Performance Management: Lynch and Cross Pyramid at Marks & Spencer

This report provides an overview of performance management, focusing on the Lynch and Cross performance pyramid. It explains the pyramid's structure, which measures both financial and non-financial performance across different organizational levels. The report then analyzes the application of this pyramid within Marks & Spencer, a major British multinational retail company. It explores how Marks & Spencer utilizes the pyramid to align operations with strategic goals, reward employees, and assess overall performance. The analysis includes a discussion of the advantages, such as aligning activities with customer needs and fostering customer loyalty, and disadvantages, such as potential for short-term focus and rigidity. The report concludes by summarizing the key findings related to performance management and the use of the Lynch and Cross pyramid within the context of Marks & Spencer, highlighting the importance of a balanced approach that considers both quantitative and qualitative measures for long-term success.

Performance management

Table of Contents
INTRODUCTION...........................................................................................................................1
What is meant by the performance pyramid of Lynch and Cross 1991:.....................................1
Explanation of the performance pyramid in the Marks & Spencer :.........................................2
Why the Marks & Spencer use the performance pyramid. Advantage and disadvantage.........2
CONCLUSION ...............................................................................................................................3
REFRENCES ..................................................................................................................................4

INTRODUCTION
Performance management is the key element of the corporate management which help
manger to appraise employees work, the objective of the performance management is to establish
an environment under which individual can do the best of the work effectively and efficiently.
Performance management is the part of the management, performance management concentrate
on the performance of the organisation, each department under the organisation, mangers and
employees under the organisation. Under this report Marks & Spencer chosen as the organisation
. It is the major British multinational company of the UK, it is a public limited company or retail
industry(Schleicher and et.al., 2018). Marks & Spencer headquarter based in Westminster,
London. Michael Marks and Thomas Spencer are the founder of the Marks & Spencer
company. Under this report will cover the explanation of the performance pyramid of Lynch
and cross 1991, and explanation relevant to the why Marks & Spencer used the performance
pyramid.
What is meant by the performance pyramid of Lynch and Cross 1991:
Generally performance pyramid is the structure which measure the financial and non
financial performance of the organisation, the performance pyramid is developed by the Lynch
and cross. Performance pyramid originate from the concept that organisation work at different
levels. It is important that these different levels of the performance pyramid hold or support each
other. Performance pyramid of Lynch and Cross 1991 consist or divided into of the 4 level(Noe,
and et.al., 2017).
 Level 1 it is the top level of the performance pyramid of Lynch and Cross 1991. it is the
corporate eye or aim. With the use of the corporate eye the organisation determine that
how organisation can achieve the organisational long term achievement and competitive
importance.
 Level 2 second level of the performance pyramid of the Lynch and Cross 1991
concentrate on the success of an organisations CSFs in terms of market relevant measures
and financial measures, financial as well as marketing achievement of a proposal
concentrate on the achievement of the corporate eye.
 Level 3 third level of the performance pyramid under this level the financial and
marketing strategies set a level 2 related to success of customer satisfaction, increase
high productivity and flexibility at the next level of the performance pyramid. This are
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the instructing forces that run the strategic goal of the organisation(Mone, E.M. and
London, M., 2018).
 Level 4 the position of the level 3 running forces can be control with the help of the
lower level departmental signal of quality , cycle , delivery cycle time and waste.
Above all four level of the performance pyramid are observe to fit into each others in achieving
the common goal of the organisation(DeNisi, A.S. and Murphy, K.R., 2017).
Explanation of the performance pyramid in the Marks & Spencer :
It is the important that the performance calculation approach taken by the Marks &
Spencer complete the function, the calculation should relate operation to strategic goal, it is the
important that department of Marks & Spencer are conscious of the extent to which they are
contributing differently and together in achieving the Marks & Spencer goal. The real value of
the system lies its skills and performance to concentrate all the Marks & Spencer activity on the
needs of the customer of the Marks & Spencer, the strength of the of the performance pyramid
of Lynch and cross 1991 model lies in the fact that it ties combine the the hierarchical view of
business performance pyramid of Lynch and cross 1991 with the Marks & Spencer process
review(Kallio and et.al., 2016). Marks & Spencer have many corporate goals related to finance
market. The performance pyramid at the company unit level is flexibility is simply means how
adjustable the Marks & Spencer company service or product and Marks & Spencer operation
and finance are intelligent in the market(Buckingham, M. and Goodall, A., 2015).
Why the Marks & Spencer use the performance pyramid. Advantage and disadvantage
Performance pyramid used by the Marks & Spencer to implement and run strategic
objective, Marks & Spencer use the performance pyramid to rewards the employees of the
company financially and calculate if company is achieving there objective, for Marks & Spencer
performance pyramid is the quantitative performance is highly determined by financial
calculation which is disadvantage in the case when it comes achieve long term success, level of
customer satisfaction and employees creativity. The technique of implementing qualitative
performance calculate bring advantage which include achievement term Marks & Spencer goals ,
high level of the customer loyalty and build up prediction relevant long term financial
performance(Ahmed, and et.al., 2016).
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 Short term result – When Marks & Spencer create some financial goals, it leads to
establish an environment where short earning become more important than the factors
affect them.
 Standardization – Performance measure leads to influence rigid behavioural outcomes
they may report in a loss of creativity.
 Customer locality – Qualitative performance calculate financial measurements leads to
create a favourable balance between Marks & Spencer tangible and intangible assets .
Calculation items such as customer satisfaction and service quality influence long term
financial achievement by increasing the levels of customer loyalty.
 Long term prediction - A set of qualitative as well as quantitative performance
calculation allows a good signal of how Marks & Spencer may behave in the long period
even financial calculate may signal a short period loss for a long term capital project.
CONCLUSION
Under this report provided the information and knowledge related to the performance
management. And briefly defined or explanation about the performance pyramid of Lynch and
Cross 1991, explanation of the performance pyramid under the Marks & Spencer, this report
also provide information In terms why Marks & Spencer used the performance pyramid and
what are the advantage and disadvantage of the performance pyramid under the Marks &
Spencer.
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REFRENCES
Ahmed, and et.al., 2016, May. Studying the effectiveness of application performance
management (APM) tools for detecting performance regressions for web applications:
an experience report. In Proceedings of the 13th International Conference on Mining
Software Repositories (pp. 1-12). ACM.
Buckingham, M. and Goodall, A., 2015. Reinventing performance management. Harvard
Business Review. 93(4). pp.40-50.
DeNisi, A.S. and Murphy, K.R., 2017. Performance appraisal and performance management:
100 years of progress?. Journal of Applied Psychology. 102(3). p.421.
Mone, E.M. and London, M., 2018. Employee engagement through effective performance
management: A practical guide for managers. Routledge.
Noe, and et.al., 2017. Human resource management: Gaining a competitive advantage. New
York, NY: McGraw-Hill Education.
Kallio, K.M and et.al., 2016. Ethos at stake: Performance management and academic work in
universities. Human Relations. 69(3). pp.685-709.
Schleicher, D.J and et.al., 2018. Putting the system into performance management systems: A
review and agenda for performance management research. Journal of management.
44(6). pp.2209-2245.
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