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Essay

PERFORMANCE MANAGEMENT
SYSTEM
Name:

Module title: Managing Human Resources

Module Code: MOD003486

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Table of Contents
1 Performance Management System...........................................................................................3

2 Performance management models............................................................................................3

2.1 Types of Performance Management Models....................................................................4

2.1.1 360 degrees feedback.................................................................................................4

2.1.2 Management by objectives (MBO)...........................................................................5

2.1.3 Metrics and key performance indicators (KPIs)........................................................6

2.1.4 Performance appraisals (PA).....................................................................................6

 Disadvantages..........................................................................................................................7

3 Theories and approaches for managing and motivating high efficiency.................................7

3.1 Theories.............................................................................................................................7

3.1.1 Theory of system management..................................................................................7

3.1.2 Theory of contingency management.........................................................................8

3.2 Approaches........................................................................................................................8

3.2.1 Feedback frequency shift...........................................................................................8

3.2.2 Improved conversations.............................................................................................8

3.2.3 Training for effective manager..................................................................................8

3.2.4 The role of technology...............................................................................................8

3.2.5 Emphasis on culture...................................................................................................8

4 Management of remote teams..................................................................................................9

4.1 Have regular check-ins......................................................................................................9

4.2 Set simple efficiency goals for remote workers................................................................9

4.3 Determine and provide the necessary equipment.............................................................9

4.4 Advanced telecommuting technology...............................................................................9

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4.5 Set particular timings, days and, dates for the remote staff to communicate and interact
10

4.6 Working remotely does cheaper.....................................................................................10

5 Role of line managers in performance management.............................................................10

5.1 Labor and employee relationship....................................................................................10

5.2 Benefits and compensation.............................................................................................11

5.3 Staff development and training.......................................................................................11

5.4 Recruitment of new talents.............................................................................................11

5.5 Staff’s wellness and safety..............................................................................................12

6 Example of practice from one named organisation that has prepared its business and staff
for home working demonstrates your ability to review and outline what preparation and
approaches have been taken, how they aim to manage their people's performance and continue to
achieve high levels of organisational performance. 500...............................................................12
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1 Performance Management System

A performance management system is a methodical, continuous mechanism through which a
company's human resources department involves workers in advancing the company's
effectiveness by fulfilling the organisation's specified mission, vision, and goals. Key HR roles
such as daily consultation, staff preparation for better success, acknowledgement of successful
work, goal-setting, presentation of incentives for improved performance, improvement analysis,
and real-time reviews are also covered under performance management (Buckingham and
Goodall, 2015).

2 Performance management models

The performance management process aims to provide a continuous interaction between the
employer and the employee. The Plan, Coach, Evaluate, and Reward (PCER) model is
recognised by the Division of Human Resources and Organizational Effectiveness as a helpful
tool in the performance improvement process. Best practices are used to build a performance
schedule, mentor for the successful execution of the plan, and complete the process's annual
performance assessment (Aguinis, 2019).

Plan

Performance
Reward Coach
management

Evaluate
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 Planning: Performance management starts as the manager checks the employee's job
responsibilities, shares competencies, sets expectations, and talks with the employee
about them. This assists in the formation of a standard view of success and behavioural
expectations.
 Coaching: During the year, the manager gives coaching and feedback to their staff to
help them meet their targets. The targets and all other documents generated during the
Planning process become a working document that can be returned to and updated as
required during the performance evaluation period. Both the manager and the employee
will make notes about the employee's output at any time, and all notes are monitored
outside of the work structure (Behery, Jabeen, and Parakandi, 2014).
 Evaluation: During the assessment process, the manager can use various tools to assess
the employee's results, including the employee's self-evaluation, performance notes made
during the year, accolades, and customer reviews. The manager meets with the employee
to go through the performance assessment, clarify the grades, and provide guidance on
the employee's strengths and weaknesses. Until officially closing the Workday
assessment, the manager finishes the report in Workday and gives it to the employee to
review and accept.
 Rewards: The manager honours and promotes merited success at the end of the year and
during the year.

2.1 Types of Performance Management Models

2.1.1 360-degree feedback

It is a program that helps to solve multi-dimensional challenges in an enterprise, such as
employee engagement and recruitment and growth and succession planning. 360-degree
feedback, including full-angle feedback, provides a comprehensive picture of an employee's
career path, including talents, challenges, roadblocks, and any hidden leadership ability that can
be developed with minimal preparation and commitment (Buckingham and Goodall, 2015). As a
result of the growing adoption of 360-degree feedback in the industry, most companies are now
using it to prepare for upcoming performance evaluations, which can be difficult for HR
professionals.
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 Advantages
o Provide a more detailed perspective on job success.
o A more precise assessment can be obtained by combining theories.
o Not only the manager could review their employees' results, but other co-workers can
also do reviews.

 Disadvantages
o The extension of exchange response will create problems and conflicts within several
employees.
o In order to ensure productive functioning, there is a need for preparation and
considerable effort.
o The findings would be exceedingly challenging to decode.
o If the response is not treated carefully and smoothly, it can be pointless.

2.1.2 Management by objectives (MBO)

MBO stands for management by objectives, and it is a means of measuring employee efficiency
daily. This approach aids in the identification of clear competitive objections that workers may
use to align their success with organisational priorities and long-term objectives (De Waal and
Van Der Heijden, 2015). It becomes possible to determine established outcomes where
achievement or loss has evaluation measures by evaluating results against the expectations and
targets put in place. There are some benefits of MBO, but there are still some drawbacks to note,
which are as follows:

 Advantages
o It allows managers and staff to communicate face to face.
o The manner in which each employee is handled is very adaptable.
o It is highly beneficial and straightforward to implement.
o It assumes the staff's success and defines areas for change.

 Disadvantages
o It is a model that is incapable of assessing anything.
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o There is a considerable amount of configuration time needed.

o It has the potential to build low-quality systems.
o If not carefully regulated, it may result in an excessive number of criteria.
o The person will also misinterpret knowledge.

2.1.3 Metrics and key performance indicators (KPIs)

KPIs and metrics are used to assess how effectively businesses, corporate divisions, programs,
and people meet their strategic priorities and objectives. However, KPIs' main benefit is that they
allow rich data-driven success conversations and better decision-making, rather than simply
measuring them (Parmenter, 2015). Measuring all that moves gives the impression that success is
being handled, but it is not. Instead, consider the following questions: "What aim or dilemma
wills this KPI assist my organisation in achieving?" and "What decisions will the KPI assist in
driving?" KPIs that are well-designed can be essential navigational tools, providing a good view
of existing success standards and whether they are on track.

 Advantages
o The development company is making toward its objectives is genuinely quantifiable.
o It can be making sure that both teams are working for the same end target.
o Since workers can be assessed independently using KPIs, it becomes even easier to
negotiate promotions and pay agreements.

 Disadvantages
o Since KPIs are short-term targets that typically span a few quarters or months, teams
may become too dependent on the short-term outlook, causing the longer-term
perspective to suffering.
o KPIs are organised in such a manner that workers' imagination can be stifled,
resulting in a decrease in innovation and new ideas.

2.1.4 Performance appraisals (PA)

Performance appraisals, along with KPIs, are perhaps the most frequently used performance
assessment method. Performance appraisals, when used correctly, can be very effective in
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aligning individual objectives with the organisation's strategic goals. Employees must trust that
the assessment phase is a regular, truthful, honest, and positive two-way dialogue to get the best
out of this method. Otherwise, appraisals can be a potent de-motivator, resulting in a drop in
efficiency (Kampkötter, 2017).

 Advantages
o A performance indicator provides a database of an employee's results over a
particular time span.
o It offers a forum for thinking about and planning the following year and setting
employee priorities.
o Employees crave input, and this mechanism helps managers to give feedback to an
employee on their results.

 Disadvantages
o If not performed correctly, the performance assessment may be a stressful experience
for both the employee and the boss.
o Performance evaluations take a long time to complete.
o If not completed correctly, the whole procedure can be a waste of time.
o Employees and managers alike can feel stress as a result of performance appraisals.

3 Theories and approaches for managing and motivating high efficiency

Management theories are principles that accompany recommended management techniques and
can include methods like structures and rules that can be found in modern companies (Shamim et
al., 2016). Professionals, on the whole, do not focus entirely on one management philosophy but
instead mix and match ideas from various management philosophies to better fit their staff and
business culture.

3.1 Theories

3.1.1 Theory of system management

Organisational strategy and implementation should be viewed in a particular manner with
systems management. According to the systems management philosophy, businesses are like the
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human body and are made up of various parts that must operate together to run correctly for the
entire structure. According to the Theory, an organisation's effectiveness is determined by
several primary factors, including synergy, interdependence, and interrelationships across
various subsystems (Regier and Redish, 2015).

3.1.2 Theory of contingency management

The central idea of the contingency management philosophy is that no one management strategy
is appropriate for any business. Several external and internal considerations would affect the
management strategy selected. The contingency theory describes three factors that are likely to
affect an organisation's structure: its scale, the equipment it employs, and the leadership style it
employs (Wadongo and Abdel-Kader, 2014).

3.2 Approaches

3.2.1 Feedback frequency shift

Companies are abandoning the assessment of the annual results owing to a change in feedback
frequency. In its position, platforms enable administrators, co-workers, and consumers to have
real-time, regular reviews. Instant reviews, constructive critique, and actionable ideas are all
possible for software systems (Akhmetshin et al., 2018). This knowledge can be aggregated and
quantified to allow for big-picture debates and interpretation about people and communities.

3.2.2 Improved conversations

Managers must be more disciplined about communicating with staff about results as they move
on from the annual assessment. When managers may help workers understand their tasks and
effects on priorities, frequent feedback works well.

3.2.3 Training for an effective manager

Under the current model, effective management improvement can focus heavily on managers. To
help their staff excel, administrators may require more preparation and leadership development.

3.2.4 The role of technology

Today's companies use cutting-edge technology to combine success improvement with other
critical HR systems. Quantification, measurement, and effect will all be assessed more easily
with this enterprise approach (Kerzner, 2017).
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3.2.5 Emphasis on culture

Success evaluation has moved beyond the pursuit of simple company targets. Parts in success
assessment should be focused on employee effects on the corporate atmosphere and environment
in today's diverse workforces.

4 Management of remote teams

Managing remote workers takes a rational shift, particularly for managers who are used to
working in conventional settings. Company leaders accustomed to calculating productivity based
on employees' "desk time" and noticeable activity levels can find the change to remote work
unfamiliar and uncomfortable at first. Employees can often feel out of sorts initially as they adapt
to significant changes in their everyday routines (Maslova and Mustafina, 2016). Although
remote work has its drawbacks, managers can do some valuable and straightforward things to
make the change easier.

4.1 Have regular check-ins

As far as possible, this should be done regularly by one-on-one and face-to-face via video calls,
phone calls, and email. The good news is that tools like Google’s Team Hangouts or Zoom make
it pretty simple to do so. This should be done every day at least. The goal is straightforward: to
set the agenda and offer guidance and support to the team members.

4.2 Set simple efficiency goals for remote workers

Any productivity criteria may be work-specific, while others will be company-wide standards,
for example, by applying a company-wide strategy that all client emails should be responded by
the end of the day, and everybody available for meetings and phone calls from 9 AM to 5 PM.

4.3 Determine and provide the necessary equipment

Making the required resources readily available as appropriate is an essential part of effectively
handling remote workers (Chujfi et al., 202). Managers and teams will have to ponder what
should be put in place to make a telecommuting transition easier to fulfil the requirement.
Remote employees require the same access as on-site employees to items such as protocol and
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policy notes, supplies and presentation models, software systems, mail supplies and stationery,
and the company credit card.

4.4 Advanced telecommuting technology

The bulk of remote work can be achieved with only a laptop, computer, internet connection, and
a headset. The company's needs and security policies can decide if digital resources are provided
by a shared drive accessible from a protected VPN or Dropbox folders.

4.5 Set particular timings, days and, dates for the remote staff to communicate and
interact.

It may take a little more time for remote teams to recreate such contact. When there is a
combination of off-site and on-site staff, competent managers look for ways to involve everyone
in team meetings and conversations wherever possible (Spiro, 2018). Although it can be artificial
or inconvenient at first, supervisors should allow off-site and on-site employees to communicate
with management and other staff members daily.

4.6 Working remotely does not mean it is cheaper

When it comes to remote employees, budgets are an essential factor. Any corporate leaders may
believe that implementing remote work and reducing office space by 50% equals a 50% cost
savings over keeping workers in a typical office. The formula is not as simple as it seems
because the corporation will spend less on actual office space, but those profits will most likely
tube spent elsewhere, based on the amount of remote work that needs to be completed.

5 Role of line managers in performance management

Human resources are not a revenue-generating department, but it is an integral part of any
successful company. HR, for example, assists the organisation in maintaining its activities. In
some instances, HR divisions are divided into several functional regions, each with personnel
who are experts in their respective fields. Labour/employee relations, benefits and
compensations, employee preparation and advancement, hiring or skill management, and health
and safety are the functional areas of human resources (Dewettinck and Vroonen, 2017). These
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experts are supervised by line managers in the HR department, who report to an HR manager. An
HR line manager's roles differ depending on the operating region and work duties and which are
described as follows:

5.1 Labor and employee relationship

Employee and labour relations line managers typically report concerns and objections to the HR
department manager on an aggregate basis and engage in strategic planning to improve employee
and labour relations. Also, as the organisation gets inquiries from law compliance authorities, the
line manager can be the contact person who deals with legal counsel.

5.2 Benefits and compensation

Reward and compensation experts negotiate pay and compensation rates and ensure that these
are fair, and they also manage company services such as life care, retirement plans, and
employee long and short-term disability insurance. The payment and benefits line manager is in
charge of all pay and benefits and resolving holiday and sick leave problems. Line managers in
this functional position report to the HR manager or director. Depending on their experience,
they may be in charge of deciding the strategic trajectory of the company's present and future pay
system based on their understanding of labour market dynamics and the company's growth
strategy.

5.3 Staff development and training

In addition to supervising the specialists, the training and production line manager are in charge
of high-level duties. He may be interested in performing needs evaluations and skills mismatch
reviews to see if workforce preparation efforts are successful, job classifications are valid, and
workers are in the correct positions for their skills. Also, line managers in recruitment and
growth will be in charge of deciding the strategic approach for overall employee development,
which should align with the company's objectives.

5.4 Recruitment of new talents

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Line managers in this functional field are most likely to be interested in talent management, the
strategic brand of recruiting and work. Long-term personnel planning is the focus of talent
management, including deciding how to match the workforce with the organisation's needs,
whether those needs be merely to continue operations or to prepare for business growth (Cappelli
and Tavis, 2016). These line managers are forward-looking leaders who have an eye on labour
market patterns and workforce availability. Moreover, recruiting specialists are their direct
reports, and they post online advertisements, screen applications, perform preliminary
interviews, discriminate between applicants and eligible candidates, and consult with department
recruiting managers about their personnel needs.

5.5 Staff’s wellness and safety

Employee health and safety are a distinct entity of some organisations, but it makes sense for it
to be included in HR since it comes under the umbrella of employee benefits. Employee
protection experts inspect the workplace and ensure that workers are not exposed to dangerous
elements and safely use tools and machines. Inspections are overseen by the line manager for
health and safety, who reports to the HR manager. Furthermore, the line manager should take a
holistic approach to occupational health and safety by integrating employee welfare as part of a
broader mission to maintain a healthy work atmosphere.

6 Example of practice from one named organisation that has prepared its
business and staff for home working
To overcome the pandemic of COVID-19 (new coronavirus), several organisations all around the
world request that their workforce to work from their home and Microsoft is also one of these
organisations. During the COVID-19 epidemic, several thousands of Microsoft workers continue
to work from home. Following are the planning and strategies that are adopted by the Microsoft
to monitor the efficiency of its employees while working from home and to maintain a high
degree of organizational performance.

 Adoption of Zero Trust: Microsoft's Zero trust adoption that is based on the notion of
never trust, always verify, and reinforces network protection by controlling employees'
computers devices that have an access to the corporation tools and facilities directly.
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According to the Zero Trust model, devices only can access network resources after
following the verification for their system health which reduces the risk of malware and
intrusion significantly. Besides Zero Trust, 97 percent of internal software and resources
have been transferred to the cloud by the Microsoft Digital. A combination of this system
and a redesigned VPN configuration that allows split tunnelling has resulted in useful
VPN bandwidth for the remote mass process.
 Meetings and teamwork: Our central portal for talk, calls, workshops, and applications
is Microsoft Teams. Our employees have access to the people, content, and resources
they need to function successfully in the cloud thanks to Microsoft 365 integration.
Microsoft Teams also helped the company retain productivity when operating from
home, including a substantial rise in the number of meetings and total consumption. With
Microsoft 365, we will host all of our communication platforms in the cloud, which
eliminates the need for VPN access and power management for these services. Microsoft
Teams has been used by Microsoft staff all around the world for quite some time. Their
remote workers learn how to handle the gradual change from Skype for Business to
Microsoft Teams-only mode, as well as how the migration has facilitated the transition to
working at home.
 Community involvement and employee participation: Microsoft workers are involved
and linked to each other and their representatives no matter when they're in the world,
due to the large part to live experiences in Microsoft 365 and Yammer. Their senior
leaders have also been using the live events capabilities for their corporate-wide
Employee Town Hall and Q&A, and teams around the company have been using it for
all-hands meetings. Since Microsoft 365's live activities keep workers updated and aware,
it was simple to shift their internal events from a hybrid environment to an entirely online
platform as their employees were working from home. Live events capabilities, when
combined with Yammer's innovative community-building functionality, help Microsoft
executives and staff easily connect and exchange company updates, educational
experiences, relevant updates, and queries.
 File storage in the cloud: Successful teamwork in a cloud-first environment necessitates
more than merely downloading files to the cloud. It necessitates workflows that are built
from the ground up to encourage collaboration, exchange ideas, and make quicker
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decisions. Employees can view and operate on files from anywhere if they make files and
resources accessible in the cloud. Disconnecting data from potentially compromised
computers helps keep their enterprise compliant and their data secure (Microsoft, 2021).
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7 References
Aguinis, H., 2019. Performance management for dummies. John Wiley & Sons.

Akhmetshin, E.M., Brager, D.K., Pokramovich, O.V., Andreyko, M.N. and Aleynikova, M.Y.,
2018. Modern theoretical and methodological approaches to personnel management in
manufacturing enterprises. Espacios, 39(31), p.11.

Behery, M., Jabeen, F. and Parakandi, M., 2014. Adopting a new performance management
system. International Journal of Productivity and Performance Management.

Buckingham, M. and Goodall, A., 2015. Reinventing performance management. Harvard

Business Review, 93(4), pp.40-50.

Chujfi, S., Traifeh, H., Staubitz, T., Refaie, R. and Meinel, C., 2021. Exploring Collaboration
and Assessment of Digital Remote Teams in Online Training Environments.
In Workgroups eAssessment: Planning, Implementing and Analysing Frameworks (pp.
27-53). Springer, Singapore.

Cappelli, P. and Tavis, A., 2016. The performance management revolution. Harvard Business
Review, 94(10), pp.58-67.

De Waal, A. and Van Der Heijden, B.I., 2015. The role of performance management in creating
and maintaining a high-performance organisation. Journal of Organization Design, 4(1),
pp.1-11.

Dewettinck, K. and Vroonen, W., 2017. Antecedents and consequences of performance

management enactment by front-line managers. Evidence from Belgium. The
International Journal of Human Resource Management, 28(17), pp.2473-2502.

Kampkötter, P., 2017. Performance appraisals and job satisfaction. The International Journal of
Human Resource Management, 28(5), pp.750-774.

Kerzner, H., 2017. Project management: a systems approach to planning, scheduling, and

controlling. John Wiley & Sons.
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Maslova, E.G. and Mustafina, R.M., 2016. SMART LEADERSHIP: MANAGING REMOTE
TEAMS IN GLOBAL COMPANIES. In Humanities education in a university of
economics (pp. 307-311).

Microsoft, 2021. Work and productivity working from everywhere. Available at

https://pulse.microsoft.com/en/work-productivity-en/na/fa2-the-top-9-ways-microsoft-it-
is-helping-its-employees-to-work-from-home/

Parmenter, D., 2015. Key performance indicators: developing, implementing, and using winning
KPIs. John Wiley & Sons.

Regier, P.S. and Redish, A.D., 2015. Contingency management and deliberative decision-making
processes. Frontiers in psychiatry, 6, p.76.

Shamim, S., Cang, S., Yu, H. and Li, Y., 2016, July. Management approaches for Industry 4.0: A
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Spiro, C.L., 2018. The globalisation of Innovation and Leading Remote Teams. From Bench to
Boardroom (pp. 113-116). Copernicus, Cham.

Wadongo, B. and Abdel-Kader, M., 2014. Contingency theory, performance management and
organisational effectiveness in the third sector. International Journal of Productivity and
Performance Management.