Chartered Institute of Personnel Management Sri Lanka (Inc.

)
Chartered Qualification in Human Resource Management

Performance Management [DPHRM-S22]

Case Study 04
 EXECUTIVE SUMMERY

Noveltaas Lanka Pvt Ltd, the only Sri Lankan agent for a major international mobile phone
company, is the subject of this paper, which is part of a case study on performance management.
While serving as sole agent, NLP is also a well-known and respected provider of electrical
equipment as a leading immigrant. This is where we discovered that the current methods of
performance management were plagued by persistent problems. When it came to linking corporate
objectives to individual employee behavior and overall success, they focused on the particular
business. Last but not least, they looked at the "Pre-Requisites" for a good performance
management system.

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 TABLE OF CONTENTS

Performance management cycle 4

Current performance management systems 5
Performance management issues 6
Link between organizational goals with individual employee behavior and organizational
performance 7
Impotency 7
How to achieve organizational objectives 7
Organizational behavior 8
Aims of performance management 9
Pre- requisites for a successful performance management system 10
Reference 11

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 PERFORMANCE MANAGEMENT CYCLE

Planning, monitoring, reviewing, and

rewarding are all steps included in the shorter
performance management cycle. Using this
approach improves competitiveness,
structural flexibility, and staff motivation.

Planning : The foundation for success is established during the planning stage. Managers must first
meet and deliberate on the organization's aims and objectives for the year before speaking to
employees.

Monitoring : It's critical to the success of the performance management cycle model that monitoring
is used to reach the objectives that were established in the planning stage. Only once or twice a year
monitoring, on the other hand, is ineffective.

Reviewing : Management and employees gather at the end of the year to assess the previous year and
determine whether or not objectives were accomplished.

Rewarding : The award is given at the end of the cycle plan for performance management. As the
most critical stage for retaining and motivating employees, this one cannot be ignored.

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 CURRENT PERFORMANCE MANAGEMENT SYSTEMS

An organization's overall efficacy is improved by good performance management.

Performance management is a planned and methodical strategy to improve individual and
organizational performance to achieve individual and organizational strategic goals and objectives.
As a first step, the organization's desired aims and objectives are evaluated. As part of this case
study, the organization's action plans are guaranteed. Thereafter, key performance indicators are
identified that assist indicate if the objective was achieved. Standards of assessment established
for each KPI and expected outcomes. These are then incorporated across the business. Next comes
the assessment phase, followed by the last step, which is organizational growth or improvement.

The Noveltaas Lanka Pvt Ltd's goal has always been to meet or exceed customer
expectations by introducing innovative products and services. Processes and procedures inside the
business are often seen as insufficient by the company's workers. When it comes to evaluating and
managing people and organizations in the workplace today, numerous issues and challenges exist,
according to this Performance Management case study. Management has a lot to do when it comes
to managing performance. Performance management in the business is built on relationships with
customers and contracts with them. Individual employee performance can't be evaluated since the
company doesn't keep track of it. Managers believe that individual performance management is
broken and that fixing it will take time. Employees that have been with the business from its
inception may exhibit a high level of resistance and reluctance. Teamwork is not self-managed.
Teams are heavily reliant on others to be monitored and controlled, which may jeopardize the
organization's performance. Making an extra management team would need more resources,
possibly increasing expenses.

Individual and organizational performance should be connected, according to the

company's senior management in this Performance Management Case Study. However, there is a
significant degree of hostility and opposition from the organization's previous workers who claim
not to understand the performance target. Management by goals is a new method that the
organization's management is focusing on introducing. This would enable the organization and
management monitor and regulate individual and organizational performance.

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 In order to satisfy the constantly changing requirements and expectations of consumers,
Noveltaas Lanka Pvt Ltd's performance management system focuses on new goods and services.
It is evident from the preceding case study that the organization's practices and mechanisms for
performance management are severely lacking. We found that the company's workers and
managers do not operate well together. A structure for integrating managers and employees is
lacking inside the organization. This lack of integration between the two parties reduces the
organization's overall success rate. Such a procedure loses the motivation to get better outcomes.
The organisation's performance effectiveness has lagged. The same applies if the organization's
goals and objectives are shared.

PERFORMANCE MANAGEMENT ISSUES

The company Noveltaas Lanka Pvt Ltd is dealing with a wide range of issues. Many
employees complain about the lack of communication between lower-level workers and their
managers or supervisors. There aren't any workshops or initiatives to assist employees and
managers collaborate towards the company's success. There aren't any rewards for achieving
greater results and performances, either. The primary problem is a lack of shared goals and
objectives among workers at all levels. There is a lot of negativity among employees. There is a
lack of knowledge of performance goals and objectives among employees, which results in their
work attitudes being inappropriate. The organization's working group lacks self-management,
which may be detrimental to its long-term success and viability. To a limited extent, the work of
the individual is guided. Because of their varied backgrounds and specializations, the working
teams and groups have a wide range of perspectives and ideas. Market share was lost as the
company's profitability declined. Another challenge is persuading workers and other stakeholders
that performance management systems and pay need more than just measurements.

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 LINK BETWEEN ORGANIZATIONAL GOALS WITH INDIVIDUAL EMPLOYEE
BEHAVIOR AND ORGANIZATIONAL PERFORMANCE

Setting objectives is important, but it's not enough.

Employee and team objectives must be aligned. Aligning
objectives puts everyone on the same page and going in the same
direction. Aligned objectives foster a family environment where
everyone knows their role. Simply stated, if your company's
objectives aren't aligned, you lose.

Impotency

Organizational alignment distinguishes high- and low-performing firms. According to LSA

Global research, highly aligned businesses beat unaligned counterparts in employee engagement,
customer satisfaction and retention, and leadership. Aligning objectives throughout your company
has several advantages:
1. Your organization's strategy begins with goals.
2. Employees see how their efforts contribute to team and corporate objectives.
3. Priorities are set.
4. Aligned objectives unite workers.

How to achieve organizational objectives

1. Clearly define your organization's objectives : It begins from the top. Discuss the company's
vision and strategy, as well as the particular objectives you wish to accomplish as a team. Clarify
your goals. Company objectives should be specific, strategic, and based on a common vision.
2. Get leadership buy-in : It's time to discuss your organization's objectives with leadership. Meet
with senior and intermediate management to share your vision and discuss the company's
objectives and benchmarks.

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3. Share objectives at all levels : Clear objectives and accountability increase employee
engagement. Yet just 40% of workers know their company's objectives. How do you achieve
alignment and execution if more than half of your team is unaware of your goals?
4. Effective communication at every level of your business is critical : Include objectives in
leadership, team, employee one-on-ones, and performance evaluations. Link business efforts and
choices to strategic objectives. Including goal discussions in frequent messaging reinforces,
reminds, and aligns workers throughout the company.

Organizational behavior

Organizational behavior helps us

understand employee attitudes and
performance. Company culture, rules, and
structure may all affect corporate behavior.
These factors may influence employee
productivity and loyalty to the company.
 Culture in Business : Values and
motivations contribute to an organization's
culture. It affects how people work and
interact. Employees who feel valued and part of the team are more accountable.
 Reward System : Employees are more motivated when a reward system is in place.
Once this method is created, it is time to reward workers. Apply them uniformly across the
business. A Human Resource Journal research suggests three kinds of contingent pay:
performance-based, profit-based, and share ownership.
 Choosing : Organizational behavior affects decision-making. Businesses that may
promote risk taking in decision making can foster innovation and creativity. Effective
communication enables managers and workers to grasp the company environment and
participate.

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 AIMS OF PERFORMANCE MANAGEMENT

Let's look at the main objectives of performance

management to see what motivates that principle:

1 – Setting and Defining Goals for the Organization

Employees need to know how their objectives fit into the
organization's overall strategy. Understanding company objectives and how their jobs feed into
the direction of the company will offer employees a feeling of meaning and purpose.

2 – Performance Culture
One of the primary goals of performance management is to concentrate workers on goals,
improvement, and growth. Positive traits and behaviors are rewarded, and communication is
continuously focused on growth, the organization's strengths and flaws become more apparent,
and therefore simpler to improve or correct.

3. Promoting Employee Empowerment

In today's corporate environment, giving workers the skills to make choices for the firm is critical.
A well-trained employee with decision-making authority can not only increase customer
satisfaction but also promote a sense of autonomy, which may improve the customer experience.

4 – Improving Team Communication

Performance management encourages two-way communication between leaders and workers.
Open communication rewards companies with focused and motivated workers.

5. Identifying Development Areas

Evaluation of growth possibilities is another important goal of performance management. Create
development plans with employees. Focusing on development allows managers and employees to
create effective strategies that enhance individual and organizational performance.

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 PRE- REQUISITES FOR A SUCCESSFUL PERFORMANCE MANAGEMENT
SYSTEM

Performance management is a continual

practice of controlling people's performances to achieve
desired outcomes. This is because performance
management clearly defines what has to be done to
achieve specific objectives. The following are
important pre-requisites for a successful performance
management system in an organization:

 Should elicit a high degree of engagement from the organization's whole membership. It
has to be a collaborative effort with input from all parties involved.
 An organization's sound performance culture must have the support and commitment of
top management.
 In order to achieve corporate aspirations, it is critical that the vision, purpose, and goals be
clearly stated and understood at all levels.
 There must be clear role definitions in place for employees to do their jobs in an organized
manner in order to meet departmental and corporate goals. A role's connections to other
jobs should be explained by the system.
 An environment of open and honest communication will encourage workers to contribute
freely and perform well.
 Identification and formulation of key performance indicators of important performance
criteria.
 Reliability and equitability in the application process.
 A dedication to the acknowledgment of exceptional achievement. The framework for
performance management should include mechanisms for rewarding and recognizing
employees' efforts.
 Staff employees should get proper organizational training based on frequent assessment
and review of performance that identifies training requirements.

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