Impact On Performance Management System On Employees Commerce Essay

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An investigation has to be undertaken on the performance management on the employees as they are not performing well at the workplace. Performing poorly can have a great impact in the resort. That is, if the workers are not performing well, this will definitely result in a bad image of the resort. Therefore, a study has to be conducted in order to improve the performance of each and every employee working in Anahita. The objectives of carrying this study are:

To measure employees' performance

To have an improved workforce

To provide better services

In order to carry out this study, various research techniques have to be used to collect data which will help in improving the management problem. The main significance of the study is to improve the performance of the employees and to make them realize their importance at the workplace. The employees have to realize that they mean a lot and that without them, the resort is almost nothing. Through this study, the employees will improve their working ways and will realize their importance as being the most important valuable asset of the Anahita Resort.

1. Introduction

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Every organization has the objective of having a good performance management system to operate efficiently and effectively. The management problem in Anahita Resort is that the employees are not performing their responsibilities well. Therefore, it becomes very necessary to carry out this research to improve the workforce's performance. If the problem of improving the employees' performance is not solved as soon as possible, this can thus result in a very alarming situation.

Through this research, the problem of performance management system will definitely brings positive impact on the workforce as they will start performing in a better way. Although the management problem appears to be very alarming but through this research, the Anahita Resort will once again operate in the right direction by improving the performance of the employees.

2. Problem

The main management problem in the Anahita Resort is that the employees are not doing their duty well. The problem has been observed in the housekeeping department and the financing department. Through a performance management system, the employees can improve their working ways and provide a better service. If the performance management system is not conducted on the employees, then Anahita Resort will not be able to compete with its other competitors like the Four Season Hotel.

3. Background

Anahita Resort is more than a resort, it is a sanctuary of culture, nature and calm occupying 2/3 hectares of wild lands - Beauchamp Estates, near Ile aux Cerfs. Anahita Resort has been existed since almost four years and it is found along the island's eastern coast.

In order to maintain a good image of the resort, it is very essential to do an investigation on the employees' performance management system. The employees working in the housekeeping department and financial department have to be trained on how to improve and provide a better performance through this research.

4. Review of literature

If the problem concerning the employees' performance is not taken into account, then this can result in an aggravating situation. Thus, it is better to improve the management problem now itself than waiting to solve it afterwards. There are various ways that have been identified to improve the performance management system. These ways are as follows:

Understand what factors prevent the employees from performing their duty well.

Do the employees get all the facilities for doing their tasks well?

Does their boss behave in a proper way with the employees?

The management problem in Anahita Resort is that the employees are not performing well in the housekeeping department as well as in the financial department. Hence, an investigation has to be carried out to improve the situation as the problem is affecting the resort adversely.

For instance, in the housekeeping department it has been observed that the employees are not performing well as there is too much pressure on them. The employees are experiencing this pressure as there is a lack of employees working in the housekeeping department. Therefore, this is the main reason to explain why the employees working in the housekeeping department are not performing their best.

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It has to be noted that the housekeepers are those individuals who work directly with the clients, that is, the housekeepers work face-to-face with the tourists. Thus, if the housekeeping employees are not able to give a good performance, then this can affect the image of the resort as the tourists will not be happy with the services that are provided to them.

In the finance department, the employees are not able to give their best performance as they are overloaded with responsibilities. This means that the tasks which are required to be completed by two separate individuals are being assigned to only one particular individual. This is really a very alarming situation as the employees working in the finance department will have to rush in their given tasks as they are overloaded with responsibilities. The employees will try to complete their tasks within the given deadline so as to prevent any warning from the Finance Manager.

These are the two broad departments that are facing the management problem of performance management system. However, there were previous studies that had been conducted in the past but those researchers were not been able to find out the real reason of why the employees were not been able to give their best performance.

This is the reason to explain why there has been no new improvement from the previous studies concerning the performance management system. Hence, the researcher has decided to justify a new investigation and this time the researcher will work more hard to improve the situation.

There are three steps that need to be taken into action in the new investigation. These are as follows:

Investigate the employees carefully and personally

Giving the right training on performance management system

Inform the managers about the real reason of why the employees are not performing well

In this new investigation, all the employees will be investigated carefully and personally. In the previous studies the employees were investigated in groups. This time, the researcher has decided to investigate the employees personally for a main reason. Giving personal attention to the employees working in the housekeeping and finance department will produce a more accurate and valid information. Through a careful and personal investigation, the employees will be able to express the real cause of what prevent them from giving a good performance.

Moreover, it has to be noted that from the previous studies the employees were not given the right training on the performance management system. This means that the employees do not really know on how to work in an appropriate and satisfactory way. It is very important for the employees to get job satisfaction as this will motivate them to work better and better. So, in order to improve the situation, this time the researcher has decided to talk to the Human Resource Department concerning about re-training of the employees. This time the researcher will ensure that the employees will get the right training where the employees will learn on how to perform their responsibilities in the right way.

Furthermore, both the Housekeeping and the Finance Department Managers have to be inform about the real reason of why the employees are not be able to perform well. This time in this new investigation, the researcher has to explain both to the Housekeeping and the Finance Department Managers that it is very necessary to recruit additional employees. The recruitment of additional employees will definitely facilitate the tasks and responsibilities of the existing employees.

Therefore, these are the three steps that have to be taken into action in the new investigation. Through these three steps, it is sure that there will be a definite progress in the employees' performance and that they will work in a better way.

In order to improve the performance management of the employees, the views and opinions of many writers have to be considered.

According to Elaine D. Pulakos (2009), performance management is consistently one of the lowest, if not the lowest, rated area in employee satisfaction surveys. This means that the performance management system is not considered to be as important as it really is. If good performance management training is not provided to the employees then this can result from various ineffective performance management such as:

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The productivity and the motivation of the employees will decrease.

The confidence of the employees will be undermined.

A high opportunity for the employees to quit their jobs as a result of how they are treated.

The employees will fail to develop new skills and capabilities.

There will be a poor relationship between employers and employees.

Thus, it is essential to provide a good performance system to the employees as this brings many positive outcomes from an effective performance management. These positive outcomes are:

It clarifies both performance expectations and standards.

It improves productivity at all the levels of the organization.

It motivates employees to perform their best.

It ensures that the employees have the potential skills, capacities and capabilities to contribute to their maximum.

According to Armstrong and Baron (1998), performance management is defined as a strategic and integrated approach to increase the effectiveness of companies by improving the performance of the people and by developing the capabilities of teams and individual contributors.

Characteristics of a performance management system by Armstrong and Baron:

A vision of objectives is communicated to all the employees.

Departmental, team and individual performance are set.

A formal review of progress is conducted towards targets.

Training, development and reward outcomes are identified through the review process.

An evaluation of the whole process to improve effectiveness.

According to Fowler (1990), performance management is defined as the organization of work to achieve the best possible results. From this view, performance management is neither considered to be a system nor is a technique, in fact, performance management is the totality of the day-to-day activities of all managers.

It is up to the day-to-day activities of the managers that will contribute to make the employees to perform well. This means that all the managers have to control and manage all the employees in a proper way in order to operate in the right direction.

According to Fletcher (1992), performance management is an approach to create a shared vision of the purpose and aims of the organization, helping each individual employee understand and recognize their part in contributing in the organization.

It has to be noted that there is no unique and acceptable model of performance management. In reality, the term 'model' for performance management is more often considered to be a framework to enhance the performance of employees. In its simplest, Fletcher (1992) suggests that performance management comprises the following:

Organization's mission statement and objectives are developed

Communication within the organization between employees are improved

Staffs are developed to enhance performance and there is a future career progression

Hence, there can be a definite improvement in the performance management system if these four famous writers' views and opinions are followed. Through these ideas, Anahita Resort will once again climb up the ladder towards a successful direction.

5. Objective / research question

The research question will help the researcher to solve the problem of performance management system. The research questions are as follows:

Main question:

What is the actual performance management of the employees?

Sub-questions:

What can be done to improve the performance management system?

Will all the employees be willing to improve their ways of working?

Will all the employees be able to adapt with the new ways of working?

The above are the four questions that need to be answered to address the problem of the performance management system. The actual performance of the employees is that the employees working in the housekeeping and the finance department are not performing well. Therefore, various solutions have to be found to solve the management problem. However, it may happen that the employees refuse to improve their ways of working as they will find it difficult to adapt to work in a new way.

The main objectives of conducting this study are:

To measure employees' performance

To have an improved workforce

To provide better services

6. Definition of terms

There are many key terms that are used in this study and these are as follows:

Performance

Performance means what are the capacities and capabilities of an employee for doing a particular task. The success of every organization depends largely on the performance of the employees. An organization has to ensure that the employees are performing well as without this, an organization will not be able to operate in the right path.

Management

Management is a common term that is widely used. All organization is involved in management as the concept of management helps an organization to meet its aims and objectives. Management includes all that are concerned in managing an organization such as planning, objectives and managing resources.

Performance management system

Performance management system is a relatively new concept in the management field. A performance management system is the measurement of the abilities and capabilities of an employee performing his duty at the workplace.

Improved workforce

Improved workforce means that the employees are improving their working ways and is giving a better performance. An improved workforce is usually obtained through the training process where the employees learn new skills on how to perform in an effective way.

Good image

It is very important to maintain a good image of any organization. Building a good image is not an easy task. A good image of an organization means that it has a good reputation in its customers' mind. As the saying goes, "it takes a lifetime to build a reputation but only moments to destroy it". (David Kam, 2008)

7. Nature of the study / research design

Both the qualitative and quantitative research design will be use in investigating the performance management system of the employees working in the housekeeping and financial department. For example, Bryman (1988) argued for a 'best of both worlds' approach and suggested that qualitative and quantitative approaches should be combined. The researcher will use both the research designs so as to get a more in-depth and valid information concerning the poor performance of the employees.

A qualitative research design is one where the data is presented as words. The qualitative research is the inverse of the quantitative research design. Surveys, interviews and case studies are examples of qualitative research design.

A quantitative research design is a formal and systematic process for obtaining quantifiable information. Under a quantitative research design, the information that is obtained is in numerical form which is analyzed through the use of statistics.

The researcher will use both the qualitative and quantitative research design to undertake the investigation. The research techniques that will be use in improving the employees' performance are interviews and questionnaires.

8. Sample

In this study, the employees working in the housekeeping and financial department will be studied as they are not performing their responsibilities well. These employees will be selected through a sampling process. Sampling process is the selection of a fraction of the whole group. There are normally two types of sampling process namely probability sampling and non-probability sampling.

A probability sampling is based on the concept of random selection. It is a selection procedure that ensures that each element of the population is given an equal chance of being selected. A non-probability sampling is a method where not every element of the population has equal chance of being selected. The criteria for selection of elements are based on assumptions regarding the interest of the population. Under non-probability sampling, the selection of elements is nonrandom.

For this investigation, the researcher will use the probability sampling. There are various types of probability sampling and the researcher will use the stratified random sampling. Stratified random sampling is also known as proportional sampling. This is a probability sampling where the subjects are grouped into different classifications such as male, female and age. Then, the researcher randomly selects the final list of subjects from the different strata.

Stratified random sampling is usually used when a researcher wants to study a particular subgroup within the population. In this study, the subgroup is the employees working in the housekeeping and the financial department. The researcher has decided to use a stratified random sampling for the following reasons:

It provides greater precision than simple random sampling

It gives a more accurate result as it involves a small sample

It increases efficiency and accuracy