Performance Management is a systematic process of the organization that improves team efficiency and individual effectiveness. It creates the work environment which enables the people to perform their best. It is a system that starts when a job is defined as needed and ends when the employees leave the job. It is implemented within the organization with the aim of effective working of the employees. Along with this, the financial performance of the organization comprises of sales, net operating income, revenue, return on investment, return on capital, cash flow, profit margin, earning per share, economic value added and return on common equity. The performance management positively impacts the Tesco.
Performance Management of Tesco
The objectives of every business are fulfilled by the employees with the help of Performance Management. It is a strategic tool that focuses on the activities of the organization and employees as a whole. The performance of the organization and the effectiveness of the system can only be improved by establishing Tesco performance management. It comprises of different critical factors such as the strategic goal of the organization, competency goal of the organization, group performance and an individual’s performance. After identifying these critical factors, the next step is the synchronization of the organization’s objectives into Human Resource management (HRM). The positive impact of Tesco performance management is that it helps the employees in all aspects in order to achieve the goals. Thus, employee performs better by attaining a high level of productivity and motivation. More employee involvement will identify more problems and then solve these potential problems. Apart from this, the negative impact of Tesco is that it increases competition among the Organization’s employees. Thus, the employees have to work hard to perform better in comparison to the other employees.
Future Performance of Tesco
Tesco is a tool that measures the current and future performance of the business, balance the scorecard and assessing the key performance of the business. This tool is used for the purpose of assessing the current performance of the staff and analyzing the future performance of Tesco employees. For Example – Different large companies such as – Google, General electric and Adobe implement the tools of performance management for the development of staff efficiency, individual growth, and regular feedback. Apart from this, most of the companies differentiate the employees on the basis of performance and salaries.
Tesco Steering Wheel
The corporate steering wheel of Tesco describes the 20 corporate objectives in the five different perspectives. These five perspectives are arranged in a circle and follow the philosophy of ‘Every little help’ and the two values named ‘Treat people how they like to be treated’ and ‘No one tries harder for their customers’. This wheel makes a shared way of thinking, shared language and common actions. Tesco maintains the business and measures the performance of the organization through this corporate steering wheel.
Tesco steering wheel is explained as -
1.Customer Perspective –
a)The staff are great
b)Prices are good
c)Earn lifetime loyalty
d)You get what you want
e)No need to queue
f)The aisles are clear
a)Be a good neighbor
b)Be fair, responsible and honest
a)We always save money and time
b)We make your jobs easier
c)We know how vital your jobs are
d)We try to get it the right first time
e)every day, we deliver consistently
a)To be treated with respect
b)Opportunity to get on
c)A manager who helps me
d)An interesting job
5.Financial Perspective – The objectives of the Financial perspective are
a)To increase the profits
b)To maximize sales
c)To manage the Investment
Principles of Tesco Performance Management
Different critical principles of Tesco Performance management process are as follows –
a)A performance management system analyzes the strengths and weaknesses of an individual.
b)The day to day process is involved in the performance management rather than any bi-annual review cycle and annual review cycle. This process is supported by immediate coaching and feedback.
c)An organization provides a fair reward and clear recognition to the people who perform at a high level.
d)The assessment process in the business is consistent, transparent, robust and with clear differentiation in the whole of the workforce.
e)The process of Tesco involves the performance of any individual rather than the character of any individual.
f)The strategic goals of the company are aligned with the goals of the performance management so that the people can see how their work contribute towards these goals and how right things are performed at the right place.
g)The performance process of the organization is agile, efficient, responsive and fast.
h)Tesco process results in generating efficient values and behavior of the employees in the organization.
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