarding:
This is the final stage of Cycle model. After reviewing the performance of employees, the
management and HR gives rewards to those employees who performed extremely well in their
job. After taking rewards, the employees feel motivated and perform their work more efficiently.
Advantages and disadvantages of performance management cycle model are :
Advantages of this model is as follows:
 Employees feel motivated from this model because they get rewards when they perform
better and hard.
 Through this model the manager easily monitor the employees' performance and give
correct feedback to employees about their performance. This model makes uniformity in the performance of employees.
Disadvantages of this model is as follows:
 The model consumes too much time in proceeding the monitoring and reviewing of
employees.
 Employees feel demotivated when the employer does any favouritism and partiality
between employees at the time of distributing rewards.
 Employer feels not good at the time of providing bad or negative feedback to the
employees because the relations get affected with the particular employee.
Performance Management Model (PCER)
This model revolves around PCER (Plan, Coach, Evaluate and Reward). Through this
process, the best activities are utilized to create a performance plan, coach for a prospering

completion of the plan, and complete the yearly performance evaluation with rewarding the most
desirable employee. This model works in four stages which are as follows:
Plan :
In this model, Performance Management starts when superior or employer reviews the
position for employee, and restrictions for the employee in the organization(Franco-Santos and
Doherty, 2017). The employer communicates competencies with the employee and create goals
for employee. This helps in set up mutual understanding of the performance and behavioural
expectation.
Coach :
The employer gives training and coaching to employees throughout the year so, that they
perform their work efficiently and effectively. The employer and the employee both are going to
make notes about the performance of employee at whatever time which are tracked outside the
operating day method.
Evaluate:
During the evaluation process, the employer may trust on multiple resources for example
employee self evaluation, notes on performance which is created by employee end employer
during the year and consumer feedback to evaluate the employee's performance. After
evaluation, the employer meets with the employee for discussing the evaluation of performance,
give the ratings according to the work done and provide feedback about the capability and areas
of improvement.
Rewards and Compensations:
After evaluating and monitoring the performance of employee the employer or manager
is distributing bonuses to the staff who performed well in their task and the employee is always
connected with the company and stay motivated towards performing the job in the best and
creative ways. Rewards and recognitions provide to hard-working and well deserving employees
at the end of the year after evaluating and reviewing their performance.
Merits and Demerits of PCER model are :
Merits:
 This model is beneficial for employee because the organization gives coaching to
employee which enhances their skills and knowledge.

 Due to this, the employer easily identify the person who is not performing good and fire
that employee.
 This model proves also good for employer because they will always connect with the
employees through training process and easily monitoring the employees very closely.
 PCER model plays a significant role in achieving the organizational goal as well as helps
in managing the employees in effective manner. From this model, the employer and manager easily identified that the training is needed
in the organization for the employees or not.
Demerits:
 The employees' morale drop down because of the unfair evaluation done by managers
and employers.
 The firing risks are their for employees during evaluation of staff.
 Employer has to force the employees to perform their job because the superiors are going
to pressurize them.
 This model restricts the organizations' performance management process because it
follows only four steps which is not covered some important subjects regarding managing
of performance.
Theories of performance management
Goal-setting Theory:
In this theory the goals for the organization as well as for the employee are set by the
superiors of the company(Devarajan, Maheshwari, and Vohra, 2018). The main objective behind
setting goals for staff is to maintain standards for performance. Employee has to follow the goals
which are made by their superior to guide them and improve their performance.
Expectancy Theory:
As per the theory, Rewards plays the main role in managing the performance because
employees feel motivated(Lee, 2019). After getting rewards employees give their all efforts in
performing their job with more creativity and using smart and unique ideas. In this theory, it is
expected that employees perform their job better only when they are getting some benefits on
behalf of performing good.
Control Theory:

This theory focuses on giving feedback to employees to shape the human behaviour
towards their work. The aim of control theory is to control all the action of management and
matches with the goal and objectives of organization.
Social Cognitive Theory:
As per the theory, the people learn some social ethics from observing other people. For
example, in an organization the employees sees their superior and colleagues that how they
behave with each other and the employee is also applying the same way in communicating with
other because the individual thinks this is the correct way to talk.
Best Practices for performance management:
Goal setting and key results:
The manager has to set a goal and standard for employee so, that they will perform their
job more effectively and smoothly and the results' comes in positive manner. Through setting
goal the performance is managing in efficient manner.
Ongoing development conversations:
Development is an ongoing procedure for employees. These helps the employees in
developing their skills, abilities and creativity in better way (Bourke, 2021). Because of this
procedure, employees and managers are connected with each other and the manager regularly
talk about the development procedure which enhances the performance of employees.
Continuous 360 Feedback:
To manage the performance of employees the manager has to monitor and evaluate the
work which is done by staff and gives them feedback about their performance. The Feedback
plays main role in managing the performance. 360 Feedback is a feedback which is given by the
peers, superiors and other top-level manager to the employees. From the positive feedback,
employees feel motivated and perform their task more efficiently.
Social Recognition of Performance:
The company gives special treatment to employees who performed very well and the
organization recognized their work publicly to motivate the individual(Kremer, Villamor, and
Aguinis, 2019). This is the best way to recognize a hard-working employee because the public
actively praise their work and give strengthening to the behaviour of employee towards job.
Involving employee's in the designing of performance management process:

Through involving the employee in this process, they feel that their point of view is also
important for the organization, and they feel motivated towards doing job with more efforts.
Involving employees in the procedure is the best way to engage the employee with the
organization(Hussinki, and et.al., 2017). This involvement helps the HR to know the skills and
strengths of employee and also makes their relationship better.
Approaches in Performance Management
Better Training:
This is the best approach to manage the performance of employee, because training gives
them knowledge about their way of performing job so there is no chance of happening
mistakes(Pousa, Mathieu and Trépanier, 2017). And the employee feel confident to perform the
work with their innovative skills and with creative mind.
Frequency of feedback:
The feedback plays main role in managing the performance of worker, because it gives
the ideas to manager about the abilities of employees regarding work performance. Feedback is
given on the basis of monitoring and evaluation of the performance of employee which is done
during the year. An positive feedback improves the productivity of employee.
Effective Communication:
The communication should be done properly between the employee and employer,
because which helps in removing mistakes and misunderstandings (Mone, London, and Mone,
2018). The manager has to give freedom to employee to tell about their issues which are faced
during performing their job and after listening their problems the employer should help the staff
in solving their problems.
Role of Line Managers
The line managers plays very important role in implementing the policies and procedure for HR.
These managers have a huge responsibility towards workers because they guide the lower level
employees and the line manager helps in implementing the performance management process in
the organisation.
Role of Line Managers are as follows:
 The line manager has to appoint a leader for the employees.
 The manager has to maintain simplicity while implementing the performance
management process.

 Must communicate to employees about their duties and responsibility.
 Identify that any employee need training and development procedure or not.
 Provide sickness leaves if any employee needs.
 Keep environment safe at the workplace for employees.
 Must listen the problem of the employees and helps them in solving.
 Gives feedback to each and every employee about their performance.
 Guide staff regarding their activity
 Hires new talent if the organization needs the employees
 Lead the meetings which happened in organization regarding the employees.
 Maintain the discipline between employees.
 Provide the information to employees about their rights in the organization.
Preparations when providing Work from home facility to employees
Tesco is one of the largest supermarket in UK which deals in retails business. They
provide best services to their customers with maintaining the quality of products. In the recent
time, due to Covid-19 situation, the company gives the facility of work from home to the
employees and adapts new strategy to run the business in this situation which is digital
technology. Tesco made its online application, which provides the facility of buying the grocery
items from home to maintain its customers.
At the time of applying this strategy, the company faces many challenges regarding
guiding their staff, maintaining the stock online, and many more. But all the challenges faced
positively by company as well as by the staff.
While preparing this strategy, the company gives the basic training to the staff about how
they manage and accomplish the needs of customers through online procedure. The company
prepares online sites for dealing groceries and advertising and promoting their sites to give
information to people about the online way of dealing. To advertise the application the company
applies many schemes to attract the customers.
Approaches taken by Tesco
Providing training:
The company provides training to employees because they apply new technology in their
organisation and the superiors has to provide the basic knowledge about the technique to the

staff, so that they perform their work more efficiently and effectively and which helps the
organisation in achieving their goal in a better way.
Not increase the burden on employee:
The company do not pressurise the employees to do the work and give excessively work
to an individual worker at the time of doing work from home.
Facilities provide to staff:
At the time of applying digital technology, the company completes all essential
requirements of the employees such as distributing laptops so the staff can perform their role
effectively without making mistakes.
Get communicated with staff :
After giving work from home, the superiors must be connected with the employees so
that if they face any issues in handling customers and any others' problem which can be easily
solve by them. Through effective communication the discipline between employees and their
superior is well maintained.
Motivate employees time to time :
The company has motivated their employees through giving importance while taking
decisions. Because doing work from home is a very big task for employee. There are lots of
distraction are faced by employee while performing their work from home.
Maintain a daily schedule:
The organisation has to make a proper schedule for the employee about the task which
they have to done during the day. This creates a professional atmosphere for the employee at the
home. And supervision must be given by the superior of the company, because without
supervision the employee is not able to perform their job creatively.
Give regular breaks:
The organisation should give small breaks to employee so that they do not feel bored and
perform their task with more creativity and try to do something unique which may be proves
helpful for organisation in achieving the goals.
Managing the employee performance
Maintains discipline:
Tesco maintaining the discipline between the employee through providing proper
leadership and guidance to each and every employee via video conferencing, which helps in

maintaining the environment around employees. Maintaining discipline helps in managing the
performance of employees.
Monitoring:
The manager has to check the performance of employee on daily basis to know the skills
and abilities of employees and determine that they need training or not. In this situation, the
manager monitor the employee through taking update time to time. Through monitoring, the
manager gets idea that where the employee lacks and faces issues and help them in solving the
problems so that they feel motivated.
Feedback:
The organisation gives the employee proper feedback about their performance which
helps the individual to know the strength and weakness and the person works on it to overcome
the weakness and increase the level of creativity. Employee are going to easily engage with their
managers and superiors which helps in managing the performance of employee.
Rewards and Compensation:
The organisation has actively motivated those employees who perform their work more
creatively using their unique ideas through giving bonuses and perks(Nazir, and Islam, 2017).
After recognizing, the productivity of employee will be increasing and staffs morale boosted and
the retention rates are improved. The organisation is going to easily manage the staff
performance.
Distributing Responsibilities:
The managers have to assign the duties to each and every employee and set the goal
according to their role, so that the is no chances of creating of confusion between staff. And the
performance is easily managed by the organisation.
Clear Communication:
Each and every important information should have given to employees so that they feel
connected with the organisation. The manager keep in touch with the staff via chats, video call to
guide them. The employer passes the information to employees about any changes and
modifications done in policies and goals of the organisation.
Emotional Support:
In this Covid-19 situation, the organisation has to give emotional support to every
employee, because the workers suffer from many stresses regarding their family, friends and

their health issues. The manager must listen the problems of employees and give them support so
that employees feel engaged with the organisation.
CONCLUSION
From the above report, it can be concluded that managing the performance is very
important for an organisation to achieve their goals and objectives. The performance of worker is
managed by manager or superior. An effective management of performance helpful for
employee because an individual can develop their skills and knowledge and it is also helpful for
HR department to manage the relationship between employee and employer. The models of
performance management is guideline for the manager and theories helps in managing the
behaviour of employee towards job. Best patterns and approaches are taken to manage high level
of performance. Line managers main role is to guide the employees and motivate them to
perform, their job better with providing health and safety at the workplace and the approaches of
work from facility are useful for employee as well as organisation.