QUESTION

1.Critically analyse two topic areas associated with performance management, and make recommendations for improvement. The topic areas are:

• Strategic Performance Management

• Performance appraisal

• The role of line managers in performance management

• Performance standards and measures

• Formal and informal approaches to managing capability issues

• Ill health and absence management

• Performance related rewards

• International Performance Management

• The ethics of performance management

You can either:

i) Use an organisation of your choice

or ii) use the case study which will be provided

                                                                SAMPLE SOLUTION

Recent years have witnessed unprecedented changes as organizations of all kinds and forms integrate performance management into their strategic management efforts. The goal of such a move is to optimize the output of available human resources in an increasingly competitive market. In fact, it is often claimed that organizations that have not taken into performance management as a strategy are planning to fail, and thus underlining its significance. Simply put, performance management is crucial to success of modern organizations. It is wide-ranging and often divided into various areas to ensure effectiveness as well as to maintain focus. Finsoc, a large financial services firm in United Kingdom, is chosen as the organization under analysis.

This paper analyzes the role of line managers in performance management and performance related rewards. Recommendations for improvement in each area will also be provided.

The role of line managers in performance management

Line managers are referenced using many names including supervisor, project leader, team leader, as well as manager. This implies that line managers are often at the first level as far as management is concerned. As managers, thus, line managers must indulge in performance management, which they utilize as a tool in helping them carryout responsibilities that are associated with human resources. A case study on Finsoc revealed that its line managers are tasked with a range of performance management activities such as induction, performance appraisal, informal mentoring or coaching, planning personnel development programs, as well as managing poor performance. At the organization, for instance, performance appraisal is solely the responsibility of line managers and this has been the case since it was introduced in mid 1990s. The organization’s policies dictate that the immediate line manager including branch managers who undertake appraisal of employees in a particular branch appraise employees. Such appraisals are often, but regular informal meetings are encouraged. In addition, staff members (typically 10-12) are appraised based on performance objectives that are set out from the moment a new member is placed under a line manager. To ensure efficiency across all groups/branches under appraisal, a moderating procedure is involved. Finsoc has established policies meant to see that the business year has performance ranking meetings, which are meant to look into ratings for fairness as well as consistency.