CPL GPOUP

Performance Management System: CPL Group

Performance Management System: CPL Group

1.1Introduction

CPL Group is a leading wholesale and retail company, listed on the Port Moresby Stock Exchange in 2002. The company was established in 1986 in Papua New Guinea. The group has its wholesale and retail outlets all across Papua New Guinea, in nearly all major town and cities.

The organisation started its operations as a pharmacy chain. In Port Moresby, the Shop & Supermarket chain was acquired by the company during 2005. The company also has a complete fledged bakery business. Hardware Haus chain along with the Kit Homes business was also acquired in 2009 by the group. CPL Group's IDM division handles logistics, marketing and distribution of several institutional customers.

The performance management refers to the process through which the company measures and monitors its success to achieve its strategic aims through measure and monitor the progress of organisation to achieve profitability, to determine what figures will signify for each factor, and to identify decisive factors that determine success.

2.1A Performance Management System in CPL Group

Performance management system in CPL Group has classified into two phases: Performance goals and development review.

In the first phase, CPL Group mutually set performance objectives with managers on an annual basis. These objectives are linked with the employee job responsibilities and eventually address the targets of the company. In order to do so, job descriptions were reviewed to understand the goals of the company and Group. Objectives of the company and employees do not change in the year, other than exceptional circumstances. The goals established clarify the required outcomes of performance in terms of quantitative and qualitative criteria; for instance, production budgets and schedules, customer satisfaction levels, sales units and target dates. Moreover, performance is rated on five Likert scale on the continuum of do not meet objectives to outstanding performance (Heathfield, 2007, pp.6-10).

In the second phase, the CPL Group review development. This review is in combination with discussions of performance objective. Further formal reviews are conducted annually where employees are encouraged to participant. This phase is basically a mean to receive and give feedback on the general work performance. The employee participation open doors for suggestion regarding the work, discuss concerns related to how an employee perform their responsibility, provide participate into how team works collectively and others. The development review takes account of behavioural factors that are consistent with desired company's culture and core values. No formal measurement tool is used. This phase is actually an action plan that emphasise on future development, include next year's area of focus, recommended action and plans of training and developments.

2.2Two Specific Performance Management Issues

The two specific performance management issues are:

2.2.1Design Imperfection

CPL Group performance management system appraises performance annually that can assess a list of objectives, which creates an imprecision between employee and organisational objectives. The performance management system includes criteria of “organisational citizenship behaviours” like humility, customer focus, teamwork, professionalism, respect diversity and governance, along with defined desired competence ...