Evaluating Performance Management System at Dodo Exclusive Shoes

This case study examines the performance management system (PMS) at Dodo Exclusive Shoes, a South African national shoe retailer. It identifies challenges faced by employees and managers in implementing PMS, such as balancing flexibility with consistency and aligning departmental, individual, and organizational performance. The study explores the implications of not overcoming these challenges, including increased internal competition and discouragement among staff. Alternative perspectives on implementation challenges are considered, focusing on poor measures and lack of performance tracking. Recommendations for HR leaders include synchronizing yearly planning with the performance management cycle, translating corporate goals into individual goals, and providing timely feedback and rewards. The role of employee engagement and the relationship of PMS to other management processes are also discussed. The study further analyzes the strengths and weaknesses of Dodo Exclusive Shoes' PMS, such as its impact on profitability and employee engagement versus internal competition and lack of leadership assistance. Finally, it recommends improvements to the system, including training programs and formal discipline policies, to enhance employee capabilities and competencies.

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Performance Management System

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PART A
Challenges faced by employees and managers in implementing performance
management system
Aguinis (2013) asserts that to give a guarantee about the successful implementation of
the performance management system, it is essential that employees should try to work on
creating the right balance between the flexibility and consistency (Aguinis, 2013). In various
cases, it is noted that remuneration schemes are driving the system of performance
management that also supports in creating the long-term results of organizational behaviour
as well as culture (Gregory and Levy, 2015). In some other cases, it is analysed that senior
management emphasizes over the scorecard management for holding the people, who are
responsible for creating a scorecard that is not attached with the focused business area, but
instead it emphasizes on different deliverable projects and jobs (Gregory and Levy, 2015).
The biggest challenge is that performance management system lacks the alignment among the
departmental performance, individual performance and organizational delivery so that every
system default moved back to the financial dimensions (Gregory and Levy, 2015).
Implications for staff if challenges are not overcome
One of the adverse effects of performance management system is the enhancement in
competition among the team (Gregory and Levy, 2015). The performance-based reward
system is undertaken in various companies, including shoes manufacturing companies
(Mueller-Hanson and Pulakos, 2017). Through this system, the team has to work hard for
giving better performance than others (Gregory and Levy, 2015).
Alternative perspectives on the implementation challenges faced by managers and staff
The alternative perspective on implementation of issues that are faced by staff and
managers is that at different organizational levels poor measures are created (Locke and

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Latham, 1990). In few other cases targets are fixed, but then no appropriate measure is taken.
In other cases, no information is collected or either kept as the act to track the performance
(Latham and Locke, 2006).
Recommendations for HR leaders to address these challenges
The researcher recommends that yearly planning, as well as budgets, need to be
synchronized with the cycle of performance management (Latham and Locke, 2006). It is
recommended that corporate goals should be translated according to individual goals while
planning for the performance (Latham and Locke, 2006). Employees should be skilled so that
they can come up with right performance measures (Kahneman and Tversky, 1992). Tools of
evaluation should be particular with specific staff categories, where else performance should
be documented all around the year (Latham and Locke, 2006). It is also recommended that
feedback should be given on time and rewards should be delivered on time as per
performance. Culture and high performance should be set up to assist the PMS (Latham and
Locke, 2006).
Role of Employee Engagement in recommendations
An organization with highly committed staff usually outperform with the disengaged
staff on every aspect, including productivity, customer metrics, high performance, and
reduced turnover (Kluger and DeNisi, 1996).
Relationship of the performance management system to other management processes
It is recommended that PMS should relate with another management process, as PMS
try to measure the staff achievement, assess and reward staff behaviour, where else other
methods like strategic human resource decide every job role in explaining its competencies
(Buckingham and Goodall, 2015).

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The viability of technology-supported methods with PMS
In IT world, developments are taking place through agile methods (Buckingham and
Goodall, 2015). This method emphasizes over pushing the development teams to mitigate the
waste time incurred in development cycles and also support in optimizing the time with the
market (Kahneman and Tversky, 1992). Technological approaches in PMS support in
explaining efficiency, speed, and flexibility (Buckingham and Goodall, 2015).
PART B
Performance Management System at Dodo Exclusive shoes
The performance management system at Dodo Exclusive Shoes is the formal process,
and periodic review system which has resulted due to hard work took between collaborator
and boss (DeNisi and Murphy, 2017). The critical value of this exist in the evidence that its
considered as an instrument for all the line managers, working at different levels for
maintaining the touch with colleagues, on the way that it will fulfil the goals and objectives
of work agreed to meet the commitment emanating through the directives and strategic
guidelines of organizational plans (DeNisi and Murphy, 2017). Dodo Exclusive shoes PMS
make sure about the right and timely meeting the goals that are mentioned in the
organizational strategy, and also explore the each employee’s contribution in performance
(Kahneman and Tversky, 1992). It also creates the regular communication among employees
and managers for enhancing the job performance (DeNisi and Murphy, 2017).
Dodo Exclusive shoe objectives behind performance management system are to offer
a right and reliable way in which staff carries out their task (Dodos, 2018). At Dodo
Exclusive shoe assessments system is also directly link to the post, both practical and
dependable (Mueller-Hanson and Pulakos, 2017). They are required to include the
measurement level or verifiable standards (DeNisi and Smith, 2014). Through directly

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connecting with the post implies that the system refers the essential components for the post
success (DeNisi and Smith, 2014). If assessment doesn’t go with the post, then it’s
considered as invalid. It’s analysed that the evaluation is regarded as practical when
examined by reviewers. It is noted that complicated system often results in a generation of
conflicts and suspicion (DeNisi and Smith, 2014).
Dodo Exclusive shoes are the South Africa national shoe retailer and provide the
contemporary range of both men and women in different sections like informal and formal
sections (Dodos, 2018). The company has incorporated PMS for enhancing the profitability
and productivity, identifies the efforts of staff, manage the unsatisfactory performances as
well as set up the training requirements for bringing further improvements in employees
(Dodos, 2018). The company makes use of computer database to evaluate the employee’s
performance. The database is categorized into a different database for measuring the goal
fulfilment allocated to staff, which includes various steps, individual action standards,
meeting essential job designation duties that are measured monthly (Latham and Locke,
2006). Performance database rating is given against the primary outcomes, primary
responsibilities, and main dimensions (Kahneman and Tversky, 1992). Few databases are
evaluated daily, weekly or either monthly at Dodo Exclusive shoes (Latham and Locke,
2006). The managers consider employees yearly performance, and collect the information
from the database and then provide the rating accordingly (Kahneman and Tversky, 1992).
The Dodo Exclusive shoes also include the culture related to sharing the performance
outcomes of staff members (Latham and Locke, 2006). This permits the members to
understand the progress, and accordingly they enhance the areas in which the performance is
lagging behind the competitors (Kahneman and Tversky, 1992). Therefore, this aspect
improves the performance of the team and positively impact the productivity of the company
(Latham and Locke, 2006).

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Strengths and weaknesses of the performance management system
Strength of PMS
The performance management supports in enhancing the rate of profitability of
company Dodo Exclusive shoes, which later on supports in satisfying the requirement of
customers (Mueller-Hanson and Pulakos, 2017). The PMS strength exists in helping in
bringing improvement in productivity and corporate structure. Therefore, it offers the
positivity related with:
Performance tradition- the PMS assist in bringing development in the corporate culture, and
consequently, it supports in attaining the goals related to customer satisfaction in Dodo
Exclusive shoes (Mueller-Hanson and Pulakos, 2017).
Engagement of employees- the efficient PMS implementation in the business supports in
enhancing the company revenue (Mueller-Hanson and Pulakos, 2017). The profit and sales
rate of Dodo Exclusive shoes also lead the company towards its complete development. The
PMS offers the adverse effect towards the business (Mueller-Hanson and Pulakos, 2017). It
includes manager’s commitment and measures (Mueller-Hanson and Pulakos, 2017). Lack of
effective PMS implementation might also result in lack of adequate employee’s responsibility
that impacts business productivity (Kahneman and Tversky, 1992). The application of PMS
also leads towards the effective implementation of different measures that need relevant time
for management at the workplace (Mueller-Hanson and Pulakos, 2017). This also needs time
for managing the human resource to work at every indicator.
Weakness of PMS
Internal Competition- When the company might use performance management system, then
each staff can become the competitors and compete for status and position (Kahneman and
Tversky, 1992). There is more chance for backstabbing and strong staff rivalry that might

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result in conflicts (DeNisi and Murphy, 2017). If there are conflicts, then the same might
bring lousy influence on the team and end up in the lousy performance of Dodo Exclusive
shoes (Mueller-Hanson and Pulakos, 2017).
Discouragement- in PMS process, if it’s not pleasant, then the same might lead towards staff
discouragement (DeNisi and Murphy, 2017). In the process, Dodo Exclusive shoes encourage
and try to celebrate the staff achievements (Mueller-Hanson and Pulakos, 2017). If staff had
attained something and there is no recognition, then the same might lead towards
discouragement and demotivation (DeNisi and Murphy, 2017).
Lack of Rewards- rewards are always the principal motivation for Dodo Exclusive shoe
employees (Kahneman and Tversky, 1992). If there is lack of reward system, then staff
performance will be impacted (DeNisi and Murphy, 2017). They wouldn’t be motivated as
they are not interested in working on something, which is of no worth (Mueller-Hanson and
Pulakos, 2017).
The dilemma of managers- when most of the time of Dodo Exclusive shoes is pend over
supervision and staff evolution, then managers at Dodo Exclusive shoes wouldn’t be able to
perform their job efficiently (DeNisi and Murphy, 2017). It will be challenging for them to
perform their duties and take measurements on value indicators (Kahneman and Tversky,
1992). Besides that, it’s quite challenging to have common signs as various job hold its own
job needs (DeNisi and Murphy, 2017).
Lack of Leadership assistance- At Dodo Exclusive shoes more and more leaders care about
their position and also try to ignore the staff development (Murphy and Cleveland, 1995).
Top leaders should support the PMS implementation (Mueller-Hanson and Pulakos, 2017). If
leaders are not able to encourage the staff, then company performance will be a week, and
they have to bear the consequences of it (Kahneman and Tversky, 1992).

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Managers not adequately trained- Managers are recruited as per their experience at Dodo
Exclusive shoes (Kahneman and Tversky, 1992). Nevertheless, not every manager comes
from similar background (Mueller-Hanson and Pulakos, 2017). If managers are not given
proper training, it might become challenging to improve the employee’s career path
(Kahneman and Tversky, 1992).
Lack of Monitoring- At Dodo Exclusive shoes PMS implementation is monitored. Problems
that are explored are corrected before it gets too late (Kahneman and Tversky, 1992). Dodo
Exclusive shoes had developed the monitoring system for systematic collection of
information, analysis of the situation, and its interpretation, and then accordingly to take a
decision (Kahneman and Tversky, 1992).
Recommendation for improving the system
An accurate performance evaluation of an individual can offer data about the
knowledge, skills or abilities deficiencies (Latham and Locke, 2006). Through exploring the
strength and weakness, these issues can be resolved and enhanced (Mueller-Hanson and
Pulakos, 2017). But the same can be done by undertaking induction programs, training, and
relevant training (Effron and Ort, 2010). The training program conducted at Dodo Exclusive
shoes aims to improve the capabilities as well as competencies by rightly promoting the
career ladder, and promoting the employee's diversity (Mueller-Hanson and Pulakos, 2017).
The Dodo Exclusive shoes formal discipline policies emphasize over the training related with
violence and harassment, as the company believes that the effective prevention plan
implementation will profoundly affect the workplace reduction violence and focus more
towards what steps should be taken when such incident happen (Mueller-Hanson and
Pulakos, 2017). It is recommended that employers that try to implement the effective
program should examine the complaints, provide training to the employees about the security

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problems, minimize the job stress, as well as initiate the work team to work within the
supportive environment and view the rise in productivity and reduce the violent incidents
(Mueller-Hanson and Pulakos, 2017). It is recommended that PMS evaluation should be
conducted every year, and employees should be kept motivated to give best performance.

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