CMI 504 Assignment Example

Task 1

AC 1.1 Justify the rationale for managing performance within organisations.

According to Sahlin and Angelis (2019), performance management is a tool used by organizations to assist them in achieving their goals and objectives. It is a method utilized by managers to monitor and improve the performance of employees. Performance management systems within organizations aid managers in evaluating employees’ performance by measuring their progress against agreed-upon targets. As a manager at Woolworths supermarket, I utilize performance management practices, including setting targets and reviewing employees’ progress, to assess their work performance.

Agreeing on targets 

As stated by Leal Filho et al. (2019), establishing mutual targets between managers and employees is essential to ensure alignment towards a shared objective. Managers employ different strategies to ensure effective progress towards meeting these targets. These strategies encompass:

• Communications: As a manager at Woolworths supermarket, I prioritize open and honest conversations with employees about their targets to enhance their commitment and motivation.
• Involvement: I involve employees in the organization’s meetings and planning, seeking their input in setting organizational goals, which has boosted their motivation and commitment towards achieving them.
• Being clear: I ensure that goals and targets are clearly defined, helping employees have a clear understanding of expectations and facilitating effective performance progress tracking.

Reviewing employees progress

As emphasized by Murphy (2020), performance reviews play a crucial role in allowing managers to assess an employee’s progress and provide constructive feedback for their improvement. As a manager at Woolworths supermarket, I follow the below steps in conducting performance reviews for my team members:

• Data collection: I gather performance metrics and feedback to comprehensively review employee performance over the past year.
• Meetings: I schedule meetings with employees to discuss their progress and explain the purpose of the performance review.
• Feedback: I provide feedback to recognize employees’ efforts and commitment towards achieving organizational goals, fostering a positive working environment and increasing productivity.
• Areas of improvement: I communicate areas of weakness that require improvement and offer advice and suggestions to help employees enhance their performance.
• Goal setting: I work with employees to set renewed goals that align with their development plans, ensuring mutual agreement and clarity.
• Follow-ups: I schedule regular follow-ups with employees to monitor their progress and provide necessary support as needed.

As noted by Al Aina and Atan (2020), effective management of organizational performance is crucial as it enhances employee motivation, promotes talent development, and fosters a culture of continuous improvement.

Employee motivation:

• For instance, ensuring that employees at Woolworths supermarket have a clear understanding of their job expectations has resulted in increased motivation and engagement at work. As a manager, I regularly provide feedback on their performance, leading to improved job satisfaction and a more positive work environment.

Talent development:

• For example, as a manager at Woolworths supermarket, performance management has allowed me to identify and develop the strengths and weaknesses of my employees. This has allowed me to identify areas for training and development, leading to the growth and retention of top talent at Woolworths.

Continuous improvement:

• For instance, through regular performance reviews, I, as a manager, have been able to assess employees’ processes and practices at Woolworths supermarket. This has helped me identify areas for improvement, leading to a culture of continuous improvement and innovation among employees.

Task 2

AC 2.1 Examine the impact of legal and organisational frameworks on performance management.

Legal and organisational frameworks:

• According to Gooderham, Mayrhofer, and Brewster (2019), legal and organisational frameworks play a critical role in shaping the design and implementation of performance management systems. At Woolworths supermarket, we ensure that our performance management systems comply with applicable laws and regulations, reflect the values and culture of the organisation, and align with HR policies.

Legal compliance:

• At Woolworths supermarket, as a manager, I ensure that our performance management system adheres to relevant laws and regulations. This includes compliance with employment opportunity laws, such as equal employment opportunity laws, as highlighted by Weatherly (2021). These laws can impact performance management by influencing the criteria used for performance evaluation and the process of conducting performance evaluations. Organisations must ensure that their performance management systems comply with relevant laws and regulations to mitigate legal consequences such as fines, lawsuits, and reputational damage.

Organisational compliance:

• Organisations must also comply with various laws and regulations that affect the workplace, including labour, equal opportunity, health and safety, and privacy laws, among others. Failure to comply with these laws and regulations can result in legal consequences. As a manager, I ensure that our performance management system at Woolworths supermarket aligns with these laws and regulations to mitigate any potential risks and maintain compliance with legal and organisational requirements.

The influence of legal compliance on performance management involves ensuring fair treatment and compensation, which in turn enhances employee motivation and commitment towards organisational goals. As highlighted by Chen, Lee, and Tang (2022), adherence to labour laws, such as minimum wage, overtime, and equal pay, can impact how employees are compensated and ultimately affect their satisfaction. For instance, at Woolworths supermarket, employees are fairly compensated, resulting in increased motivation and commitment in the workplace.

Organisational culture.

At Woolworths supermarket, we foster a culture that values teamwork and collaboration. As a manager, I actively encourage teamwork and assess team performance metrics to promote a collaborative culture within the organization. This approach to performance management has had a significant impact on fostering teamwork and collaboration at Woolworths. According to Arokodare, Asikhia, and Makinde (2019), organisational culture encompasses shared values, beliefs, attitudes, and behaviours that characterize an organization and influence employee behaviour and performance. The organizational culture can significantly influence the design and implementation of the performance management system.

A positive organisational culture has been shown to promote employee engagement, motivation, and a sense of purpose. When employees feel valued and their contributions are recognized and appreciated, they are more likely to be motivated and engaged in their work. This, in turn, can result in higher productivity, higher quality work, and lower turnover rates. For instance, Woolworths supermarket has been successful in keeping employees motivated and committed due to its positive organizational culture that places a strong emphasis on employee well-being (Canning et al., 2020). This is evident in the fairness and equity in performance evaluations and rewards, which are based on objective criteria and merit-based systems, enhancing the employer brand.

HR Policies.

The policies and procedures formulated by an organization’s human resources department have a significant impact on the performance management system (Gallardo-Gallardo, Thunnissen, and Scullion, 2020). The HR department is responsible for determining the frequency, format, and criteria used for performance evaluations. For example, at Woolworths supermarket, the HR department has established a quarterly performance evaluation process that incorporates feedback from others and team assessments.

Moreover, HR policies also influence performance management through employee training and development programs (Stone, Cox, and Gavin, 2020). At Woolworths supermarket, we guide available training and development opportunities for employees to enhance their skills and knowledge, which in turn helps them perform well and continuously improve their performance over time.

2.2 Evaluate the diagnostic and evaluation tools which support performance management.

Diagnostic and evaluation tools are crucial for effective performance management as they facilitate data collection, performance evaluation, and employee feedback. Some of the tools used by managers include performance appraisals and key performance indicators (KPIs) (Bayo-Moriones et al., 2020).

Performance appraisals are structured assessments that provide a comprehensive overview of an employee’s job performance, including their duties, goals, strengths, and weaknesses. As a diagnostic tool, performance appraisals allow managers to identify areas for improvement and provide feedback on job performance. For instance, as a manager at Woolworths supermarket, performance appraisals have helped me understand the skills and abilities of employees, enabling me to determine training and development needs for performance improvement. Performance appraisals also aid in identifying motivational issues and providing guidance to employees.

As an evaluation tool, performance appraisals enable managers to measure employee performance against established standards and expectations. For example, as a manager at Woolworths supermarket, performance appraisals have helped me assess whether employees are meeting their objectives and goals, and their contribution to organizational goals. This information is used to identify employees who may require development support, promotions, or pay increases. Performance appraisals are critical for evaluating employee performance, identifying areas for improvement, and aligning individual goals with organizational objectives.

KPIs, on the other hand, are metrics used to evaluate performance against specific goals and objectives (Wannes & Ghannouchi, 2019). Managers use KPIs across organizations to track and assess employee performance. As a diagnostic tool, KPIs help managers identify areas that require improvement. For example, as a manager at Woolworths supermarket, I use KPIs such as customer satisfaction scores, inventory turnover, and employee turnover rates to assess the performance of the supermarket and identify areas that need attention. By monitoring these KPIs, I can quickly identify underperforming areas and take corrective actions.

As an evaluation tool, KPIs provide a means of measuring the success of specific initiatives or programs. For instance, as a manager at Woolworths supermarket, I use KPIs such as sales figures and customer satisfaction scores to evaluate the impact of our customer care services. This allows me to determine the effectiveness of our customer service and make informed decisions about the customer support department. Clear KPIs help managers ensure that their efforts are focused on areas that significantly impact organizational growth and development. Additionally, KPIs facilitate effective communication about performance and progress among managers, employees, and stakeholders.

In conclusion, performance appraisals and KPIs are valuable diagnostic and evaluation tools that support performance management across organizations. They provide a systematic approach to evaluating performance, identifying areas for improvement, and aligning individual goals with organizational objectives. Performance appraisals and KPIs facilitate data-driven decision-making, promote employee development, and contribute to the success of organizations.

Task 3

AC 3.1 Discuss good practice principles for managing performance.

The effective management of performance can be achieved through implementing good practices such as communicating job responsibilities, expectations, and goals to employees, fostering a culture of progressive performance management, and providing performance improvement measures (Darmawan et al., 2020; Maseke, Unengu, & Haufiku, 2022).

Setting performance expectations involves open communication with employees to ensure they understand their job responsibilities, expectations, and goals. For instance, as a manager at Woolworths supermarket, I make sure to communicate these expectations to every employee, including the organizational goals of gaining recognition as a top 100 UK employer. This helps employees understand what is required of them and establishes a framework for performance evaluation (Darmawan et al., 2020).

Progressive performance management is essential for giving regular feedback to employees on their progress, helping them understand their strengths and areas for improvement, and encouraging them to reflect on their performance and set goals (Maseke et al., 2022). As a manager, I promote progressive performance management at Woolworths supermarket to evaluate employees’ strengths and weaknesses and take relevant actions to support their development and assess our progress towards the goal of gaining 100 UK employer recognition (Maseke et al., 2022).

Performance improvement measures are important for fostering a culture of continuous improvement by encouraging innovation, experimentation, and ownership of development (Darmawan et al., 2020). These measures also enable managers to identify and provide training and development opportunities to help employees improve their skills and meet performance expectations. For example, I identified underperformance at Woolworths supermarket due to inadequate skills and knowledge and therefore implemented a learning and development program to enhance employee skills and knowledge (Darmawan et al., 2020).

In conclusion, implementing good practices such as setting performance expectations, progressive performance management, and performance improvement measures can contribute to effective performance management in the workplace (Darmawan et al., 2020; Maseke et al., 2022).

AC 3.2 Examine the use of formal processes for managing performance.

Managers rely on formal processes as critical components to achieve effective organizational performance. These formal processes offer a structured and systematic approach to evaluating employee performance and addressing any performance-related issues that may arise. Managers ensure that formal processes for managing performance are integrated with ongoing performance management practices, such as regular feedback and training. Formal processes need to be flexible and adaptable to the unique needs and circumstances of each employee and organization. By using formal processes for managing performance, organizations can effectively pursue their performance goals and cultivate a positive and supportive work environment. Formal processes play a crucial role in providing a clear and consistent framework, enhancing communication, and improving overall performance.

Providing a clear and consistent framework.

Formal processes offer a transparent and consistent framework for evaluating employee performance, ensuring that all employees are assessed in a uniform and unbiased manner. When there is a lack of clear understanding of formal performance management processes, it can lead to poor performance. For instance, as a manager at Woolworths supermarket, I encountered underperformance in the workplace, and upon evaluation, I determined that it was due to a lack of clarity regarding formal processes. To address this issue, I identified the specific processes that employees were unclear about and conducted training sessions to explain the processes and address any questions they had.

Enhance communication.

Formal processes promote open and transparent communication between employees and managers, facilitating a positive work environment that encourages employees’ dedication and motivation towards achieving organizational goals. As a manager at Woolworths supermarket, I prioritize effective communication by clearly conveying organizational goals to employees and outlining their expected roles. For instance, I have communicated the goal of Woolworths supermarket to achieve recognition as a top 100 employer, along with the specific contributions expected from employees to help the organization attain this goal.

Performance improvement.

Formal processes, as highlighted by Lewandowski and Cirella (2022), contribute to improving organizational performance by offering clear feedback on employees’ progress. These processes enable employees to identify their strengths and areas for improvement. For instance, as a manager at Woolworths supermarket, I have implemented structured approaches to help employees achieve business goals. This includes establishing standardized procedures for tasks, resulting in increased efficiency and confidence among employees, leading to consistent and high-quality job performance. Furthermore, I prioritize providing training opportunities to enhance employees’ knowledge and skills, resulting in improved productivity and reduced instances of underperformance at Woolworths.

AC 3.3 Analyse the relationship between signs and causes of underperformance.

Managers must comprehend the relationship between signs and causes of underperformance in an organization, as this understanding aids in effective management decisions. As noted by Burchard (2022), the causes of underperformance may not always be intentional, and managers need to approach them with empathy. It is also the responsibility of managers to establish open and clear communication channels with employees to identify the root causes of underperformance. For example, as a manager at Woolworths supermarket, I engaged in open and transparent conversations with employees, which helped me identify a lack of adequate information as the root cause of underperformance. Subsequently, I introduced learning and development programs to enhance employees’ skills and knowledge as a means to address the issue effectively.

The signs of underperformance.

• Decreased employee engagement and motivation: a sign of underperformance as employees are not fully engaged and unable to perform at their best.
• Managers should take action to address decreasing employee engagement and motivation to enhance performance and employee retention.
• Missing deadlines: a sign of underperformance as employees consistently fail to meet deadlines.
• Missing deadlines can result in project delays, increased stress, decreased productivity, and lost revenue.
• Increased absenteeism and employee turnover: indicators of underperformance.
• Absenteeism and high turnover rates negatively impact productivity, morale, and overall organizational success.

The causes of underperformance.

• Inadequate knowledge and skills: employees who lack the necessary expertise and training may struggle to complete their work to a satisfactory level.
• For example, some employees at Woolworths supermarket may produce low-quality work due to their lack of familiarity with certain tasks.
• External factors: technological changes and market trends can impact employees’ ability to complete tasks within an organization.
• Technological upgrades and market trends can disrupt organizational operations, requiring employees to adapt, which can affect their productivity.
• Poor work environment: employees’ morale and performance are significantly impacted by the working environment.
• Poor management practices and lack of opportunities for growth and development are examples of factors that contribute to a negative work environment.

AC 3.4 Evaluate approaches to respond to challenges when managing underperformance.

To effectively manage underperformance in an organization, it is critical to identify the root cause and take appropriate actions to address it. This can be achieved by ensuring that employees have a clear understanding of their roles and expectations, providing regular feedback and necessary resources, offering training and mentoring, and addressing any personal issues that may impact performance. It is important to provide actionable feedback, improve interpersonal feedback exchanges, offer ad-hoc training, flexible working arrangements, and mental health support, and establish an appropriate appraisal process to measure and document progress. 

The use of a 360° performance appraisal can be a valuable tool to gather feedback from various stakeholders. Ultimately, accurately diagnosing the problem and avoiding merely treating symptoms is crucial in effectively managing underperformance. Managers can utilize various approaches, such as open communication, performance improvement plans, and consistent training and feedback, to address underperformance in the organization.

Open communication.

Managers have a responsibility to maintain open communication with their employees to identify the underlying causes of underperformance. For instance, as a manager at Woolworths supermarket, I noticed that some employees were not meeting performance expectations. To address this, I arranged a meeting to have an open dialogue with the employees and determine the root cause of the underperformance. Through this open communication, I discovered that inadequate skills and knowledge were the main factors contributing to the issue. As a result, I decided to implement a learning and development program to enhance the employees’ knowledge and skills.

Performance improvement plans (PIPs).

As Costakis and Pickern (2022) state, performance improvement plans are utilized by managers as a structured process to outline specific goals and expectations for employees who are underperforming. These plans involve regular feedback and coaching to help employees understand what is expected of them and how they can improve their performance. For instance, at Woolworths supermarket, employees are aware of the organization’s goals of being recognized as a top 100 UK employer, and as a manager, I make sure to provide full support and feedback to underperforming employees to help them improve their performance.

Consistent training and feedback.

Managers have a crucial responsibility in providing regular and constructive feedback to their employees, both through informal and formal means. Consistent feedback helps employees gain awareness of their strengths and weaknesses and empowers them to develop the necessary skills and knowledge to enhance their performance. For instance, as a manager at Woolworths supermarket, I consistently provide feedback and training to ensure that employees are well-equipped for their roles. This approach has resulted in improved employee engagement and productivity at Woolworths. 

AC 3.5 Recommend techniques for developing and managing individuals who exceed expectations.

To effectively manage high-performing individuals, it is important to establish a comprehensive reward system that encompasses both intrinsic and extrinsic rewards, along with recognition. Additionally, secondment can be an effective approach to provide employees with new developmental opportunities and broaden their skill sets, while also benefiting the organization by enhancing the skills of its workforce and boosting motivation and morale. A well-designed secondment program should outline clear guidelines on how it will be managed, how work will be covered during the employee’s absence, and the duration of the secondment period.

Good reward system.

As per Silver et al. (2021), implementing a robust reward system is a proven technique for effectively developing and managing high-performing individuals. Rewards serve as a strong motivator that reinforces desired behaviours and encourages employees to consistently exceed expectations. For instance, as a manager at Woolworths supermarket, I ensure to provide meaningful and timely rewards to motivate my employees. This helps to maintain their high level of performance and contribution to the supermarket’s success. When managing high performers in organizations, managers need to consider the following components in their rewards system:

• Establishing clear, objective, transparent, and well-communicated criteria for earning rewards.
• Providing rewards in a timely and consistent manner to maintain their impact and avoid confusion or resentment.
• Offering meaningful and valued rewards, which can be financial (e.g. bonuses or salary increases), non-financial (e.g. extra time off or flexible work arrangements), or a combination of both.
• Ensuring fairness and equity in rewarding, where employees who consistently exceed expectations are appropriately rewarded, while those who do not meet expectations are not rewarded.
• Customizing rewards to the individual, recognizing that different employees may be motivated by different types of rewards, and allowing for flexibility and customization in the rewards system.

Secondment

Secondment is a valuable technique for developing and managing high-performing individuals by providing them with temporary assignments in different departments or teams within the organization, as highlighted by Pearce et al. (2021). As a manager at Woolworths supermarket, I make sure to offer employees who have exceeded expectations the opportunity to oversee other departments periodically. This approach has proven effective in expanding their skills, knowledge, and experiences, while also helping them face and overcome new challenges that are crucial for their growth and development. In this way, secondment plays a vital role in organizations by providing employees with room for growth and advancement.

• Acquire new skills, broaden their skillset, and learn different approaches to work by gaining exposure to other departments or teams.
• Gain a better understanding of how various functions and teams collaborate to achieve shared objectives within the organization.
• Expand their professional network and establish relationships with colleagues and contacts in other departments or companies.

References

Al Aina, R. and Atan, T., 2020. The impact of implementing talent management practices on sustainable organisational performance. Sustainability, 12(20), p.8372.

Arokodare, A., Asikhia, U. and Makinde, O., 2019. Strategic agility and firm performance: The moderating role of organisational culture. Business Management Dynamics, 9(3), pp.01-12. 

Bayo-Moriones, A., Galdon-Sanchez, E. and Martinez-de-Morentin, S., 2020. Performance appraisal: dimensions and determinants. The International Journal of Human Resource Management, 31(15), pp.1984-2015.

Burchard, B., 2022. High performance habits: How extraordinary people become that way. 

Canning, A., Murphy, C., Emerson, T., Chatman, A., Dweck, S. and Kray, L., 2020. Cultures of genius at work: Organisational mindsets predict cultural norms, trust, and commitment. Personality and Social Psychology Bulletin, 46(4), pp.626-642.

Chen, L., Lee, H. and Tang, S., 2022. Fair price, fair trade, and fair pay in supply chains. In Creating Values with Operations and Analytics: A Tribute to the Contributions of Professor Morris Cohen (pp. 65-81). Cham: Springer International Publishing.

Costakis, R., and Pickern, S. 2022. Managing Human Capital Through the Use of Performance Improvement Plans. Journal of Applied Business & Economics, 24(6).

Darmawan, D., Mardikaningsih, R., Sinambela, A., Arifin, S., Putra, R., Hariani, M., Irfan, M., Al Hakim, R. and Issalillah, F., 2020. The quality of human resources, job performance and employee loyalty. International Journal of Psychosocial Rehabilitation, 24(3), pp.2580-2592.

Gallardo-Gallardo, E., Thunnissen, M. and Scullion, H., 2020. Talent management: context matters. The International Journal of Human Resource Management, 31(4), pp.457-473.

Gooderham, N., Mayrhofer, W. and Brewster, C., 2019. A framework for comparative institutional research on HRM. The international journal of human resource management, 30(1), pp.5–30.

Leal Filho, W., Tripathi, K., Andrade Guerra, D., Giné-Garriga, R., Orlovic Lovren, V. and Willats, J., 2019. Using the sustainable development goals towards a better understanding of sustainability challenges. International Journal of Sustainable Development & World Ecology, 26(2), pp.179-190.

Lewandowski, A. and Cirella, T., 2022. Performance management systems: Trade-off between implementation and strategy development. Operations Management Research, pp.1-16.

Maseke, F., Unengu, K. and Haufiku, T., 2022. Effectiveness of performance management system on employee performance.

Murphy, R., 2020. Performance evaluation will not die, but it should. Human Resource Management Journal, 30(1), pp.13–31.

Pearce, A., Harney, B., Bailey, M., Dziewanowska, K., Bosak, J., Pease, P., Stalker, B., Skoumpopoulou, D., Doyle, P., Clegg, S. and Shokri, A., 2021. Managing a mega-project to explore and enhance careers: insights from Global Entrepreneurial Talent Management 3. In Handbook of Research Methods in Careers (pp. 73–102). Edward Elgar Publishing.

Sahlin, J. and Angelis, J., 2019. Performance management systems: reviewing the rise of dynamics and digitalisation. Cogent Business & Management, 6(1), p.1642293.

Silver, D., Singh, S., Precup, D. and Sutton, R.S., 2021. The reward is enough—Artificial Intelligence, 299, p.103535.

Stone, J., Cox, A. and Gavin, M. 2020. Human resource management. John Wiley & Sons.

Wannes, A. and Ghannouchi, A., 2019. KPI-based approach for business process improvement. Procedia Computer Science, 164, pp.265-270.

Weatherly, L., 2021. The ethics of organisational behaviour management. Journal of Organizational Behavior Management, 41(3), pp.197–214.

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