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Performance Management System
Jun 2025 Examination
Q1. Performance Management at NexonTech
NexonTech, a mid-sized IT solutions firm, has been facing challenges with its performance management system. The company recently hired Aditi as the new HR Director to revamp its approach to performance management and align it with the organization’s strategic goals.
During her initial assessment, Aditi realized that employees were unclear about their performance expectations, leading to inconsistent appraisals and dissatisfaction. Managers conducted performance reviews without a structured performance planning process, causing gaps between individual contributions and the company’s long-term objectives.
To address this, Aditi proposed a structured Performance Planning framework where employees set clear, measurable goals in alignment with NexonTech’s strategic vision. She also introduced regular check-ins and feedback loops to ensure continuous performance tracking.
However, as she rolled out the new system, ethical concerns emerged. Some employees feared that performance ratings could be manipulated to favor certain individuals, while others questioned if the evaluation metrics were truly objective. Aditi had to ensure fairness, transparency, and ethical integrity in the system to maintain employee trust and motivation.
As NexonTech moves forward, Aditi must balance individual growth with organizational priorities, ensuring that employees see how their contributions directly impact the company’s success.
Question: – How does performance planning serve as a precursor to effective performance management systems in organizations? (10 Marks)
Ans 1.
Introduction
Performance planning is the foundational phase of a performance management system that sets the tone for all subsequent performance-related activities in an organization. In companies like NexonTech, where performance expectations were unclear and appraisals inconsistent, the absence of structured planning can lead to employee dissatisfaction, reduced morale, and misalignment with strategic goals. Performance planning provides a roadmap for employees and managers by establishing clear, measurable objectives aligned with organizational vision. It sets performance expectations, defines responsibilities, and outlines development paths
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Q2. Performance Management at NexonTech
NexonTech, a mid-sized IT solutions firm, has been facing challenges with its performance management system. The company recently hired Aditi as the new HR Director to revamp its approach to performance management and align it with the organization’s strategic goals.
During her initial assessment, Aditi realized that employees were unclear about their performance expectations, leading to inconsistent appraisals and dissatisfaction. Managers conducted performance reviews without a structured performance planning process, causing gaps between individual contributions and the company’s long-term objectives.
To address this, Aditi proposed a structured Performance Planning framework where employees set clear, measurable goals in alignment with NexonTech’s strategic vision. She also introduced regular check-ins and feedback loops to ensure continuous performance tracking.
However, as she rolled out the new system, ethical concerns emerged. Some employees feared that performance ratings could be manipulated to favor certain individuals, while others questioned if the evaluation metrics were truly objective. Aditi had to ensure fairness, transparency, and ethical integrity in the system to maintain employee trust and motivation.
As NexonTech moves forward, Aditi must balance individual growth with organizational priorities, ensuring that employees see how their contributions directly impact the company’s success.
Question: – Analyze the ethical considerations involved in performance management and how they impact organizational practices. (10 Marks)
Ans 2.
Introduction
Performance management is a vital process that influences employee motivation, development, and alignment with organizational goals. However, if not handled ethically, it can lead to distrust, disengagement, and conflict. At NexonTech, the introduction of a structured performance planning system by Aditi brought to light certain ethical challenges, including concerns over favoritism, bias in evaluations, and the objectivity of performance metrics. Ethical considerations in performance management revolve around fairness, transparency, consistency, and respect for
Q3 (A) Performance Management at NexonTech
NexonTech, a mid-sized IT solutions firm, has been facing challenges with its performance management system. The company recently hired Aditi as the new HR Director to revamp its approach to performance management and align it with the organization’s strategic goals.
During her initial assessment, Aditi realized that employees were unclear about their performance expectations, leading to inconsistent appraisals and dissatisfaction. Managers conducted performance reviews without a structured performance planning process, causing gaps between individual contributions and the company’s long-term objectives.
To address this, Aditi proposed a structured Performance Planning framework where employees set clear, measurable goals in alignment with NexonTech’s strategic vision. She also introduced regular check-ins and feedback loops to ensure continuous performance tracking.
However, as she rolled out the new system, ethical concerns emerged. Some employees feared that performance ratings could be manipulated to favor certain individuals, while others questioned if the evaluation metrics were truly objective. Aditi had to ensure fairness, transparency, and ethical integrity in the system to maintain employee trust and motivation.
As NexonTech moves forward, Aditi must balance individual growth with organizational priorities, ensuring that employees see how their contributions directly impact the company’s success.
Question:-Evaluate the importance of aligning individual performance with organizational strategic goals. (5 Marks)
Ans 3a.
Introduction
Alignment between individual performance and organizational strategic goals is essential for sustainable business success. When employees understand how their efforts contribute to broader objectives, it fosters accountability, clarity, and motivation. At NexonTech, the lack of such alignment led to appraisal inconsistencies and dissatisfaction. Aditi’s decision to implement goal-setting and planning is crucial for closing this gap. Aligning employee performance ensures that each action supports the strategic direction of the company, enhancing both individual
Q3 (B) Performance Management at NexonTech
NexonTech, a mid-sized IT solutions firm, has been facing challenges with its performance management system. The company recently hired Aditi as the new HR Director to revamp its approach to performance management and align it with the organization’s strategic goals.
During her initial assessment, Aditi realized that employees were unclear about their performance expectations, leading to inconsistent appraisals and dissatisfaction. Managers conducted performance reviews without a structured performance planning process, causing gaps between individual contributions and the company’s long-term objectives.
To address this, Aditi proposed a structured Performance Planning framework where employees set clear, measurable goals in alignment with NexonTech’s strategic vision. She also introduced regular check-ins and feedback loops to ensure continuous performance tracking.
However, as she rolled out the new system, ethical concerns emerged. Some employees feared that performance ratings could be manipulated to favor certain individuals, while others questioned if the evaluation metrics were truly objective. Aditi had to ensure fairness, transparency, and ethical integrity in the system to maintain employee trust and motivation.
As NexonTech moves forward, Aditi must balance individual growth with organizational priorities, ensuring that employees see how their contributions directly impact the company’s success.
Question: – Discuss the role of technology in enhancing the effectiveness of Performance Management Systems (PMS). (5 Marks)
Ans 3b.
Introduction
Technology has become a crucial enabler in modernizing and optimizing performance management systems. At NexonTech, where performance planning was previously informal and inconsistent, integrating digital tools can streamline appraisals, feedback, and goal tracking. With the rise of HR analytics, cloud platforms, and AI-powered insights, technology offers transparency, scalability, and objectivity to PMS. By automating routine tasks and enabling real-time monitoring, organizations can ensure fairness, improve efficiency, and align employee