Business Research: Performance Management and Engagement Analysis

This report examines the critical issues surrounding performance management and employee engagement within contemporary business environments, focusing on TESCO as a case study. It identifies the business research problem related to maintaining employee motivation and its direct impact on performance and engagement. The report includes a literature review, incorporating relevant models, and utilizes a dataset from the ONS website for quantitative analysis. This analysis employs various tools and techniques to visualize data and draw conclusions about the challenges in performance management. Key findings highlight the need for open communication, technological advancements, and training programs to enhance employee efficiency and organizational growth. The report concludes that effective performance management is essential for improving employee skills and abilities, ultimately leading to better workplace performance and organizational success.

Table of Contents
Introduction.................................................................................................................................................3
Define business research problem...........................................................................................................3
Literature Review....................................................................................................................................4
Identification of dataset sourced from ONS website which will enable to address the research problem 5
Quantitative analysis of the dataset using tools and techniques from the unit along with your individual
written Report..........................................................................................................................................6
Visualization of data drawn from quantitative analysis...........................................................................7
Findings & Conclusion................................................................................................................................9
Findings.......................................................................................................................................................9
Conclusion.................................................................................................................................................10
References.................................................................................................................................................11

Introduction
Performance management is about managing the performance and effectiveness of the
employees at workplace. It is a tool that is used by the managers to monitor and evaluate the
future performance in an efficient manner. In other words, it is about creating such an
environment wherein the employees can use their skills & abilities in the best possible way to
ensure the success of the company. Basically performance management is a process of ensuring
that different sets of activities meet with the organizational goals of maximizing the output
(Kearney, 2018). In context of the present report TESCO is taken into consideration. It is a well-
known organization of retail industry. It offers varieties of goods and services and groceries to
the customers. It is analyzed that the company is facing issue related to performance
management and engagement. The report will cover issue related to business problems. Apart
from this, brief literature review along with necessary models, data set of ONS website has also
been included in the following study. In addition to this, quantitative analysis of data along with
necessary visualization has been included in the report.
Define business research problem
Currently the business entities are significantly facing the issue related to performance
management. It is quite difficult to maintain higher level of motivation among the staff members.
Lack of motivation put a direct impact on the performance & engagement of the employees. This
has become a major issue in the present time that is being faced by the majority of the companies
(McNally, Cerbone and Maroun, 2017). For present study, TESCO is taken into consideration
that is a prestigious company of UK. It offers varieties of products & services to the final
customers. However currently the organization is facing issue related to performance
management. Here, it is quite complex for them to maintain higher level of performance of the
employees. In addition to this, they are also facing issue related to employee engagement which
directly affects the potential of the workforce to contribute towards the organizational growth.
This will put a major influence on the enlargement & growth of the business entity in the future
period of time. Apart from this, ineffective performance management also creates issues in terms
of maintaining competitive advantage in the market place. Therefore, performance management

& engagement is a crucial issue that is being faced by the majority of the organizations in the
current time.
Literature Review
According to Lapi, (2018), performance management refers to a function of enhancing
the level of engagement of workforce. It is about improving the skills & abilities of the
employees so that they can perform better at the workplace. In addition to this, performance
management is a tool where people are likely to perform with best of their abilities & skills so
that the company can attain success in the future period of time. In other words, the performance
management includes three major elements like goal setting, performance review, performance
improvement and more. It is analyzed that performance management is an ongoing process to
maintain proper communication between the managers and employees throughout the year. This
helps in accomplishment of stipulated goals efficiently. To improve the performance of
workforce, performance appraisal model is given below:
Figure: Performance appraisal model

Through the above-performance appraisal model, it is analyzed that the entire model
includes different steps like clarify roles, formulating smart objectives, monitor & support,
review evaluate and appraisal interview. Here, the first step is clarifying the roles wherein, the
difference between job description and actual performance is evaluated. Further, the smart
objectives are structured so that the entity can utilize the available resources efficiently (Mone
and London, 2018). Moving towards the next step, the smart objectives are monitored so that
necessary improvements can be made. In the next step, the results are evaluated in an efficient
manner. During appraisal review, the performance is summarized for the year based on the
quarterly and six months appraisal.
In reference of TESCO, they set targets for each and every employee which they need to
achieve during a particular period of time. To maintain the position of leading organization, it is
crucial for the respective company to adopt effective performance management techniques. In
this regard, several techniques of performance management are implemented by the company in
an efficient manner. It is monitored that monitoring the performance of employees provides
information to identify the training needs and requirements of employees (Performance
management-Tesco’s needs to manage the performance of its employees effectively if it is to
remain as the UK’s leading retailer and maintain a competitive edge, 2022). Here, rectifying the
errors & taking actions is highly important to enhance the performance of workforce
significantly.
Identification of dataset sourced from ONS website which will enable to address the research
problem
It is analyzed that the effective management in British business is related to firm size, age
and employee human capital. Through proper performance management, it is possible to
maintain significant practices within the company like homeworking and online sales. In
addition to this, better managed firms are able to maintain the productivity with an aim to get
advantage over the years. It is monitored that the coronavirsus pandemic has been affected the
business practices in several ways. It has been developed the need to adopt new ways of working
to maintain effectiveness in the business operations. Due to the pandemic, the business
organizations have been witnessed several changes in the way of operating business and
interaction with the customers. Now, the trend of online sales has been increased. Majority of the

companies are likely to adopt digital ways to maintain the business operations efficiently. Here,
several business organizations are likely to adopt innovative ways to maintain the efficiency in
business significantly. It is monitored that the major characteristics of good management
practices across different industries have not changed during the pandemic. From economic
perspective, it is considered that the management practices are a form of capital. It is monitored
that human capital includes both managerial and non-managerial people who are likely to
perform the assigned work in an appropriate way. In addition to this, some crucial management
practices can be implemented within the organization in terms of skills & capabilities of
workforce (Management practices, homeworking and productivity during coronavirus (COVID-
19) pandemic, 2021). To work in the current environment, the employees are required to make
improvement in their creative skills in an efficient manner.
Quantitative analysis of the dataset using tools and techniques from the unit along with your
individual written Report
Through the poll conducted to gather the opinion of UK’s workforce, it is found that the
employee are not significantly interested in the annual appraisal. Here, majority of the employees
think that their existing job is pointless and time-consuming. By the survey conducted by the
YouGov on 874 workers, it is found that there is requirement to follow the agile methodologies
to work efficiently in the future period of time. It is monitored that the traditional ways of
appraisal are not effective in present time. In other words, there is requirement of other indicators
like promotions, professional development, increment in salary and more to ensure enhancement
in performance of workforce.

Through the above-graph, it is found that 29% of employees consider performance management
as a stressful practice. Now, the firms are implementing the campaign of health & well-being
with an aim to support the employees financially and minimize the workplace related stress.
From the above-analysis, it is monitored that 39% of the respondents consider the traditional
appraisal process as a pointless activity. On other side, there are 26% respondents who consider
the performance appraisal practice as useful and supportive. In addition to this, 15% individuals
reported that performance appraisal is an engaging activity. There are also 8% respondents who
consider the entire process of performance appraisal as difficult whereas certain people consider
the process as existing & fun driving (UK employees losing faith in annual performance
management cycles, 2020). Therefore, the companies found it difficult to manage the
performance appraisal practices as per the expectation of the workforce.
Visualization of data drawn from quantitative analysis
Performance management includes three major elements like goal setting, performance
review, performance improvement and more. It is analyzed that performance management is an
ongoing process to maintain proper communication between the managers and employees
throughout the year. This helps in accomplishment of stipulated goals efficiently. It is monitored
that the performance management has become a crucial activity in present time (Psárska and

Hašková, 2019). There is requirement to adopt effective performance management activities to
enhance the level of productivity of workforce. Before adopting the performance management
approaches, there is requirement to assess the needs, requirements and desires of workforce. This
will help in improving the potential of workforce so that the business entity can attain the
predefined goals.
Through above-graph, it is found that different organizations have different meanings of
performance management. According to the 81 respondents, performance appraisal is done under
the performance management. In addition to this, 72 individuals reported that objectives and
target setting is the major activity of performance management. It is monitored that 62
respondents consider regular review of performance as the major significant activity of
performance management. In addition to this , development opportunities are considered as the
major essential element of performance management by 52 respondents. As per 32 respondents,

performance related pay is the one of the major significant element of performance management
that is performed by the majority of the companies. It is analyzed that 22 respondents are likely
to consider 360-degree feedback as the crucial activity of performance management (What is
performance management? CIPD Research, 2017). Therefore, the majority of the business
organizations are in favor of performance appraisal as the most crucial element of performance
management.
Findings & Conclusion
Findings
After analyzing the above-mentioned information, it is found that performance management
has become a major issue for the companies. Nowadays, it is quite complex to maintain the
interest of the employees in the business organizations (McNally, Cerbone and Maroun, 2017).
With passing time, they are likely to lose the interest in the organizational activities that also
affect the future growth of the organization. In this situation, there is requirement to make some
improvements which are mentioned below:
 It is suggested that the TESCO needs to facilitate open communication where the
employees and managers can interact with each other effectively. This will help the
managers to know the expectation level of workforce so that they can take suitable steps
accordingly. Further, it will minimize the level of ambiguity & confusion that will
contribute in the future success of the organization.
 The company needs to adopt technological advancements to assist the workers in their
daily tasks. By implementing the recent techniques, it is possible to make the entire work
easier. Through this, it is possible to enhance the effectiveness of daily organizational
activities to attain the pre-defined goals.
 It is suggested that the respective company is required to arrange necessary training
programs to increase the overall efficiency of workforce. It will increase the work
potential of the employees so that they can contribute in organizational growth
successfully.

Conclusion
To conclude, it is said that Performance management refers to a function of enhancing
the level of engagement of workforce. It is about improving the skills & abilities of the
employees so that they can perform better at the workplace. It is evident that the companies are
facing ample of issues in terms of meeting with the expectation level of workforce in terms of
performance management. Further, it is found that there are ample of aspects are included in the
performance management. These elements are performance, appraisal, 360 degree feedback,
review of performance and more. In order to make further improvements, there is requirement to
adopt technological development and advanced techniques significantly.

References
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Kearney, R., 2018. Public sector performance: management, motivation, and measurement.
routledge.
Lapi, N., 2018. Performance management in the Vanuatu public service: foundations,
achievements and challenges. Asia Pacific Journal of Public Administration, 40(4),
pp.245-251.
McNally, M.A., Cerbone, D. and Maroun, W., 2017. Exploring the challenges of preparing an
integrated report. Meditari Accountancy Research.
Mone, E.M. and London, M., 2018. Employee engagement through effective performance
management: A practical guide for managers. Routledge.
Nuraida, I., 2019. The benefits and challenges of digitalization for employee performance
management in a medium-sized company in Kecamatan Lembang, West Java, Indonesia.
In Global Competitiveness: Business Transformation in the Digital Era (pp. 131-139).
Routledge.
Pour and et. al., 2020. Low impact development techniques to mitigate the impacts of climate-
change-induced urban floods: Current trends, issues and challenges. Sustainable Cities
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Psárska, M. and Hašková, S., 2019. PERFORMANCE MANAGEMENT IN SMALL AND
MEDIUM-SIZED MANUFACTURING ENTERPRISES OPERATING IN
AUTOMOTIVE IN THE CONTEXT OF FUTURE CHANGES AND CHALLENGES
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