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Organizational Behavior: Cengage Learning Add in library

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Analys of performance management system?


1.1 Absence of performance management characteristics

Performance management is the process of identifying, measuring and developing the performance of the individuals within the organization with the help of different necessary tools in order to achieve the overall goal of the organization (Aguinis, 2013). In this context, the example of Sainsbury is adopted. The analysis o the performance management system of Sainsbury indicates that the retail chain of UK lacks two important characteristics namely Specificity and Openness.

The employees within the retail stores are not given specific job directions and detailed guidance relating to the strategies they are required to adopt in order to meet the organizational goal. Unlike other retail stores of UK, Sainsbury do not have a fixed employee-training module for the retail sales person. Rather the employees after being directly recruited by Sainsbury are given the job position without any role specification.  Apart from this the management at Sainsbury does not indulge in frequent performance feedback system and thus the characteristic of openness is absent in the organization. The absence of the 360-degree performance appraisal system within Sainsbury makes it difficult for the employees to establish an open relationship within the organization (Griffin and Moorhead, 2011).

1.2 Implications on the company

The absence of both the characteristics is detrimental to the goal achievement of the company.  Due to lack of specificity, the employees remain unclear about their jobs and are thus not able to maximize their productivity. Moreover, the lack of specificity makes it difficult for the fresher employed within Sainsbury to successfully meet their targets and deliver the required duties. Lack of job description and specification is the sole reason for employee de motivation in Sainsbury leading to high employee turnover rate. This in turn is increasing the cost of recruitment for the company as the Sainsbury is trying to recruit large number of employees on regular basis. The lack of job specificity is also contributing to the high job insecurity within the employees of Sainsbury and the employees present within the organization feels undervalued and unimportant since their roles are not valued as per their expectations.

Rummler and Brache (2012) commented that openness leads to high performance levels. Thus lack of an open culture within Sainsbury makes it difficult for the employees to interact with their supervisors, decreases the level of commitment on the part of the employees and formulation of decisions without any group support. These factors may lead to reduce the productivity of the organization and makes it difficult for the organization to meet the strategic goals. Moreover, Aguinis (2013) lack of two-way performance appraisal techniques hinders the overall growth graph of the employees. The management of the store inventory, store targets and individual monthly targets becomes difficult in absence of specific job role assessments and open communication between the different individuals. De Waal (2003) suggested that lack of open appraisal also creates a situation of dishonesty within the organization. Moreover, the employees are not able to voice their concerns or any suggestions for the good of the retail store.


Reference list

Aguinis, H. (2013) Performance management. 3rd ed. Upper Saddle River, NJ: Pearson/Prentice Hall. 
De Waal, A. A. (2003). Behavioral factors important for the successful implementation and use of performance management systems. Management Decision, 41(8), 688-697.

Griffin, R., and Moorhead, G. (2011). Organizational behavior. Cengage Learning.

Moynihan, D. P., and Pandey, S. K. (2010). The big question for performance management: why do managers use performance information?. Journal of public administration research and theory, muq004.

Rummler, G. A., and Brache, A. P. (2012). Improving performance: How to manage the white space on the organization chart. John Wiley & Sons.


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