Performance Management Systems: A Comparative Sectoral Analysis

This report delves into the intricacies of performance management within both public and private sector organizations. It highlights the evolution of human resource management towards strategies that enhance organizational success, emphasizing the collaborative efforts between managers and employees in planning, monitoring, and reviewing objectives. The report contrasts internal and external factors influencing performance management in the public sector, such as leadership and legal requirements, while also drawing parallels between the two sectors' goal-oriented approaches. A detailed case study of Unilever Gulf FZE illustrates the practical application of performance management, including its structured processes for employee evaluation, development, and alignment with organizational goals. The report concludes by underscoring the importance of feedback and performance appraisal within the overall performance management framework, providing a critical assessment of its varied roles across different organizational contexts.

RUNNING HEAD: Performance Management 0
Performance Management

Performance Management 1
Performance management in public or private sector organizations
The human resource management has undergone a radical change to focus on the strategies
which facilitate the successful implementation of organizational objectives. The activities of
human resource are focused on high performance of employees for the developmental of an
organization (Bratton & Gold, 2017). The performance management is a process in which
managers and employees work together in order to plan, monitor and review objectives and
overall contribution to the organization. The performance management is a broader function
of human resource. The performance of an organization can be enhanced by improving the
performance of it’s staff.
The two factors affect the performance management system in the public organization that is
internal and external factors. The internal factors comprise leadership, management
commitment, resources, culture, and employees’ engagement. The external factor comprises
citizens, labor unions, elected officials and legal requirements. There is no difference
between the performance management systems of public and private sectors. It is because
both sectors believe in achieving goals. The performance management helps in meeting
standards by improving the performance of employees (Buckingham & Goodall, 2015). The
annual budget and annual performance evaluation are used for the management of
performance outcomes and behavior in the public sector. These evaluations deal with the past
not future. The use of performance management system contributes to the business being
effective, efficient and justifiable. The performance management is gaining importance as an
effective organizational approach in the public sector. The public organizations have made
progress by using performance management systems. It has helped in capturing the
complexity of accountability and transparency. The performance management system in the
private sector focuses on the design along with the emphasis on the financial aspects. The
PMS indicators focus on the total profit in the private sector. More pressure is given on the
operations, targets, and performance-based reward systems (Van Dooren, Bouckaert &
Halligan, 2015). The performance management system is multidimensional in the private
sector. The strategy linked performance management systems lead to the better organizational
outcomes.

Performance Management 2
Evidence from a local organization
The Unilever Gulf FZE is the largest FMCG company and having headquarter in the Dubai,
UAE. It operates as a subsidiary of Unilever PLC. The company manufacturers household
chemicals, cosmetics, canned fruits, vegetables, ice-cream and more. It owns more than 400
brands. The performance management is a regular process of measurement and evaluation of
outcomes and comparison with the planned outcomes. A structured method is followed by
Unilever Gulf FZE which evaluates the performance of employees with respect to objectives.
The issues are addressed related to the development of employees by providing them the
structured and in-depth analysis. The analysis represents the strength and areas for
improvement. The performance management system enables annual increments, training, and
development (Gerrish, 2016). The performance management related to employees include
planned work and set expectations, the capacity to perform and monitor performance and
evaluation. The performance management systems at Unilever Gulf FZE cover two aspects of
administration and development. The PMS in the administration determines promotion of
employees, the increment in pay, transfer, and change in the job assignments and retention. It
also takes important decisions such as discharges, needs for training and salary issues. The
development aspect comprises feedback to the concerned matters, identification of individual
skills and competencies. The PMS supports employees in setting goals, identifies the need for
training and improves communication (Shields, et.al. 2015). A process is followed in the
performance management system of Unilever. The process includes establishing performance
standards and expectations t employees. Then it measures the actual performance of the
target. After measuring performance, the comparison is made of actual performance with the
set standards and as a result, deviations are found out. From the above analysis, suggestions
are given for the change in job analysis and standards if required. Thereafter the follow up is
made (Metcalf, 2017).
The employees of Unilever Gulf FZE are anticipated to avoid personal activities and financial
interests. It can conflict towards their responsibility of the company. The employees should
not seek gain by misusing their positions (DeNisi & Smith, 2014). The board at the company
is responsible for communicating information, understood and observed by employees. The
responsibilities are delegated on the daily basis to the managers. The storytelling method is
useful to approach and engage employees and suppliers. Both the parties are responsible for
the implementation of the principles. If it is required then guidance is given in more detail
tailoring to the local needs (Budworth, Latham & Manroop, 2015).

Performance Management 3
Conclusion
The performance management retains a strong communication network between the
managerial personnel and subordinates. The performance is monitored for the achievement of
organizational goals. The performance management ensures maximum feedback. The
feedback from employers and employees is required in the performance management system.
The feedback assesses the overall performance which is an effective technique regarding
performance matters. Performance appraisal is also a part of performance management which
provides a framework for the evaluation of employees’ performance. The report has made a
critical assessment of the performance management in the public and private sector
organizations. The performance management has varied roles in the public and private sector
organizations. Further, the evidence from the Unilever Gulf FZE has been taken to explain
the role of performance management. The performance management system have great role
behind the success of Unilever Gulf FZE.

Performance Management 4
References
Bratton, J. and Gold, J., 2017. Human resource management: theory and practice. Palgrave.
Buckingham, M. and Goodall, A., 2015. Reinventing performance management. Harvard
Business Review, 93(4), pp.40-50.
Budworth, M.H., Latham, G.P. and Manroop, L., 2015. Looking forward to performance
improvement: A field test of the feedforward interview for performance management. Human
Resource Management, 54(1), pp.45-54.
DeNisi, A. and Smith, C.E., 2014. Performance appraisal, performance management, and
firm-level performance: A review, a proposed model, and new directions for future
research. The Academy of Management Annals, 8(1), pp.127-179.
Gerrish, E., 2016. The Impact of Performance Management on Performance in Public
Organizations: A Meta‐Analysis. Public Administration Review, 76(1), pp.48-66.
Metcalf, B., 2017. New police management, performance and accountability. In Questioning
the New Public Management(pp. 71-88). Routledge.
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.
Van Dooren, W., Bouckaert, G. and Halligan, J., 2015. Performance management in the
public sector. Routledge.