ABC MPP Performance management

ABC – Performance management System

BSBMGT502B – MANAGE PEOPLE PERFORMANCE

Assessment 1

Written Report and Presentation

Introduction

Employees are an important part of any business. Effectively managing employee performance within a business is essential to ensure that decisions about salaries, promotions, employee development requirements as well as any potential disciplinary procedures can be made fairly and equitably based on individual employee performance.

Effective performance management measures the progress being made towards the achievement of your business objectives. It does so by planning, establishing, monitoring, reviewing and evaluating organisational, functional, team and individual performance.

Overall Performance Management system of ABC System

A successful performance management system should ensure that all employees:

know and understand what is expected of them in their job role (i.e. performance objectives and performance standards)

have the skills and knowledge required to deliver on these expectations through implementing development plans and training and development activities

are given feedback and an opportunity to discuss their work performance

are rewarded for their performance (e.g through remuneration, bonuses)

are counselled for underperformance and/or behaviour which is out of alignment with your business values and/or inconsistent with achievement of business goals

are supported by your business to achieve optimum performance.

Alignment between business goal and performance management system

Alignment between organisational strategy, group and individual goals is necessary to ensure that individuals can see how their individual effort and performance contribute to the attainment of organisational and governmental goals. When alignment is successfully achieved, clear goals are evident at the top of the organisation / group and are clearly communicated at all hierarchical levels.

Employee motivation is likely to be enhanced where employees can clearly see how their work contributes to broader organisational and governmental goals: it demonstrates how they are making a difference. It is critical for employees to understand the broader context, the interdependencies which exist within and across organisations, and why it is important for them to achieve particular performance standards. When employees at all hierarchical levels have a clearer understanding of performance expectations this is likely to lead to improved performance.

Performance agreements have the potential to enhance employees’ understanding of performance expectations; they can foster a clear ‘line of sight’ between the performance of individual employees, the groups they work with and the achievement of organisational goals. Ideally these agreements begin with the clear articulation of organisational goals in high-level plans, which are then cascaded through the various layers of the organisation, to ensure that performance expectations for employees at all hierarchical levels are clearly aligned with these goals.

Alignment between organisational, group and individual goals must be supported by the integration of management and human resource practices. The literature suggests that the utilisation of a ‘system’ of practices, managed in a way that is appropriate to the organisational context, will establish the foundations for a high performance organisation. Typically, the focus in the literature is on human resource practices such as: job design; recruitment and selection; employee learning and development; performance management; rewards and recognition and high involvement work practices. These practices are required to function together effectively to reach the goals, and enhance the productivity, of the organisation. To ensure that these systems are in alignment, high performing organisations conduct regular reviews of their people management practices to ensure that they are working to support the achievement of the organisation’s goals and objectives.

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em’ of practices, managed in a way that is appropriate to the organisational context, will establish the foundations for a high performance organisation. Typically, the focus in the literature is on human resource practices such as: job design; recruitment and selection; employee learning and development; performance management; rewards and recognition and high involvement work practices. These practices are required to function together effectively to reach the goals, and enhance the productivity, of the organisation. To ensure that these systems are in alignment, high performing organisations conduct regular reviews of their people management practices to ensure that they are working to support the achievement of the organisation’s goals and objectives.

How performance management was conducted in the company

ABC’s performance management and reward processes encourage our people to perform at their best whilst ensuring we do the right thing by our colleagues and customers and work in line with ABC’s values.

ABC wants every employee to be clear about the contribution they will make to serving our customers, managing the business and advancing their strategy. In assessing employee performance, the company will focus on both what has been achieved and the values and behaviours demonstrated in achieving those results.

ABC Performance Management approach:

Ensures all employees understand ABC’s strategic priorities and the specific contribution they can play in achieving these goals.

Assesses employee performance based on both outcomes achieved and how they have demonstrated the ABC values in achieving these.

Includes a focus on frequent, meaningful and open performance and development conversations throughout the year.

Ensures that ABC differentiates pay for performance.

This framework is applied Group-wide. However, some employees in certain locations and job levels are not covered by the framework due to our obligations under relevant local industrial instruments.

Formal and informal Methods of Feedback

By taking advantage of formal and informal methods to communicate with and engage employees, the manager is provided a number of opportunities to provide feedback on performance and make corrections immediately and provide positive feedback as soon as possible.

Performance documents for individual staff in ABC Company

The performance appraisal is the process of assessing employee performance by way of comparing present performance with already established standards which have been already communicated to employees, subsequently providing feedback to employees about their performance level for the purpose of improving their performance as needed by the organisation.

Performance appraisal in any organisation will be done at a specific period, like annually or half yearly or quarterly or maybe regularly. It all depends upon the nature or size of the organisation, and sometimes necessity of the managers decide the period of performance appraisal of their employees. Most of organisations are insisting employee appraisal should be a continuous process and should not be limited to a formal review once a year. The frequency of formal appraisals will depend on the nature of the organization and on the objectives of the…

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