Read the following case study and answer the questions that follow:

IMPLEMENTING PERFORMANCE MANAGEMENT AT SINAKHO PLUMBING SERVICES

Sinakho Plumbing Services is a registered plumbing business based in Ladysmith. The company

started as a small family business in $2014.$ Over the years, the company has grown in terms of

number of customers and staff compliment. Three years ago, the Managing Director, Mike Smith,

decided that the company introduces a performance management system to ensure that every

employee contribute meaningfully to the success of the company. Therefore, at the beginning of

the year each employee sits with the line manager to agree on annual performance objectives

and expected performance standard. Again, at the end of the year each employee sits with the

line manager to assess if performance objectives were met. Recently, this approach has

manifested many challenges relating to perceived unfair performance rating. Employees feel that

their performance reviews and rating do not match their level of performance. Also, employees

suspect that there is an element of bias and favouritism which influences how they are evaluated

and rated. In certain instances, employees have observed the lack of uniformity in terms of

performance reviews as some line managers do quarterly reviews while some only do annual

reviews.

On the other hand, line managers have complained that the performance management system

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 with all direct reports for performance contracting and thereafter file

all completed performance contracts. During the performance reviews, a similar process should

be followed in each division, however, some performance contracts are misplaced due to misfiling

and sometimes review meetings are held late or not held at all because the office of the line

manager forgot about the reviews.

These concerns have attracted the attention of the organised labour as the number of grievances

lodged by employees has increased as compared to the previous year. Amongst other

interventions, the organised labour is calling for a more transparent performance management

system, training for all employees and line managers as well as robust one$-$on$-$one performance

conversations between the employee and the line manager. Moreover, the organised labour is of

the view that adequate sources and necessary support should be made available to all

employees.

Deliberations have been held at various management meetings and a resolution was taken to

seek services of a consultant who can advise on the best performance management system to

be implemented at Sinakho Plumbing Services.

QUESTIONS

Recommend a suitable performance appraisal method that can promote fairness and

transparency as well as reduce bias and favouritism during performance reviews.

HRM$3706|$ASSESSMENT $6|$ SEMESTER $2|2024$

$1\mathrm{.}1$ Identify and explain the performance appraisal method to be used.

$1\mathrm{.}2$ Use practical examples to explain how this method can be implemented at Sinakho Plumbing

Services.

$1\mathrm{.}3$ Justify your selection of this method.

Discuss the performance management stages present in the case study. Support your answer

with relevant extracts from the case study.

Identity any two stages that were not implemented in the case study and explain how these

stages should have been implemented.

Discuss training interventions you will offer to line managers and justify why it is necessary to

train line managers.

Recommend how the current performance management system can be improved to ease the

administrative burden and paperwork for all stakeholders involved in the process.