Impact Of Performance Management System On Employee Performance: A Case Study Of Starbucks Hong Kong

Question:

Discuss about the Effect of Training on Employee Performance.

This is a research which portrays the impact of the performance management system on the performance of the employees in the organization named Starbucks. Performance management is a tool of polishing the capacity of the human resources which will help in the development of the performance of the workforce in an organization. The managers in the modern era are trying to find new ways of performance management to motivate the employees so that they can make improvements in their respective performance (Shields et al. 2015). The workforce is a key indicator of the performance of an organization and can provide competitive advantage to the organization. This study will deal with the case of Starbucks, Honk Kong which will critically analyse the performance management techniques in the organization to identify its impact on performance of the employees. The following report is based on the investigation of the impact of employee performance system on employee performance. Performance management system is one of the significant approaches falling under the human resource management. In order to motivate and enhance the performance of the employees, the organization must fulfil the needs and demands of the employees. It is certain that effective performance management system contribute to the organizational productivity.  This is because the employees find motivation in such practices. However, it is significant to learn the efficiency of such practices as not all organizations implement such method to motivate employees and gain productivity. Thus, to learn the impact, the present report considers the organization Starbucks, Hong Kong. The report presents the type of methods that will be used in the proposed study.

• To evaluate the impact of performance management on employee performance
• To critically analyze the significance of performance management on organizational performances
• To recommend suitable performance strategies for Starbucks, Honk Kong

• What is the impact of performance management strategies on employee performance?
• What is the significance of performance management on employee performance?

H₀ – Performance management has no impact on the employee performance of Starbucks, Honk Kong

H₁ – Performance management has impact on the employee performance of Starbucks, Honk Kong

Starbucks have always been focused on the development of their employees so that they can provide their consumers with the best possible experience. Therefore, the organization introduced training programs where the employees are provided with the knowledge about the various subjects such as the different types of coffees and how to communicate with the consumers in an effective manner (Jenter and Kanaan 2015). However, recently it has been seen the sales of the organization have decreased significantly due to hike in the price of the products offered. This study will try to identify the causes related to performance management which has affected the overall performance of the organization.

Research Methodology

Performance management is a tool which is being used by the managers in the organization to evaluate and develop the performance of the employees in the organization. The evaluation part will include performance appraisal of the employees, retention, promotion and termination of the employees. The development part will include the identification of the needs of the employees such as the training and the development needs, identification weaknesses and strength, feedback on the performance of the employees and provide guidance for the improvement of the employees (Anitha 2014). The organization are shifting their focus to the performance of their workforce as it is one of the most important part of the organization. The ability of the workforce of an organization will determine whether they will be gain competitive advantage in the market. Thus, the wellbeing and growth of the organization is dependent on the performance of the workforce in the organization.

Employee appraisal is one of the common tools of performance management which has been sued by the organization to monitor the performance of the employees. The appraisal system will identify the present performance of the employees and how they can make improvements in their performance. The productivity of an organization is partially dependent on the workforce so it essential for the managers in the organization to make sure that they regularly monitor the performance of the employees so that they can help the employees to make continuous improvements in the field of expertise. As stated by Elnaga and Imran (2013), it is essential for the organization to make sure to keep a two-way communication channel which will help to communicate the goals of the organization with that of the employees. This will help the employees to align their goals with that of the organization. However, according to Judge et al. (2013), the employees will have to keep faith in the processes and evaluation system follwo9ed by the organization so they can grow. When the employees lose their trust on the evaluation basis of the organization then it will hamper the growth of the workforce in the organization. It has been seen that in order to maintain a professional allied behaviour the organization will have to monitor the performance of the employees. The various methods that has been used in the performance appraisal management are the ways of motivating the employees in the organization.

The second most important factor in the performance management is motivation of employees. Motivation is a factor which will drive the employees to make sure that they are able to achieve their goals in the organization. The appraisal system will definitely have a strong impact on the performance level of the employees. The employees in the organization are provide with a lot of benefits in the appraisal performance which will help to motivate to work at their full potential. Innovation is the key to competitive advantage in the market and so most of the companies in the market are making use of innovation in the human resource practices of the organization so they are able to make improvements in the business model of the organization. These innovative processes are aimed at generating more amount of motivation within the employees in the market. This market is growing at a rapid rate where the organizations are more concerned about the employees and the human resource practices in the organization. According to Landy, Zedeck and Cleveland (2017), the learning aptitude of the employees, innovation, environment of the workforce and management are crucial factors in the performance of the employees. Motivation is one of the key factors is increasing the productivity of the organization. Thus, motivation plays an important role in harmonizing the performance of the employees with that of the organization. Performance consist of these crucial factors which will be the integral part of the managing the workforce of the organization.

Starbucks is a n organization who is known for the exclusive services they provide to their consumer in the market.  The products and services offered by the organization is always dependent on the workforce of the organization. The workforce has been involved in a lot of training and development process which has enabled them to provide a better experience to the consumers in the market. The organization have been facing problems in maintaining the social values and cultures in the organization in various countries because they are unable to understand the national culture in the organization (Hernandez et al.2016). This shows that innovation is the key to gaining competitive advantage and the organization will have to make sure that they are able to make use innovative ideas in the human resource management. In the service industry it is difficult to reproduce the service provided by the employees so it is essential provide the employees with continuous training so that they grow and provide better service to the customers. The organization is facing problems in the Asian countries as they are unable to access the type of organizational culture that is required in the consumers. Thus, the revenue of the organization is declining and the organization is facing problems in making the changes in to the human resource practices. Thus, from the literature review of the organization it can be seen that performance management is the key to improving the performance of the employees.

The research methodology is one of the most important part in the development of the project. This chapter of the study successfully represents the various methods, research approaches and designs. The result of the research is dependent on the choice of methodology for research and carries a lot of implication in the study. The identification of the research method is imperative but the execution and proper accomplishment of the techniques have equal importance. When the current study is concerned, the selection of the each of the methods has been justified. The positives and the negatives associated with all the techniques have also been discussed. According to Taylor,  Bogdan and DeVault, 2015, the methodology framework consists of fixed set of assumptions in the model which are used to conduct the research. The most appropriate and relevant objective of the research is the methodology and moreover, the methodology should be as such that it can used to reproduce the methods and sue it in other research studies of similar types. Research philosophy of the project is positivism. Positivism is the kind of philosophy which will help in the identifying the hidden truth from the all the facts of the research. The scope of observation for the descriptive study is improved with the help of this research philosophy. This philosophy of the research will facilitate in the testing of the hypothesis which in turn will help in validating in the existing theories. The approach of the research that has been chosen for the study is deductive in nature. The deductive approach will help in validating the existing theories and inductive approach has been rejected because it helps in generalization and creating new theories (Silverman 2016). Thus, in the current field of the study deductive approach has been selected for validating the existing theories in the market. The data collection method for the study will be primary which will include mixed method. The mixed method will include qualitative and quantitative analysis of the data. The quantitative analysis will include close ended questions to the employees of the organization which will help to gain their perspective. The qualitative analysis of the data will consist of open ended questions and will be asked to the higher level of employees. The ethical aspect for the research has to be maintained and all the confidentiality of the data has to be maintained. It will be made sure that the reliability and validity of the data has been maintained as it will help to reproduce similar kind of data for other similar projects (Panneerselvam 2014).

It is expected that the research will provide an expected outcome, as all relevant and appropriate methods will be applied to the study. It is expected that the survey will provide the fats that performance management system is effective for the employees if is implemented appropriately. The findings might also indicate the facts that improper or biased appraisal system could increase the level of dissatisfaction among the employees.

Conclusion

In conclusion, it can be mentioned that the proposed will provide a relevant and authentic outcome because the study includes primary data. The analysis will be conducted considering the primary data. In addition to this, the implementation of the study will also help to learn the present trends and facts related to the performance management system. The study will also help to know how technology is being implemented in the performance management system to make the method more effective and transparent.

Reference

Shields, J., Brown, M., Kaine, S., Dolle-Samuel, C., North-Samardzic, A., McLean, P., Johns, R., O'Leary, P., Robinson, J. and Plimmer, G., 2015. Managing Employee Performance & Reward: Concepts, Practices, Strategies. Cambridge University Press.

Jenter, D. and Kanaan, F., 2015. CEO turnover and relative performance evaluation. The Journal of Finance, 70(5), pp.2155-2184.

Anitha, J., 2014. Determinants of employee engagement and their impact on employee performance. International journal of productivity and performance management.

Elnaga, A. and Imran, A., 2013. The effect of training on employee performance. European Journal of Business and Management, 5(4), pp.137-147.

Judge, T.A., Rodell, J.B., Klinger, R.L., Simon, L.S. and Crawford, E.R., 2013. Hierarchical representations of the five-factor model of personality in predicting job performance: integrating three organizing frameworks with two theoretical perspectives.

Landy, F., Zedeck, S. and Cleveland, J. eds., 2017. Performance measurement and theory. Taylor & Francis.

Hernandez, M., Avery, D.R., Tonidandel, S., Hebl, M.R., Smith, A.N. and McKay, P.F., 2016. The role of proximal social contexts: Assessing stigma-by-association effects on leader appraisals. Journal of Applied Psychology, 101(1), p.68.

Taylor, S.J., Bogdan, R. and DeVault, M., 2015. Introduction to qualitative research methods: A guidebook and resource. John Wiley & Sons.

Silverman, D. ed., 2016. Qualitative research. Sage.

Panneerselvam, R., 2014. Research methodology. PHI Learning Pvt. Ltd.