Performance Management System Analysis: Pine-Apps Ltd. Case Study

This case study examines the performance management system implemented at Pine-Apps Ltd., a software development company. The analysis begins with an introduction to performance management and its importance in enhancing employee efficiency and productivity. Task 1 focuses on the development of the HR function, highlighting its benefits such as shaping organizational culture, planning for change, training and development, conflict management, and health and safety. Task 2 delves into the role of the performance management system, including self-assessment, employee feedback, and implementation of pay-for-performance programs. The integration of performance management with other HR processes is also discussed. Task 3 explores how performance management improves employee commitment and engagement through communication, growth opportunities, recognition, and trust. Finally, it addresses challenges in using the performance management system, such as lack of leadership commitment, incompetence, and absence of integration, along with strategies to overcome these hurdles. The report concludes by summarizing the benefits of performance management and its role in organizational success.

Case Study

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1 ...........................................................................................................................................1
TASK 2............................................................................................................................................2
TASK 3............................................................................................................................................4
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................7

INTRODUCTION
Performance Management System refers to a particular mechanism in which the overall
level of performance has to be enhanced in a highly effective manner (Anjomshoae and et.al.,
2017). Thus the use of this particular system can help a lot in ensuring that the overall level of
performance of the different types of employees can be enhanced in the right manner thereby
boosting their overall level of efficiency, effectiveness and productivity. This report is based on
Pine-Apps Ltd. It is a company which focuses on the development of software. In this
assignment, detailed focus will be made on evaluation of advantages of development of HR
function, role of performance management system and its implementation. Additionally, specific
analysis on use of performance management system and identification of the challenges in using
this system will be made as a part of this project.
TASK 1
According to Haddock-Miller, Sanyal and Muller-Camen, 2016, there is a particular
importance of developing HR function within the organisations. The reason for this is that by
developing HR function the organisations will be able to make sure that the overall development
of the different types of skills and competencies can be done in the right manner which will help
the company a lot in the future. There are numerous benefits which it can create for the
company including the following-
 Organizational culture- Organizational culture refers to the expectations, experiences,
philosophy and values which are created within the organization. Thus, for a company
like Pine-Apps Ltd. It is important that the development of HR function can create an
influence on the Organizational culture effectively and efficiently (Bititci, Cocca and
Ates, 2016).
 Planning for change- Organizational culture can help the organizations in ensuring that
they are able to plan for the change in the right manner (Eaidgah and et.al., 2016). In
Pine-Apps Ltd. It becomes quite crucial that the right plans can be created for the purpose
of bringing out change effectively and efficiently.
 Training and Development- HR function can help the organizations in ensuring that the
training and development of the different types of workers can be done in the right
manner (Kallio and et.al., 2016). This can help a company like Pine-Apps Ltd. To be able
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to ensure that it engages in Training and Development which will help it in motivating its
workforce to achieve the short-term, medium-term and long-term goals and objectives in
the future.
 Management of conflicts- HR function can help the organizations in ensuring that the
different types of conflicts which arise between the workers can be managed in the right
manner. For a company like Pine-Apps Ltd., it becomes important that it is able to
manage its different types of conflicts in the right manner which will help it in attaining
its overall goals and objectives in a proper manner.
 Health and Safety- HR function can be helpful for the organizations in ensuring that the
Health and Safety of the different types of workers can be managed in the right manner.
In Pine-Apps Ltd., this can help in ensuring the well-being of the workers.
Mehra, 2018 states that the use of HR function in the organizations is quite crucial in
helping them to be able to achieve the goals and objectives effectively and efficiently. In Pine-
Apps Ltd., this can help a lot in ensuring that the management of the employees can be done in
the right way. The importance of this particular function is explained as follows-
 Crossroads of a Business's success- The HR department within an organisation ensures
that it is able to effectively and efficiently support the various employees and allow them
to display their talent in the right manner. Pine-Apps Ltd. therefore can ensure that it is
able to make business successful.
 Contribution to the Bottom Line- The HR department in an organization helps in
contributing towards the Bottom Line. Thus, In the context of Pine-Apps Ltd., it can help
a lot in ensuring an increase in the overall level of efficiency and effectiveness.
TASK 2
Performance Management System is a system which helps a lot in ensuring that the level
of performance of the different types of workers can be evaluated regularly in an organization
and thus the right actions can be taken so that the overall improvements can be brought in the
company (Kerpershoek, Groenleer and de Bruijn, 2016). Thus Pine-Apps Ltd. Needs to make
sure that the use of this particular system can be made so that the company is able to attain its
particular goals and objectives effectively and efficiently.
The role of Performance Management System can be explained in the following manner-
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 Self-Assessment of the employees- Performance Management can lead towards ensuring
that the self-assessment can be carried out by the employees themselves which will help
them a lot to be able to achieve higher-level of goals and objectives effectively and
efficiently. Therefore, In Pine-Apps Ltd. this can be quite helpful in ensuring that the
workers are able to regularly assess themselves and are able to take the right steps
towards becoming effective and efficient in the future.
 Feedback from the employees- The use of Performance Management System is helpful
for the workers so that they are able to give feedback to the top management of the
company. Thus, it can be said that the use of this particular system will help the
employees a lot in giving their feedback and thus helping in making the company better
in the future in the right way. Thus in a company like Pine-Apps Ltd. It is quite helpful in
ensuring that the feedback from the workers is considered in setting the right metrics to
be followed.
 Raising the overall efficiency and effectiveness- The Performance Management System
is helpful for the different types of employees in ensuring that the overall efficiency and
effectiveness can be enhanced. In this way, the a company like Pine-Apps Ltd. Will be
able to ensure that it can bring improvement in the performance level of the employees in
the right manner.
 Implementation of Pay-For-Performance Programme- The use of a Performance
Management System can be made so that the Pay-For-Performance Programme can be
implemented in the right manner (Mawed and Al-Hajj, 2017). Thus, In this way it can be
said that a company like Pine-Apps Ltd. Will be able to ensure that the workers are able
to enhance the level of productivity in the right manner effectively and efficiently.
The integration of Performance Management has to be carried out with the various other
HR processes because in this way the overall level of performance of the different types of
workers can be enhanced in the right way. In Pine-Apps Ltd., this can be done by ensuring that
the integration with the following HR processes can be carried out-
 Human resource planning- In it, the detailed planning related with the HR department
needs to be carried out so that the HR management can be done in the right manner
(Rajnoha and Lesníková, 2016). In the context of Pine-Apps Ltd., this can help a lot in
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ensuring that the Performance Management is implemented as detailed plans related to
the same can created and implemented in the right manner.
 Employee relations- In it, the discussion on the different types of ways through which
employee relations can be maintained is done which helps in maintaining good relations
with the employees (Schleicher and et.al., 2018). Thus, In a company like Pine-Apps
Ltd., this can be quite helpful in ensuring that the relations with the various types of
employees can be maintained. This will help a lot in implementing the Performance
Management System quite effectively and efficiently.
 Training and Development- In it, the detailed discussion on the training and
development of the different types of workers can be done which can help a lot in
ensuring that the overall level of efficiency and effectiveness can be enhanced. Thus, In
Pine-Apps Ltd., this can be quite helpful as this will lead towards implementation of
Performance Management System.
 Evaluation- In it, the regular evaluation of the level of performance of the employees is
done which is quite helpful in ensuring that the assessment of performance of workers
can be done and they can be given instructions on improvement of performance. Thus,
for Pine-Apps Ltd., it is an important process because this can help the company a lot in
ensuring that it can bring the desired level of improvements in the right manner in the
level of performance and thus it has to be integrated with Performance Management
System of the company.
TASK 3
A. Explaining the ways in which Performance management improve employees commitment and
engagement:-
Performance management helps organisation to improve the efficiency and commitment
of employees. It helps the manager of Pine-Apps Ltd to improve the commitment and
engagement of employees in following way:
Communications: Communication is the part of performance management that helps the
manager of Pine-App Ltd to increase the commitment and employee engagement in the
organisation (Van Berkel and Knies, 2016). As it allow two way communication between
employees and manager which make employees to share suggestion and problem with manager
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about enterprise. They should communicate with employees daily basis instead of once in a year
as it increase trust between employees and manager.
Growth and development: For growth and development it is important that both
employee and manager discuss career goals and prepare a plan for personal development. This
will helps the employees of Pine-App Ltd to improve their skills and knowledge for the
attainment of organisational objectives.
Recognition and Appreciation: Performance management process include regular
feedback from employees. This require manager of Pine-App Ltd to go on work place to monitor
employee and appreciate them for their work and also provide suggestion to improve their work.
If manager provide them appreciation and recognition they will be motivate to do more work
with more commitment in the organisation.
Trust and Confidence: It is important to build trust and confidence among employees in
order to increase their performance. To increase trust of employees, manager need to share
organisation goals with employees on timely basis. It helps the manager of Pine-App Ltd to link
employees goals with organisational goals, so they contribute towards organisation goals
effectively.
B. Challenges of Using Performance management System along with strategies to overcome
with that-
The main goal of performance management is to increase the efficiency and work commitment
of employees. But sometimes manager face some difficulties to implement this system. To
implement performance management system, manager of Pine-App Ltd face following
challenges:
Lack of Leadership Commitment: Leadership commitment is important for the smooth
functioning of the organisation (Van Thielen and et.al., 2018). Leader manage this system in the
organisation but due to their lack of commitment, system may fail in the organisation. This lack
of commitment of leader may create problem for manager of Pine-App Ltd. To overcome this
challenge manager of Pine-App Ltd ensure proper feedback from employees and also allow
employees to participate in decision making
Incompetence: Incompetence to user performance management system may lead to
problem of Pine-App Ltd. To implement this system, it require defining strategic objectives,
providing feedback and providing training to employees. To overcome this challenge, manager
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of Pine-App Ltd ensure proper training to employees so that they will successfully implement
this system.
Absence of Integration: To implement performance management system it is important
to integrate with strategic planning with organisational goals. It may create problem for the
manager of Pine-App Ltd to integrate their strategic pans with organisation goals, culture and
objectives. To overcome this challenge manager of Pine-App Ltd ensure proper communication
of organisational goals with employees.
CONCLUSION
From the above report, it can be concluded that Performance Management is a technique
through which the overall level of performance of the employees can be raised. There are several
advantages for the companies when they develop their own HR function. There is a particular
role which is played by Performance Management System and Performance Management
System can be implemented with various other HR processes to improve organizational
performance. Performance Management System can be used for the purpose of improving
employee commitment and engagement and There are different types of challenges associated
with this system and they can be overcomed using the right approaches.
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REFERENCES
Books and Journals:
Anjomshoae, A. and et.al., 2017. Toward a dynamic balanced scorecard model for humanitarian
relief organizations’ performance management. Journal of Humanitarian Logistics and
Supply Chain Management.
Bititci, U., Cocca, P. and Ates, A., 2016. Impact of visual performance management systems on
the performance management practices of organisations. International Journal of
Production Research. 54(6). pp.1571-1593.
Eaidgah, Y. and et.al., 2016. Visual management, performance management and continuous
improvement: a lean manufacturing approach. International Journal of Lean Six Sigma.
Kallio, K. M. and et.al., 2016. Ethos at stake: Performance management and academic work in
universities. Human Relations. 69(3). pp.685-709.
Kerpershoek, E., Groenleer, M. and de Bruijn, H., 2016. Unintended responses to performance
management in Dutch hospital care: Bringing together the managerial and professional
perspectives. Public Management Review. 18(3). pp.417-436.
Mawed, M. and Al-Hajj, A., 2017. Using big data to improve the performance management: a
case study from the UAE FM industry. Facilities.
Rajnoha, R. and Lesníková, P., 2016. Strategic performance management system and corporate
sustainability concept-specific parametres in Slovak Enterprises. Journal of
Competitiveness.
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.
Van Berkel, R. and Knies, E., 2016. Performance management, caseloads and the frontline
provision of social services. Social Policy & Administration. 50(1). pp.59-78.
Van Thielen, T. and et.al., 2018. How to foster the well-being of police officers: The role of the
employee performance management system. Evaluation and program planning. 70.
pp.90-98.
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