Performance Management System Analysis: A Case Study of Quiksilver

Desklib provides solved assignments and past papers to help students succeed.

HC2101 PERFORMANCE MANAGEMENT
FOR HR ASSIGNMENT
1

Introduction
Performance management can be explained as the accomplishment of the organization
by setting up and accomplishing the organizational goals and objectives. In the process
of performance management, there is the accomplishment of outcomes and
accomplishment through involving the individual and the group of people who are
working in the organization to achieving the organizational strategic goals. In
performance management, there are various activities that are involved that are
performance appraisal and feedback. Performance appraisal is working as a
measurement technique which helps in measuring the reliability and validity of individual
employee performance. The project is based on the performance management process
that focuses on the components of an effective performance management system.
Further on, the project helps in understanding the various methods and the various
levels of measuring performance within the organization. Besides this, it also explains
various theories and principles related to performance management. In order to
understand the concept of performance management, the Quiksilver is chosen.
Effective performance management system
Concept of the performance management system
Regardless of reviewing the annual performance, reviewing the performance
management process is important for each organization. The process of performance
management is the tool that organizations use to achieve success and gain all the
competitive advantage. The activities involved in the process of performance
management may involve managing, reporting, and measuring progress that improves
employee and organization performance. Performance management is therefore a way
to provide accountability, feedback and performance outcome documentation (Noe, et.
al., 2017). These organizations are not performing well and due to proper feedback,
accountability, and documentation, they cannot gain the competitive advantage. So,
creating such a process that fulfils all of the company's requirements is absolutely
essential. The performance management system is a system that is larger than
anybody thinks because it is more valuable to businesses and managers than the
performance assessment.
Components of the performance management system
Quiksilver is a sports brand retailer company in Australia and considered as the world’s
largest brand of sportswear and other board related equipment. The company adopts
the performance management system in order to gain effective competitive advantage
and development and growth of the company. There are some important components of
a performance management system that need to be focused by the Quiksilver
Company.
2

[Source: Bititci, et. al., 2017]
Below are the components of the performance management system:
Performance Planning: Performance planning is considered as the main component
of performance planning process and also known as the source of performance
appraisal. Performance planning can be done through reviewed and appraise at the
initial stage of the performance session. At this period the employee needs to decide
about the key performance areas and the targets that are performed annually within the
decided budget and can be finalized after the mutual agreement between the employee
and the reporting officer. Quiksilver Company can do performance planning by involving
the employees in the decision making the process that also ensures to motivate the
employees (Rummler and Brache, 2015).
Performance Appraisal and Reviewing: The other essential component of
management of performance review is performance review and evaluation. The
evaluations are normally conducted twice in the organization in the outline of the annual
review and the mid-review conducted in each financial year. The Quiksilver Company
must focus on the period of review and evaluation of performance. ⠀The company can
complete this step by getting the feedback from appraising in which it completed the
self-filled up ratings within the self-appraisal form. In the self-appraisal form, appraise
also describes the accomplishments over the specific time period within the quantifiable
terms. After filling the appraisal form the final ratings is provided by the company with
respect to their measurable accomplishment and quantifiable in order to appraise the
employee. This entire process of analysing and reviewing the active participation of both
the appraiser and employee can cause the loopholes in the performance which can be
improved through the performance feedback step (Beamon, 2018).
Feedback on the Performance followed by personal counselling and performance
facilitation: The other component of the performance management process is
3

reviewing feedback that also facilitates the performance and motivates the employees.
In the performance management process, the counselling and feedback give the
majority of significance. It is the stage where the employee’s decision is quite important
for the organization. Action and employees need awareness about the company in
which the company needs improvement. The Quiksilver Company need to focus on this
stage of the performance management system as this is quite essential for the growth
and development of the company. The feedback helps in finding out the deviation by
analysing the performance and environment of the company. Further on, it also
provides importance about the company is successes to provide an expected standard
to their employee or not. It also identifies whether the employee receives effective
development and training needs or not through open and transparent feedback.
The Quiksilver Company should adopt all the possible steps that help the employee to
meet up with their expected outcomes and results within the organization through
providing effective personal guidance and counselling, training programs and mentoring
that is responsible for improving and competencies of overall productivity (Hersey, et.
al., 2017).
Rewarding good performance: rewarding good performance is quite an important
component that will determine and provide the work motivation to the employees.
Rewarding the employees will help the employees to develop a motivation for the
employee to accomplish the organizational goals and targets. The Quiksilver Company
can reward those employees who are able to meet up with the organizational goals. The
company should recognize the good performance of the individual and should be
rewarded. This stage is considered as the very sensitive stage for both the employees
and the company as the company needs to choose the best candidate from the other to
reward. This is having a direct influence on accomplishment orientation and self-
esteem. The contribution that is recognized by the Quiksilver Company helps the
employee through overcoming with the failure successfully and provides the need for
affection.
Performance Improvement Plans: After analysing and reviewing the performance of
the employee the other stage include development performance improvement plans. At
this stage, the Quiksilver Company needs to develop new goals and targets for the
employees with setting up the new deadline that helps in accomplishing the main
organizational goals and targets. For this, the company should clearly communicate the
area in which employee needs to meet up with the new deadline and objective in which
employee can able to show up the improvement. This is developed and established
through both the company and the employees and approved by the senior authority
(Boice and Kleiner, 2017).
Potential Appraisal: Potential appraisal is considered as the last element of the
performance management system which is developed according to the movement of
vertical and lateral of the employees. The potential appraisal can be implemented
through various assessment techniques and competencies mapping. This provides
Quiksilver Company with the important inputs for successful job rotation and succession
planning.
4

These are some important components of the performance management system that
help the Quiksilver Company to review the employee’s performance and appraise them
for their performance. This will motivate the employees toward their working and staff
(Ates, et. al., 2013).
Performance management tools
There are various tools and methods of performance management that make the
performance management system more easy and effective. Some are as follows:
Key performance indicators (KPIs) and metrics: Metrics and key performance
indicators provide key measures and a way in which companies behave and for the
projects, individual and business units. These metrics help in performing the relation
between the strategic objectives and gaols. A key performance indicator is providing
Quiksilver Company to develop better decision making and data-driven performance
conversations. When everything is managed in the desired manner the performance of
the employee is also managed. KPI is the method or model that help the organization to
accomplish what they want and resolve the issue. This helps the Quiksilver Company to
analyse patterns over the time period, monitoring the performance of the company,
measuring the progress and making adjustment in the company strategy (Kravchuk and
Schack, 2016).
5

[Source: Youndt, et. al., 2016]
Management by objectives (MBO): Another tool to measure performance
management is management by objective. Management by objective can be explained
as the process of explaining the specific objectives of the company through developing
the individual objective. MBO boost up the motivation and morale of theQuiksilver
Company employees. It measures the performance of the individual and compares with
the standard ones in order to find out the deviation (Sinclair and Zairi, 2015).
Conclusion
From the above it has been concluded that performance management is considered as
the implementing, developing and evaluation technique that is used for the performance
management system. The performance management system is the management
process that includes performance appraisal and the development of employee which is
particularly used for managing the human resources. Through analysing and evaluating
the above study it has been proved that the performance management system is
responsible for improving the performance of the employees. This system provides a
clear way to accomplish the organizational performance goals and objectives that are
generated by using the technology and the feedback that simplify the restructure the
process. There are various essential components of the performance management that
have been discussed in this report. Besides this, the methods and level of measuring
the performance in Quiksilver have also been discussed.
6

References
 Ates, A., Garengo, P., Cocca, P. and Bititci, U., 2013. The development of
SME managerial practice for effective performance management. Journal of
small business and enterprise development, 20(1), pp.28-54.
 Beamon, B.M., 2018. Measuring supply chain performance. International
journal of operations & production management, 19(3), pp.275-292.
 Bititci, U.S., Carrie, A.S. and McDevitt, L., 2017. Integrated performance
measurement systems: a development guide. International journal of
operations & production management, 17(5), pp.522-534.
 Boice, D.F. and Kleiner, B.H., 2017. Designing effective performance
appraisal systems. Work study, 46(6), pp.197-201.
 Hersey, P., Blanchard, K.H. and Johnson, D.E., 2017. Management of
organizational behaviour (Vol. 9). Upper Saddle River, NJ: Prentice hall.
 Kravchuk, R.S. and Schack, R.W., 2016. Designing effective performance-
measurement systems under the Government Performance and Results Act
of 1993. Public administration review, pp.348-358.
 Noe, R.A., Hollenbeck, J.R., Gerhart, B. and Wright, P.M., 2017. Human
resource management: Gaining a competitive advantage. New York, NY:
McGraw-Hill Education.
 Rummler, G.A. and Brache, A.P., 2015. Improving Performance: How To
Manage the White Space on the Organization Chart. The Jossey-Bass
Management Series. Jossey-Bass, Inc., 350 Sansome Street, San Francisco,
CA 94104.
 Sinclair, D. and Zairi, M., 2015. Effective process management through
performance measurement: part I–applications of total quality-based
performance measurement. Business Process Re-engineering &
Management Journal, 1(1), pp.75-88.
 Youndt, M.A., Snell, S.A., Dean Jr, J.W. and Lepak, D.P., 2016. Human
resource management, manufacturing strategy, and firm
performance. Academy of management Journal, 39(4), pp.836-866.
7