With the emerging concern in the competitive retail industry has been important to manage organisational performance accordingly with the change management perspectives. The paper aims to investigate the impact and importance of effective performance manages system in the daily operations of the organisations. Performance management system is an effective and organised approach that helps in dwelling on the employee performance improvements and further practices to incur the best course of results in an efficient manner. By catering on the organisational performance management system of Sainsbury the current trends in the UK retailing can be analysed duly.
Sainsbury is one of the renowned retail supermarket chains operating in the UK. In relevance with the case it has been evident that impact of business employee’s performance management system in the overall organisational practices can duly cater on the superior objectives of the organisation in the most successful manner. The case analyses the findings using interview process to obtain effective managerial and non-managerial approaches and relative perception on the organisational performance management system (OPM). The case critically focuses on the approaches Sainsbury has delivered by the employee performance with corrective responses and reward respectively in the most successful manner (Miah and Hossan, 2012). By catering on the OPM system of Sainsbury further improvements can be done in the most efficient manner.
In relevance with the case of Sainsbury it has been evident that major impact of employee performance through development can cater on the organisational performance development. The paper has been considered the significance of OPM in respect to organisational HRM practices. In discussing the significance of effective HRM practices it is important to reflect on the allied notion of OPM (Kumar et al. 2015). In analysing the existing OPM it would be important to reflect on the case in relevance with organisational performance management system, performance measures, communicating the performance with stakeholders risk management, quality management, financial management customer and client perspectives and organisational people perspectives along with business ethics and corporate social responsibility. The pervasive characteristics of the effective organisational performance management are evaluated in the following points:
Organisations performance management is the concept of evaluation that the UK retailing store Sainsbury follows in order to understand the usage of organisational resources and the process of pursuing organisational goals (Sainsburys.co.uk, 2018). As for understanding the performance management of the employees, Sainsbury mainly follows three steps which is
Beginning of a performance year, the manager of the organisation discusses with the employees and set business targets to evaluate the performance of the employees. The company mainly sets its targets which is achievable for the employees as well as easy to measure (Miah and Hossan, 2012). The organisation sets the objectives based on the SMART target-setting method, through which the target can be specific, measurable, achievable and time-bounded in this regard.
As the objectives and target is developed, the managers started the review of the targets and evaluate the way the employees are achieving the targets. By conducting a weekly meeting and meeting after six months, the managers of the Sainsbury process the formal performance review in order to make sure the proper direction of the achievement process. In addition, other managers emphasise on daily meeting and give feedback to the employees as for understanding their problems and obstacles to give them an appropriate solution (Miah and Hossan, 2012).
After the review of the six months, managers process the colleague performance review through which they categorise and rate the employees based on top, strong, achieved and underachieved segments. The CPR also used to evaluate the performance as per customers context (Buckingham and Goodall, 2015).
It can be seen that the organisation measures its performance by using the MCM process which requires a mystery customer to assess the quality of customer service from the employees (Miah and Hossan, 2012). Mystery customer measurement is a usual performance management system of Sainsbury which helps to identify the poor performance among employees and helps the employees to get proper training for improvement.
The organisation is committed to maintaining a good and proper connection with its stakeholders in order to understand performance management in the workplace. Communication with the stakeholders enables to get proper feedback and evaluates the long term and short term goal of the organisation. In order to get recognised outcomes and feedback from the stakeholders, Sainsbury follows the steps to communicate with the stakeholders in this regard (DeNisi and Murphy, 2017).
The company maintains regular communication with the stakeholders by using websites and online media sources. Also, they contact the head of the investor relation of the organisation (Miah and Hossan, 2012).
The chairman of the organisation meets with the stakeholders and other investors through general meetings and conducting an annual general meeting of evaluation.
In order to get the feedbacks of the employee performance, the organisation goes through various board meetings, investor relation program and conducting analysis (Sainsburys.co.uk, 2018).
Sainsbury offers an accessible online annual report for the stakeholders to focus on the past and present performance goals and making a prediction based on the feedback.
As for communicating with the employees, customers and suppliers, the board creates agenda and through stakeholder’s engagement program, the organisation identifies the issues and lack in the performance to make further recommendation and improvement.
A poorly implemented performance management program can create various risks in Sainsbury. Based on its current performance management issues various risks have been described here.
Poor performance management can result in a lack of employee engagement as it can influence the performance management
Any unfair performance management rating can create base among workers has been creating performance issues in the overall operation (Miah and Hossan, 2012).
Low employee self-esteem, personal issues, legal risk and the unclear reward system in the organisation can create issues and risk in the performance management system
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