The paper 'Investigation and Analysis of a Performance Management System - Volkswagen Company" is a good example of a management case study. Every company operating its business either locally or internationally needs impressive strategic objectives to be able to seduce as many customers as possible. The purpose of the research is to identify ways to systemize and strengthen the present performance management in Volkswagen Company. The basics elements involved include identification of determinable performance indicators and the collection of accurate performance data. In addition, factors that could ensure a dynamic performance management system were identified.
Nevertheless, the paper proposed various compatible compensation and rewarding systems that could be introduced to enhance the smooth functioning of the performance management system in the Volkswagen Company. Introduction Performance management is the present keyword needed to cut-throat completion and organization leadership battle. Basically, performance management is a complicated and a wider function in the human resource department. According to Lawrie, et al. (2004), performance management is a systematic process through which organization performance is improved by improving team member’ s performance. Nevertheless, performance management includes frequent communication, implementation of workers development systems, rewarding achievements and continuous progress review.
Performance management is observed as vital evil and most companies dread the process. A report by Lawrie, et al. (2004), reported that most organizations are not satisfied with their performance management systems. A combined report by World at Work and Sibson consulting indicated that 58% of the respondents in their 2010 survey concerning performance management systems graded their organisations C or below. In the same survey, 47% of the respondents noted that the performance management system enhanced their organizations to attain their strategic objectives.
According to Gunaratne and Plessis (2007), out of 610 studies on performance evaluation in various organizations, 30% of performance reports led to a reduction in workers performance. Generally, the workers felt the process was biased and others found it nom-motivating. The dismissal opinion on performance management squarely falls on the manager's shoulders. This is because managers lack the bravery to carry out discussions on productive performance and grant feedback that can lead to increased performance (Lawrie, et al. , 2004). Volkswagen Company Performance Management Volkswagen Overview Volkswagen Company is a German-based company involved in automotive manufacturing.
In 2011, it was the world largest manufacture in terms of unit sales; also, it enjoys a large market share in Europe for over three decades now. Historically, Volkswagen Company was founded in 1937, producing its first car branded ‘ beetle’ . Volkswagen production has increased since 1965 when it acquired Auto Union, granting it an opportunity to manufacture the first post-war Audi models. Some of the Volkswagen cars include Volkswagen Passat, Golf, Touran, Toureg and Sharan. Presently Volkswagen company shares are inscribed and traded in both domestic and worldwide stock exchanges. Volkswagen Strategy According to Ferdinand K.
Pië ch, Volkswagen Company chairman, the company focuses on positioning itself as a global economic leader among the automobile manufacturers. Ferdinand outlines four goals defined by the company aimed at making Volkswagen the most enchant and prosperous automaker in the world by 2018. The first goal aims at spreading out sensible novelty and technologies in order to emerge world leader in customer gratification and excellence. The second goal aims at raising the unit sales to more than 10 million a year.
The third goal aims at heightening returns on sales by 5% before tax. The final goal intends to make Volkswagen company building a first-class team, by becoming a top employer. In addition, the company focus is producing cars that are environmentally friendly, which will remain successful products even at daring economic conditions.
Bawaba, A. (2008). Volkswagen AG Board of Management pushes forward with "Strategy 2018" project for the future. General Interest Periodicals--Jordan.
Busi, M., & Bititci, U. S. (2006). Collaborative performance management: present gaps and future research. International Journal of Productivity and Performance Management, 55(1/2), 7-25.
Gunaratne, K. A., & Plessis, A. J. (2007). Performance Management System: A Powerful Tool To Achieve Organisational Goals. Journal of Global Business and Technology, 3(1), 17-28.
Hammonds, D. I. (2003). Volkswagen Beetle Reaches End of Line. Knight Ridder Tribune Business News, 1.
Hellqvist, N. (2011). Global performance management: a research agenda. Management Research Review, 34(8), 927-946.
Kihn, L.-A. (2010). Performance outcomes in empirical management accounting research: Recent developments and implications for future research. International Journal of Productivity and Performance Management, 59(5), 468-492.
Lawrie, G., Cobbold, I., & Marshall, J. (2004). Corporate performance management system in a devolved UK governmental organisation: A case study. International Journal of Productivity and Performance Management, 53(3/4), 353-370.
Pendse, N. (2011). Business Intelligence and Performance Management users. BI Survey, 49. Retrieved from http://www.beyesurvey.com/
Sahoo, C. K., & Jena, S. (2012). Organizational performance management system: exploring the manufacturing sectors. Industrial and Commercial Training, 44(5), 296-302.
Wire, B. (2009). Research and Markets: Performance Management: Putting Research into Practic. Business And Economics, 1.