Read the following case study and then answer the questions that follow.

CASE STUDY: TO PERFORM OR NOT TO PERFORM

James has just had his performance appraisal interview and has been sitting at his desk staring at the evaluation form for the past ten minutes. He cannot understand why his supervisor has rated his performance so poorly. He has been working in the marketing department of PRT Corporate Events, a large event-organising organisation, for the past five years and has never received such a poor evaluation. During the interview, his supervisor pointed out that there were numerous complaints from customers and colleagues regarding his attitude. He further indicated that customer service is the most important key performance area (KPA) on which he will be evaluated; therefore, he cannot increase the rating on this KPA. James cannot understand why no one has ever informed him about the fact that his performance is not up to standard. He was under the impression that his work was satisfactory and that everyone was pleased with his work. During teatime he tells Vusi, his colleague, about his performance appraisal interview. James points out that he could have corrected his behaviour and performance if his supervisor had informed him about these complaints earlier. He cannot understand why his supervisor has not said anything about them. In response to Jamess confusion, Vusi informs him that his own supervisor provides him with feedback every month and they have a formal review twice a year. Vusi further states that this system really helps him to stay on track and ensures that there are no surprises in the performance review. (Adapted from: Wrnich, S., Carrell, M.R., Elbert, N.F. and Hatfield, R.D. (2018) Human Resource Management in South Africa. Sixth Edition. Hampshire: Cengage Learning, EMEA)

QUESTION 1

Discuss the key features of an effective performance management system. To what extent is the performance management system at PRT Corporate Events effective? (10 Marks)

QUESTION 2

It is of much importance that performance management within an organisation is strategically integrated with a range of HR activities.

Discuss the extent to which the performance management which James experienced at PRT Corporate Events was strategically integrated with a range of HR activities. (10 Marks)

QUESTION 3

You are a performance management consultant who has been contracted to implement a new, standardised performance management system within PRT Corporate Events. After doing some research on PRT Corporate Events, you find that the most suitable performance management system for the company would be Management by Objectives (MBO).

Discuss what the implementation of MBO within PRT Corporate Events would entail, and outline the extent to which it will address the shortcomings of the existing approach to managing performance at PRT Corporate Events. (10 Marks)