The Role Played By Performance Management

  Q1 

Performance management in an organization refers to the criteria that are used to regulate between the organization’s set goals and the direction it is taking to achieve them. An organization’s set goals and its moves to achieve those goals must correspond for any performance to be realized. In line with the interview that I conducted with John Smith, the general manager, steel makers company; it is clear that performance management helps the company achieve its goals. I learnt from him that steel makers company has been using this policy of performance management for the last seven years (Smith, 2019). Performance management plays several roles in their company. First, it is instilled to new employees before they sign any contracts of work with the company to ensure that they are in line with the company’s ambitions. Secondly, performance management is used to set the company’s daily goals in line with the available workforce and evaluations on whether the goals are met are done on daily basis. 

Thirdly, this aspect of performance management is used to instill morale on employers because they ensure that the day’s work target is availed to them every morning. They are supposed to work in line with the day’s goal, thus, they are able gauge their performance even without supervision (Smith, 2019). The fourth and the last role played by performance management is that, it’s the platform on which the company evaluates its daily profits and knows whether it’s keeping to its goals. Since the induction of this policy of performance management in the company, they have witnessed tremendous change in its overall performance. Orders from their clients are met and delivered in time, the working environment and mood of the workers has positively changed, the company has recorded an increment in its returns and all these have led to the company getting new clients as well as getting more orders. Therefore, steel makers company has recorded its best performance ever in its history in the past period of five years or so. 

Mr. Smith, his colleagues and all the employers look forward to recording better performances in the future (Smith, 2019). They are also ready to take in ideas from their clients on how to improve their performance to cater for the rising demand of their products. The company is busy laying down strategies to enrich their concept of performance management in a bid to ensure that the company’s returns never go down at any given time. In general, the atmosphere engulfing steel makers company is that of soaring higher and higher and ensuring that they set good examples for other companies to emulate. They intent to be the best performing steel makers company in the region and even beyond the region and ensure top service rendering to its customers. 

Q2 

The business world is experiencing a revolution across all its sectors with regard to technology and service delivery to its customers (Segun, 2019). Therefore, for any organization to cope with the changing world, it has to do away with its traditional ways of doing things and adopt the modern ways of managing operations. Goldman sachs is one of those companies which have had to do away with traditional ways of managing their company and adopted the modern ones. Goldman sachs have never at any one point in time applied the method of performance management in their company. They have all along been relying on yearly evaluations to know of their company’s progress. Fortunately for them, they have adopted the performance management concept in their systems. They have also embarked on the issue of improving the working environments for their workers. Goldman sachs has introduced awarding system in the company for best performing employers, a move which will motivate the workers to focus on better service delivery. 

Goldman sachs has also carried out an overall salary increment to every employer in an attempt to boost their working morale. All these new changes are unlike in the past where dictatorship method was mostly applied on the workers to force them accomplish their duties. This old method was characterized by clashes between the company and its workers as well as endless work boycotts. Goldman sachs performance under these traditional methods was very minimal compared to the current ones after adopting the modern methods. Performance management has really streamlined the operations and work output in Goldman sachs company. They have witnessed a smooth flow of work unlike in the past where orders from their clients would take ages before they were met and delivered. 

The company resolved to adopt these new changes after it learnt that its mode of operation was threatening to faze them out of the market. Its operations were almost coming to a standstill before they decided to try this new way of running their company. Since the adoption of performance management and purchasing of new and modern machinery, the working spirit of their staff has gone high (Veyrat, 2016). Employees do not need to be supervised to do their work anymore. The incidences of work boycotts are also a thing of the past according to the company’s top management. Goldman sachs is now able to compete effectively in the job market with regard to service delivery and quality work. Since they embarked on daily monitoring of their work, the company has been able to achieve all its set goals. Their performance chart has been going higher and higher each year. Goldman sachs is optimistic to keep up that performance pace and be able to reach even higher standards in the future. 

References 

 Segun, D. (2019). Top 5 Small Business Diagnostic Software to Manage Your Company (Online). Retrieved from https://windowsreport.com/small-business-diagnostic-software/ 

Smith, J. (2019). Manager, Steel Makers Company, California. 

Veyrat, P. (2016). Business Performance Management: Learn the keys to modern management (Online). Retrieved from https://www.heflo.com/blog/business-management/business-performance-management/