BSBMGT502: Report on Woolworths' Performance Management System

This report critically evaluates the performance management system of Woolworths, an Australian supermarket chain. It examines the company's approach to employee performance, including operational plans, key performance indicators (KPIs), risk management strategies, and training programs. The report details the processes for allocating work, developing performance indicators, and conducting risk analysis to mitigate potential issues. It also explores the evaluation methods used, such as job description and critical incident methods, and how feedback is provided to employees, both formally and informally. The analysis covers various training methods, performance analysis, and the rewards or disciplinary actions taken based on performance results. The report also touches upon the feedback mechanism from employees and the documentation of performance records. Overall, the report provides a comprehensive overview of Woolworths' performance management practices and their effectiveness.

MANAGE PEOPLE
PERFORMANCE

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
Overview......................................................................................................................................1
Overview of the organization......................................................................................................1
EVALUATE FINDINGS................................................................................................................1
CONCLUSION................................................................................................................................5
RECOMMENDATION...................................................................................................................5
REFERENCES................................................................................................................................7

INTRODUCTION
Overview
Performance management system can be defined as a systematic approach that helps in
measuring overall performance of the employees (Schwartz, Evett and Lascano, 2018). It helps
an organization to align their mission, vision and goals with the current resources, system and set
priorities accordingly. It is one of the most important thing which is required to be focused on by
organizations. This assignment will lay emphasis on current performance management system of
Woolworths which is an Australian Supermarket and grocery stores chain.
Overview of the organization
Woolworths is an Australian Supermarket and grocery stores chain which is owned by
Woolworths Group. It was founded in 1924 whose headquarters is in New South Wales,
Australia. Woolworths specializes in groceries such as vegetables, fruits, packed food. Other
than this they also sell beauty and health products, household products etc.
EVALUATE FINDINGS
(a) All the relevant groups and individuals with Woolworths are consulted about work allocated
to them as it is important for them to put all the correct resources within their place in order to
operate successfully. For this operational plans are deployed organization can understand their
work plan and determine: what is required to be done, how it will be done, who will be
performing what kind of duties etc. Woolworths focuses on developing these operational goals
supported by business goals in order to identify work which is required to be done (Hoffmann
and Lima Filho, 2019). Operational plan of Woolworths focuses on their organizational
structure, productivity, milestones that are required to be achieved, deployment of human
resources and new technology etc. Operational plan provides a detailed and clear direction to
Woolworths that further help them to achieve their desired goals, aim and objectives. In order to
allocate work proper procedure is followed for which first of all available resources and
employee’s skill is taken into account. All the employees are briefed completely and are also
provided within an opportunity to ask any kind of question or provide suggestions, so that they
can achieve their desired level of expected performance.
(b) On the basis of the operational plan, key performance indicators are developed. These
performance indicators are decided or developed before commencement of work starts. These
performance indicators are based upon: benchmarking practises, quality standards, capabilities of
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management and employees, business results, customer satisfaction and many more. These
performance indicators help in acknowledging employee’s performance (Brouer, Gallagher and
Badawy, 2016). It helps in identifying all kinds of risk that can work as a barrier in achievement
of desired goals and objective.
(c) In order to enable all the functions of the organization to be put into place and prevent drastic
situation, risk analysis is done with the help of risk matrix. Risk matrix helps in identifying
likelihood of the risk to occur and impact it can have on organization. It helps in development of
risk management plan such that the functional and legal requirement of Woolworths is fulfilled.
On the basis of this risk analysis, contingency plan is developed in order to identify feasibility
responses, financials implications of the responses, nature of potential contingency etc. This
contingency plan helps in addressing operational changes, insurance coverage, secondary benefit
and many more. This contingency plan helps in minimizing risk and its impact on organization
and its business.
(d) Performance management is an ongoing process in Woolworths where evaluation,
identification and development of work performance of team and employees is done (Nigri and
Del Baldo, 2018). It provides various kinds of benefits to the employees in terms of reviving
feedback, recognition, personal development and career planning. With the help of performance
management overall performance of employees is assessed. It also helps in achieving
organizational objectives as well. However, there are two main types of components that are
required to be in place in order to manage and measure overall performance of employees that
are: correct organizational structure and usage of performance measurement results to bring
changes or improvement within overall organizational performance. There are two main types of
performance measurement methods that are chosen by Woolworths: first is job description
method in which all the employees are provided with list duties that are required to be fulfilled
by them and duties that are required to be performed by them (Le Roy and Czakon, 2016). This
method is used by those employees who have fixed work and duties to be performed and is one
of the easiest way to evaluate employee’s performance and need of training. Another method
chosen by Woolworths for performance evaluation is critical incident method in which all kinds
of incidents that had occurred within the organization are evaluated. This method helps in
evaluating performance of employees in critical situation and ways in which they manage such
situation. But in this only negative situations are recorded and evaluated as positive situations are
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seen as a part of employee’s duties. On the basis of some set criteria’s and using both the
methods overall performance of employees is evaluated and training needs are identified.
(e) Woolworths provides various kinds of training to their employees so that their overall
performance can be managed and improvement can be brought within their performance (Chen,
Rau and Suriyalaksh, 2017). Most of the training is provided to the employees within
organizational time line. Within this training process as well all the employees are continuously
monitored and reviewed in order to check whether there is any kind of change or improvement
within their overall performance or not. Performance results of performance measurement are
used to identify gaps within strategic objectives and annual goals that are required to achieved.
(f) In order to enhance overall performance of employee’s feedbacks are provided to the
employees both formal and information feedback. All the employees are provided with informal
feedback on monthly or weekly basis of their supervisors. Other than this on the basis of
assessments structured or formal feedbacks are provided to the employees so that they can bring
changes or improvement within their current performance. After provision of training again
employee’s performance is evaluated on half yearly basis and on the basis of the results
employees are provided with formal feedbacks.
(g) On the basis of performance results and formal feedback if there is requirement of bringing
changes or there is requirement of provision of training then, training is provided to the
employees. On the basis of necessity and importance or requirement of training, training method
is chosen (Busuttil and Van Weelden, 2018). Most commonly chosen method to improve
employee’s performance is on the job method. On the job training is provided to the employees
so that they can bring improvement within their overall performance achieve desired objectives.
If employees need to learn new skills or enhance their knowledge further, then sometimes off the
job training is also provided to the employees. Using this training method employees or staff
members are provided with further training away from their current work area so that they can
excel within their new skills and fulfil their job requirements in a much better manner.
(h) After this evaluation, training and feedback overall analysis of the employees and their
performance is done. With the help of continuous feedback, training results and performance
analysis and measurement results overall evaluation of employee’s performance is done. If all
the desired criteria of performance indicator are fulfilled, then employees are rewarded for their
performance. This evaluation of employee’s performance is done using rating scale method in
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which skills and abilities of employees are rated according to a defied scale. It is one of the best
method which is used by Woolworths as using this method they can easily evaluate their
employee’s performance and can compare it with performance of other employees as well
(Sousa, Oliveira and Ramos, 2016). It is an appropriate method as all the criteria’s that are
required to evaluate performance in an appropriate manner are fulfilled by this method such as:
communication process is well understood and accepted by all the staff members and other
employees, time to time meeting is helps in which results of work plan are discussed and
challenges clear evaluation criteria’s is set and many more. faced by the organization and by
individuals are also discussed. Employee who excel their performance and achieve desired goals
and objectives are rewarded and recognized by the organization like increment or bonus is
provided to such employees, promotion is provided and many more.
(i) If employees do not meet the desired performance indicator criteria’s or employees who fail
to fulfil their task or job in a required manner are then identified and brought in the notice of
management. Management focuses on bringing attention of the employees about their degrading
performance and its effect on achievement of desired goals and objectives of organization as well
as on their performance (Naser, Al Shobaki and Amuna, 2016). All the areas of improvement
where employees are required to focus on are identified and brought to attention of the
individuals so that they can focus and work on those areas. This evaluation also helps
Woolworths to understand areas where there is a need to focus on in order to bring improvement
within individual and organizational performance in order to achieve desired business objectives.
This helps the organization to identify need of type of training which is required to be provided
to the employees in order to enhance their overall performance.
(j) This feedback provision is not only for the upper management but it is for the employees as
well. If they feel that there is requirement to bring changes all the employees are free to provide
their feedback of suggestion regarding current organizational culture. Feedback provided by the
employees is taken in a positive manner and if those feedbacks are useful then it is included in
constructive strategy development and are also used in improvement and development of
organization and employee development plan. This performance management plan is designed in
such a manner that it allows the employees to bring changes or improvement within their current
abilities and skills such that their overall work in enhanced without getting hampered by the
performance management plan (Herrero, Alonso and Gómez, 2016).
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(k) With the help of this performance management plan Woolworths can focus on enhancing
performance of employees who are below the average. Even after performance management plan
if overall performance of below average employees is not enhanced then Woolworths take strict
disciplinary action against those employees as because of their below average performance not
only organization’s overall performance is affected but it also affects overall performance of
other employees are good or excellent art their work. In strict disciplinary action reason for their
poor performance is evaluated and if it is a valid reason then that reason is focused to be
eliminated otherwise termination process is started.
(l) Even after performance management process such as professional counselling, resolving
issues faced by employees, transfer to another team and many more if the performance does not
improve then suspension or termination process starts (Donovan, Walsh and Bowden, 2019).
Within termination process all kinds of misconduct, continuously degraded performance, or if
organizational or legal requirements are not being fulfilled by the employees then as per the
requirement they are either terminated or are suspended from their current designation or
demoted. If there is a scope that after some time employee can improve themselves then they are
demoted, if employees fail to fulfil organizational or legal requirements then they are suspended
and if there is no scope of improvement within current performance of employees then they are
terminated.
(m) After whole performance management process is completed, documentation of the records,
data comes into picture (Naser, Al Shobaki and Amuna, 2016). Data associated with employee’s
performance, interaction with employees, results of any disciplinary action or changes within job
description or designation of employees are documented in a proper manner.
CONCLUSION
From the above assignment it has been summarized that performance management
system is one of the most important factor which is required to be focused on by organizations as
it helps them to enhance both employees and organization’s overall performance. It helps an
organization to align their performance with main organization’s goals and objectives. It has
been analysed that existing performance management system has a fixed or set procedure which
helps the organization to enhance their as well as their employee’s overall performance.
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RECOMMENDATION
Here are few recommendations that can help Woolworths to bring improvement within
their current performance management system. This will also help the organization to bring
requirement improvement within the strategies adopted by them in order enhance their overall
performance.
 Woolworths can focus on conducting performance management system audit which will help
them to assess their current organizational level and performance with best practises carried
out within their field (Naser, Al Shobaki and Amuna, 2016).
 Woolworths should focus on developing a continuous and effective feedback loop. This loop
will help the organization to exchange performance on regular basis. In this on weekly basis
performance of employees can be evaluated and their overall weekly performance can be
communicated to them so that they can focus on bringing changes or improvement within
their performance. In this feedback loop employees should also be able to provide required
suggestion or feedback that are required to be focused on that can impact their overall
performance.
 Woolworths can also use web based system to evaluate overall performance and
improvement within their performance. These web based system will also help the
organization to enhance their performance management process and the based on web based
results they can bring improvement within performance management strategies.
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REFERENCES
Books and Journals
Brouer, R.L., Gallagher, V.C. and Badawy, R.L., 2016. Ability to manage resources in the
impression management process: The mediating effects of resources on job performance.
Journal of Business and Psychology. 31(4). pp.515-531.
Busuttil, L.R.G. and Van Weelden, S.J., 2018. Imago Dei and Human Resource Management:
How Our Understanding of the Breath of God’s Spirit Shapes the Way We Manage
People. Journal of Biblical Integration in Business. 21(1).
Chen, N., Rau, P.L.P. and Suriyalaksh, P., 2017. How Thai and Chinese Young Adults Manage
Time?. Psychology. 8(5). pp.717-727.
Donovan, R., Walsh, P. and Bowden, J.J., 2019. Mindmanager: The Psychologically Informed
App to Manage Weight Loss. In CERC (pp. 231-235).
Herrero, D.C., Alonso, M.A.V. and Gómez, M.C.S., 2016, November. A3bycomp: a software
tool to help social organizations to manage skills. In Proceedings of the Fourth
International Conference on Technological Ecosystems for Enhancing Multiculturality
(pp. 853-856).
Hoffmann, D.S. and Lima Filho, R.N., 2019. Measure to Better Manage: Proposal of
Performance Indicators. International Journal of Advanced Engineering Research and
Science. 6(2).
Le Roy, F. and Czakon, W., 2016. Managing coopetition: the missing link between strategy and
performance. Industrial Marketing Management. 53(1). pp.3-6.
Naser, S.S.A., Al Shobaki, M.J. and Amuna, Y.M.A., 2016. Knowledge Management Maturity
in Universities and its Impact on Performance Excellence" Comparative study".
Naser, S.S.A., Al Shobaki, M.J. and Amuna, Y.M.A., 2016. Measuring knowledge management
maturity at HEI to enhance performance-an empirical study at Al-Azhar University in
Palestine.
Nigri, G. and Del Baldo, M., 2018. Sustainability Reporting and Performance Measurement
Systems: How do Small-and Medium-Sized Benefit Corporations Manage Integration?.
Sustainability. 10(12). p.4499.
Schwartz, R.C., Evett, S.R. and Lascano, R.J., 2018. Comments on “J. Singh et al., Performance
assessment of factory and field calibrations for electromagnetic sensors in a loam
soil”[Agric. Water Manage. 196 (2018) 87–98]. Agricultural Water Management. 203.
pp.236-239.
Sousa, R., Oliveira, A. and Ramos, P., 2016, June. Information system to manage the evaluation
of performance of education professionals in a pre-school—A model in development. In
2016 11th Iberian Conference on Information Systems and Technologies (CISTI) (pp. 1-
6). IEEE.
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