Introduction
This report is an attempt to analyse the existing Performance Management System for Large Financial Service Organisation (LFSO) and from this information, recommend, and implement an appropriate new performance management system.
LFSO is an organisation, which traditionally has a paternalistic culture with low levels of unionisation. LFSO current Performance Management system was implemented two years ago changing the nature of the previous incremental salary scales described as Prerogatives by Lupton and Bowey and led to the abolition of the annual cost of living increment. This change by LFSO was an attempt to achieve a strategic, integrative and flexible approach to pay, in order to address its organisational objectives. Therefore it ¡¥reflected on a pluralist approach with the use of job evaluated grade structures regarding financial rewards and benefits¡¦. (Heery, 1996) despite the fact that with most paternalistic culture have a Unitarist approach to Performance Management systems.
Initial research conducted by the organisation indicated that objectives are not always established and reviews were spasmodic. There was a high degree of resentment between the different members of staff leading to unhealthy competitiveness and unwillingness to support others. (Kerr, 1995) describe this behaviour as ¡¥esprit de corps¡¦. This resulted in an increase in general grievances. The BFU have been aware of this anxiety and have started a strong recruitment drive amongst employees but no figures on existing membership were available.¡¦
In general, both employees and management did not fully understand the scheme at its inception and saw it simply as a cost cutting exercise. The reward levels introduced were seen to be too small to ...