CMI Level 5 Unit 504 Managing Performance Assignment Answer Example

CMI Level 5 Unit 504 Summary

For the smooth running of an organisation, managing employees’ performance is a must. This unit aims to give reasons why managing performance is important and what approaches and strategies can be used for this. This CMI Level 5 Unit 504 includes methods of reward that should be used when employees do a job better than expected. This includes understanding individual needs. Here you will learn ways through which you can analyse the reasons of underperformance of an employee in a supportive and professional manner that matches both organisational and legal frameworks. This unit will basically teach you how to effectively perform the task of performance management effectively, which results in a good impact on individual and organisational goals. 

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Learning Outcome 1: Understand the rationale for managing performance within organisations

For finding ways through which you can improve the performance of employees of the organisation, you need to first understand the reasons why there is a lack of performance. By understanding the reasons, it becomes easy to manage employee performance. Managing the performance of employees will make the organisation grow in the desired way.

AC 1.1 Justify the rationale for managing performance within organisations

Answer

To make the rationale of managing performance in organisations, you can take into consideration the following aspects:

• Increasing the Productivity of the Organisation: Proper performance management will ensure efficiency and effectiveness of the work done by the employees towards meeting the organisational objectives. As an example, with the Balanced Scorecard model, you can demonstrate how the correspondence of individual and team performance to the strategic goals of the organisation leads to enhanced productivity.
• Employee Development: Managing performance offers the growth and development of employees. The model of GROW (Goal, Reality, Options, Will) can be applied to show how personal and professional development can be achieved through the use of goals and feedback.
• Motivation and Engagement: Employee motivation and engagement can be increased through proper performance management. The Expectancy Theory of Motivation is applicable to demonstrate how motivational performance-based rewards and recognition promote motivational drive.
• Risk Mitigation: Performance management makes it easier to address performance issues at an early stage, which minimises the chances of costly mistakes. Continuous improvement and reduction of risk can be illustrated with the help of the Deming Cycle (Plan-Do-Check-Act).
• Legal and Ethical Compliance: This would be important in terms of legal compliance because it is important to ensure that performance management is fair and unbiased. It is possible to focus on non-discrimination in performance evaluation by applying the model of Equal Employment Opportunity.

Learning Outcome 2: Understand frameworks, diagnostic and evaluation tools used for performance management

Understanding the framework, diagnostic and evaluation tool is necessary as they are very useful in managing the performance of employees. All these tools are used for understanding where the employee is lacking, how the performance of an employee can be improved and even for evaluating their performance.

AC2.1 Examine the impact of legal and organisational frameworks on performance management

Answer:

The performance management is very complex in terms of legal and organisational structures. Minimum standards of employee rights and employer responsibility in relation to performance management are laid down in a number of acts, Regulations and Directives. They are the Employment Rights Act 1996, the Working Time Regulations of 1998 and the Health and Safety at Work, etc. Act of 1974.

Moreover, professional bodies, including the Chartered InstituteofPersonnel and Development (CIPD), have come up with several voluntary codes of practice. The impact of these various legal and organisational structures is that it culminates in a multifaceted maze of regulations and directions that employers have to contend with in undertaking performance management exercises.

It can bear various consequences on employer behaviour.

• It may result in the further emphasis on adhering to the law, instead of considering the involvement and efficiency of employees. It may lead to tick-box performance management, whereby employers aim at satisfying their legal requirements instead of working on meaningful performance management systems that contribute value to the employees.
• The intricate network of regulations and instructions may confuse employers, who will make inefficient decisions and face a higher chance of getting sued.
• Lastly, a compliance-based approach might create tension between the managers and employees since managers might believe that they cannot use their discretion in making decisions regarding performance management. It may cause distrust and resentment, and this may negate the efficacy of the performance management system.

AC 2.2 Evaluate the diagnostic and evaluation tools which support performance management.

Answers: 

These performance management tools can be supported with several diagnostic and evaluation tools.
Among them is the 360-degree feedback system, where employees get feedback through various sources, such as their managers, colleagues, and customers. This gives a complete picture of the employee's performance and can be employed to know the areas of improvement.
A performance appraisal is another tool that can be utilised, which is a formal examination of the performance of employees in relation to pre-established standards. This may be a good method of gauging employee development and where they need improvement.

Employee surveys, focus groups, and interviews are some of the other tools that can be applied. All of them can give useful insights into the perceptions of the performance management system among the employees and can be used to identify the areas of improvement.

In general, the diagnostic and assessment tools available to aid in performance management are numerous. The best tool to use will also be determined by the needs of the organisation.

Learning outcome 3:  Know how to manage performance

Learning how to manage performance is the most important work. As this was the aim of this unit, to improve the performance of an employee. Being able to manage the performance of an employee is crucial for the success of an organisation.

AC 3.1 Discuss good practice principles for managing performance

Answers: 

The management of employee performance should adhere to a number of good practice principles.

• Have specific and attainable objectives: The employees must be made aware of what they are supposed to do and what they are expected to accomplish. The goals must be specific, measurable, achievable, relevant and time-bound.
  
  
• Offer feedback regularly: Feedback plays a crucial role in employee development. This should be done regularly and should be positive and constructive.
  
  
• Foster employee contributions: The employees are supposed to be encouraged to contribute to the performance management process. This will contribute towards ensuring that the system is transparent and fair.
  
  
• Be objective and consistent: The decision of performance management should be made on objective grounds and be uniform for every employee.
  
  
• Apply different ways of assessment: Various assessment techniques are to be applied to collect evidence of employee performance. This will assist in making sure that the assessment is both all-inclusive and objective.
  
  
• Offer support and development: The employees are supposed to be provided with the support and development they require to enhance their performance. This can be in the form of training, coaching, or mentoring.
  
  
• Be fair and transparent: The performance management process ought to be fair and transparent. There should be a chance given to employees to challenge the decisions that they think are not fair.
  
  
• Review and update the system regularly: The performance management system must be updated and reviewed regularly. This will make it stay fit and be responsive to the needs of the organisation.
  
  
• Inform every employee about the system: Employees need to know about the performance management system and its functioning. This will go towards making sure that it is read and applied in the right way.
  
  
• Review the system: The performance management system must be assessed within a regular period of time to determine whether or not the system is working well and producing the intended results.

On the whole, a set of good practice principles can be observed during employee performance management. These are the principles that will assist in making sure that the system is effective, transparent, and equitable.

AC 3.2 Examine the use of formal processes for managing performance.

Answer:

Formal processes comprise processes that are important in ensuring the manager delivers effective performance in an organisation. These formal procedures provide a systematic and organised procedure for assessing the performance of employees and the future management of any performance-based concerns that might occur. Managers will also make sure that there are formal mechanisms of performance management that are incorporated with the continuous practice of performance management, such as frequent feedback and training. 

Formulating a definite and uniform framework:

Formal processes also provide a clear and streamlined system to review the performance of the employees so that no employee is tested differently and unfairly. In case of poor understanding of formal performance management processes, the outcome may be poor performance. In the example, as a manager at Woolworths supermarket, I experienced poor performance at my workplace, and when I assessed the situation, I realised that it was occasioned by the lack of clarity with respect to formal processes. To counter this, I came up with the particular processes that the employees did not understand clearly and held training sessions to explain the processes and answer the questions posed by the employees.

Enhance communication:

Formal processes ensure the open and transparent communication between employees and managers that promotes a positive working environment that helps in employee dedication and motivation to organisational goals. Effective communication as a manager is an important aspect of my work at the Woolworths supermarket, as I am keen on communicating organisational objectives to the employees and defining their expected roles. As an example, I have relayed the objective of the Woolworths supermarket to be ranked as a top 100 employer, with precise contributions that the employees should make in order to ensure that the organisation achieves this objective.

Performance improvement:

As pointed out by Lewandowski and Cirella (2022), formal processes help to enhance organisational performance because they provide precise feedback on the progress of employees. The processes can help employees to know their strengths and areas of improvement. An example is that as a manager at the Woolworths supermarket, I have adopted aligned strategies in ensuring that employees attain the objectives of the business. This involves the adoption of standardised procedures on activities, which translates to a high degree of efficiency and confidence among workers, thus creating the same and high quality job performance. Moreover, I emphasise offering training services to develop the knowledge and skills of employees, which leads to increased productivity and minimises the cases of underperformance in Woolworths.

AC 3.3 Analyse the relationship between signs and causes of underperformance

Answer:

Some of the possible factors that can lead to underperformance include incompetence in terms of skills, lack of training, or lack of motivation. The underlying cause of poor performance should be determined, which in turn can be resolved to improve performance.

One can give several indicators that can indicate the underperformance of an employee. These include:

• Work Quality is not upto the mark.
• Never meeting the deadlines.
• Shortage of presence in the office 
•  Productivity is decreasing

When an employee is portraying these signs, it is necessary to enquire about the cause to take the necessary action. The causes of underperformance are quite a number. These include:

• That they do not have the required skills
• Their training was completed, or they didn’t get accurate training
• They do not have the required motivation

To solve the underperformance of an employee, it is necessary to first find the reason why the employee is not able to work productively. 

AC 3.4 Evaluate approaches to respond to challenges when managing underperformance.

Answer:

When handling underperformance, there are several strategies that can be applied to deal with the problem. These include:

• Support and development: Employees who are not performing well should be accorded the necessary support and development to be able to perform better. This can be training, coaching or mentoring.
  
  
• Establishing clear expectations: The employees are supposed to be provided with clear expectations as to what they are expected to do. This will assist in ensuring that they are conscious of the standards that they should achieve.
  
  
• Tracking improvement: The progress of the poorly performing employees must be tracked to ensure that any improvements can be found and highlighted.
  
  
• Communicate often: Frequent communication is a requisite in handling underperformance. Feedback on the employees and their performance should be provided, along with keeping them informed about their progress.

On the whole, it is possible to identify several strategies that can be selected to address the challenges when handling underperformance. There will not be any optimal strategy that will be applied across most cases.

AC 3.5: Recommend techniques for developing and managing individuals who exceed expectations.

Answer:

The methods which can be applied in the development and management of exceeders are numerous. These include:

• Offering development opportunities: This is done by giving those individuals who have exceeded expectations an opportunity to advance their skills and knowledge development. This can be training, mentoring or coaching.
  
  
• Promotion of creativity: When employees are doing more than is expected of them, they must be made to be creative as well as think outside the box. This will aid in ensuring that they keep on producing new and innovative ideas.
  
  
• Rewarding performance: They should appreciate the performance of people who perform significantly better than expected. This can be in the form of monetary reward, promotions or acknowledgement.

All in all, there exist several methods that could be applied in developing and managing above-average individuals.

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