Examining the Managing of Employee Performance in Iceland

1. Release:

The main purpose of this assignment is showing how HR department of Iceland works to manage performance of its employees within the organisaion. The organisation that I have selected to plainly the outcomes of the assignment question is Iceland supermarket. It is the British supermarket string known because of its frozen foods range and 'clear chop' prices. Each one of the 660-plus Iceland stores in the united kingdom focuses on offering shoppers a wide range of iced foods such as frozen prepared dishes and frozen fruit and vegetables. Consumer durables such as freezers and refrigerators can be found in the supermarket's greater stores.

The first Iceland store was opened up for business in November 1970 by Malcolm Walker and his business lovers in Shropshire once they managed to increase Ј60 to cover one month's lease. After being fired using their day careers at Woolworths, the associates put almost all their efforts into growing the Iceland food retail business, and began by specialising in loose frozen food.

The main reason behind selecting this company is that I have a big chance to access the information and data of the organisation when i am working in this organisation since 2006. my personal experience and high probability of information gain access to encouraged me to choose this organisation.

2 Work Aims for Co-workers:

Performance Management is a cyclical process targeted at improving performance (eg: success of business goals). The objective of a work purpose is the clear communication of expected performance. The work goals should be clear, measurable, and time-tied. Hence, at Iceland following work objectives for co-workers can be discussed.

To raise the satisfaction degree of customer by 50% by the finish of 2010: this goal is made to improve the work co-workers skill and efficiency of work. This goal is targeted to achieve by giving training to the personnel, rewarding once and for all performance, providing some drive school etc.

To provide service fast, by 2 times of current velocity, and co-operative service, better than other vendors, to its customers at the Right up until: This is actually the target which Iceland needs to achieve to enhance the production of organisation and again raise the satisfaction level of its customers. This goals wants to lessen the waiting time of customers before served at till.

To fill the Shelf with products if the trunk stock is inside the warehouse as soon as possible or if not, try to face in the shelf so that it can look clean, tidy up and filled. This purpose is setup to make sure that customers will not believe that Iceland is running out of stock and they do not need to return without the products they looking for.

Reduce the number of complain by 15% from customers by the end of 2010: As client satisfaction is main concern at every business. The decrease in quantity of complains is directly proportional to increase in satisfaction of customers. So, to develop and be more competitive in the retailer industy, this company has installation this work purpose.

To make store clean (including till), maintain rotation of products while filling up products, and offer safe and sound environment for both inside as well as exterior customers.

3. 0. Evaluation of method found in Iceland to see colleagues to deliver the objectives:

These objectives which were installation in above activity need to be prepared to the colleagues clearly in order to obtain determination of them toward the targets. the company uses various sorts of method to carry out this process. Strong communication is employed to inform the target of team members. There is regular meeting with staffs including the department professionals. Different department (like iced section, FFPP, Grocery, wine & soul, Audio Club etc) has different ending up in their own staffs including department manager. On this meeting, manager aspect some reviews from the staffs following the meeting. this techniques are very effective for interacting goals and targets related to the sales concentrate on. In every two week there is certainly tool meeting with personal administrator and cashier's front series staffs and other floor staffs (i. e. sales helper) one by one (KC, 2001). Duty manager is accountable for forming plan for whole day which include all the activities to be completed during the day. This proper planning is distributed among all the day move employees every day but this technique is conducted under the name of warm-up treatment. All of the staffs are required to perform the allocated activities properly, based on the pre-plan. Notice mother board communication is taken care of in front of the Personal Manager's office so that every employee (no real matter what time they start their switch) will be kept up to date with all the media and plan that Iceland has formed. Information about everyday life plan, overview of employees (conducted in every 6 weeks), every week sales report, distance between plan and real performance, CSR of Iceland etc are displayed on the notice mother board. Expansion and development is submitted to the each employee by notice via post. Casual communication is very helpful tool that can be used by every professionals to get dedication from his office staffs toward the goals and targets of the organisation (Khadga, 2006).

3. 0 Monitoring.

It is nearly impossible move only in this competitive market and Monitoring is very essential component in the proper planning and execution process. It is vital because it provides a crucial feedback loops within the cyclical process of policy-making. It enriches the relevant information on the basis of performance and environment taking future reference indicating the key challenges and opportunities. Evaluation gives the ratio of achievements and usefulness of applied strategies which is also a kind of testing the machine.

It also really helps to identify and establish what is happening now, what may happen in the foreseeable future and then compare these tendencies against existing procedures and focuses on to know what needs to be achieved.

Evaluation and control information must be relevant to what's being monitored.

Evaluation and screen includes performance basis data and activity accounts.

The undesired result let operational administrator to correct the employee activities and also let to take into account the applied strategies. Then new strategy monitoring process is specified here below.

For every given task for staff, Iceland pieces best performance as standard for looking at it against real performance to evaluate if the working done by employees is good or not. Follwing is standard method for monitoring and analysis the employee performance (Shukla, 2001).

The meaning of responsibility, that what's to be checked and evaluated, which means going from broad to narrow examination.

Then establishing the relationship between activities to carry out and available resources to achieve the stated targets.

Then the formulated predetermined specifications will be compared with this.

Regular observation should carry out and marking the activities on performance basis and prepare a report.

When exact performance will be summarised then equate to standard.

Take an effort action to correct if necessary, which is called managing. (McGee et al, 2005)

Top managers and operational managers need to specify what implementation techniques and results will be monitored and assessed.

Once the goal and goals for work are installation by the company, it becomes important for it to monitor and evaluate the performance of the employees focusing on it. Managers may use different techniques to monitor and assess their staffs performance.

At Iceland, the task designated to the employees are supervised in one the the next ways.

CCTV camera is employed for monitoring the actions of the cashier's working at Till as well as the actions of sales assistants are checked under the CCTV if they are undertaking well or not.

The Article of till may be used to see the performance of the worker working at that Right up until. This record should be analysed after move end of every worker so that statement of individual cashier can be seen.

Looking at every week sales report of individual office, it can be read that if the staffs of particular office are under doing or not.

Finding the number of customers re-visiting the store again.

Studying the complain rates from the customers about the staffs service or products quality.

Benchmark or contrasting the company progress against similar kind of other company with the help of Cash and Hold.

Mystery check group to check the employees performance on to the floor by screening their abilities.

Once the monitoring is done, it's important to evaluate based on the monitored data. In the CCTV camera the staffs self-control, personality, attractiveness and his/her service quality to the clients can be identified and measured. Now performance of a specific staff can be determined by seeing sales statement of his/her section, complain rate at that section as well as the till article if the employee works that till. CCTV and Enigma check can be employed to find the accuracy of staff work while offering the clients. This can even be evaluated by finding at the complained rate against that employee. If there is no complain then well performance but if a great deal complain, then it is like employee's underperformance. The performance management is another tool that Iceland is using to judge the performance of the employee via Performance appraisal.

4 Looking at the relevant legislation and regulation

The entire organisation need to follow the business ethics and guideline while recruiting as well as while undertaking activities within the company. There should not be any sort of discrimination and difference between two employees of same level. All of the staffs working at same level supposed to have or given similar privileges to do things inside the organisation.

The similar Pay Take action of 1970: Under law both men an women have entitlement to equal pay. In addition to basic salary or pay pay is also regarded to add contractual benefits, such as pension contributions and add-ons. Under this law Iceland has installation constant pay for all employees working at same level.

The Race Relationships Action, 1996: under this act, it an offence to discriminate against a person on grounds of competition, nationality or cultural origin. This act is successfully integrated in the organisational culture of Iceland and for that reason all are cured equally and all value for other.

The Impairment Discrimination Act, 1995: The Disability Discrimination Function is a bit of legislation that promotes civil privileges for handicapped people and protects impaired folks from discrimination. That is why Iceland, create job opportunities for many human being and will not make any discrimination while recruiting and selecting applicants.

National Minimum Wage Take action, 1998: Since Apr 1999 all employees in the united kingdom have been eligible for a statutory national minimum wage ("NMW"). This includes all areas of the current economic climate, and all companies regardless of their size. This guide summarises the legislation (The Country wide Minimum Wage Take action 1998). The Iceland is follwing this Act and does not give any staff hourly pay significantly less than NMW placed by authority.

Working Time Directive, 1999: this act guarantees that each and every staff appointed as full time should be given 48 hours working time in a week as well as there should be a month paid holiday in every year. Its employee desire to work extra or not. Iceland provides fulltime staffs 37. 5 hours weekly and 20 hours for students weekly to work and also it offers 4 week paid holiday each year to each employee.

Employment Relation Take action, 1999: can be an Act of Parliament of the uk. It made significant amendments in UK labour rules to the Trade Union and Labour Relationships (Loan consolidation) Act 1992. Iceland is under this take action more popularly.

Performance and Reviews:

Evaluating the Quality system in a company: Ideally a business shouldn't only be able to fulfil consumer needs at reasonable prices but also to encourage their own suppliers of goods to improve their services. Iceland uses five primary performance objectives in every its procedures, they are: Quality, Rate, Dependability, Versatility, and Cost (Jordon, 1998). Hence, quality of Iceland can be observed with measuring following terms. :

Production- The service at Iceland are continuing to receive top setting in customer research. The development of good standard and safe food has helped in obtaining such a status. It has only aided in the success of the company (Ahmed, A. , 2003, Coursework).

Speed- the quickness of service at the till as well as at the ground is very good and customer when need to find some things, sales associate takes those to the precise place where the stuff is placed. This makes best customer service at Iceland.

Dependability- Identifies being reliable and delivering products and services to the clients at the exact time agreed. That is achieved by Iceland through the use of the Just in time system, along with highly skilled and trained team of employees.

(Peters, T. , 1998) Overall flexibility- Iceland can manipulate its processing resources, it can create new foods varieties (either its production or other companies product) for the consumers to choose from. They often times produce these in small quantities which does not have any negative effect on the overall production process or food quality. It has ben applied by the company for quite some time now.

Cost- Generally speaking, consumers are seeking for products of good deal, which is come to by minimizing the price tag on development and Iceland is know for its cost minimization now.

Colleagues' improvement

From the above performance audit for the employees, it could be noticed that recruitment and selection technique, motivating factors, and training to the employees are lacking form management part staffs i. e. staffs of Personal or HR team. Here, the management needs to be very aware of these deficiencies as these has important role in improving performance of organisational employees. hence at the management or administrative level, pursuing things should be improved

Strategies for employees selection,

Technique for training & development and

Ways for motivating the employees

Similarly, it can also be discovered from above performance audit, the shop floor employees or staffs lack in work determination which is very serious concern that must definitely be dealt soon as no goal and aims can be obtained unless the staffs are committed toward it. People are not committed that is why, they are not paying attention toward increasing their knowledge base about product place and availableness. In Iceland, when any customer comes to sales assistant for help about product place or information, then sales assistant feel worried and goes by that customer to the supervisor or director. Staffs here aren't ready to learn, go and help customer and know the merchandise information for future. This can also be considered weakness of management level which are not able to stimulate them and teach them properly to be equipped for it.

Hence these things is seen very important to be increased in Iceland.

Feedback on the performance to the fellow workers.

From the above analysis, following will be the feedback or advice to the acquaintances because of their performance improvement.

Personal or Real human resource department must see the recruitment, selection and development program very really. They should carry out all these key activities of HR very effectively so that quality recruiting can be welcomed in the Iceland. After carrying out this staffs performance at HR division can be improved clearly.

Staffs working at Till should work fast and successfully alone with nice co-operation and greeting to each customer. This way more customer can be drawn by well performance of staffs at Till.

Staffs at shop floor should be motivated to work in team plus they also should be well focused on enjoy the job and perform their job obligations well. The colleagues should also committed to work in team.

Sales associate should take customer to the place where the product is located in the store if the customer is requesting assist in that. This activity can enhance the merchandise knowledge and self-assurance. This is important characteristic for campaign.

Monitoring via CCTV should be taken seriously to evaluate the performance and present reward or advertising as this will be exhibiting real picture of work activities of each employees. It should not be simply for assembly as it is now.

Other techniques for coping with underperformance where appropriate.

There are a lot of ways managers handle under doing employees. Below are a few suggestions of what to do to the underperforming staffs at Iceland.

Deal the situation immediately. The longer one let them go, the harder it will become to deal with. This also lessens the effect on morale.

Fully examine what is going on with the staff. Sit down and talk to them about their performance. Do they want more training or retraining? Is there exterior factors in their life that may be causing the issue? Be sure you know what the condition is before you try to craft a solution. You may have a precious stone in the hard, or you might only need a duck.

Does the employee know what is expected of them? Make sure to communicate targets even to the idea of putting it in writing what's expected of the staff. It makes sure the employee knows what's expected of them and gives One written documentation should One need to go to dismissal.

Keep a performance log on each worker and record everything. The good and the bad. It gives One an in depth chronological log of the problems and how One have resolved them. HR needs records and it helps protect One should issues occur at or after dismissal.

Follow-up often, at least every two weeks with the worker as One work one's way through intensifying discipline. Make sure each time that they are fully alert to what the issues are and what the results are. Doc each conference in the personal log.

During one's follow-up meetings ask the staff for alternatives. Often employees are unwilling to discuss the true nature of what's creating their performance problem. For instance it may be that another employee is the foundation with their issues.

Follow one's HR office insurance policies and use intensifying willpower. If all efforts are unsuccessful, terminate the staff. If I were in their shoes it could only take one meeting for me to correct the situation. If One have had numerous meetings, made the employee fully aware of the issues and the results and they still do not change things around, terminate. It really is never satisfying, but One must do what's best for the company, oneself and the worker.


Hence, after doing this assignment, I've become familiar with the one important activity of the HRM called performance management. It has been discovered that performance management activities used at Iceland is well organised but nonetheless canbe increased in so many industries like performance appraisal system at Iceland is not so effective as they both appraise and appraiser both don't have understand the value of performance appraisal.

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