Question 1:

Company XYZ is a service organisation and its main objective is to achieve profits by ensuring maximum customer satisfaction. The organisation has recently been restructured so as to meet the changing needs of its business environment. New competitors have entered the market and this implied that company XYZ lost a major part of its market share to its direct competitors. One of the changes brought in the organisation is the introduction of a Performance Management System. Its main objective was to link increase in salary with the performance rating of its employees. It wanted to motivate its employees who are working hard and contribute to the achievement of the organisation's objectives.

However, after one year of its implementation, it was found that it did not achieve its intended objective. Employees were not motivated and many employees left the organisation for competitors. Organisational objectives were not being achieved. During the exit interview, the employees complained that no feedback was being given to them, there was additional pressure from supervisors, the views of employees were not considered and the supervisors were imposing their high standards on employees. On the other hand, supervisors were complaining that the new system increased their paper work, they were spending more time dealing with employees and they did not have the skills to assess their employees. Following these complaints, an HR consultant was hired so as to ensure that new Performance Management System is well implemented.

a) As the HR consultant, explain how you would ensure the good implementation of a Performance Management system in Company XYZ so as to overcome all the problems mentioned above.

b) What are the limitations of performance appraisal?

Question 2:

How Performance Management can help in the achievement of organisation success?

Question 3:

(a) What are the factors that need to be considered while designing a reward system in organisation?

(b) What are the main components of a reward system in an organisation?

Question 4:

Explain the importance of Job evaluation in designing a reward management system.

Question 5:

"Performance Management is beneficial only to the organisation". Discuss.