Read the following case study and answer the sub-questions that follow.

PERFORMANCE MANAGEMENT SYSTEM IN ACTION AT MABOLOKA INSURERS Maboloka Insurers is a small insurance/investment company that offer financial services. They specialise in life insurance, fixed annuities, car insurance, and business insurance. They make use of a company calendar that includes key company deadlines, holidays, and other important information. Employees are expected to use the company calendar in their day-today operations to ensure that their duties are aligned with the company values, plans, and goals. Right at the top of the calendar are the following statements: We want to be known as the leading insurers in Gauteng AND Our mission is to make a difference in the lives of our employees and customers by meeting their financial needs. The calendar assists the organisation in reinforcing its mission and vision. Employees also get a clearer understanding of how their daily tasks contribute to the goals of the organisation. Ms. Mmotla Mohlala just got appointed as a sales consultant for Maboloka Insurers. She signed an employment contract stating that she is expected to sell life insurance to the value of R25 000 quarterly. She regularly checks her employment contract, which has a list of her tasks and duties (job description). Ms Mohlala was also made aware that performance is reviewed on a quarterly basis, and everyone receives feedback immediately. According to the performance management system in this organisation, individuals not meeting their performance targets are dismissed with immediate effect. Those who exceed the set target of R25 000 quarterly, receive 6% of excess sales. In her first performance appraisal, Ms. Mohlala rated very low as she did not achieve the set target. From her experience with the sales job, she feels that the target is set way too high, which is unfair, especially considering the current economic conditions in this country. She tries to check with other colleagues if they ever managed to exceed or achieve this target. She is shocked to hear that none of them have ever received an incentive. Most of them struggle to reach even 50% of this target. This has been happening for three years, with no sign from management to correct it. Ms. Mohlala is planning to meet with management with a suggestion to remedy the problem.

1.1 Identify (2 marks) and explain (2 marks) TWO specific purposes of the performance management process that manifests at Maboloka Insurers (2 marks). Provide examples from the scenario to motivate your choice of each purpose (2 marks). (6