Details

Case

Implementing Performance Management System at Packages Limited

Anwar Khurshid, Wiiliam Clowney

INDUSTRY : Packaging, Production

AREA : HRM/OB

ORGANIZATION : Packages Limited

LENGTH : 35

LUMS No : 05-737-2008-1

PUBLICATION YEAR : 2008

KEYWORDS:

Performance Management,Packages Limited,Human Resource Development,HRD,Evaluation,Implementation,Performance Planning,Motivation,Effectiveness

DESCRIPTION:

The case Implementing Performance Management System at Packages Limited describes a change initiative through implementing performance management system at Packages Ltd in 1996. Mr Nayab Baig, the Human Resource Development (HRD) manager of Packages Ltd introduced a new performance management system, referred to as Performance Panning, Managing & Evaluation (PPM&E). Before 1996, there was no formal performance evaluation system in the company. Absence of a formal system allowed for subjective judgments in the areas of performance evaluation, promotions and succession planning. The new PPM&E system consisted of three main components, namely Performance Planning, Performance Managing and Performance Evaluation. The implementation of new evaluation system called for a cultural change in the company. Managers and employees who were not used to any formal evaluation system earlier found the new system to be lengthy and complicated. One year after the introduction of the new system, an internal audit indicated that although most managers had done relatively well on performance planning, they were not regularly following the performance managing process. Nayab felt that in order to derive value from the system, the performance managing section must be utilized as directed. The case ends with questions of concern by Nayab. What should he do at this stage to ensure successful implementation of the PPM&E system? How could he improve the motivation level of managers to implement the new system more effectively? How could he measure the effectiveness of the PPM&E system in terms of the impact it has on the people and the organization? 

LEARNING OBJECTIVES:

1) To appreciate the difference between performance appraisal and performance management. 2) To understand the main elements of a performance management system, including performance appraisal, coaching and feedback, and reward system. 3) To evaluate the design on Performance Management System and Process. 4) To evaluate the process of managing and implementing change. To discuss how to deal with resistance to change and cultural issues.

SUBJECTS COVERED:

Human Resource Management, Organizational Behaviour