Performance Management at Marks and Spencer: Advantages/Disadvantages

This report examines the performance management system implemented by Marks & Spencer across its international operations. The analysis delves into the five key components of M&S's approach: performance planning, ongoing performance communication, data gathering and documentation, performance appraisal meetings, and performance diagnosis and coaching. The report highlights the advantages, such as improved employee performance, enhanced efficiency, and the ability to expand business internationally. However, it also acknowledges the disadvantages, including the time-consuming nature of identifying barriers, potential negative impacts on employee morale due to continuous evaluation, and increased costs associated with addressing employee needs, especially considering the diverse backgrounds of international employees. The report concludes that M&S's performance management policy is generally effective, contributing to efficiency and uniformity. It also reflects on the student's learning experience, emphasizing the practical application of HR concepts and the development of analytical skills in assessing company practices. The assignment provides a comprehensive understanding of performance management within a strategic international human resource context.

“The advantage and disadvantage of Marks and Spencer in attempting to pursue a
uniform system of performance management across its international operations”
Performance management is the process of activities that ensure the goals are met in an
effective and efficient manner. The process of performance management includes various
activities such as performance appraisals, employee reviews, and employee evaluations. In
this process, the performance of an employee is evaluated in order to maintain the uniformity
and efficiency to achieve the objective. The process of performance management is related to
the human resource of the company that is why it is considered as the Human Resource
policy of the company. The performance of each individual’s performance and the objective
are connected with the mission and goals of the organisation. It directly affects the
performance and position of an organisation (Van Dooren, Bouckaert, and Halligan, 2015).
This policy of performance management has both aspects negative as well as positive. In this
paper, the discussion is made on the topic of “performance management”. Marks & Spencer’s
has been taken into consideration in order to analyse the positive and negative impact of this
practice on it.
There are basically five components in which the Marks and Spencer focuses and these are
performance planning, on-going performance communication, data gathering, observation,
and documentation, performance appraisal meetings, and the last one is performance
diagnosis and coaching. The first component of Marks and Spencer is performance planning
which states that the steps such as discussing, identifying and planning the organisation as
well as individual goals. Performance plans are decided by the employees and the supervisors
together (Shields, et. al, 2015). It is observed that the organisation set individual goals before
maintaining organisation performance. It organises the meeting of employers and employees
in order to set the objective of an individual. This component helps to achieve the objective
of the organisation. Each and every individual put their full efforts to achieve the objective

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which is set by the company for employees. But sometimes, the individual has the capacity to
attain the objective but it put their efforts only for completing the objective which is set in the
meetings. The capacity and ability to do the more work is reduced with this method that is not
beneficial for the company (Cohen, 2017).
On-going Performance communication is the second component in which Marks and Spencer
are focusing. It is a two-way communication process between the top management and the
employees (Kearney, 2018). In this meeting, the company monitor the progress, evaluate the
performance barriers and share necessary information with each other. The people of the
company divided into two parties such as top management and bottom management in order
to identify the problems that become an obstacle for the company in attaining the objective of
the organisation. The performance of an employee is improved as the barriers will identify in
this process. The management adopts the steps to reduce those barriers which are identified in
this process. But it founded that the company face the challenges because it is difficult to
identify the barriers in the short period of time. It is a time-consuming task as well as cost,
consuming process which has a negative impact on the performance of an organisation (M &
S., 2019).
Data gathering, observation and documentation are the important steps in the performance
management of the company. Marks and Spencer collect information about the performance
of an employee through different sources (Latham, 2015). There are various means to collect
data such as observation, and analysing the performance of an employee. The company
records the data in the different forms such as diaries, logs and the various uses of
performance rating scales. The main method that the company used to determine employee
performance productivity is to develop the plan. In this plan, the company compare the
performance of an employee with its completion of the target which is set in the meeting
before starting the work. For example- the company evaluate the performance of cashier by

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reviewing the one hour target of the employee. It is beneficial for the company to gain a
competitive advantage because it improves employee performance. It is a fact that the
continuous evaluation of an individual performance enhances the efficiency of an employee
to do the work. However, the hourly basis review improves the performance of an employee
but sometimes it negatively affects the performance of an employee because some of the
employees take it as an insult to their work and speed. Enhancing performance and capability
increases productivity as compared to its competitors (Arnaboldi, Lapsley, and Steccolini,
2015).
The fourth component of performance management is performance appraisal and feedback
sessions. It is the process in which the employees and managers work together in order to
improve the performance. The company appraised the employees in 12 months in different
ways (M & S., 2019). In this system, they discuss the improvement of the performance and it
is also appreciated the employees on the basis of their past performances. The company also
appreciated the employees in different ways such as promotion, transfers and providing a
large amount of salary. Incentives are also provided by the company to its employees on the
basis of the extra hours and efforts. It is beneficial for the company because it encourages the
employees to retain for a long time. This method also inspires others who do not perform
well in their services (Performance Appraisal, 2018).
Performance diagnosis and coaching is the last component of performance management
which determines the relationship between the employee and supervisory. In this component,
the company mainly focuses on the needs and requirement of an employee in order to address
them. The manager and the employees should work together in order to reduce the barriers
from the performances. Marks and Spencer organise the training and development programs
for the employees in order to reduce the performance barriers. Coaching and mentoring
activity can take place on a regular basis. The annual performance appraisal and feedback are

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also included by the company in order to motivate the employees. This process is beneficial
for the company because it enhances the performance of an employee. The other advantage
of this process is that the company can easily expand the business at the international level.
But the company face the issues from this component as it consumes the high cost to address
the problems of employees. It also affects the employee’s performance as the employees
come from different background in order to work at the international level. It arises the
conflict issue in the organisation due to diversity in the company (Buckingham, and Goodall,
2015).
From the above discussion, it is concluded that the company adopts the appropriate policy of
performance management. The performance management of the company helps to maintain
the efficiency and uniformity in the organisation in order to improve the performance. As per
my opinion, the HR Policy of Marks and Spencer is effective due to which it can easily
expand the business at the international level. During this project, I understand the concept of
performance management. This assignment helps me to enhance my skills in the HR
practices at the international level. As I am studying in college but this knowledge is useful
for me while joining any organisation. The knowledge of getting remuneration, compensation
and other relaxation is very essential for me as it is useful in the near future. During this
project, not only the concept of performance management is understandable but it also
enhances my analyses skills of the company and their practices. As per the analysis, I learnt
to identify the facts and figures on the basis of the topic related to the company. Earlier, I
have the basic knowledge regarding the performance management but after this paper, I
learnt a lot about these concepts and its components. After working on this assignment, I can
say that the whole concept of performance management of the HR practice of any company is
easily analysis and understandable.

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References
Arnaboldi, M., Lapsley, I. and Steccolini, I. (2015) Performance management in the public
sector: The ultimate challenge. Financial Accountability & Management, 31(1), pp.1-22.
Buckingham, M. and Goodall, A. (2015) Reinventing performance management. Harvard
Business Review, 93(4), pp.40-50.
Cohen, E. (2017) Employee training and development. In CSR for HR (pp. 153-162).
Routledge.
Kearney, R. (2018) Public sector performance: management, motivation, and measurement.
Routledge.
Latham, G.P. (2015) Performance appraisal/performance management. Wiley Encyclopedia
of Management, pp.1-2.
M & S. (2019) About us. [online] Available from:
https://corporate.marksandspencer.com/aboutus [Accessed 30/04/19].
Performance Appraisal. (2018) What Are The Components of A Performance Management
System?. [online] Available from:
http://performance-appraisals.org/faq/whatcomponents.htm [Accessed 30/04/19].
Shields, J., Brown, M., Kaine, S., Dolle-Samuel, C., North-Samardzic, A., McLean, P.,
Johns, R., O'Leary, P., Robinson, J. and Plimmer, G. (2015) Managing employee
performance & reward: Concepts, practices, strategies. Cambridge University Press.
Van Dooren, W., Bouckaert, G. and Halligan, J. (2015) Performance management in the
public sector. Routledge.

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