Human Resources Manager
You are the Human Resources Manager of Aussie Healthy Foods, Australia. You have received several communications from employees and managers that are dissatisfied with the newly implemented performance management system. Aussie Healthy Foods has manufactured breakfast cereals, breakfast beverages, sandwich spreads, and diary and meat alternatives since 1980. The headquarters are located in Melbourne, Australia. The CEO Ms Carter has been in her role for the last ten years and has seen the company perform quite strongly but according to Ms Carter there is always room for improvement. A decision was made to redesign the performance management system of Aussie Healthy Foods in 2015. In the past employees were asked to set their performance goals for each year in January. Employees then had a mid-year check-in with managers. They then received a final assessment and a single performance score in December, which was linked to salary increases for the following year. In the new system, performance feedback sessions were conducted every three months to collect insights from employees, their managers and closest colleagues in all plants and offices around Australia. This initiative was designed to adopt a new trend in performance management, following companies like Deloitte that are moving towards informal, ongoing reviews over traditional annual appraisals. In April an email was sent to all employees to ask them to share their feedback on this new performance management system. In total 62,500 comments were received from employees, at which point all comments were organised and analysed. Employees were dissatisfied with the new performance management system. It seems they felt under pressure to constantly discuss their performance and they said they wanted to give and receive reviews less frequently. Although the new initiative was meant to support Aussie Healthy Foods 21036 – Spring 2017 Jacqueline Gorrick/ Timothy Hessell corporate strategy, it is understood that it is too time-consuming for employees. Costs have also increased as the new system has cost 160% of the previous system’s cost, even though some companies who have adopted this new method claim to have reduced their costs. There is concern that resources are being wasted instead of focusing on the strengths of the organisation. Help is needed to refine the system and recommend some solutions for change. Your Tasks 1. Diagnose the problems at Aussie Healthy Foods in relation to their performance management drawing on relevant theories of Managing Strategic Performance. 2. Recommend two practical solutions for Aussie Healthy Foods to help in refining their performance management system. Assignment Length: 1,500 words (not including reference list). Due: Week 10 (Tuesday 3rd October 4pm) via UTSOnline (Turnitin). No hard copy submission necessary. A guide for this assignment will be delivered in the lecture in Week 8 that will also provide an opportunity to ask questions. See the Subject Outline for details on resources and referencing.