Executive Master of Business Administration

2020-2021

Case Study Title:

"Building Performance Management through
Employee Participation"

Module Leader: Prof. George O. Tasie

Student names:
Behrooz Abdullah
Zewar Ismael
Khano Sardar
Zhiwar Azad
Rizgar Hamasalih
Naznaz Hashim

Submission date: 4th January 2020

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Introduction
The purpose of this case is to study the concept of performance management system and its
importance to improve the performance and productivity of any organization. The significance of the
performance management system has been discussed in reference to the given case and the company
namely Jewelers Mutual Insurance (JMI). Apparently, JMI aims to increase the efficiency of their
employees work which helps company getting in better shape and endurance. One of the most important
ways to achieve the organizational overall objectives is to implement a successful performance
management system (PMS), it is defined as "The continuous process of improving performance by
setting individual and team goals which are aligned to the strategic goals of the organization"
(Armstrong, 2018).

Case Summary
This case discusses the concept of a performance management system and its relevance to a
company. It highlights that the performance management system is essential for the organization to
improve the performance of employees and the overall performance of the organization. The performance
management system also improves the feedback system of the organization that is necessary to improve
the performance and productivity of the organization. It also shapes the attitude of employees and the
management of the organization along with motivating and encouraging employees to achieve the goals
and objectives of the organization. However, employees do not easily accept it and when the organization
implements it without taking the consent of employees, they get demotivated. When Jewelers Mutual
Insurance Company implemented a performance management system, employees got demotivated and
dissatisfied. But when the organization engaged its employees in the process of decision making, it
helped the organization to improve the level of employee satisfaction.

Relevant theory
Performance management is necessary to guide the behavior and action of employees so that the
overall performance of the organization can be improved. There are various theories of performance
management that guide the organization to manage the action and behavior of employees. The goal-
setting theory of performance management is one of the key theories that states how the performance of

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employees can be improved. According to the theory of goal setting, the organization should set a tough
or difficult goal because it leads to higher performance compared to an easy goal. When an organization
sets an easy goal, the performance of the organization decreases (Shaiza & Giri, 2016). Another method
is Management by Objectives (MBO) which specifies the performance goals that an employee and
manager identify together. MBO process support the following points;
1. Job review and agreement: setting specific goals after reviewing the job analysis.
2. Development of performance standards.
3. Setting (SMART) objectives.
4. Continuing performance discussions.

Answer Case Questions

Question 1: Discuss how this case illustrates how more significant support for a performance
management system can be developed through employee participation.
JMI has actively improved employees' participation in order to develop as well as implement a
performance management system, it is very important for the company to gain the consent and support of
employees and without gaining the consent and support of employees, the company cannot achieve the
goal of performance management. Linking every individual employee to the strategic management
process is vital for a stable performance management system. JMI were made several changes which they
were using the administrative method and were being able to redesign the system. One of the main
influences of participative management's rise is the re-evaluation of the organization's structures and the
redefinition of employee relations (Hyman & Mason, 1995). Additionally, they developed the employees
evaluation based on narrative method, focus group, various metrics of accountability, job goals and
feedback mechanism.

Question 2: Identify some of the ways that performance management systems can be improved
based on the experiences at JMI.
1- Share and discuss the individual’s goals in alignment of organizations objectives.
2- Conducting refresh orientation from the HR department to senior managers and employees.
3- Providing effective training and include it in the top priority list of implementations.
4- Recognizing employee effort and interest.
5- Using PMS software.

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Implications:
In any organization, the main responsibility of HR department is to keep the recruitment, hiring,
selection process transparent and seek for qualified and skilled candidates for the agency to maintain the
workplace efficiency and productivity. Despite the efficiency of this process, organizations are still
facing difficulties and challenges in implementing PMS. In this case, the core problems are as the
followings:
1. Lack of communication between managers and employees leads to demotivating employees
and contributing them to the agency's goals.
2. Biased performance ratings.
3. Deficient of clear objectives or (SMART) goals which results in poor performance
management.
4. Poor feedback mechanism.
5. Inadequate resources for developing.
6. Ineffective PMS design.

Lesson Learned
Organizations are required to follow the below steps to avoid problems in employee participation:

1. Using Third-party Consultation is necessary.

2. PMS through employee participation extends to all organizations' policies and procedures.
3. Goal seating, stretching goals, conducting fair evaluation, and fair appraisal through PMS
leads to more participation and motivation among employees.
4. Managers should provide ongoing feedback and recognition for helping their employees to
understand their performance levels.
5. Along with developmental training, motivational support is essential too.
6. Creating communication management plan leads to build trust and better understanding
between managers and employees.

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Conclusion
The performance management system is one of the key tools in the hand of the company that
should be implemented within the company. It helps in better managing the action and activities of
employees along with improving their performance. Hence, with the help of it, the organization can
improve its performance and productivity. But the organization should engage employees in the decision-
making process to get a better result.

Recommendations:
The following recommendations are based on JMI case:
1. Employees need to be fully aware and have a good understanding of organizational strategies and
the PMS process.
2. Identify and measure employee performance on a quarterly based.
3. Using clear direction of the appraisal system in order to capitalize employees’ talents and efforts
and be fairly evaluated based on their job requirements, duties, and responsibilities.
4. Proper feedback, corrective mechanism, and documentation are useful.
5. Compensate employees according to their KPI scores.

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References
Robert L. Mathis, John H. Jackson, G 2010, Human resource management, 13th edn, Pearson South-
Western Cengage Learning., Inc., pub, ' Performance Management and Appraisal, pp. 318-354.
Armstrong, Michael. 2018. Armstrong's Handbook of Performance Management: An Evidence-Based
Guide to Delivering High Performance. Kogan Page,43-58.

Hyman J. & Mason B., (1995), "Managing Employee Involvement and Participation", London: Sage.
Stanton, P., and Manning, K., 2013. High-performance work systems, performance management, and
employee participation in the public sector. Human resource management in the public sector. Edward
Elgar Publishing.

Shaiza, P., & Giri, I. (2016). Goal-setting theory of performance management system. Retrieved from
care@projectguru.in.