Case Study Analysis: Performance Management in Business Context

This case study examines performance management systems and their strategic alignment, focusing on the practices of Procter & Gamble (P&G) and other case studies. The analysis delves into how companies can link employee performance to overall business strategy, emphasizing employee motivation, feedback mechanisms, and reward systems. The study highlights the importance of clear objectives, valid and reliable appraisal systems, and regular feedback. It explores the advantages of effective performance management for both the organization and its employees, including improved productivity and employee engagement. The absence of such systems and the consequences of lacking recognition of good work are also discussed. The case study also includes examples of how reward systems, such as those based on sales performance, can be integrated with the broader performance management framework to drive desired outcomes and improve overall organizational success. The document also provides case studies for companies like CRB, Inc. and KS Cleaners.

Running head: PERFORMANCE MANAGEMENT
PERFORMANCE MANAGEMENT
Name of Student
Name of the University
Author Note

1PERFORMANCE MANAGEMENT
Response to question 1
A performance management system is needed to keep the employees motivated in order
to improve their performance, it will help in providing feedback to the employees about their
performance and they can improve the same with the help of the feedback and there is will bring
a sense of competitiveness in them.
Response to question 2
The main advantage of such a performance management system to the owners will be
that the productivity of the entire organization will improve. They can measure and evaluate the
performance of all the employees and therefore any gaps can be identified. The advantages to the
employees will be that they will be motivated to work hard because they can expect their
appraisal.
Response to question 3
In case of absence of the performance management system, the employees may lack the
drive to perform to their best because there is no recognition of their good work (Parida et al.,
2015). There may be lack of engagement of employees in the organization, lower self-esteem of
the employees; there may even be damaged relationships.
Response to question 4
A good performance system is one that can align the goals of the organization with that
of the individuals. A good performance appraisal system or the performance management system
is one that has the following characteristics- The objectives of the appraisal system should be
clear, open and timely such that the employees can understand the basis on which they will be

2PERFORMANCE MANAGEMENT
paid. It should be valid and reliable that is the system should be based on accurate information
and data. The appraisal system needs to be standardized such that the criteria’s should be clear
and the rules and regulations are followed by employees, training of the evaluators is necessary,
job relatedness that is the behavior should be measured, there has to be mutual trust before
introducing the system, this system must ensure regular feedback to the employees, the system
must be capable of recognizing differences, it should help in improving focus and the system
should be reviewed through interviews.
Response to question 5
The present reward system can be combined with the sales performance system. In case
of the sales performance system, rewards are given on the basis of sales made and how
efficiently it has been given (Wang et al., 2015). therefore the more the flagging done the more
will be the production and more will be the sales therefore they can be given rewards on the basis
of the same.

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References
Parida, A., Kumar, U., Galar, D., & Stenström, C. (2015). Performance measurement and
management for maintenance: a literature review. Journal of Quality in Maintenance
Engineering, 21(1), 2-33.
Wang, N., Shi, J., Yeung, D. Y., & Jia, J. (2015). Understanding and diagnosing visual tracking
systems. In Proceedings of the IEEE International Conference on Computer Vision (pp.
3101-3109).