Performance Management and High-Performance Work Systems Report

This report provides a comprehensive analysis of performance management strategies, specifically focusing on the application of High-Performance Work Systems (HPWS) within Ferdinand Bilstein UK Ltd, a logistics center. It begins by identifying the multiple causes of poor employee performance, such as limited development opportunities, ineffective management and leadership, lack of appraisal schemes, and poor communication structures. The report then delves into the concept and key components of HPWS, including ensuring employee safety, selective hiring, performance-based compensation, decentralized decision-making, training, information sharing, and reduced status barriers. Finally, it explores potential barriers to the successful implementation of HPWS, such as relationship problems, leadership issues, inefficient incentive structures, and a lack of communication and feedback. The report concludes with a summary of the findings and recommendations for improving performance management practices.

Managing
performance through
people

Contents
INTRODUCTION...........................................................................................................................3
TASK...............................................................................................................................................3
The multiple possible causes of poor performance and how this shapes the approach to
managing performance within an organisation............................................................................3
The concept and key components of a HPWS.............................................................................5
Possible barriers to the successful implementation of the system...............................................7
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
Performance through people is defined as the strategy that ensures that every person in
organisation understand what organisation is expecting from them and how to specific goals of
business can be achieved in systematic manner. Performance management is defined as the
process that is related to ensuring that set of activities and outputs meet organisational goals and
objectives in efficient manner. It concentrates on how organisation, department and employees
manage their task and contribute in business success. Employees can manage their performance
through maintaining regular communication with managers and getting feedback. In this report,
Ferdinand Bilstein UK Ltd is taken into consideration which is Logistics Centre at Markham
Vale. It is incorporated in January, 2018 and headquarters situated in Ferdinand Bilstein UK. It
delivers high quality vehicle components to aftersales automotive market as well as offering
more than 62,000 different replacement parts to the professional vehicle repairs. This report
covers multiple possible causes of poor performance and concepts as well as components of
high-performance work system. Along with that, possible barriers in successful implementation
of the system in explained in this report.
TASK
The multiple possible causes of poor performance and how this shapes the approach to managing
performance within an organisation
Poor performance is defined as the aspect when employees are not using their capability and
competencies to perform their operations that reduces their performance level and create impact
on overall business efficiency in competitive business environment. There are multiple reasons
so, Ferdinand Bilstein UK Ltd employees are not performing good in business. It is important for
the organisation to analyse these causes and develop effective strategies to overcome them so
business can attain its determined goals and objectives with greater efficiency and effectiveness
(Ali, and Gurd, 2020). Some causes of poor performance at Ferdinand Bilstein UK Ltd are
explained below:
Limited development opportunity: Limited development opportunity is the major cause that
impact overall performance on employees within organisation. Ferdinand Bilstein UK Ltd has
flat employment structure. Organisational permanent staff members are recruited from temporary
pool. Limited growth and development opportunities demotivates employees and reduces their

performance and engagement level. Although the company promote its staff members from the
shop floor to back-office service roles and senior positions. But only 30% current office-based
staff in the Logistics Centre started in the warehouse.
Management abilities: Ineffective management abilities is another cause of poor employee
performance in organisation. Former employees of Ferdinand Bilstein UK Ltd stated that
atmosphere of organisation is awful and management have no idea regarding this so they are nit
taking actions in appropriate manner that directly impact on employee’s performance because
their conflicts and problems are not resolved by management (Bryson, 2017).
Ineffective leadership and direction: From the case scenario, it is analysed that organisation do
not have great leadership and direction for employees that reduces their performance and
efficiency. Managers of Ferdinand Bilstein UK Ltd observed that staff members go straight to
human resource department with their problems and quarries instead of direct line manager that
reflects ineffectiveness and lake of leadership and direction for employees.
Not having annual appraisal scheme: It is the most important reason that lead employees of
organisation towards poor performance and inefficiency. The Logistics Centre does not operate
an annual appraisal scheme that demotivates employees and resulted they are interested in
performing business operations with their full efficiency (Collings, Mellahi, and Cascio, 2019).
Organisation also not conducted any employee’s satisfaction survey due to pandemic so
management is able to identify employee’s problems. All these aspects or causes create negative
impact on employee morale and efficiency in negative manner.
Ineffective communication structure: Improper and unsystematic communication structure at
organisation between employees and management. Ferdinand Bilstein UK Ltd has employee
forum but managers of organisation suggest that superficial topics are covered in this forum. So
employees cannot convey their problems and conflicts to management directly. Apart from that,
logistic Centre provides numerical score to employees that discriminate from others that reduce
their performance and efficiency level.
All these possible causes create impacts on employee performance as well as shape various
approaches to managing performance within organisation. Ferdinand Bilstein UK Ltd adopts
high-performance work system to manage employee performance and motivate them to enhances
their contribution in attaining business determined goals and objectives in appropriate manner.
Respective organisation maintains effective communication among employees, provide

performance-based compensation and incentives, provide training and enhance employees
commitment towards organisation.
The concept and key components of a HPWS
High Performance Work System: It is defined as the combination of various human resource
practices as well as processes that are undertaken by organisation to improve employee skills,
commitment, involvement, knowledge and adoptability. HPWS is system that enhances
organisation to develop effective work environment through involving employees. It helps
organisation to gain competitive advantages because it enhances employee’s commitment
towards organisation. It is important for the Ferdinand Bilstein UK Ltd to implement HPWS in
logistic centre to enhance employee performance, productivity and efficiency that lead business
towards growth and development (Delpo, and Guerin, 2021). It facilitates company to overcome
all cause that impact employee performance in negative manner through provide development
opportunity, clear direction, rewards, appraisal and maintaining effective communication
between management and employees. All these aspects motivate employees and enhance their
performance within business.
Components of High-Performance Work System
HPWS systems concentrates on improving employee involvement and commitment towards
organisation that develop organisational culturally based commitment rather than control. There
are various components of High-Performance Work System that need to adopted by Ferdinand
Bilstein UK Ltd to overcome all issues that are raised in business and impact on employee
performance. All these components are explained below:
Ensuring employee safety: It is the most important component of HPWS that creates highly
trusted environment for employees within organisation and develop their commitment that led
business towards growth and development (Jones, and White, 2021). As in Ferdinand Bilstein
UK Ltd flat employment structure so it becomes important for the organisation to make
development employment security policies that creates trust among employees and motivated
them to perform with greater efficiency and effectiveness.
Selective hiring: It is important for the organisation to identify all skills, attributes and other
aspects on candidate to ensure that these candidates match the requirement of defined job role. It
facilitates Ferdinand Bilstein UK Ltd to hire more capable employees who can perform business
operations in best possible manner and contribute in business success. It is suggested to logistic

centre to adopt systematic recruitment and selection process to appoint suitable candidate for
specific job role.
Performance-based compensation and incentives: It is important for the organisation to
provide performance-based compensation and incentives that motivates employees to perform
with greater efficiency and effectiveness. Proper compensation encourage employees to deliver
quality services in order to attain business goals and objectives.
Decentralised decision-making: For improving employees performance level, it is important to
enhances employee participation in organisational decision-making process. Higher participation
and involvement enable employees to deliver outstanding services to customers and achieve
optimal organisational results. Ferdinand Bilstein UK Ltd need to maintain effective
communication with employees and convey all roles and responsibilities among them so they
can perform all operations in appropriate manner (Mone, and London, 2018). This component
plays important role in improving management capabilities so they can resolve employee
problem in appropriate manner.
Training by commitment: It is essential for business to provide training to its employees in
order to enhances skills, competencies and capabilities among employees according to specific
work. Effective training improves employee performance through resolving problems, take
responsibility for their work and adopt changes properly. Ferdinand Bilstein UK Ltd need to
provide training to employees that provide them clear direction and enhances their commitment
and contribution in attaining organisational critical goals and objectives. Organisation should
provide various development opportunity to employees that motivates them to retain with
organisation for longer period of time.
Sharing key information: It is advised to Ferdinand Bilstein UK Ltd to provide all key
information to employees regarding its financial, strategic and performance related information
so they can utilise them to perform their operations in best way. As highly motivated and well-
trained employees require clear and full information to contribute in organisational success. It
facilitates organisation to reduce the barriers of communication and enables employees as well to
attain determined goals through utilising necessary information (Nazir, and Islam, 2017). It helps
Logistic Centre to improve its leadership and direction capabilities.
Reduce status barrier: In organisation employees are come from different backgrounds and
culture. It is important for the Ferdinand Bilstein UK Ltd to maintain effective and flexible

business culture in which all employees are treated equally. It creates highly trusted culture for
business that encourage them to perform their operations with greater efficiency and
effectiveness. The logistic centre rate all employees according to traffic light system such as red,
orange and green so some employees feel demotivated that impacts on their performance.
Implementation of these components of High-Performance Work System facilitates Ferdinand
Bilstein UK Ltd to all potential risk and issues that reduces employees performance and impacts
on overall efficiency of business in competitive business environment.
Possible barriers to the successful implementation of the system
High-performance work system plays important role in improve overall performance and
productivity of business as well as enables it to meet all challenging outcomes. There are various
barriers that impact on the implementation of HPWS system in appropriate manner (Oh, 2018).
Fundamental pillars of employee high performance are mutual trust, open communication,
confidence and collaborative approach. All these barriers are explained below:
Relationship problems: Poor interpersonal relationship employees and management in the
biggest issue in the implementation of high-performance work system. Ferdinand Bilstein UK
Ltd employees are putting all their issues to HR manager instead of line-manager. It create
negative impact on employees performance and their contribution towards attaining
organisational goals and objectives.
Leadership problems: In the absence of effective leadership, performance of organisational
employees in being suffered. Leaders plays important role in motivating and directing employees
to perform with efficiency to accomplish determined task on time. Leaders set the high-
performance culture in business and encourage employees. Ineffective leaders impacts on
employees performance and efficiency. As in Ferdinand Bilstein UK Ltd organisational
environment is awful but leaders are not aware from this and not taking any action towards it.
Inefficient incentive structure: Poorly designed and implemented performance management
metrics and improper incentive structure create barriers for the implementation of high-
performance work system (Taouab, and Issor, 2019). It demotivates employees and impact on
their working performance in negative manner.
Lack of communication and feedback framework: Improper communication and feedback
framework creates barriers in the implementation of high-performance work system. Without
effective communication all role and responsibilities are not conveyed to employees that impact

on employee performance. Improper feedback framework, employee do not know their areas of
improvement that reduces their performance and efficiency.
All these barriers create problem for the organisation to successfully high-performance work
system. It is important for the Ferdinand Bilstein UK Ltd to analyse these problems properly and
develop effective strategies to overcome them. It led business towards higher growth and
success.
CONCLUSION
As per above report, it can be concluded that it is important for the business manage
employee performance and motivate them to attain determined goals and objectives on
determined period of time. There are various internal factors of business that impacts employee
performance such as effective communication, leadership and other. It is important for the
business to implement high-performance work system that motivates employees to perform
defined operations with greater efficiency and effectiveness. There are various barriers and
issues are faced by organisation such as communication, leadership and ineffective business
structure that need to be considered by organisation during implementing the process of high-
performance work system.

REFERENCES
Books and Journals
Ali, I. and Gurd, B., 2020. Managing operational risks through knowledge sharing in food
supply chains. Knowledge and Process Management, 27(4), pp.322-331.
Bryson, J., 2017. Effective library and information centre management. Routledge.
Collings, D.G., Mellahi, K. and Cascio, W.F., 2019. Global talent management and
performance in multinational enterprises: A multilevel perspective. Journal of
management, 45(2), pp.540-566.
Delpo, A. and Guerin, L., 2021. Dealing With Problem Employees: How to Manage
Performance & Personal Issues in the Workplace. Nolo.
Jones, S. and White, G., 2021. REWARD STRATEGY AND MANAGING PERFORMANCE.
In Strategic Human Resource Management: An International Perspective (pp. 217-
251). SAGE Publications Ltd.
Mone, E.M. and London, M., 2018. Employee engagement through effective performance
management: A practical guide for managers. Routledge.
Nazir, O. and Islam, J.U., 2017. Enhancing organizational commitment and employee
performance through employee engagement: An empirical check. South Asian Journal
of Business Studies.
Oh, S.Y., 2018. Effects of organizational learning on performance: the moderating roles of trust
in leaders and organizational justice. Journal of Knowledge Management, 23(2),
pp.313-331.
Taouab, O. and Issor, Z., 2019. Firm performance: Definition and measurement
models. European Scientific Journal, 15(1), pp.93-106.