To Analyze The Effectiveness Of Performance Management System

A Study of NSL Services With Respect To Traffic Warden

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Introduction to Performance Management

In today's global environment organizations are facing high competition in their business. It is essential for them to gain higher competitive advantage in order to achieve their target. For this purpose, companies need to motivate their employees to perform effectively so that better results can be produced. One of the most important tasks of any association is to monitor the performance of all their employees (Smither and London, 2009). Moreover, they can also review the performance of all their business operations in terms of financial and non financial conditions. In addition to this, companies are adopting a set of performance management system so that they can supervise the recital of all their employees. The major requirement for this process is significant time and resources. It is the process of assessing progress towards achieving predetermined goals. Moreover, organizations working with performance management system need to go through the following step i.e. analysis, identifying competencies as well as continue development and control of performance management system (Wright, Gardener and Moynihan, 2006). In this regard, the present research will be carried out with a motive to identify the effectiveness of performance management system that practices NSL service with special reference to traffic wardens. NSL is a UK market leader in on-street parking enforcement and they run their contract between two national government organizations and more than 50 local authorities. The company can easily manage the traffic as it offers parking facility. Further, they can carry out the NSL services and also manage all their business operations effectively (Chau, 2008).

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Background of the research

There are several research works which have been conducted by different researchers that mainly focus on the employee motivation and its relation with the employee performance. Further, a dedicated employee serves better quality products to all their employees. In addition to this employees can perform effectively as management people are always measuring their performance. In addition to this, research has taken place due to the major consideration at NSL services with respect to traffic wardens (Bach, 2009). It is very broad area of research through which researcher can go through the role of performance management system. It is a common approach and used by different organizations through which they can effectively measure their performance. In order to investigate its effectiveness and how it is beneficial for companies the present research will be carried out. High performing employees contribute more efficiency towards the company and their extra efforts differentiate great organizations from merely non-effective ones (Delery and Shaw, 2001). Moreover, it has been identified that performance management system is an effective tool which requires significant investment of time and resources. It is also essential to operate this system very efficiently so that overall performance of the employee can be easily monitored.

Rational of the study

It is being viewed that organizations are facing intense competition among all its employees. They should measure their performance so that they can achieve their target and gain effective results. Present research is based on the performance management system of NSL services. It is based on the NSL services with respect to traffic warden and not much of the other research works are based on this situation (Geringer, Frayne and Milliman, 2002). Major contribution of this research is to gain knowledge about the different tools of performance management system and how it helps in effectively measuring the performance of employees. There are various tools and techniques which company can adopt in order to measure the effectiveness of all their employees’ performance. With respect to this, organizations can achieve their target and also gain customer loyalty by providing them better quality products. Moreover, the research scope is very wide and researcher can gain deep insights about the subject matter (Lawler, 2003).

Research Aim and Objectives


To analyze the effectiveness of performance management system of NSL Services with respect to traffic warden.


  • To identify the different performance management tools that used in an organization.
  • To analyze the roles of performance management system for an organization.
  • To determine the effectiveness of performance management system in measuring the performance of traffic wardens of NSL services.
  • To recommend the improvements in the performance management system of NSL service.

Research Questions

In order to gain actual idea about the effectiveness of performance management system in NSL services, various questions are formulated. These are as follows:

  • What are different performance management tools that used in an organization?
  • What are the roles of performance management system for an organization?
  • How effective is the performance management system in measuring the performance of traffic wardens of NSL services?
  • How performance management system can be improved in NSL Services?



It is one of the most important parts of any research as researcher can gain deep insights about the given subject matter. Further, it is an important section as it provides overall information and knowledge about the given topic. In addition to this the present research will review the effectiveness of performance management system of NSL services (Hurwitz, 2002). Further, researcher can review all the past literature sources as it helps them in developing the understandings.

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Different performance management tools that used in an organization

The primary objective of this study is to measure the effectiveness of performance management system. In today's competitive world organizations can measure the performance of all their employees in order to achieve quality results from them. For this purpose they have to utilize different tools and techniques which secure the future of company as well as today's planning. (Delery and Shaw, 2001) stated that there are various resources that help the managers and supervisors to conduct the performance evaluation process.

Balance Scorecard

Organizations can manage their performance with the help of balance scorecard. It is a strategic tool that is used to coordinate within the different operational areas of the business. With due respect, company can focus on all its financial and non financial areas. Manager can give a broad view of their business concern by using this tool. In addition to this balance scorecard has four major operational areas which focuses on the financial health of the business, customer satisfaction, internal process of the company and learning and growth of all their employees. Moreover, it can be determined that company can measure their business presentations with the help of using different analytical tools.


Another major source of investigating performance is KPI. (Smither and London, 2009) reviewed that key performance indicators are an effective tool which often describe a metric in business. KPI's can answer all the key business performance questions. According to () it is similar to doctors as they have to measure the blood pressure, heart rate etc. These are the key indicators of the human health. Further, KPIs also serve to reduce the complex nature of organizational performance. There are various key indicators that make performance more understandable.


In today's competitive upbringing is essential for companies to compare their performance with their competitors. According to (Geringer, Frayne and Milliman, 2002) it is the practice through which company can compare their own performance with the external best-performance. Benchmarking entails analyzing performance in detail and with due respect they can easily understand the context such as processes, culture, skills etc. It is one of the most effective tool through which company can measure their performance level with respect to all their rivalries.

Business excellence model

It mainly asses the quality standard in company. One of the most crucial tasks of any industry is to serve quality products to their customers. With fulfilling this objective they can gain customer loyalty rivalries (Smither and London, 2009). Further, business excellence model comes from the quality movement and there are various national standards that are often used as the basis of quality awards. Company can measure their products as well as service quality if the excellence model is purely used to gain an award. Companies can use these tools to identify their goals and managing their action plan.

Performance appraisal

It is a very effective tool which assesses the job performance of individuals in a company. (White and, 2003) stated that line manager of the company discusses the performance of all his employees with his subordinates. Performance appraisal can be done on the basis of individual's performance. Further, if it is done correctly then they can very well facilitate meaningful communication and motivate their employees as well. On the basis of this, staff member feels motivated and valued and increase their performance.

Roles of performance management system for an organization

According to (Bowen and Ostroff, 2004) employees are the key part of any organization. They can effectively manage all the business operations in order to gain higher productivity. It should be the top most responsibility of the company to have a system in order to identify, recognize, reward and retain the top performers of the company. Company can easily achieve their sustainable growth by motivating their employees. An effective performance management system starts with the goal setting process and followed by several feedbacks. In order to perform the entire task effectively, the system should encourage teamwork, collaboration and communication (Smither and London, 2009). Performance appraisal is an important part and it is the most discussed and researched topics in HR domains. In order to get desired results it is essential to have a PMS at the workplace. Performance appraisal system highly contributes towards the motivation of all the staff members. By giving them good appraisal company can gain loyalty among all its employees. Further, they can perform efficiently and produce high quality products and services. While implementing the appraisal system it should be ensured that performance dimensions are clearly defined.
(Wright, Gardener and Moynihan, 2006) stated that it is the process that allows the managers and employees to communicate expectations and outcomes.

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With the help of improving the performance of individual member of staff, organization can improve their own performance. In addition to this, company can achieve all their objectives by setting clear vision. It is the responsibility of manager to manage the overall performance of the organization. According to (Chau, 2008), the role of performance management system can be reviewed by planning, managing, reviewing and rewarding performance. Manager of the company has to monitor the performance of all its employees and needs to review that the entire workforce is performing effectively in order to achieve the objectives. It is the best route to learn what should be happening at all level of company. According to (Chau, 2008), PMS tends to look at how different associations can ensure that departmental, procedural, workforce, system or financial performance contribute towards the integrated approach. It plays an important role in achieving higher success and further companies can increase their market share by providing high quality products to their customers.

Effectiveness of performance management system in measuring the performance

One of the most important responsibilities of any industry is to manage the performance of each employee, team and even of the organization itself. With adopting different tools and techniques of performance management System Company can easily achieve their target and improve the efficiency among all its employees. With due respect, performance appraisal is most important technique through which company can offer valuable opportunities to all their employees to focus on the work activities and goals (Performance Management Standard, 2012). It is very effective as it provide higher satisfaction and motivation to all the employees. It also provides employees with recognition for their work efforts. Appraisal data can be used to monitor the success of the organization's recruitment and induction practices. In addition to this, employees and manager can directly communicate with each other in order to improve their services (White and, 2003). With the proper evaluation of the work and performance appraisal company can provide a perfect opportunity to all their staff members to address the long term goals. With planning, monitoring and reviewing the employees work objectives and overall work contribution to the organization they can go through the presentation of employees. Further companies can ensure that employees are meeting their objectives and career goals. It helps the business in achieving higher success as well as gaining higher market share. An effective performance management system will align the organizations direction and culture. It also includes a collaborative process for setting goals and reviewing performance based on two way communications between employer and manager. It is much more effective for the company as it provide clear picture for the employee's performance (Bedford and Malmi, 2009). In addition this company can easily measure the performance of all its employees through which they can assess the pre-defined goals. Effectiveness of performance management system can be measured by the performance appraisal and it may not eliminate behavior and work quality problems.


The section helps in determining list of methods and techniques that are applicable in research into consideration. It forms the basis of research work since it helps in efficient collection of data and its analysis (Goddard and Melville, 2004). It is through section of research methodology that techniques applicable in conducting of research are identified. It generates a structure according to which research work is conducted.

Research design

It is through research design that one can identify manner in which research can be conducted efficiently. The research into consideration can be either based on exploratory, experimental or descriptive design (Bryman and Bell, 2003). In present case since the information related to NSL services in context of performance management system needs to be evaluated; descriptive design is suitable for the purpose of analysis. It is through descriptive design that all aspects related to field of study will be evaluated and analyzed deeply.

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Research approach

The research can be based on either inductive or deductive approach which can be decided on the basis of applicability of outcomes. Deductive approach emphasizes on application of general rules and principles developed in the form of outcomes to specific event or activity. On contrary, inductive approach focuses on application of results developed for specific organization on a broader level. In the research into consideration case for NSL services needs to be analyzed; outcomes developed thereafter can be applied to wider level. This indicates that research is based on inductive approach. The outcomes generated can be applied to national level and for economies across various continents.

Research philosophy

Each of the research work is supported by way of analysis of data collected for purpose of analysis. The data collection techniques employed by researcher are based on research philosophy that is either interpretivism or positivism. According to positivism philosophy information can be extracted through application of mathematical and scientific models. On other hand, research based on interpretivism philosophy emphasizes on application of qualitative techniques (Patton, 2002). The present study since does not involve application of scientific techniques in collection of data; therefore is based on interpretivism philosophy.

Research type

The researcher selects to opt for either qualitative or quantitative research work. The qualitative type of research is based on information that is related to human perceptions and believes. Moreover, it involves adoption of qualitative methods for the purpose of data analysis. Quantitative research on other hand is focuses employment of mathematical and statistical methods for data evaluation. The research into consideration will be conducted on the basis of descriptive design and interpretivism philosophy (Rice, 2007). This indicates that the study is qualitative in nature since it involves collection of data and its analysis through qualitative means.

Data collection methods

It is essential for researcher to accumulate all relevant information for conducting research efficiently. The research work into consideration will be supported by way of collection of both primary and secondary data. The information or data that is accumulated by way of published sources and materials is referred to as secondary data (Goddard and Melville, 2004). The same will be obtained from sources like journals, books, magazines, online articles, newspaper and other related material. Primary data on other hand tends to be collected for the first time to support research activity into consideration. In present case, primary data will be collected by way of conducting face to face interviews for HR managers and professionals of NSL services.

Sampling technique

Researcher efforts to complete research activity require collection of primary information that can be done by way of interview method. However, in order to conduct interview researcher needs to select sample of population. It is essential for researcher to select that truly replicates population at whole (Patton, 2002). The face-to-face interview of HR managers and other professionals in NSL services recommended to be conducted on sample of 6 individuals. It is through adoption of appropriate sampling technique that valid sample of population will be created. The researcher needs to adopt purposive sampling for selection of 6 individuals for sample of population. The purposive sampling will help in creation of sample that satisfies research requirements and its purpose in long run (Rice, 2007). Henceforth, in order to collect the relevant information the researcher should adopt purposive sampling technique.

Data Analysis

Research activity moves in a sequential step from identification of research problem to finding out of valid conclusions. Data analysis is one of the most important elements of research activity that directs researcher efforts towards possible solutions for issues into consideration. Moreover, evaluating data with competence is necessary for researcher for generating valid outcomes (Bryman and Bell, 2003). In present case, data will be evaluated with the help of thematic analysis that is a kind of qualitative techniques for research activity. The methodology suggests creation of range of themes based on field of study and evaluate all information according to themes.

Ethical consideration

  • Data will be collected and analyzed without any biasness.
  • Collected responses will be stored in a secured manner for safeguarding the interest of respondents.
  • Convenient sampling will not be engaged.
  • Secondary data will be collected from authentic source only.


Theme 1

Performance management system gives higher contribution in the success of organization.


From the above discussion it have been clearly entailed that PMS is one of the most important part of any company. It helps in providing quality services to all their customers. With the help of the interview of HR managers and professionals of NSL services it has been identified that they can easily achieve their target by giving high performance appraisal to all their employees. It helps them in effectively performing all their business operations and further they can monitor and measure the performance of all their employees. Respondents suggested that new technologies are not limited to the media and telecom industry bust also available to all sectors of the economy. Performance management system monitors and enhances the overall performance in order to ensure the success of the organization. It also involves different ways such as planning, coaching and appraisal of the employees.

Theme 2

Performance management system is very in measuring the performance of traffic wardens of NSL services.


An NSL service is striving hard to implement traffic policies efficiently within an economy. However, carelessness on part of employees and lack of involvement resulted in inability of the business unit to achieve its long term objectives. The strategy to implement performance management system proves to be successful in nature. It not only helps in measuring performance of traffic wardens but also provides strict control mechanism for them. The system resulted in diverting action of traffic wardens towards achievement of long term organization's goals. The employees tend to behave more responsibly and have clear understanding of their set of duties. High accountability in turn makes them responsible for each of the loophole that occurs in system. Performance management system also motivates them towards work with expectation of recognition and other benefits. Moreover, it is through the system that the organization is able to judge efficiency with which its employees are performing. The business unit can also measure performance of its employees through benchmarks set as per the system.

Theme 3

There are various latest Performance measuring tools that give higher contribution in the success of business.


It is evaluated from the interview that organizations are adopting different performance measuring tools in order to compete with each other. With the help of adopting different tools such KPIs, balance scorecard, business excellence model; performance appraisal etc. company can easily measure the level of their performance. It helps them in effectively perform all their tasks and achieving their goals. From the overall discussion, it has been determined that companies are using these tools through which they can easily complete the given tasks. It helps them in measuring their financial as well as non financial records.


From the analysis section, it have been concluded that companies can perform effectively with adopting various performance management tools. An effective system can provide higher benefits to the company and they can successfully manage all their business operations. It is also concluded that organizations can cover broad range of jobs in their company and they can further easily use the different tools of performance management system. In the present research, respondents of NSL services were asked about the effectiveness of using PMS system. With the overall responses it have been identified that PMS is good enough for the company in achieving higher performance. There are different models and tools of this system which firstly tested by organizations. In addition to this company can performance management mainly focuses on the employee contribution and continuous improvements and facilitates conversation between all the employees and managers. Effective communication between employee and manager can streamline, simplify and automate the overall management system of the company. It also improves the annual review by improving the communication between employees and managers. Various tools such as balance scorecard, performance appraisal, business excellence model can be used by organizations in order to confine their operational areas of business. Further, they can achieve their mission and target and increase their long term business strategy.


In order to gain effectiveness of performance management system, it is highly recommended to NSL services to adopt different performance measuring tools so that they can change their pattern. It is essential for them to improve their service pattern and they cannot impose fine on the customers. For this purpose, they need to change the overall performance management system of the company. Moreover, company will be able to produce satisfactory results by motivating their employees to improve their service pattern. In any industry it is essential to monitor the performance of employees. Nonetheless, company can monitor the performance of employees individually. They can further prioritize their business objectives and initiatives in order to achieve their goals. There is various internal process of the company which can be improved by incorporating different tools in the company. In order to measure the goal NSL services can use Key Performance Indicators. It is the critical success factor of the company to help the management team to achieve their business goals and objectives.


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