Analysis of Organisational Health and Performance Management: Tesco

This report provides a comprehensive analysis of organisational health and performance management, using Tesco as a case study. It begins by defining organisational health and its importance for business growth and effectiveness, highlighting Tesco's practices in this area. The report then explores the role of performance management software in Tesco, emphasizing its impact on communication and issue resolution within the organisation. It further delves into the essentials of organisational performance management, including goal setting, planning, and reward systems, and their contributions to effectiveness. The report also examines performance measurement as a starting point for analyzing organisational performance, covering key areas such as finance, operations, and risk management. It highlights the significance of the balanced scorecard in measuring both current and future performance, discussing its perspectives on customer needs, internal operations, innovation, and financial outcomes. The conclusion summarizes the key findings, emphasizing the relationship between organisational health and performance management and offering recommendations for improvement, particularly regarding Tesco's strategies and practices, and calls for effective implementation of performance management software, and the importance of direct employee engagement.

Managing Organisational
Health

Contents
INTRODUCTION...........................................................................................................................................3
Organisational performance management essential for organisational effectiveness................................3
Performance measurement as starting point for analyzing organisational performance...........................4
Contribution of balanced scorecard to the organisational performance management..............................5
CONCLUSION...............................................................................................................................................6
REFERENCES................................................................................................................................................7
Books and Journals..................................................................................................................................7
Online......................................................................................................................................................7

INTRODUCTION
Organizational health defines the ability of the organisation to function effectively,
address the issues effectively and to adopt the changes effectively to grow. It is important for the
organisation to have the effective management so that their business can be grow very
effectively. Organisation can be said effectively only when its working are more innovation and
if the organisation adopt the effective risk management, quality management, financial
performance etc. Tesco has effective organizational health due to the effective management of
the organisation and the management consider many facts to improve their quality so that they
can provide better services to their customers (de Vries and Huijsman, 2011). This company has
effective measures to provide safety to their worker at the work place and it has ability to adopt
the changes that are frequently in the market so that their company can beat the competitor in the
market and grow their business.
Current system of organizational performance management in Tesco is ‘Performance
management software’.
Performance management software is designed by the company to make the interaction
between the employer and the employees of the organisation so that the top management of the
company directly communicate to their employees and if any problem faced by the employees
then they can directly contact to the employer. It helps the company to address the issues faced
by their employees at the work place. It makes the clear picture to the employee of what is
expected to them (Dixon-Woods, McNicol and Martin, 2012).
Organisational performance management essential for organisational
effectiveness
Organisational performance management is essential to evaluate the performance of the
organisation so that organisational performance can be judged. It is important for the
organisation to make focus on the performance so that their effectiveness can be increased by the
time and it also make positive impact to the mind of the shareholder and the customers.
Customers and clients are more attracted toward the organisation.
Following are the importance of performance management for the organisational effectiveness-
Goal Setting and revising-
Performance management helps the organisation to set the goal and objective. It provides the
information about such goal to the employees. Employees have clear expectation for their work.
Performance management helps the company to revise the goal if needed. It provides the
information to the organisation that their goal can be achieved or not (Granerud and Rocha,
2011).
Managing and coaching-

It helps the company to make the co-ordination among the various sector of the organisation and
provides the information to the organisation regarding the things or essentials needed for the
effective working in various sector of the organisation.
Development planning-
Performance management helps the company to make effective planning in the organisation. It is
needed for the management of the organisation. When the planning is done in the company then
company can formulate its policies according to the plan. It also helps the company to achieve its
goal and objective effectively.
Reward and recognition-
Recognition helps the employees of the organisation to receive the data about the positive to
negative feedback. Performance management provides information regarding the performance of
the employee n the company. It is required to reward the employees of the company according to
their performance.
Increase focus on driving business result-
It provides information regarding the performance of the company in various field so that
management can make decision regarding the performance of the company and if there is any
requirement to fulfil the goal then management can make effort to produce such things. It make
focus on the business result (Harrison, 2013).
Performance measurement as starting point for analyzing organisational
performance
Performance measurement is a process that helps the organisation to monitor the
important aspects of their organisation. It includes operational process that is used to collect the
data that is necessary for the performance measurement. The performance of the organisation is
measured with the goal and objective of the organisation so that clear data can be collected that
the organisation will succeed to achieve its goal and objective or not.
Performance measurement is important for the company to analyze the organizational
performance. It is important for the company to make the measurement of its performance so that
it can know the key area where the company required to make the focus so that it can achieve its
goal. Performance measurement helps the organisation to achieve its goal and objective and to
evaluate that will the company succeed to achieve its goal and objective.
Effective performance measurement is established with the following core areas as-
 Finance- Organisation measures the efficiency of its account to measure the performance
of the organisation as timely collection of payments for the services that is rendered by
the organisation (Munn-Giddings and Winter, 2013).

 Operations- In this, the organisation measures the operation of the company and judge
that the operation of the company is good enough to provide satisfaction to their client
and customer.
 Risk management- It is important for the organisation to have the effective risk
management system so that it can not affect its goal and objective.
 Financial performance- Organisation must have effective finance so that it can make its
operation even more effectively and do not affected by the financial issues.
When a company want to analyse its performance then performance measurement is the first
step that is required to consider. Performance measurement provides the data of finance,
operation, risk management and the company performing its duties or not. It helps the company
to make the decision in this regard so that its performance can be grown. Performance
measurement covers finance measures, customer measures, process measures, people measures.
Such measures help the organisation to analyse the organisational performance.
Contribution of balanced scorecard to the organisational performance
management
Balanced scorecard
Balanced scorecard measures current as well as future performance and financial and
non-financial performance. It helps the company in management of business performance and in
achievement of the goal of the organisation. It also covers describing, communicating and
implementing strategy (Leggat, Bartram and Stanton, 2011).
Balance scorecard helps the company to measure its performance in the market and check
that the company’s ability to perform in the market. It also covers the area where the company
required to make their efforts to improve its financial and non-financial performance. It covers
operations of the company and to check that the goods and services produced by the company
are satisfactory to the customer. It derives the data regarding the requirement and the area where
the company required to make the focus for the improvement of its business.
There are four perspective on that balance scorecard makes focus-
The customer perspective- In this, management make focus to the customer needs and wants
from the organisation. Organisation checks that the wants and the demand of the customer are
fulfilled or not.
Internal business perspective- In this, organisation focus on the internal operations of the
company and check that the company is able to fulfil the needs of their customer or not.
The innovative and learning perspective- In this, organisation check the ability to innovate,
improve, learn ties directly to the value. Organisation check that its services are creating value to
the others or not.

The Financial perspective- In this, private organisation makes focus on the profit of the
organisation and the public sector organisation makes focus on the final result. In this they focus
on the shareholders of the company (Flynn, 2012).
Balance scorecard provides the actual data to the management of the company. It helps
the company to make decisions. It is an important part of the company that focus on the
performance of the company. When all the data of various sector of the company are collected
then it is easy to judge the performance of the company in market. It helps the company to know
that the services of the company are satisfactory and fulfil the needs and demands of their
customer. So that effective measures can be adopted for the improvement.
CONCLUSION
As per the above study it can be concluded that organisational effectiveness depends
upon the organisational performance management. When organisation’s performance is good in
the market then it can be said that the organisational health of the company is also effective. It is
important for the company to make effort in their operation so that better services are provided to
their customer so that their needs and wants can be fulfilled. Balance scorecard is the effective
process to measure the performance of the company. It provides data to the management
regarding the performance of the company.
Recommendation for improvement
Tesco has effective system to measure the organizational performance. It is required for
the company to make good relation with their customer and their employees. It helps the
company to achieve its goal and objective (Lluch, 2011). Performance management software is
the good technique to measure the performance but it is required to have the effective
implementation of it. It is required to the company to make direct contact with their employees
so that actual data can be derived. There is one more techniques that can be adopted by the
company i.e. company may implement a system in which employees can make their complain
and that complain is directly transferred to the management.

REFERENCES
Books and Journals
Lluch, M., 2011. Healthcare professionals’ organisational barriers to health information
technologies—A literature review. International journal of medical informatics. 80(12). pp.849-
862.
Flynn, R., 2012. Structures of control in health management. Routledge.
Leggat, S.G., Bartram, T and Stanton, P., 2011. High performance work systems: the gap
between policy and practice in health care reform. Journal of Health Organization and
Management. 25(3). pp.281-297.
Munn-Giddings, C and Winter, R., 2013. A handbook for action research in health and social
care. Routledge.
Harrison, S., 2013. Managing the National Health Service: shifting the frontier?. Springer.
Granerud, R.L and Rocha, R.S., 2011. Organisational learning and continuous improvement of
health and safety in certified manufacturers. Safety Science. 49(7). pp.1030-1039.
Ferlie, E and et. al., 2012. Knowledge mobilisation in healthcare: a critical review of health
sector and generic management literature. Social science & medicine. 74(8). pp.1297-1304.
Dixon-Woods, M., McNicol, S and Martin, G., 2012. Ten challenges in improving quality in
healthcare: lessons from the Health Foundation's programme evaluations and relevant
literature. BMJ quality & safety. pp.bmjqs-2011.
de Vries, J and Huijsman, R., 2011. Supply chain management in health services: an
overview. Supply Chain Management: An International Journal. 16(3). pp.159-165.
Online
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