Performance Management

1. Executive Summary

It has been said that in any organisation, the people are the key and most important resource. It is important for organisations to recognize the value of employees and learn how to manage and take care of them.

In performance management, an emphasis is placed on improvement and development of teams and individual performance. A shared understanding about the outcomes and how the outcomes should be achieved is established between employees and managers. Through the process, feedback is given and coaching is done regularly to help employees understand what they are doing right, and where they can improve on.

The case study analysis of Money4U Finance Ltd reveals issues of a weak performance management system. There is a lack of alignment of between organizational goals and performance of employees. Furthermore, there is no feedback for employees on how their work and outputs are linked to the organization’s goals. There is a need to help managers and employees change their mindset if the company is to introduce new HR processes and systems.

The team recommends that Money4U Finance Ltd put in place a strategic and tactical planning process, which is followed by a MBO performance management process to ensure that strategic and operational goals are clearly translated to employees. In the last step, a 360-degree feedback will be incorporated to provide evaluation to all employees and managers.

The team also briefly introduced an implementation plan that Money4U Finance Ltd can use to implement the change process.

2. Introduction

Performance Management as defined by Armstrong (2006) “is a systematic process for improving organizational performance by developing the performance of individuals and teams”. The key to achieving and increasing effectiveness of an organization is understanding and managing how individuals perform.

The process of performance management seeks to develop an organizational culture with a...