Read the following write-up on performance management system and prepare a comprehensive report based on the task guidelines.
PERFORMANCE MANAGEMENT AT SKYLARK LLC
Skylark LLC., a leading retail- chain based in Dubai, implemented a new performance management system in 2015. The new system adopted a top-down approach where senior managers set objectives for the entire organisation. Behavioural and results expectations were tied to the organization's strategic direction and corporate objectives. A common competency model was developed at the organizational level but three sets of performance standards were developed reflecting these competencies: one for professional jobs, one for administrative jobs and one for managerial jobs.
Performance rating forms were used to gather information from various sources within the organisation. The rating form included components such as key work responsibilities, results or goals to be achieved, behavioural assessment, results assessment, narrative, areas to be developed and development actions, and signature blocks for managers and employees. Managers in this organization evaluated their employees and then met to calibrate their ratings and make reward decisions. Managers then conducted review sessions with every employee to discuss the employee's performance, pay increase and stock option grant. Developmental feedback was supposed to be included in the meeting. However, the range of percentage increases and stock options was large, thereby allowing managers to link performance with rewards effectively. With so much at stake, the majority of the meeting typically focused on justification by both parties, rather than on how the employee can develop. Moreover, employees were reluctant to discuss their development needs for fear that it would negatively impact their rewards.
Based on the description of the performance management system at SkylarkLLC., prepare a comprehensive report including the following:
- A discussion on the significance of Performance Management System in developing a performance culture in organisations.
- A thorough review of the performance management system of Skylarkhighlighting the various components of performance management process.
- Recommendations to enhance the current performance management system at Skylark.
Word Limit: 3000 (+/- 10%) words