Performance Management Systems and Organizational Impact Report

This report examines the impact of performance management systems on organizations, focusing on how these systems influence employee productivity, goal alignment, and overall business success. The report is divided into two parts. Part 1 explores the effects of performance management on organizations, individual employees, and teams, referencing various academic sources to support its claims. It highlights the importance of performance management in enhancing employee engagement, identifying skill gaps, and fostering a positive work environment. Part 2 provides a case study of Dodo Exclusive shoes, a South African retailer, illustrating how the company utilizes performance management to improve its productivity, recognize employee efforts, and identify training needs. The report details the planning, monitoring, and review phases of Dodo's performance management system, emphasizing the use of data analytics for fair and effective employee evaluations. The reference list includes the sources used in the report.

Running head: PERFORMANCE MANAGEMENT
Performance Management
Name of the Student
Name of the University
Author note

1PERFORMANCE MANAGEMENT
Table of Contents
Part-1................................................................................................................................................2
Impact of performance management systems in an organization................................................2
Impact of performance measurement for individual...................................................................3
Impact of performance measurement for team............................................................................3
Part-2................................................................................................................................................4
Performance management systems in Dodo Exclusive shoes.....................................................4
Reference List..................................................................................................................................5

2PERFORMANCE MANAGEMENT
Part-1
An organization implements performance management for setting goals for the
organization and revise them for aligning the workforce with priorities and direction of the
business goals (Mone and London 2018). This business goal considers goal setting for manager,
team, and individual so that all their working targets can be clearly defined. Anitha (2014)
furthermore stated that performance management is also implemented to identify gaps in
employee skills and to find required development and resource planning for improving the
competency of the employees. In addition to that, the reward and recognition aspects of the
performance management helps employees receive a balanced working environment.
Impact of performance management systems in an organization
Qureshi and Hassan (2013) stated that the main impact of the performance management
system is to enhance the employee’s productivity and to increase the profitability of the
organization. The mangers are liable to evaluate the performance of the employees and appraise
them using formal and systematic performance management system along with developing
performance rather than maintaining their performance. Davis et al. (2016) portrays that
employees should be valued for their achievements, provided with opportunities for expressing
their views. All these aspects allow the employees of the organization to outperform and low
performing employees to perform with more effort for obtaining effective appraisals. Shields et
al. (2015) furthermore depicted that if an organization do not have any performance management
system, company have to face voluntary employee turnover, less self-esteem among the
employees, need more time for the organization to evaluate performance review activities for

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preparing annual review, de-motivate employees, downturn in job satisfaction and biased
reviews of the management.
Impact of performance measurement for individual
The impact of the performance management on individual highlighted by Houldsworth
and Brewster (2016) are improvement in the clarity of the organizational work, increase in the
competency among the employee to over achieve their desired targets, improvement in the
communication with the management and utilizing the feedback given by the leaders for
improving their work quality. Qureshi and Hassan (2013) also present an affirmative statement to
the above proclamation that absence of effective performance management raises the feeling of
unfair decisions for their extra effort, high employee attrition rates and rise in faults in
performing daily working responsibilities. Anitha (2014) also highlight that these employees are
less interested to communicate with the leaders which also leads to unclear understanding of the
organizational goals and affects the effectiveness of the business outcome.
Impact of performance measurement for team
Houldsworth and Brewster (2016) depict that effective performance in the organization
resulted in achieving quality working environment. All the employees feel motivated if the effort
of all the team members is properly addressed by the leaders. Shields et al. (2015) highlighted
that quality working environment can be witnessed through high work motivation, effective
learning opportunities, greater job satisfaction, work atmosphere, health and safety, efficient
rewarding system, realization of personal/team-level targets and effective participation in the
decision making sessions. Mone and London (2018) furthermore stated that if all the employees
are satisfied the productivity of the entire team will gradually improved which on the other hand
is not only beneficial for the team members but also for the organization.

4PERFORMANCE MANAGEMENT
Part-2
Performance management systems in Dodo Exclusive shoes
Dodo Exclusive shoes is the national shoe retailer in South Africa and offered
fashionable range of women and men shoes for all sections like formal and informal sections
(Dodos 2018). This organization incorporates the performance management system for
improving their company’s productivity and profitability, recognizing employee’s effort,
managing unsatisfactory performances and establishing training needs for further improvements
of the employees. The concerned organization has integrated enterprise planning for analyzing
past results and establish a baseline through which the performance of the staffs can be
measured. The company focuses on process execution or planning, monitoring and analysis.
Dodo Exclusive shoes in the planning phase reviews employee’s job description so that it can be
measured whether or not the employee are performing their responsibilities effectively. The
organization also provides the employees documents where they can share their planning for
making improvements in their work. This process helps the staffs to develop a work plan that
outlines the deliverables to be completed. The next phase is monitoring the performance sheet
and the mangers are also concerned about how staffs are focused towards their goals rather than
micro0mamage on them. The managers evaluate the progress towards meeting performance
objectives and identify barriers and ask for feedback. The feedback is attained through staff
survey regarding the knowledge of the ob responsibility, their planning to achieve the target and
the problem that they are facing in the working environment. This helps the managers to take
effective steps for overcoming the barrier. In this phase, the manager provides continuous
coaching to the staffs, who need guidance to perform their job roles and regulations. The last
phase is reviewing the performance and is done through the modern technology like analytics

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that measure the statistics how many employees fulfill their target and how many of them need
guidance. The result of the performance analytics is then compared with the survey result to
identify the employees who are outperforming so that they can be provided with financial and
non-financial benefits during appraisals. Thus, it can be said that the incorporation of the
analytics technique in measuring the performance leads to discrimination-free performance
management.

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Reference List
Anitha, J., 2014. Determinants of employee engagement and their impact on employee
performance. International journal of productivity and performance management, 63(3), p.308.
Davis, T., Cutt, M., Flynn, N. and Mowl, P., 2016. Talent assessment: A new strategy for talent
management. Routledge.
Dodos., 2018. Online Shopping South Africa Shoes | Shoes for Sale in South Africa. [online]
Available at: https://www.dodos.co.za/ [Accessed 10 May 2018].
Houldsworth, L. and Brewster, C., 2016. The importance of context: comparative HRM and
employee performance management.
Mone, E.M. and London, M., 2018. Employee engagement through effective performance
management: A practical guide for managers. Routledge.
Qureshi, A. and Hassan, M., 2013. Impact of performance management on the organisational
performance: An analytical investigation of the business model of McDonalds. International
Journal of Academic Research in Economics and Management Sciences, 2(5), p.54.
Shields, J., Brown, M., Kaine, S., Dolle-Samuel, C., North-Samardzic, A., McLean, P., Johns,
R., O'Leary, P., Robinson, J. and Plimmer, G., 2015. Managing Employee Performance &
Reward: Concepts, Practices, Strategies. Cambridge University Press.