“Case Study: Performance Management at Network Solutions, Inc.

Course: HRM522

Submitted To:

Dr. Md. Mesbah Uddin

MBA, PhD (Durham, UK), AFHEA (UK)

Adjunct Faculty

East West University

Submitted By

Sk Md Hadin

ID: 2018-2-95-056

Section: 1

Semester: Summer 2020

Date: July 19, 2020

Q1. Overall, what is the overlap between Network Solutions’ system and an ideal system?

The overlap between Network solutions and an ideal system is that the Network solutions wanted
to improve its ability to meet its organizational goals by aligning directly with employee’s goal.
It also includes developmental programs to improve and increase overall performance. Another
overlap was the standardization of the system completely throughout the entire company. There
were two- way communication was determined where managers and employees can share
positive and negative feedback about their performance. Employees performance was evaluated
through the help of a rating scale of 1, 2 or 3. A rating of 1 to the top 20% of performers, a rating
of 2 to the middle 70% of performers, and finally a rating of 3 to the bottom 10% of performers.
Continuous checks were made at different intervals to adjust and rectify with these policies and
practices,

2. What are the features of the system implemented at Network Solutions that correspond
to the features described in the chapter as ideal characteristics? Which of the ideal
characteristics are missing? For which of the ideal characteristics do we need additional
information to evaluate whether they are part of the system at Network Solutions?

Performance management is a continuous process of identifying, measuring, and developing the

performance of individuals and teams and aligning performance with the strategic goals of the
organization. The reality is that performance management systems are seldom implemented in an
ideal way. The features of the system implemented at Network Solutions correspond to what is
described as ideal characteristics are as follows:

Strategic congruence: According to these characteristics, the system should be congruent with
the unit and organization’s strategy. The first task for the design team was to build a business
case of the new system by showing that if organizational strategy was carried down to team
contributions and team contributions were translated into individual goals, then business goals
would be met. The design team aligned individual goals with organizational goals and by
focusing on the development of all the employees.
Thoroughness: All employees are evaluated. All major job responsibilities are evaluated and
feedback provided. In the Network Solutions system employees are evaluated by the execution
of annual objectives and job requirements as well as by a comparison rating of others at a similar
level

Practicality: Systems that are too expensive, time consuming, and convoluted will obviously not
be effective. Good, easy-to-use systems are available for managers to help them make decisions.
the design team made the senior leadership agreed upon it as they would be evaluating all their
employees’ performance

Meaningfulness: Standards and evaluations for each job function are important and relevant and
the results should be used for important administrative decisions. In the Network Solutions
system employees are given a rating of 1, 2, or 3 and determined by the execution of annual
objectives and job requirements as well as by a comparison rating of others at a similar level.
Individuals with a rating of 2 used for administrative decisions like average to high salary
increases, stock options, and bonuses. Individuals receiving the highest rating of 1 receive the
highest salary increases, stock options, and bonuses.

Specificity: A good system should be specific: it should provide detailed and concrete guidance
to employees about what is expected of them and how they can meet these expectations.
Network Solutions with the help of PMS, wanted the performance expectations for all employees
to be clear.

Identification of effective and ineffective performance: the system should allow for
distinguishing between effective and ineffective behaviors and results. There is also a plan to
monitor for and correct any unproductive practices and implement correcting policies and
practices.

Reliability: A good system should include measures of performance that are consistent and free
of error. Network Solutions planned on continuous check on performance of all employees- with
all stakeholders.

Validity: The measures of performance should also be valid. In this context, validity refers to the
fact that the measures include all relevant performance facets and do not include irrelevant
performance facets. Network Solutions considers facets like the execution of annual objectives
and job requirements as well as by a comparison rating of others at a similar level.

Acceptability and fairness: Employees perceive the performance evaluation and rewards
received relative to the work performed. With the help of rating scale, they got stock options,
bonuses.

Openness: HR Centers of Expertise of Network Solutions continue to educate employees about

the system to ensure that they understand that Network Solutions rewards good performance so
monitor for and correct any unproductive practices and implement correcting policies and
practices and continue checks with all stakeholders to ensure that the performance management
system is serving its intended purpose.

Correctability: When employees perceive an error has been made, there should be a mechanism
by which error can be detected. There is also a plan to monitor for and correct any unproductive
practices and implement correcting policies and practices.

The ideal characteristics which were missing and needed to be developed are explained below:

Standardization: good systems are standardized. This means that performance is

evaluated consistently across people and time but here Individual performance are
determined by the execution of annual objectives, not in a consistent manner.

Inclusiveness: There was no such information given in the case regarding that the
employee himself gather their performance data before the appraisal meeting.

Ethicality: There were no such guidelines given that the performance evaluation will be
done on merit, there may be a chance that supervisor will may give more favor to one
employee and the element of employee privacy is not there.
Q3. Based on the description of the system at Network Solutions, what do you anticipate
will be some advantages and positive outcomes resulting from the implementation of the
system?

There are many advantages associated with the implementation of a performance management
system which will help in getting competitive advantage. With the implementation of the PM
system, Network Solutions Inc. can anticipate some positive outcomes in achieving their overall
organizational goal as well as individual. Those advantages are: -

1. Organizational goals are made clear: The system helps employees understand the link
between their responsibilities and the overall objectives of organization.
2. Employees become more competent: Because of the efficient development plans, this
would help the employees to improve their performance at Network Solutions.
3. Better and efficient differentiation in performances: The rating scale would help to
identify the good and poor performers and then supervisors would reward or penalize
accordingly.
4. Retention of potential employees: High quality and potential employees can be
indentified and retained for a longer time which highly impact on organizational goal.
5. Time and Cost saving: This PM system will eventually reduce the cost as this system
will contribute each and every sector and department of the organization.
6. Lawsuits: The rating system would keep away the fear of lawsuits as it is clearly stated
in the case that the lowest rating, employee would be given time to improve performance
initially and if the performance does not improve with the continuous development
programs then the employee will be terminated, so all the rules are communicated to
employees to expect a better and an efficient outcome.
7. Increase of productivity and motivation: Two-way communication help the employees
to improve and boost their performance level up to the mark help to keep pace with the
tough competition.
Q4. Based on the description of the system at Network Solutions, what do you anticipate
will be some disadvantages and negative outcomes resulting from the implementation of
the system?

While the implementation of PM system of Network Solutions Inc helps to gain advantages over
their competitors, it also has some negative impact on the goal of the entire organization. Some
of the mentionable negative outcomes of the system are given below:

1. With the implementation of new system, there will be still some lack of efficiency in
early stage which can be overcome with the passage of time.
2. This system might encourage employees to compete with each other which can be the
result form job status, position and pay. Teams might be broken down by betray and
misleading employee communication due to strong rivalry.
3. With the new system, it requires employees to be trained with skills as required by the
plan. This requires the use of extra resources and time in the extensive training, retraining
and career.
4. Due to the rating system, there appear individuals who are given more importance and
highlights and they are more assign with new job roles and duties as team leaders. This
creates favoritism, biasness and disbelief among the team members which might
adversely affect the morale.
5. The system requires constant attention from both managers and employees which can be
barely maintained for a longer time.
6. This system already lacks important characteristics of an ideal PM system like
Inclusiveness, standardization and ethicality which will badly affect the performance of
an entire organization.