" Managing Strategic Performance ContentsIntroduction .......................................................................................................................................... 3Company ................................................................................................................................................ 3Issues ...................................................................................................................................................... 3Analysis .................................................................................................................................................. 4Old Performance Management System ..................................................................................... 4New Performance Management System ................................................................................... 5Recommendations: ............................................................................................................................ 5 IntroductionPerformance management in simple words is measuring the whether the performance of theemployees has reached the desired or the expected level of the organization. Performancemanagement process also ensures that the individual goals of the employees are in along with theorganization goals, as the performance of the employees must help the organization to attain itsmission, which makes Strategic performance management indispensable. CompanyLuxcars Australia has its headquarters in Brisbane, Australia. Luxcars has manufactured sportscars since 1968. After nearly 47 years, Luxcars attempts to redesign its performancemanagement system.IssuesThe new performance management system and the issues arising as an effect of the attempt hasbeen analyzed ad possible solutions have been discussed in detail in this analysis report. Aftercarefully analyzing the case study the following issues have been identified;? The first and foremost reason for unhappiness employee is resistance to Change, theemployees have been very comfortable with the old performance management systemand introduction of the new performance system.? The old performance management system was conducted early once but the newperformance management system was happening every quarter. ? The cost of new performance management is also not very favorable from theorganization perspective. ? Performance management system must be designed to fulfill the needs of theorganization and must imply with organization strategic objectives. In this case its unclear whether the new performance management was designed taking the nature of joband organization business segment into consideration. Analysis Old Performance Management SystemIn the old performance management system method, the employees set their goals every year.The in mid of the year their performance is reviewed based on their goals set at the beginning ofthe year. Final assessments after the performance review and a performance score for theemployees are released by the end of the year. Pros:? Employees have their freedom to set their goals. ? Mid-year review provides six months’ time to the employees to work towards theirachieving their goal? The final score for the review is released only once and at the end of the year it is givento the employees. Cons:? The old performance management system of Luxcars is very old performancemanagement method? This process seems to very long and only once the performance score is given, the shortterm performance of the employees can ? This performance system doesn’t clearly state whether the organization goals are takeninto consideration or not.New Performance Management SystemIn the new performance management system the performance review happened every quarter. Pros:? Appraisal is conducted every three months which is good, because short term goals of theorganizations can be analyzed. ? Managers and employees insights are collected from all plants at the same time. Cons:? The feedback comments of Employee about the new performance management systemshowed that they weren’t satisfied with the system. ? Performance review every three months once is Time consuming? Appraisal seems to be happening all around the year. Not providing time to employees towork on the feedback from the review. ? The Luxcars have mentioned that the current performance management system is costingthem a lot nearly 160% when compared the old performance management system.Recommendations:With regard to Luxcars performance management system, the management wanted to get rid ofthe old performance management system which they have following for decades to brin in a newsystem and they have attempted to follow another organization’s way, “This initiative wasdesigned to adopt a new trend in performance management, following companies like Seek, thatis said to be moving towards informal, ongoing reviews over traditional annual appraisals.”Performance management system must be very specific to the needs of the organization. Thesector of the organization, nature of business, work flow and many other factors have to be taken into consideration before recommending a performance management system. Failing to do thishas been the root cause for receiving negative comments during the Luxcar feedback survey forthe new performance management system. The next major setback of the current performance management system is the regular interval ofthe performance review. My suggestion would be change the quarterly review to half yearlyreview which would provide time to employees to work on their reviews and enhance their skillsand competence to achieve their individual goals and the organization goal. Group Performance: Most often organizations fail to recognize the team performance as a whole.The Group success must be acknowledged and the performance of the individual as a team mustalso be reviewed for effective performance management. Performance management activity includes Performance appraisal and Performance Feedback;In luxcars, in the old performance management system, the performance appraisal method usedwas, “Appraisal by immediate line manager (LM) or downward appraisal”. In the downward appraisal method, the manager and employee meets in person to discuss theperformance of the employee. Examinations frequently adjust a scope of goal and subjectiveassessment criteria. Regularly, the director takes after a predefined assessment arrangement andscores the representative in various occupation related execution territories. This score mayincorporate numerical appraisals or subjective contribution by the manager. Having analyzed about the setbacks and the Luxcar can attempt to redesign their performancemanagement system taking the Balance Score Card method into consideration. Balance Scorecard method covers all the major perspective of the organization; "