Performance Management Strategies: A TESCO Case Study Report

This report examines the performance management strategies employed by TESCO, a multinational retail giant, focusing on the application of the performance pyramid model developed by Lynch and Cross in 1991. The analysis delves into the importance of performance management in aligning employee efforts with organizational goals, emphasizing the significance of feedback, accountability, and documentation. The report explores the nine dimensions of the performance pyramid, illustrating how corporate vision is connected to individual objectives and how various measures at different levels contribute to achieving both external and internal effectiveness. It discusses the impact of non-financial indicators at the operational level, the importance of setting appropriate performance standards, and the role of rewards in employee motivation. The report also highlights the potential benefits and challenges of performance measures and stresses the need for aligning operational activities with strategic goals. It concludes with a summary of the benefits of adopting performance management strategies, including improved production, high-quality services, and enhanced employee retention, ultimately leading to increased revenue for TESCO.

Performance
Management

Table of Contents
INTRODUCTION...........................................................................................................................2
MAIN BODY...................................................................................................................................2
CONCLUSION ...............................................................................................................................5
REFERENCS...................................................................................................................................6
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INTRODUCTION
The process of availing accountability, feedback and documentation for the outcomes of
performance is called Performance management. It is very helpful for employees to imprint
their talent in achieving the organizational goals. For improving the performance of employees
& development, framing competencies and getting better results in the business it is very
necessary for an organization to focus on effective performance management and appraisal.
TESCO is the multinational British groceries and general retail merchandise. Its
headquarter is situated in Welwyn garden city, Hertfordshire, England, United Kingdom. The
company is the third largest retailer globally by its gross revenues. In the above study
evaluation of 'performance pyramid' of Lynch and Cross 1991 by addressing the issues and
different measures that had been provided for evaluation.
MAIN BODY
Performance Pyramid, Lynch and Cross (1991)
The performance pyramid comes with an idea which is operated by organization at various
levels where each has a different focus. However, this different levels assist each other is very
important. So, with the help of pyramid business strategy are linked with the daily
operations(Kearney (2018).
In the performance pyramid Lynch and Cross, it has nine dimensions which is helpful in
measuring the performance among the organization. These are included in the organization –
corporate vision to individual objectives. In the pyramid the corporate vision is jointed by those
who are responsible for strategic direction to the TESCO. There are various objectives for
external and internal effectiveness by the pyramid views. These prescribed objectives can be
achieved by the measures at different levels which are mentioned in the pyramid. These
measures can interact among each other at various level horizontally and vertically(Shields &
et.al (2015).
At bottom level of pyramid in this model there are measuring trenches and their
objective is to raise quality and delivery performance and waste and reduce cycle time. For
measuring the operations number of non-financial indicators are used(Mone & London
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(2018).
If there will be no link between the performance and strategy then the TESCO will not
be able to deliver the quality product and services to their customer and thus the delivery of
the product will not be on time and cycle time will also raise. Performance standards and
targets which are set up by the manager of TESCO should be appropriate and that are up to
that they can be achieved by the employees effectively, if it is not done then the employees can
not deliver their product and services on time and thus somehow high targets let burden on the
employees which will result in the low quality of production. The rewards should accord to the
performance of employees as if suitable reward is not given to them it will result to
demotivation to the employees and this will result to low performance of their employees.
Potential benefits and problems of performance measures as the TESCO managers are not
adopting the proper measure for performance, so they are facing problems in measuring the
performance, so they are not able to provide the potential benefits to their capable
employees(Arnaboldi, Lapsley & Steccolini (2015).
According to the model it is prescribed that the measures which are chosen by the
organization should link the operations to strategic goals. It is very important for company that
all departments must be aware to the extent whether they are contributing in company
separately or together. The company should choose measure which use both non-financial and
financial information so that it can be valuable for the manager as the right information is
valuable for company in its decision-making at all level of company. And the real value to the
system is focusing on the needs and demands of the company. The TESCO should adopt the
measure in which effectiveness of all process including services and products which will be
given to the customers. So the efficiency must be measured with the resource utilization within
the company so that the manager can easily assumption through the performances of their
employees(Kuvaas, Buch & Dysvik (2016). The manager of TESCO should use the
Qualitative and quantitative method so that they can avail through the quality of the product
and services which is rendered by the employees and its quality so that they can reward and set
target according to the appropriate performance management.
The measures which are adopted should be flexible and are easily adopted by the
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employees for an ever-changing business environment. And this is the better measures that can
be adopted by the TESCO manager in the performance management and measurement of the
employees so that they can boost up their employees by giving them appropriate rewards for
their job well done and measures their performance through both qualitative and quantitative
method so that they can achieve the set targets of the company and deliver the best services
and products to their customers and retain their employees for long term. And motivated
employees result in to the high quality product and services for the organization which is
directly raises the revenues and income of the TESCO(Noe & et.al (2017).
Illustration 1: Performance Pyramid, Lynch and Cross (1991)
[Source : Performance Pyramid, Lynch and Cross (1991), 2019]
CONCLUSION
From the above study it is concluded that it is very important for an organization to
adopt performance management strategy for their employees for the ever-changing business
environment. It is helpful in measuring the performance of the employees so that they can
render through output which is given by the employees. And reward given to employees on the
basis of their performance measurement boost up the employees for giving their best for
achieving the targets of the company. It is helpful for the organization to raise their production
and render the high quality services and products to their consumers.
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REFERENCS
Books and Journals:
Arnaboldi, M., Lapsley, I., & Steccolini, I. (2015). Performance management in
the public sector: The ultimate challenge. Financial Accountability &
Management, 31(1), 1-22.
Kearney, R. (2018). Public sector performance: management, motivation,
and measurement. Routledge.
Kuvaas, B., Buch, R., & Dysvik, A. (2016). Performance management:
Perceiving goals as invariable and implications for perceived job
autonomy and work performance. Human Resource Management, 55(3),
401-412.
Mone, E. M., & London, M. (2018). Employee engagement through effective
performance management: A practical guide for managers. Routledge.
Noe, R. A & et.al (2017). Human resource management: Gaining a
competitive advantage. New York, NY: McGraw-Hill Education.
Shields, J & et.al (2015). Managing employee performance & reward:
Concepts, practices, strategies. Cambridge University Press.
Online
Performance Pyramid, Lynch and Cross (1991). 2019. [ONLINE] Available through;
<http://knowledgegrab.com/learners-zone/study-support/performance-management-review/
performance-management-and-evaluation/performance-pyramid-lynch-and-cross-1991/>
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