The Benefits Of The Performance Management System Business Essay

Table of Contents


The organization of my choice is Barclays Bank Limited. Barclays Bank operates universally with branches in more than 50 countries and has a large clientele of approximately 48 million customers. Apart from being a multinational bank, it also offers financial services such as investment banking, wholesale and retail operations as well as wealth management and it deals in mortgages. It has its headquarters based in London in the United Kingdom. Most companies to serve as a guideline for their employees use a performance management system. It lays out an employee’s responsibilities and the management’s expectations, which are usually in line with the goals of the organization. The introduction of a performance management system in Barclays bank will enhance the achievement of its goals and objectives. Policies and procedures have also been put in place with respect to redundancy and dismissal of employees. These policies help to ensure that employees are dismissed and declared redundant fairly.

Performance management system

A performance management system is a tool which is adopted by most companies to develop and train their employees. According to Varma, Budhwar and Denis (2008, p. 15), a performance management system is a predetermined set of guidelines given to the employees in an organization to enhance their understanding of the company and their roles in the company. A performance management system would require proper planning before its introduction. It would also require sufficient time to come up with a good performance management system, which has a high chance for success. Included in the performance management system will be a clear layout of job descriptions for various employees, provision for feedback on the performance of employees and an appraisal of employees based on their performance. To begin with, case study would relate the performance management system to the goals of Barclays bank. It would also relate it to the mission and business plans of Barclays bank.

Barclays bank has a mission to be innovative; customer- oriented and provides products and services that are rich in quality and value. They also have a mission to provide excellent employment opportunities and strive to make a positive impact on their surrounding communities. With this view, case study will ensure that the performance management system will include policies that adhere to the mission of Barclays bank. The performance management system will have policies that will ensure that the best is given to customers with respect to products and services. It will also have policies that will attract and retain personnel who have a high potential to deliver good results. The performance management system will ensure that the bank gives back to the society through establishing policies on corporate social responsibility. The following is the procedure on how to introduce a performance management system:

According to Taticchi (2010, p. 242) the job descriptions of all the employees should be updated. Updating the job descriptions is important to make the duties of the entire employees match with the current organizational needs. The job description will be able to stipulate what is expected from the employees. It will clearly define their responsibilities, the skills required from them, the goals they are supposed to achieve and a clear distinction will made on how they should relate with their customers. Preparing the right job description will enhance the efficiency with which Barclays Bank will carry out its operations.

The second step is to prepare a scale against which employees will be evaluated. This will enable Barclays bank to be able to determine the performance and progress made by their staff. The scale should rank the performance of employees using words such as below average, average, above average, good performance, excellent performance and even poor performance to describe situations where an employee is doing very badly. Delpo (2007, p. 11) is of the view that the ranking scale will be able to provoke the staff to put in more effort and this will lead to the achievement of good results by the company.

The third step would be the determination of a method to evaluate the progress of the new management system. It is important to devise ways in which the new management system can be evaluated. By so doing it will be easy for the management of Barclays bank to determine whether or not the management system which has been introduced is impacting on the organization positively or negatively. For instance, the supervisors can review the progress made by the employees.

The fourth step in the introduction of the performance management system would be to come up with guidelines that can be used to assess any improvements in the operations of the company. It is important to measure the progress of the company because of the introduction of the performance management systems. Ways in which this measurement can be carried out need to be determined in order for Barclays bank to be able to determine the effectiveness of the new management system.

The fifth step will be the determination of a means to reward the staffs that perform well. This will serve as a means to motivate employees and they will always strive to do their best for the organization. Workers will always appreciate being rewarded for their efforts. Giving rewards to employees in accordance to their performance will enhance the effective implementation of the performance management system.

The final step would be to hold a meeting with the staff of Barclays bank before the performance management system is launched. The performance management system can be reviewed during the meeting to determine any discrepancies. During the meeting, the members can give their opinions. Cardy & Leonard (2011, p. 17) believe that if the members can voice their opinions during the meeting, it will give room for adjustments to be made on the proposed system and this will enhance its efficiency. The meeting will also enable the members of staff understand the stipulated policies. This increases the chances of the performance management system becoming a success.

It is justified to introduce a performance management system, as it will help improve the overall outlook of the organization. The role of the performance management system in Barclays bank is justified, as it will save on cost and time. The performance management system will be able to save the management’s time due to the clear procedures stated in the performance management system. It will also help management in ensuring that there is efficiency and consistency in the performance of the staff. The performance management system will enable the management to ascertain that each of the employees possesses the relevant skills necessary for them to carry out their duties. The performance management system has various benefits to the employees, the management and Barclays bank as a whole.

The Benefits of the performance management system to the bank

Barclays’ main goal is to increase its profitability and client base. Use of the performance management system to manage the activities of teams and individuals within an organization is a sure way to attain the goals and objectives of Barclays Bank. Barclays bank will increase its chances of attaining its set objectives by adhering to the clearly laid down policies in the performance management system.

The performance management system plays a big role in terms of improving the performance of the bank. The bank will carry out its activities effectively and efficiently and this will lead to a good performance by the bank. The system will improve the image and reputation of the bank. With the implementation of policies that encourage corporate social responsibility, the community is bound to have a good image of the bank. The bank will have improved communication systems as the system helps to break such barriers. The system will attract new clients and this will make several customers open accounts with the bank and thus improved productivity for the bank.

Transparency and accountability are promoted with the use of the new management system. Policies that give various responsibilities to specific individuals will ensure that operations within the bank are carried out in a transparent and efficient manner. Barclays bank is able to cut on its cost due to the introduction of the performance management system. Well-defined procedures usually ensure that employees avoid wasting the organization’s resources. Provision for equitable remuneration and employee appraisal by the new system will be beneficial to the bank, as it will promote the loyalty and retention of their staff. Giving rewards to employees motivates employees and even leads them to enjoy their job. The bank is able to earn the loyalty of employees by treating them well.

The Benefits of the performance management system to the employees

It helps the employees to understand the importance of their contribution to the organization. This will make the employees work more diligently so that they can ensure that the goals and objectives of Barclays bank are achieved. The performance management system is also instrumental in the achievement of job satisfaction for employees. The system also enhances effective communication throughout the entire organization.

The system is beneficial to the bank as it is able to pay the employees in line with their performance in the organization and this ensures that equity is achieved concerning the way the bank remunerates its staff. The performance management system expands the available opportunities for career growth. The employees therefore have a large potential to climb the corporate ladder. The system also accords the staff of Barclays bank an opportunity for development. The system provides leadership development programs for the employees in order for them to improve and sharpen their skills (Bohlander & Snell 2009, p. 364). The employees are able to get feedback on their performance and this gives them room to improve so that they can attain better results.

Redundancy and dismissal policies and practices

Redundancy refers to a situation where an employee has to stop working because they are no longer important to the business establishment. The employee may have to stop working because their services are no longer needed by the organization they are working for.

The policies on redundancy

Barclays bank has a policy not to render its employees redundant for discriminative purposes. This means that Barclays bank cannot render employees redundant on grounds of things such as their age and gender. Whenever there is an anticipation of a redundancy by the bank, care will be taken to ensure that all the staff are treated equitably.

Barclays bank also has a policy to always try and avoid redundancies to some extent. Whenever the bank deems it possible they try to avoid redundancies especially cases of compulsory redundancies that will affect a large number of their staff negatively.

The bank will affect redundancy after it has held a meeting with those who will be affected. The bank has to reach an agreement with the staff who will be affected by the redundancy so that they can determine how best to compensate them.

The bank has laid down policies on the criteria to be used in selecting the staff to be rendered redundant. They also have laid down procedures and processes to be undergone when the company is undergoing redundancy. An individual could however be rendered redundant for various genuine reasons such as:

The organization where an employee works could become insolvent. When the whole of the organization fails it, means the employee will automatically become redundant. Another scenario is where an employee becomes redundant because part of the company fails. In this case, an employee will become redundant when the area he/she works is part of the section that has failed. According to Kempen (2008, p.23) another reason for the employee to be rendered redundant is when the employer moves to another line of business. The services of the employee will become redundant when the skill he/she possesses does not match with the needs of the new line of business the organization has moved into. Technological advancement within an organization can render employees redundant. For instance, when Barclays bank advances its technology, some of the employees will be rendered redundant because the work they are supposed to do has been taken over by machines, which are even faster and effective.

Reorganization within the workplace is certainly another genuine reason for an employer to render their employees redundant. Reorganization may be done within an establishment in order to enhance the efficiency of its operations and this may in effect make an employee redundant. Movement of the company to a new location can render a given section of the workforce redundant. This is especially so in instances where some of the employees are unable to move to the new location due to various circumstances. According to Benny, Sargeant& Jefferson (2012, p. 87) a company take over could also largely contribute to the redundancy of employees. For instance, when Barclays bank is taken over by new management, the new owners could render some of the employees redundant. In most cases, this happens in situations where the employee's employment contract does not provide for protection in the case of transfer of the undertakings of the organization.

There is however situation where one can be rendered redundant unfairly. This could be the case for instance, where an employer did not have a good relationship with the employee. Such kind of dismissal is unfair, as the grounds for such dismissal cannot be justified. The employee in this case is not genuinely redundant because there was no need for a reduction in the work force. When an employee just recently employed new staff then this shows that it is not a case of redundancy. This is because the services rendered by the employees who have been laid off are still required. In a situation where only a few people have been laid off in a very large company, it shows that the claim of redundancy is not genuine. This means that the employers have no just reason to render their employees redundant. McMullen (2011, p. 242) claims that discriminatory treatment in the workplace, which is followed by a subsequent layoff, is a clear sign that the claim of redundancy by the employer is not genuine.

A good way to address cases of redundancy which are not genuine would be to report such cases to an employment tribunal. The aggrieved employee could state that the actual reason for their unfair dismissal was on grounds of discrimination and other unjustified reasons. A company can adopt various alternatives to redundancy. For instance, Barclays bank can stop conducting any recruitment. This will be of a great advantage to the employees as they will be able to maintain their jobs. The organization should stop increasing its personnel and by so doing they will have no reason to render employees redundant.

Result to pay cuts: The organization can reduce the pay given to employees in exchange for securing their jobs, as this is more preferable. Redeployment of staff in different areas of the organization can be one of the strategies. The workers can be assigned to other areas of the organization with more pressing needs as this will help to avoid recruitment of new staff who are able to perform multiple tasks as argued by Corfield and Cushway (2009, p. 70). The employees will also become more useful to the company and therefore there will be no need to render them redundant. A cut in the pension payments and bonuses would be a prudent move for the organization. By so doing the company will be able to save money and there will be no need for rendering employees redundant. Doing away with overtime work within the organization will help cut on costs and as a result the company will be able to retain its staff.

Barclays bank may find it of great importance to render some of their staff redundant so as to reduce their operational costs. It is therefore important for them to manage the entire process well. To begin with, they can prepare by evaluating whether or not they need to go through the process. They can then carefully select the people who are to be rendered redundant. They can do this using a predetermined criterion, which will ensure fairness in the selection process. They can then proceed to explain to the selected individuals the reasons why they have been picked for such an exercise. According to Painter (2012, p. 460), the next step will be for the bank to serve the selected employees with a notice and give them room to appeal. Finally, the bank can then go through the process of terminating the services of those employees who are considered to be redundant.


Dismissal refers to a situation when the employee’s services are completely terminated and they are forced to stop working for the company. An employee is usually faced by several types of dismissal such as fair, unfair, wrongful and constructive dismissal. A dismissal is fair when the reasons for such a dismissal can be justified and unfair when the reasons for the dismissal cannot be justified or if the reasons for such dismissal are unreasonable (Kelly, Hayward & Hammer 2011, p. 514). Constructive dismissal is where an employee resigns on their own free will because they feel that their rights have been violated. This could be due to harassment, victimization or unlawful demotion of an employee. Wrongful dismissal is where the terms of employment have been contravened for example dismissal of an employee without issuing them with a proper notice as explained by Hor& Keats (2009, p. 26).

The policies on dismissal

The policies on dismissal provide that an employee can only be dismissed on fair grounds and if this is not adhered to, the employee can appeal to the employment tribunal. The dismissal of an employee can be considered to be legitimate depending on the conduct of the employee, the employee’s capacity and the operational requirements of the company. The policy also provides for other disciplinary measures that can be adopted by an employer before resorting to dismissing the employee. An employer can issue the employee with warnings before resorting to dismissal. According to Cushway (2010, p. 292), an employer is also required to keep disciplinary records for employees to determine their record of conduct as this will help employers in decision-making. Every organization usually has a clearly laid down procedure with regards to how a dismissal can be carried out in the organization. The steps to be followed include:

The employers should carry out a full investigation on the alleged misconduct. The employee should then be informed about the alleged accusations, which have been leveled against him/her. The employee should also be made to understand that he or she will face a possible dismissal if found guilty. The next step would be to let the employee explain how things took place and he/she is free to have a lawyer during the hearing. If the conduct in question does not warrant dismissal, the employee can just be warned against the recurrence of their misconduct. Kiely (2008, p.84) believes that in a case where the decision reached requires that the employee should be terminated, the organization will have to justify the reasons why it has arrived at that decision. The final step will be for the organization to notify the employee about its decision in writing. The employee has a duty to certify that the dismissal has been effected in accordance to the terms of employment.

The improvements that can be made to the policies and practices of redundancy and dismissal by Barclays bank would be for them to try and hire the staffs that have multiple competencies. This will enable employees perform multiple tasks and reduce cases of redundancy within the bank. Accorging to Brisciana (2008, p, 51) the bank should try to innovate so that they can always be relevant to the market and by so doing they will not be driven out of business by their competitors hence they will be profitable and they will have no need to dismiss employees.


The incorporation of a performance management into an organization is indeed very important. This move comes with many benefits that are important to the running of an organization. Through the introduction of a performance management system, a company can experience a rapid growth in its productivity and even a drastic change of attitude from its personnel. The staff of the company will have a positive attitude and they will feel greatly motivated. The performance management system has the potential of making employees work as though they own the organization. It is therefore easy for a company to achieve its goals and objectives with this system in place. Policies on redundancy and dismissal of employees can prove to be a very sensitive issue. The organization should always try as much as possible to reduce cases of redundancy within their establishments, as redundancies are not always kindly received by employees. Employees should also strive to adhere to the corporate rules and regulations so as to avoid cases of dismissals.