Performance Management Report Case Study

Introduction of Case Study Report of Performance Management on Ludlow Global Foods

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To accelerate a business standard performance is necessary. The qualified performance of the business helps it to enhance its capabilities. Therefore, standardising the business is an essential thing that can enhance the image and potency of the company (Folan and Browne, 2005). In this regard, the performance management can grab the potential aspects which are to keep the business standard and make it a competitive business. In this regard, this particular case study report will focus on a case of a Small family Company Ludlow Global Foods (LGF). This Company started as a modest family business making high-quality pies, meats, and sausages for Fortnum & Masons in London, as well as other speciality delicatessens and other retailers. It has grown significantly in size, and now offers a broad variety of processed foods throughout the UK, Europe, and North America, in addition to the higher-end items that are more generally accessible. In 2016, a huge multinational food conglomerate purchased the firm.

It is still operated independently of its parent corporation, although they have established stringent yearly financial objectives. LGF is currently separated into two divisions: Gourmet and Supermarket. From the case study evaluation, it has been seen that the HR of the company has faced a lot of issues in their operational process. These issues impact the functional process that down the competencies of the Firm. Therefore, in this regard, this report will focus on performance management and align the concept of performance management with the business program of LGF. The proposal of the implementation planning for the Company will enhance the capabilities of the performance that may reduce the fragile areas which will make the performance standard. The report will also outline the significance of the performance management of the company. How the LGF will imply the aspects of performance management and how it will get the success will be clearly defined in this report. The proposal of the implementation plan will be helpful for both departments of the Company that will make the company more profitable and business-centric. All the resources regarding the topic will gather from relevant and authentic sources.

1. Importance of Performance Management

In the organisation process, performance management has a great contribution. Performance management has played a pivotal role in the standard performance of the company (Barros-Rivera, 2018). Every Company's HR has to employ the performance management concept in their operational process that enhances the qualities and capabilities of the employee’s performance. The enhancement of the employee’s performance has an impact on the performance of the overall Company. Companies may use a variety of performance organizational activities, tools, and approaches to motivate, monitor, and manage their employees.

Difference between the traditional and regular performance management practices

(Source: Bellisario and Pavlov, 2018)

Com­mit­ment and partly digested from the human resources standard deviation, managers, and employ­ees are required for an effec­tive per­for­mance man­age­ment sys­tem. Finally, every per­for­mance man­age­ment sys­tem should ensure that overall transplant patient objectives and ambi­tions are met while being aligned with employee goals. Performance management and business objectives get intertwined with worker well-being and morale in this manner (Richards et al., 2019). Continuous per­for­mance man­age­ment, on the other hand, entails reg­u­lar, year-round check-in meet­ings coupled with regular real-time tacit knowledge explicitly with the goal of ongoing effective performance improvement. As technology progresses and the understanding of human psychology and motivation increases, agile performance management can take off in recent years. Through the initiation of the performance management, the company can get different types of help that can enhance the overall performance of the Company.

People who work in organisations benefit immensely from performance management, including employees and supervisors as well as the whole organisation (Zivanovic et al., 2021). The impact is magnified even more if a company is successful in creating an environment of participation in which customers and front-line employees are mutually interested. As a result, candidates are better aware of their requirements of them, and human resources can more quickly decide if a candidate is a suitable fit for the position, having clearly defined tasks and performance standards simplify the recruitment process.

Performance Management System

(Source: Aguinis, 2019)

• The performance management system contributes to the elimination of disagreements between fellow colleagues, as well as the enhancement of overall performance and productivity.
• Everyone on the team, including management and staff, would be very enthusiastic.
• It contributes to the enhancement of organisational performance, as well as the retention and job of employees and other stakeholders.
• Workers that are driven are more loyal, and leadership will have more highly valued employees as a result of this.
• The use of a performance management process may assist you in achieving job pleasure.
• It provides employees with a plethora of learning options and assists them in their professional growth.
• If the efforts of the employees are recognised and rewarded, they will develop and become more accountable.
• Employees that provide substandard work are more quickly detected and sacked than others. A more equal and accurate method of rewarding high-performing applicants may also be implemented.

(Source: Hristov et al., 2021)

2. Significance of implementation of Performance Management on Ludlow Global Foods and its benefits

In the above section, it has been seen that the importance of performance management in an organisation has given a variety of benefits that can improvise the performance of the company (Co?kun, 2019). Through the implementation of the aspects of performance management, the managers are helpful and they can manage all their roles and responsibilities in a proper way. From the case study, it has been seen that the Ludlow global food business has faced severe issues they want to resolve to create a comfortable business planning for the enhancement of the performance. Therefore, the implementation of Performance management can improvise the food chain system.

It Provides a Look into the Future

Executives who keep a close eye on workplace performance might foresee potential problems in the future. The sooner an issue is discovered, the better. The fewer effects problems have, the sooner they are addressed. Workers who are not team players may be given teamwork training or be allowed to leave if an organisation learns this before a crisis occurs (Blomquist, Farashah, and Thomas, 2018). This may include moving the employee to another position that does not require cooperation. The organisation may avoid unnecessary conflict if it takes action before a possible problem becomes a reality.

Helps Create Development and Training Strategies

This would very certainly be found via performance evaluation. The firm might then develop training programmes to help employees see the situation as an opportunity for growth (de Medeiros, Hoppen and Maçada, 2020).

Provides Clarity in the Organization

The corporation may make all of this extremely evident via performance management (Kanagavalli and Azeez, 2019). A lack of comprehension often results in a loss of productivity. As a consequence, offering clarity for workers often results in an increase in production and trust.

Provides the Opportunity for Exchanging Feedback

Effective performance management establishes a channel of communication between employers and employees. Along with gaining information, workers often feel significantly more appreciated when they freely express their opinions.

Increases Employee Retention

Performance management also encourages companies to recognise and reward their employees. Some individuals abandon their jobs because they don't feel like they're being recognised for their hard work. For their efforts, they want recognition. It is possible that rewards and recognition (Servaes and Sigurdsson, 2022), in addition to openness, the chance for feedback and further training as needed, may help retain staff.

Boosts Employee Engagement

Employee engagement rises when performance management is really participatory. A divide between workers and management might make it seem as though everyone is merely doing their jobs. Rather than having a respectable career, their work becomes a mundane task (Midovska and Boshkoska Klisaroski, 2019). Although performance management may be used to thoroughly engage employees and create a feeling of responsibility in the organisation, it is not without risks. In turn, this leads to higher levels of employee happiness and commitment, all of which help drive up performance.

Highlights training gaps

One of the most important benefits of performance management is the ability to find areas of worker weakness that may benefit from further training (Malik, 2018). Workforce members may self-identify problem areas and articulate specific training needs when SMART targets are used.

Identifies potential risks

When an employee is performing or uninspired, using the appropriate method allows you to determine the root cause of the problem and aid them in restoring their productivity and motivation (Mone and London, 2018). There are a multitude of plausible causes for this, including a mental health condition, a job overload, or a lack of intellectual stimulation and challenge. A frank dialogue will expose things that statistics will not.

Set clear expectations and objectives

The use of SMART objectives gives employees a clear set of aims to strive for as well as the opportunity to contribute to their own growth and advancement. The existence of these specified expectations means that employees are continuously aware of their requirements of them (Malik, 2018), allowing the organisation to be certain that everyone is doing their allocated tasks accurately and efficiently.

3. Implication of the Performance Management on both departments of the Company and identify the issues

From the case study evaluation, it has been seen that in the functional business there are two departments one is the gourmet division and another is the supermarket division. The two divisions handle human resource management in their plants in very different ways. Currently, both divisions are struggling with challenging market conditions. When it comes to handmade food items, the Gourmet Division is up against a rising number of local farmers' markets, which offer a level of quality that LGF cannot compete with.

The division's sales are currently rising at a slower rate, and it is projected that the impact of rivalry will become more significant in the future. Following many TV celebrity chefs' concerns about processed food on recent television programmes, the market is expected to feel the consequences of public outcry against processed food. Additional issues like concerns about safety as well as issues of cleanliness in food processors staffed by informal and temporary employees have been raised in the media. Shoppers are turning away from retailer luxury ranges or towards more affordable ordinary or economic choices to save money.

Therefore, the tools and techniques of performance management will enhance performance and fill the gaps. By improving the quality of the performance through the use of various theoretical models the management can splendidly accelerate the whole business. In the gourmet department, the application of performance management can improve the strategic choices of the Ludlow Food business. The strategic choices of the company can improve the management of the resources and the implementation process of the organisation.

In the supermarket division, there is substantial labour turnover and absenteeism rates as high as 30% among production personnel, which might present challenges for team leaders in their attempts to fulfil deadlines, according to the case review. Therefore, regarding this issue, the implementation of the appropriate strategic performance management will play a key role. On the other hand, in the gourmet department, many problems have been seen in the internal function of the company. This is demoralising to many employees, according to the results of the annual employee survey, and they feel the evaluation has little influence on their work performance, as demonstrated by the evaluation to determine. From the employees, it has been seen that the employees are not getting the proper training in their workplace and the training has another focus rather than the work-centric approach. In the initial induction program and the mandatory health, safety, and hygiene instruction, there is no further training. The training process is not going through a formal way. Most of the time everything is done in an informal way. Therefore, the informal and ineffective way of training has an impact on the effective work capability of the individual. In that case, the use of proper tools or conceptual frameworks can enhance the training process that can positively impact the employee training as well as the workforce.

4. Suggestions to the HR director to implement the suggestions and how it will help to reduce the identified issues

The above section has identified some issues that have faced the Ludlow global food in their operational process. The application of the appropriate theoretical framework can enhance the performance of the HR department and help to mitigate the gaps in the company's both departments. This section provides an effective framework that will enhance the effectiveness of the functional procedure of the company. 

Strategic Training Plan for the Staff

From the case study, it has been that the training sessions of the employees have not got the standard level of training in the gourmet department of the Company. In that case, the proper level of training is helpful for the staff to enhance the performance of the company (Schleicher et al., 2018). Performance management training is a collaborative endeavour between employees and their company, especially their manager, to improve employees' job performance and capabilities. Performance management training aims to improve a person's brief performance while simultaneously increasing his or her professional development. However, as more firms put a high value on learning and development (Emerson and Berge, 2018), performance management training is increasingly becoming technology-driven.

In that case, the HR department of Ludlow Global Foods has to maintain some factors which are:

• The creation of performance standards for employees and the design of strategies to fulfil these standards
• Employee performance is monitored using a variety of performance evaluation techniques, including check-ins and feedback
• The practice of rewarding and praising excellent performance and successfully controlling bad performance
• Consistent evaluation of performance via positive summaries and reviews
• The constant improvement of a group's capability for optimum performance
• Training and action plans are important for resolving performance-related problems

(Source: Pham et al., 2018)

Establish a free communication with the Staff during the training session

Training and performance management are intricately intertwined in today's world. It is possible that training will assist in the improvement of performance management in the organisation. A foundation for how job requirements and tasks should be performed, as well as an understanding of what their superiors expect, is established via employee training and development (Schleicher et al., 2018). It makes it easier for employees to share information throughout the organisation. Communication that is honest and concise can resolve personal complications. Even better, effective communication helps to minimise challenges during the planning session, which has a positive impact on the whole functioning of the company.

Implementation of Strategic development as per the demand of the Market

From the evaluation of the case study, it has been seen that Farmers' markets, which provide a level of artisan culinary delicacies that LGF cannot match, are challenging the Gourmet Division. Currently, the division's sales are rising slowly, and the impact of competition is expected to rise.

Strategic objectives and strategies for performance improvement are developed via the strategy creation process. To get a competitive advantage, it is necessary to understand the most important value drivers (Islami, Mulolli and Mustafa, 2018). Firms are motivated to improve their strategy-creation process by business problems such as a lack of concentration and low-quality strategic objectives. Methodically projecting future quarter reports takes precedence over planning for creating value in the strategy design process too often. To put it another way, plans and strategies tend to be inward-looking (Khan, 2019), leading to unrealistic long-term views that overlook environmental developments and place an insufficient focus on competitive advantage and true individuality.

Implementation of the training tool in the staff training system

From the evaluation of the case study, it has been seen that the training session of the company is going through the informal way. The informal way of training is a big issue for employees. The lack of use of tools in the training management program has created a gap in the performance of the Company.

Key Performance Indicators (KPI)

In that case, Ludlow Global Foods (LGF) have to apply the key performance indicator (KPI) and metrics. The KPI will be helpful for the company to track the qualities of each staff while they will arrange a training session for their employees. The key performance indicator for the training section will provide the factors that cover the activity pass or fail rate, job role competency rate, and departmental job competence rate (Zhang, Jiang, Liu and Liu, 2020).

In that training session, another important thing is to get feedback from the employees regarding what they feel about the training and their opinions. In this regard, 360-degree feedback will apply during the training session.

360-degree feedback

In the workplace, 360-degree feedback is a strategy or practise that allows employees to get anonymous, confidential feedback from their colleagues. This group often consists of the person's direct boss, as well as management and coworkers. An anonymous online feedback form that covers a wide variety of professional talents is completed by eight to twelve people on average (Fleenor, Taylor and Chappelow, 2020). 360-degree feedback surveys are being used by leaders and managers inside organisations to get a better understanding of their weaknesses and strengths. The 360 feedback software automatically tabulates the results and presents them in a manner that aids the feedback receiver in establishing a development strategy for his or her organisation.

Reward and Recognition Program

In this regard, to enhance the motivation among the individuals the Company has to employ a reward and recognition program that will enhance the motivation among the staff. Employees desire not simply competitive compensation packages; they desire to be treated properly, to contribute significantly to the business via their job, and to be recognized and recognized for their contributions (Shahi et al., 2020). To demonstrate their gratitude, many businesses institute continuous recognition programmes that recognise workers for a range of accomplishments.

4.1 Application of Performance Management Model

PCER Model (Plan, Coach, Evaluate, and Reward)

The goal of this approach is to establish a continuous discussion between workers and managers. The PCER (Plan, Coach, Evaluate, and Reward) technique is recognised as a helpful tool in the performance management process by the Division of Human Resources and Organisation Effectiveness and is included in their performance management (ASSEFA, 2021). During this process, regular methods are used to create a performance plan, train staff on how to successfully follow the plan, and complete the yearly performance evaluation.

PCER Model

(Source: ASSEFA, 2021)

Plan

Performance evaluation begins when the supervisor examines the individual's job limits, imparts abilities, establishes goals, and discusses them with the employee. This makes it easier for everyone to comprehend Ludlow Global Foods' (LGF's) accomplishments and conduct requirements (Albrecht et al., 2021).

Coach

To help employees achieve their goals, human resources provide coaching and feedback. During the performance review stage, the goals and any other material generated during the Planning stage may be referenced and updated as necessary (Albrecht et al., 2021). They may make remarks on each other's performance at any time and save them outside of the Workday system.

Evaluate

Over the assessment process, the supervisor may examine the workers' job satisfaction using a variety of techniques, such as the individual's self, progress notes produced year-round, praises, and user feedback (ASSEFA, 2021). When the human resources manager meets with the workers, they review the performance assessment, clarify the score, and provide their opinions on the employee's strengths and weaknesses. Following that, the inspector completes the assessment in Workday.

Reward

The supervisor acknowledges and rewards meritorious achievement at the end of the year as well as throughout the year.

4.2 Theoretical Perception of the Performance Management

The Goal Setting Theory

According to this notion, an employee's ambitions play a significant part in encouraging him to work at a high level. This is because staff remain focused on their objectives. If these objectives are not met (Hartono and Murniati, 2021), companies either increase their skills or adjust the objectives to make them more attainable. If performance improves, the process improvement system's objectives will be met.

Conceptual Framework of Goal Setting Theory

(Source: Hartono and Murniati, 2021)

Small and large enterprises both use a goal-setting philosophy. Employee participation in goal setting is not always sought in larger companies. This is because it might interfere with managerial goals. In small businesses, a goal is more likely to be accepted if employees are involved in the goal-setting process. Employees will be motivated and focused on the goal as a result (Hartono and Murniati, 2021). In larger companies, it is impossible to include employees in the setting of goals. The human resources department at Ludlow Global Foods (LGF) may use the same principle to boost productivity in the company's operational procedures.

Vroom’s Expectancy Theory

When Victor Vroom first developed the expectation theory of performance evaluation in 1965, it was considered revolutionary. Individuals, according to him, behave in a certain manner since they are driven by the intended outcome of that behaviour. Personal ability should be connected to company expectations for the future achievement of set goals on a continual basis (Rehman, Sehar and Afzal, 2019), and vice versa. Individuals' expectation is what drives them to choose a certain course of action over other good choices in a given situation. This anticipation is based on the outcome of the selected action or behaviour.

Vroom’s Expectancy Theory for Performance Management

(Source: Rehman, Sehar and Afzal, 2019)

5. Expected Barriers when implementing the new Strategic options in the Functional Process

Lack of Integration

Performance appraisal must be integrated with planning and management resources, as well as with company context, structure, and other important organisational policies and procedures, in order to achieve maximum effectiveness (Nigri and Del Baldo, 2018).

Lack of Leadership Commitment

The effectiveness of the system's implementation depends on the support and dedication of the organisation's leaders. In order to make performance management a part of the company's business, executives must take the lead and lead the process (Kremer, Villamor and Aguinis, 2019). A leader's role extends beyond just defining the company's strategic direction and key performance indicators. They also perpetuate the cycle of performance by recognising and rewarding good work.

Avoid the Change Management in the Management System

System installation necessitates the use of change management. Opposition must be handled with caution since this is a top-down effort. Change management would benefit greatly from effective communication (Kremer, Villamor and Aguinis, 2019). There must be adherence to deployment milestones and timelines. It is necessary to have enough paperwork in place.

6. Implementation Plan

7. Conclusion

For a business to progress, it has to function at a standard level. Increases in the company's abilities are made possible by its qualifying performance. An image and reputation and efficiency are greatly improved by standardising its operations. Thus, performance appraisal may help the company maintain its standard and compete more effectively in the marketplace. The emphasis of this case study paper is on Ludlow Global Foods, a small, family-run company (LGF). According to the assessment of the case study, the company's human resources department has experienced a number of difficulties during the course of its business operations. These issues have an impact on the main operations, resulting in a deterioration of the Firm's capabilities. As a result, the focus of this study has been on performance review, with an attempt to integrate the concept of measuring performance with the LGF business programme.

In this regard, this case study report has suggested the KPI, 360-degree feedback, performance management model, Conceptual Framework of Goal Setting Theory and Vroom's Expectancy Theory for Performance Management. The appropriate suggestions along with the strategic notions have been explained clearly in this report. Also included was a discussion on the significance of the organization's performance management system. The strategy used by the LGF for performance management, as well as the factors that contributed to its success, are clearly articulated in this paper.

The program implementation proposal will help both sections of the company by enhancing profitability and increasing the focus on the customer's needs and wants. Each and every piece of information connected to the issue will be acquired from reliable and relevant sources.

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