Performance Management System: Tower Insurances Case Study

This report provides a comprehensive analysis of a performance management system tailored for Tower Insurances, focusing on leadership styles, coaching processes, and motivational techniques. It explores the application of coaching leadership to address performance issues and foster employee development, particularly for an employee named Sophie. The report delves into various performance management tools, including performance appraisals and 360-degree feedback, to assess and enhance employee contributions. It also examines the importance of organizational culture, addressing professional, ethical, and social issues, such as leadership qualities and discrimination. The report integrates Vroom's expectancy theory to understand and improve employee motivation, ensuring alignment between individual effort and organizational goals. The report also highlights the behavioral approach to management and the importance of communication and understanding in achieving organizational objectives.

RUNNING HEAD: PERFORMANCE MANAGEMENT SYSTEM
Title: Performance Management System
Name of Student:
Name of University:
Author Note:

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Table of Contents
Introduction:....................................................................................................................................2
Leadership Style:.............................................................................................................................2
Performance management approach:...............................................................................................4
Coaching process:............................................................................................................................5
Performance Management Tools:....................................................................................................5
Motivation:......................................................................................................................................7
Organizational Culture:...................................................................................................................7
Global Competence:........................................................................................................................9
Goal of the Company:......................................................................................................................9
Conclusion:....................................................................................................................................10
Reference List:...............................................................................................................................11

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Introduction:
The term Performance management is in general referred to the tool of the corporate
management that benefits the manager by the means of providing opportunities to monitor and
evaluate the task of the employees in an organization (.Ahmed Chen, Hassan & Shang 2016).
The ultimate goal of performance management is to develop an ideal environment within the
organization and where the competencies and the performance of the employees are raised at the
best of their abilities so that they can produce the highest quality of work in the most effective
and efficient manner. The following plan aims at the creation of a proper Performance
management system for the Tower Insurances Company so that it can impart the best leadership
and motivation to the employees in enhancing the performances and resolving the conflicts
within the organization. The plan will look into the effective ways in which the management can
impart leadership and motivation to the employees and will also look into the most effective
performance management tools that the organization can use in order to coordinate the vision
and goal of the company with the performance of the employees.
Leadership Style:
In the current situation, it seems that Sophie had been a good performer before, but for
any reason she had failed to put up with her standard in the new location. Thus, it is evident that
Sophie has competency enough to grope the strategy of the company and function effectively.
The only thing she requires is the guidance and training to nurture her own potentials and
identify her own strength. Moreover, she is an immigrant and is not totally acquainted with the
work culture of the new place. Thus, this case needs a Coach Style Leadership in order to
nurture the strengths of Sophie. Imparting a complete knowledge about the culture of the place

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will make her competent in handling the employees. This style of leadership will also help
Sophie to understand the strategy of the company and how to indulge into growth and success of
each individual employee (Giltinane,2013). Sophie can be given new tasks and situations to
solve by her own and can be provided with guidelines and meetings in order to discuss about the
constructive feedback. This will encourage Sophie to increase her strengths and learning new
skills. Similarly, by giving organization a coach style leadership and providing proper trainings
for development the organization can ensure better productivity and teamwork from the
employees whereby they can learn new skills from other team mates as well.
The type of management approach the organization can impart is the behavioral approach. In any
organization human are the most important assets as things are done through people and this
approach particularly concentrates on the human aspects of management. It is to be taken into
account that the employees can work together to achieve a certain goal only if they understand
one another. The interpersonal approach aims at solving the communication problem by applying
psychology to management. The enhancement of interpersonal skills and events in the Tower
insurance in building a sense of bonding among the employees. Contrary to the systems
Approach that regards the enterprise as a system with several parts and departments, the
behavioral approach puts more emphasis on importance of leadership and motivation of people.
The Systems Approach views each department as independent and oriented at achieving a
particular predetermined goal. In the current situation, the Systems Approach cannot be utilized
since it depends largely on the feature of interdependence and not on the aim of enhancing the
set of competencies within the organization.

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Performance management approach:
A proper performance management is possible only when the organization has a clear
definition of goals and visions. The lack of communication and understanding the work
environment tends to make an employee unmotivated and uncommitted towards the
organization. In the current case Sophie has enough talent and resource to perform well.
However there may have been any gap in communication and understanding of the
organizational goal, so she could not align herself with the vision of the organization. In order to
make Sophie more focused in her work she must be made well aware of her responsibility in the
organization. She must also be given the power to veto the action of which she is responsible.
Since Sophie is an immigrant, she needs to remain well aware of the resources that are needed
for her action. Supporting her does not necessarily mean that the leader or manager will agree to
all the steps taken by her. The main approach that can be associated with the performance
management of Sophie is the model of directing, delegating and developing. Since she is new to
the company she still has low or moderate competencies but has adequate skills required to
complete her task. She must be defined the key aspects of performance – what, how and when.
Then she could be provided with certain specifics like examples, reports and templates so that
she can achieve the desired outcome. After gaining moderate to high competence level, she can
pass through the process of delegation whereby she can determine the required approach
necessary to perform. At this level, as she has gained some level of experience and confidence in
her abilities, she can be asks questions and be provided with necessary supports and assistance
wherever needs be. The development phase of Sophie will require when she will attain a high
competence and commitment level towards her task. Proper recognition for her successful
accomplishments and determining the next challenge will help her to develop further.

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Coaching process:
Coaching is an effective tool of performance management that helps to enhance the
performance and growth in an organization and at the same time to promote individual
accountability and responsibility. An effective coaching helps the organization to maintain a
good supervisory and employee relationship (de Waal & Kourtit, 2013). This is also helpful in
the identification of the growth of an employee and seeks to plan and develop new skills. The
skill of coaching is used by the supervisors to address and evaluate the needs for development of
an employee and help them to gain diversified experiences in various fields of competencies.
The following framework can be applied in Sophie’s performance development:
Building trust: being new to the organization Sophie is unaware of the organizational climate. It
is essential to build a sense of trust. A mutual interest in the success of the other is critical.
Giving open and honest feedback can induce the sense of trust in the employees.
Defining the issues: it is the duty of the supervisor or the manager to seek information with the
aim of better understanding the issue or the performance level in question. The emphasis is put
on the gathering information in a non judgmental fashion.
Creating the plan of action: The coaching process must put emphasis on the creation of a plan of
action jointly laid down by the supervisor and the manager. This will help the employee in
coordinating and addressing her issues of concern to the manager.
Performance Management Tools:
The two most effective tools that can be used in Sophie’s case are performance appraisal
and 360 degree feedback.

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A performance appraisal is generally regarded is the general process of reviewing an
employee’s performance in his job and the overall contribution of the particular employee
towards the organization (Bernardin & Wiatrowski, 2013). A performance appraisal seeks to
evaluate the skill of an employee, their achievements and growth as well as the lack of thereof.
Performance appraisal is used by the organizations with the aim of providing to the employees a
comprehensive picture feedback on their duties and justifies the increase in their pays and
bonuses and also the termination decision. A performance appraisal is generally conducted at a
regular interval annually, semi-annually or quarterly as per the decision of the organization.
Performance appraisal is an effective tool in determining the contribution of an employee to the
growth of the company and the rewarding system to the top performers. The appraisal system is
also effective in creating a plan for the development of the employees by the means of additional
training and increasing responsibilities as well as in identifying the shortcomings of the
employees and the ways to resolve it. Sophie’s shortcomings in her new situation can be
identified through the performance appraisal and she can be given necessary training for
development. Since the performance appraisal involves process like self assessment and pure
assessment one can understand their own performance and behavior as well as the nature of
behavior of the co- workers. This will help Sophie in understanding her position and required
responsibilities.( DeNisi & Murphy,2017).
360 degree feedback: This is a system by which the employees are able to receive anonymous
and confidential feedback from the people who works in the same organization. This process
involves the employee’s co-workers direct report and managers. A mixture of about a convenient
number of people is entitled to fill out an online feedback form which is regarding a vast area of
the workplace competency of the concerned employee. The feedback forms include questions

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related to the measurement of certain questions on a rating scales and people are also asked to
write written feedbacks and comments (Kerzner, 2017). The employee who receives the
feedback also in turn gives similar feedbacks to others. In the present case we can use the 360
degree feedback for Sophie as a development tool by the means of which she recognizes her
strengths and weakness and can work effectively upon it. The insights gained through the
feedback will help her adjust her behaviors’ and focus on basic skills and performance objectives
Motivation:
According to the expectancy motivation theory designed by Vroom the behavior of an
employee is the result developed from the conscious choices among the available alternatives
that will maximize pleasure and minimize pain. The performance of an employee is based on
some basic factors like skills, personality, knowledge and abilities. An individual generally
expects that his effort will lead to the required performance and the performance will yield an
outcome (Parijat & Bagga 2014). Thus a clear understanding of the interrelationship between
performance and outcome will enhance the competency of an employee. Sophie had been doing
her duty expecting a certain outcome, which did not, turned out and failed in being instrumental.
A proper appraisal of her performance and a clear feedback will enable her to know her
shortcomings as well as strength whereby she can put effort in a right fashion. This will result in
the desired outcome and hence motivate her.
Organizational Culture:
The two main professional, ethical and social issues that need to be addressed and
overcome in the course of Sophie’s training are the lack of leadership quality in Sophie and the

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issue of Discrimination. Sophie, being an HR of a reputed company needs to develop a string
sense of personality in her professional life. Moreover, since she is in charge of managing the
human resource of the company she needs to take a leadership attitude in order to initiate or
decide for any changes in the management. It is evident that Sophie is not comfortable in direct
communication, which can harm her job profile. Another significant issue that needs to be
analyzed is the issue of Racial Discrimination in the organization. It is yet unknown whether the
conflicts and the grievances within the organization has raised because of the social differences
between Sophie and the present work Culture.
In the formation of the organization structure of the present company, it is to be taken
into accounts that most of the employs hails from the Maori section where Sophie seems to be an
outsider. This has higher tendency of generating an organizational conflict where there will be
little alignment with organizational values and the extensive producers will tend to exercise the
control. Moreover organizational culture is directly related with organizational performance as it
enhances individual satisfaction and the sense of certainty about how the particular problem can
be solved. The current organization can develop a role culture since there are various layers of
hierarchy within the company, and long-term employees serve there as mentors. So long there
had been the operation of clan culture and the individual seem to have shaped their ideals by the
loyalty tradition and socialization within their clan. One of the reasons detected for this culture is
the ill-famous treaty of Waitangi where the Maori clan was deceived by the European colonizer
and they had evidently formed a sense of distrust towards other clan. In order to align Sophie’s
personal goal with the organizational vision the company must take initiatives of enhancing the
interpersonal skills and communications and bring the employees under a common platform.

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Through coaching and personal development programs Sophie also needs to come out from her
cultural bias and coordinate with her co workers.
Global Competence:
The Tower Company being a Global one needs to identify the major issues that it may
face internationally. One of the most important issues is the facing of cultural diversities and
barriers in their performance. (Adeoye, & Elegunde,2012).
While the cultural diversities is an added advantage to the International companies since
there are more chances of Profitability and gaining of innovative ideas, the same thing can also
poses a barrier to the Company. The issues of cultural diversities and the problem arising thereof,
can be solved by the Process of Cultural Conflict Negotiation. The Company needs to accept that
every country have their own fundamental cultures (.Khamooshi & Golafshani,2014) The
organizations need to have a thorough understanding of the context and can enter into the act of
negotiations where they can find it beneficial.
The internal requirement is the formation of a strategic management planning and the
external requirement is the formation of the networks with the suitable alliances.
Goal of the Company:
The proposed performance management system will be beneficial for the current
company as the providing of coaching and development programs to Sophie will help her to
grope the organizational vision and act accordingly. Moreover, the performance appraisal that is
designed to encourage and reward behavior aligned with the organizational mission and goals
will be effective in curbing down the non productive activities. The feedbacks that she will gain

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will help her in modifying her behavior and adjust her to work according to the culture and need
of the organization. Moreover, improved productivity is directly proportional to the success of
the company. The main goal of the tower insurance company is to challenge and change the
prevailing norms of the insurance market and enhance the customer base. A profound
management that can incorporate the strategies within the management of the human resource
will be beneficial to achieve this goal.
Conclusion:
Thus, from the above discussion, it is evident that Sophie, being an efficient worker
needs to be trained effectively so that she is able to fit herself in the new organizational structure
and culture. Moreover, the performance management plan will help her to gain a comprehensive
vision about the goal of the organization that will be effective in understanding her line of action
to align the organizational vision with her own vision.

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Reference List:
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the effectiveness of application performance management (APM) tools for detecting
performance regressions for web applications: an experience report. In 2016 IEEE/ACM
13th Working Conference on Mining Software Repositories (MSR) (pp. 1-12). IEEE.
Bernardin, H. J., & Wiatrowski, M. (2013). Performance appraisal. Psychology and
Policing, 257.
de Waal, A., & Kourtit, K. (2013). Performance measurement and management in
practice. International Journal of Productivity and Performance Management.
DeNisi, A. S., & Murphy, K. R. (2017). Performance appraisal and performance management:
100 years of progress?. Journal of Applied Psychology, 102(3), 421.
Giltinane, C. L. (2013). Leadership styles and theories. Nursing standard, 27(41).
Kerzner, H. (2017). Project management: a systems approach to planning, scheduling, and
controlling. John Wiley & Sons.
Khamooshi, H., & Golafshani, H. (2014). EDM: Earned Duration Management, a new approach
to schedule performance management and measurement. International Journal of Project
Management, 32(6), 1019-1041.