PERFORMANCE MANAGEMENT CHALLENGES AT ISANDO FINANCIAL SERVICES

Isando Financial Services is a registered financial service provider specialising in short term loans

and insurance. Given the growth in company size in terms of growing number of customers and

staff compliment, the company has been experiencing challenges with the implementation of the

performance management system. With the current performance management system, staff and

line managers have complained that it adds an administrative burden for them because of the

paperwork involved. For instance, at the beginning of each performance management cycle, the

office of the line manager is expected to book individual appointments will all direct reports for

performance contracting and thereafter file all completed performance contracts. During the

performance reviews, almost a similar process should be followed, however, sometimes some

performance contracts are misplaced due to misfiling, sometimes review meetings are held late

or not held at all because the office of the line manager forgot about the reviews. On the other

hand, staff members raised concerns about the transparency of the process, unfair performance

reviews and rating that do not match their level of performance, lack of opportunities to appeal

their scores, lack of feedback, misalignment between their goals and the goals of the organisation,

lack of resources and sometimes lack of follow up on personal development plans. In certain

instances, staff have also highlighted an element of favoritism or bias which led to either deflated

or inflated performance scores. Deliberation have been held at various management meetings

and a resolution was taken to seek services of a consultant who can advise how best the

performance management system can be implemented at Isando Financial Services.

$5$

HRM$3706|$ASSESSMENT $6|$ SEMESTER $1|2024$

Question $2$

You have been appointed as a consultant to advise on the implementation of a performance

management system that can eliminate the current challenges faced by the organisation. Drawing

from the performance management literature, discuss how best the company can implement the

performance management system to address these challenges. $(35)$

Guidelines on answering this question $($question $2)$:

$-$ Your work should not be less than three pages.

$-$ Consult relevant literature and further support your discussion by providing practical

examples.

$-$ Presentation of your work should include an introduction, discussion and conclusion.

$-$ Please structure your work well by using paragraphs, headings and subheadings