Performance management system for Marks and Spencer Research Paper

Performance management system for Marks and Spencer - Research Paper Example In practice, it has been proved that the findings of these systems do not always reflect the actual status of organizations, in terms of their performance. Thus, the identification of effective PM systems is a key challenge for managers internationally. The potential use of a performance management system for measuring the performance of Marks and Spencer (UK) is examined in this paper. Three performance management systems are set under examination, as of their appropriateness for Marks and Spencer: the Balanced Scorecard, the Goal Setting and the Individual Reward System. It is proved that all these systems could be used for measuring the performance of Marks and Spencer under the terms that their implications and challenges, as analyzed below, are taken into consideration. In any case, it seems that these systems can reflect rather the current performance of the specific organization, or, at least, the firm’s performance in the short term. If used for studying the potentials of the organization for a long term growth, these systems would be appropriately alternated, as explained below.The measurement of performance is a key part of organizational strategy. However, the criteria on which the measurement of performance of modern organizations is based are not standardized, meaning that each organization can employe different methods for measuring and evaluating its performance. Most commonly, the following issue needs to be addressed: how could a particular organization choose a performance management (PM) system that will offer accurate findings, in regard to the organizational performance? In practice, it has been proved that the use of a popular PM system, such as the Balanced Scorecard, can minimize the risks for failures in measuring organizational performance. Due to its high effectiveness, the Balanced Scorecard is preferred by firms of various sizes; in a relevant research it has been revealed that ‘about 60% of the Fortune 1000 has a Balan ced Scorecard in place’ (Niven 2006, p.2). However, under certain terms, the findings of a Balanced Scorecard may not fully reflect the performance of a particular organization. In this context, the use of other performance management (PM) systems, as alternative, is often considered as unavoidable. The three PM systems presented in this paper, i.e. the Balanced Scorecard, the Goal Setting and the Individual Reward System, are analyzed in particular as of their use in measuring the