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Strengths and Weaknesses of the Performance Management System

In the current paper I will review Starbucks performance management system that is made to maintain the best quality of service from its baristas to be able to please customers to return to Starbucks again and again and know the real modern coffee desires. The performance management system at Starbucks is aimed at making each customer satisfied with the service and drinks. The individual approach is also widely used. The whole system is oriented to the 360 degree concept where employees provide their own evaluation along with their evaluation by those surrounding them. There is an opinion that Starbucks has to have perfect Performance Management System in order to provide the best service and the best drinks to the customers, as it is the part of the strategy.It is essential to note that performance management – is a set of management processes (planning, organization, implementation, monitoring and analysis) that allows businesses to define strategic objectives and then evaluate and manage activities to achieve their goals while making optimal use of available resources. This management system is built on the principles of cost management business, according to Strengths and Weaknesses of the Performance Management System (2011).

It can be said that the performance management encompasses the entire spectrum of tasks in the field of strategic, financial, marketing and operational management of the company and includes the use of management techniques such as modeling strategy, balanced scorecard, activity-based planning and value analysis, budgeting, business modeling , consolidated management reporting and analysis, monitoring key performance indicators (key performance indicators), associated with the strategy, according to Performance Management Process: Strength or Deficiency focused?

It should be noted that performance management involves three main activities (in all the areas of management):

  1. Setting Goals;
  2. Analysis of the values of parameters describing the organization achieve its goals, and;
  3. Control actions of managers on the results of analysis aimed at improving the future of the organization to achieve the set goals.

There are strengths and weaknesses of the performance management system that include communication and expectations, performance standards, leadership training, and employee self assessment. “Self evaluations within a performance management system are both strengths and weaknesses”, according to Strengths and Weaknesses of Performance Management Systems (2011).To sum it up, it can be said that using the techniques of performance management, owners tend to bring the strategy to all levels of the organization to transform strategy into action, and metrics that measure these actions, and use the analysis to find causal relationships, which, if meaningful, can help in making informed decisions, according to Strengths and Weaknesses of the Performance Management System (2011).

All in all, in order to improve the performance management system, it is essential to be creative, innovative, to use new ideas and trends. Making decisions and taking risk is important, and it helps to make certain improvements in the process. I think that Starbucks has to take more under control, as there are issues that can be compared, for example if to visit Starbucks in different countries. There will be a considerable difference in service and preparation of products. That is why, it is important to update the techniques and approaches to eliminate weaknesses of the performance management system.

References

Performance Management Process: Strength or Deficiency focused? (2010). Retrieved September 16, 2011 from http://www.coachingandmentoring.com/PerformanceManagementStrengthOrDeficiencyFocused.htm
Strengths and Weaknesses of the Performance Management System (2011). Retrieved September 16, 2011 from http://www.ehow.com/info_8283076_strengths-weaknesses-performance-management-systems.html
Strengths and Weaknesses of the Performance Management System (2011). Retrieved September 16, 2011 from http://businessdm.com/strength-and-possible-weakness-in-performance-management-system/