Performance Measurement System Essay


Write an essay on Performance Measurement System.


Performance Management System is the system which incorporates individuals as well as corporate goals. It enables to track and monitors the performance of the employees, department and the organization. It enables to improve the organizational efficiency for accomplishing the mission and the goals of the organization. It helps to use as a communication for achieving the organizational; goals and objectives. It helps to reinforce the organization’s accountability through meeting the goals. It helps to track and evaluate the result of the organization and the employee (Van Dooren et al. 2015). The manager shares a responsibility for developing the employee’s skills and contributes it into the organization. It is the process which gives success for both the individual and the organization.
Performance Management system is the route map for the development of the organization and the employees. It includes the performance appraisal and the employee development of the human resource system. Many organizations employees and mangers become ineffective. Research shows that, three out of ten employee’s shows to improve their performance through Performance Management System. However less than 40 percent of the employees agreed that their system established the performance goals, and generates positive feedback and technology in the process (Buckingham and Goodall 2015). It suggests that there are organizations where the performance management system is poorly designed. They poorly developed tools and process which enables to make difficulty for the performance management. The performance management system enables to provide positive outcomes for the organization. It enables the employees and the mangers to clarify the job responsibilities and the expectations. Further, they enhance the individual and the group productivity. Performance management system helps the employees to develop the capabilities through effective feedback and coaching. It drives the behavior so that it aligns with the organization’s values, goals and strategies. It enables to provide a basis for making the operational human capital decisions. Besides that it helps to provide the organization to improve the communication between the employees and the mangers. Performance management is an important tool for high performing organization or for organizations who want to perform with competencies. The Human resources has the responsibility to provide with effective implantation of the performance management system.

Company Overview

Dolphin Logistic Co. Ltd Group was established in the year of 1995 by Kevin Cheng. It has its head quarter in Taipei which is in Singapore. It provides services for the customers in logistics. The company offers computerized logistic systems such as the real-time monitoring and control, heterogeneous platform integration, cargo of line tracking system and the tracking system. It has adopted an effective security technology to enhance the efficiency and the service level. The company operates in six categories Global Logistic Strategy, sea Freight, air freight, courier service, and project cargo and on other services. The services they offer which involves transportation through sea, and air as well with the commercial flow, cash flow and the information flow. It has an effective supply chain management and a world-0wide network. The company with its efficiency in the service needs to implement a more comprehensive performance management system. The system would enable to create improvement for the performance of the employees. It would create a positive ambience for the organization. The performance management system would help Dolphin Logistic Co. Ltd Group to understand their subordinates through the help of continuous ranking and equitable compensation based on the performance ( 2016).

Identify the problem

Dolphin Logistic Co. Ltd Group is one of the leading logistic companies in Singapore. The company has the vision to expel through providing best services to its customers in throughout the world. The customers’ expectations can be fulfilled through expel in providing best service by the employees. It becomes necessary for the employee’s provides best service and it is possible through their effective service. The assessment identified he problems and ways to improve it (Goetsch and Davis 2014).


Monitor projects, programs and process- the Human Resource Management need to take the initiative for identifying the performance. The performance can be identified through monitoring the programs that employee’s participation. It wool give them a clear view about the employees and the reasons for their underperformance.
Assess performance- The assessment of the employees needs to involve considering the four basic steps. The first step is to prepare for an end to end conversation with the employees through meetings. The meetings need to involve with the mangers and the supervisors along with the Human Resource Manager. It would help to gather information. Secondly, review need to done on the work objectives of each employee of Dolphin Logistic and their core competency areas. It would enable to understand even the areas where the employees lack (De Waal 2013). The third step involves a face-to-face conversation with the employee. Here it is need to open end conversation. The four steps are to document whole finding and analysis it accordingly.
Benchmark internally and externally- The benchmarking of the employees through the projects which are internal as well as external. Internal project involves projects of Dolphin Logistic and external involves project which are seek externally. Trends of these data can be used over time and can make an impact for improving the process which can be assessed. External benchmark would help Dolphin Logistic o understand the difference of their performance with that of the competitors (Pollitt 2013).
Analyze performance- Analyze of the performance would give the view about the problems which helps them to improve their performance and quality of work.

Problems in Dolphin Logistic

The identified problems through the assessment show the problems that are involved with the company. The main problem associated is the performance appraisal system. The employees are not happy with the appraisal which happens once in a year. Moreover heavy workloads and shift timing is another problems of the employees. The employees are not much sure about their growth and role in accordance with their performance. Some of the employees are not happy with their present team as they have competency in some other field and have to work with a different team because of inefficient workers ( 2016).

Suggestion for problems

The identification of the problems for Dolphin Logistic has completed the next step is to make some actions and implications it on its employees.

Solution ReasonsB

rainstorming A group of will people will be present to focus on the problem of employees who are underperforming. Process needs to be there so that spontaneous ideas generates so to address those problems
Team of experts Regular interviews with the experts to know about the problems and establish solutions for them. It can be used through the questionnaire method. Employees would be given a questionnaire and has to answer it initiating the problems that they are facing (Aguinis et al. 2012).
Conduct of failure Models and Effect Analysis Small team needs to establish to conduct the Failure Modes and Effects Analysis. It would help the organization to identify the products and the reasons behind the failure of the performance.
The suggestions are for the temporary basis. Long term analysis needs to be done so that it would create a more impact for the employees and enables them to improve their performance.

Goal Setting

Dolphin Logistic needs to set a primary goal for their success. The goals of the organization need to set through the actions and the better execution of business. It would create a success for the organization. The employee’s performance can be improved through the establishment of goals and strategy (Locke and Latham 2013).

Goal setting thorough SMART approach

The process for goal setting foe the employees needs to be a collaborative between the employees who are facing the problems and the mangers. The most common approach I this regard is the framework of SMART (Shields et al. 2015).
Specific- The employees of Dolphin Logistic need to inform about the expectation of the organization. It should include the growth and perspective of the organization. They further need to clear that with the performance of the employee would relate with their appraisal and internal promotion irrespective of time. It would help the organization to progress towards the goal.
Measurable- the mangers here needs to set the milestone for the employees. It should include motivation to the employees for their achievement. The motivation would be given through Maslow’s Motivation theory. The employees need to be motivated through the Self-fulfillment needs and the psychological needs.
Attainable- Success of the employees needs to be achievable. The mangers of Dolphin Logistic need to motivate the employees so that employees get sure that the goals are realistic (Smart and Creelman 2013).
Relevant- the focus of the mangers need to be on the impact of Dolphin Logistic as a whole. The relevant of the goals would be clear towards the employees when they will get the appraisal in accordance with the performance.
Timely- the time frame needs to be consisting of one month. They need to interact and understand the requirement according to it. The goals without a deadline can tend to go for a crisis for the organization.

Goal setting theory

The goal setting for the employees of the Dolphin Logistic would enable to achieve a technique which would increase their incentives. This would lead to complete the work in more quickly and efficiently. Goal setting theory was forwarded with the view of Edwin Locke. The theory involves the connection with the task performance. The higher and challenging goals can lead to better and higher performance of the task. The participation of the employees through the goal setting theory will make them more involved (Kiresuk et al. 2014).
The application of the theory for the employees of Dolphin Logistic can lead to achieve some eventualities.
Self-efficiency- the goals for the employees can involve self-confidence and faith through creating a potentiality in the task. The more the effect of efficiency from the employees the better would be the performance of the task. They would learn to face challenges through the goal setting theory.
Goal Commitment- the theory assumes that employee once committed towards the goal would not leave the goal. The mangers of Dolphin Logistic need to ensure that the goals are clear and open and employees have knowledge about it. The goals need to cater the needs of the organization as well as the employees (O'Neil and Drillings 2012).

The goals that need to set for the employees of Dolphin Logistic

Improve productivity- The main goal is to improve the productivity of the organization. Now, this would directly connect with the improving the appraisal system of the employees. The employees would be given appraisal at any time of the year depending on their performance (Cummings and Worley 2014).
Punctuality- The employees has the problem with the over the shifting time. The goal is to provide flexible shift timing according o the employee. The goal would initiate to achieve better performance of the employee. But, it would also consist of punctuality. The employee’s appraisal will also be measured through their punctuality.
Team bonding- The third goals are to create team bonding. The team needs to understand the members in personal way. The senior employees need to help the new employee through sharing the knowledge. They need understand the importance of it (Storey 2014).
Foster Leadership- All the employees irrespective of their time of joining need to undergo of training. The training will consist of the importance of leadership and decision understanding process (Budhwar and Debrah 2013).

Implementing performance management system

The performance management system is one of the important tools in the Human Resource management. The project needs to define, plan, through involving the employees, resource and the stakeholders into it. It would help the mangers to implement, monitor and measure it. The key components that are related for an effective performance management system are the motivation, culture, feedback and holding the performance conversation (De Waal 2013).
Motivation- The performance management system can be implemented through the motivation method. The mangers need to motivate the employee. The employees of Dolphin Logistic are mostly does not have a goal. The mangers can initiate the goal through motivating them for growth (Cherian and Jacob 2013).
Culture- the problems identified can be solved and the goals can be achieved through creating a favoring culture for the employees. The expectation of the employees to provide honest and timely communication is important. It also involves the collaboration between the employees and the leaders. The employees expect the culture to be friendly and responsive through suggesting new ideas. The Human Resource Mangers need to create the culture so that it fulfills the need of the employee.
Feedback- performance conservation needs to provide a feedback for the employees. The feedback would help them to understand the need of improve productivity. The feedback of Dolphin Logistic should be through verbal communication. It should be one-to-one conversation. The feedback needs to be positive and creating an analysis how they would reach their goal.
Timing- the timing of the performance reviews would be done in annually basis. The review of the productive review system through clarity, job training, motivation to employee and focus on the future. The techniques need in the situations would let the supervisors to overcome from the problems.
The employees of Dolphin Logistic have the main problem with the appraisal system of the company. They want to change it and implement a new. The performance appraisal makes the works in more productive way through using the following formula:
Desired Performance- Actual Performance = Need for Action
The Dolphin Logistic needs to involve in the evaluation of the performance by the mangers or the supervisors.

Rating scale

The method of rating scale in Dolphin Logistic would involve a structure of appraisal for the organization. The traits that would be involved with it need to be involved cooperation, communication ability, punctuality and the technical ability. The main advantage of the scale is that they are structured and standardized. It also implies to get the same basic process for the rating criteria the equality in the treatment imposes the performance of all parts of organization (Bernardin and Wiatrowski 2013).

360 degree appraisal system

The tool will be sued for the employees at the middle and senior level employees. Thorough the system the employees get confidential and get a feedback for the people who work around them. It measures the behaviors and the competencies. It also addresses the skills in terms of listening, planning and the goal setting. The measurement also helps to get efficient in the areas of teamwork and leadership (Espinilla et al. 2013).

Set of 360 degree feedback Procedure

Purpose Making the people more capable to achieve the goals defined. Improve the overall performance of the employee.
Gain commitment from the management The Management needs to involve into the process. Employees would get the trust from them about the measurement.
Competencies and values need to be used The competencies will in a form a questionnaire that feedback supervisors would provide.
Communication with the Employee Communication with the employees is important to have knowledge about the employee what it is and how will it work.
Employees need to give feedback The employees need to give a self review about the filled questionnaire (Haines and St-Onge 2012).
Produce Reports Reports are going to producing depending on the feedback produced. Response from each reviewer except the managers is aggregated.

Provide Coaching

The employees need to receive coaching and development process. It will help the employees to gain confidence and identify their strength.
Post implementation view This need to include the feedback process and a post implementation review.

Incentive and Reward System

The employees of Dolphin Logistic need a strategic reward system that addresses the four components of compensation, benefits, recognition and appreciation. The reward system needs to measure for the performance and the behavior of the employee. For example Dolphin Logistic can imply incentive plan for best attain periodic goals (Mowday et al. 2013).
Monetary Incentives
Paid holidays Employees will get a transport and accommodation which will be paid by the organization.
Pay increment The monthly pay of the employee will increase depending on the performance.
Promotion Internal promotion depends on the behavior and the dedication for the work. It would also base performance of employee (Kval?y 2015).
Paid leave The employee who will perform best in the organization can enjoy the benefit of leave where he will be paid.
Incentive The employee gets extra pay if they would deliver and give production from their target.
Non monetary rewards
Work from home Employees can choose once in a week to work from home.
Training plans Provide extensive training plans both in house and offsite to complete their vocational training.
Monthly award The monthly award would involve the employees with best performance to give the title for best performer of the month (Abdullah and Wan 2013).
Rewards on Personal Interest The employees will be given rewards as per their interest area like free joining in gym.
Health Plans The health plan n the organization would include to provide all health related facilities and insurance related to health
Career Development It needs to include the tuitions assistance, technology training and monitoring programs to the helps. It would help them to grow in their career.

Performance Recognition

Performance recognition includes the peer recognition and team recognition. The award will be voted for the participants coworkers to boost the morale.

Board Meeting

The mangers of Dolphin Logistic need to present all the outcomes of the performance management system to the board mangers. The will focus on the training and the development which are necessary for the employees. The meeting will decide further implementation if necessary (Storey 2014).
Board meeting Dolphin Logistic management would review the performance appraisal and feedback would be given on the outcome.


The performance management system is the most important tool to improve the performance of the employees in the organization. It correlates with the growth of the organization. Dolphin Logistic is the leading logistic company of Singapore. Research shows that the appraisal system has become one of the important factors for curbing the performance of the employees. The management needs to initiate the performance management system to the organization. The performance management system is initiated through developing into five steps. Each step gives a view to solve the problem and initiate to develop the performance of the organization. The steps initiate a plan for the employees. The plan is to give appraisal to employees for initiating better performance in the organization.

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