Performance Management Harvard Case Solution & Analysis

Role of Performance Management in Achieving Organizational Competitiveness:


Current literature proved that human resource management in an organization has become increasingly vital for the company’s performance, vision and mission statement. In every organization, employees are considered to be an asset when effective performance management practices are adopted by an organization. The more effective the management of the employees; the more efficient the performance of the organization becomes. Ample research in the field of organizational theory is giving importance to the developed countries. According to the facts and figures, 95 percent of the research studies testing organizational theories and only 5 percent of the studies focus on the developing countries (Casico, 2006).

Several scholars have questioned the capability of western management practices in the developing countries in spite of extremely vibrant environment. One of the major problems that have been recognized is the culture; it is a major factor creating a difference in the performance management practices. For instance, when there is a multi-cultural environment and employees belong to different cultural backgrounds and have different perceptions, believe and social values, so performance management practices can create a negative impact on the organization due to discrimination factor (Nielson, 2013).

Performance Management

            In the late 1990’s, performance management was created as an extensive term that was invented by Dr. Aubery Daniels to illustrate a technology for the purpose of managing behavior and results. These two vital fundamentals are a part of what we call it as “performance”.  According to Daniel, performance management is a “scientifically based data oriented management system process”. It encompasses of three principal elements such as measurement, feedback and positive reinforcement.

Performance management encompasses functions and activities, which ensure that objectives and goals are continuously practiced and met in an efficient manner. Performance management can provide favorable results to the organization and to its employees (James, 2005). Performance management is a very significant factor for any organization because it motivates the employees; as a result they are able to produce the best results for the organization (Hackman, 1980). An effective performance management practice in an organization facilitates all the employees in all departments. It also provides favorable results in the development of a product or service and other areas as well (Jones, 2008).

Performance management is a strategic and cumulative approach to deliver sufficient amount of success in an organization by strengthening the performance of the employees working in a team and by creating as well as identifying the abilities and capabilities of employees. It facilitates the principle that people are more important than capital investment in order to gain competitive advantage. The objective of performance management is to convert the human resource raw potential into performance by eliminating the barriers as well as encouraging and motivating the human resources in an organization. Competitive ability of an organization can be improved by the identification of efficient and talented employees. As a result, it facilitates in developing an effective team in an organization.

For any organization, performance management is a well-organized and a key element. Performance is illustrated as the driver for future successful adoption and implementation of actions in order to attain organizational objectives efficiently and effectively. Performance management is a procedure that facilitates the managers and top management in order to ensure that employee’s activities and participation favors in a positive manner as far as organizational goals and objectives are concerned.

In this competitive era, several organizations are focusing on the implementation of effective performance management system as it also assists in producing a higher level of job performance. Performance management and human resource management collectively create a positive impact in order to achieve vital organizational outcomes i.e. productivity, product or service quality standards, customer value and satisfaction, employee satisfaction along with financial performance.

The idea of generating association between organizational competitiveness and performance favors organizations in a significant manner in the long term so as to achieve their strategic goals and objectives. Various countries in the world have benefited from the effective implementation of the performance management. To get the desired outcomes, there should be a positive relationship between performance and objectives of the organization. Due to modernization, various organizational practices and policies are changing rapidly. Various firms adopt and utilize the modern technology based on performance management systems                  (Carr and Hasan, 2008) such as benchmarking and human resource (HR) balanced scorecard.

Any company that is keen to achieve its strategic goals and objectives efficiently and effectively needs to implement performance management practices smoothly for the best sake of the organization.

Performance Management and Shareholder Value


Shareholders are an essential part of any organization; it is the one of the vital tasks of an organization to attract its shareholders on a consistent basis. Shareholders can set their own criteria to receive profit. The higher the shareholders are there; the reasonability of the company becomes much more. For instance, if ..............

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