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HRM2604 Assignment 5 Semester 2 2024 I Due 29 October 2024

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HRM2604
ASSIGNMENT 5 SEMESTER 2 2024
DUE DATE: 29 OCTOBER 2024

QUESTION 1: Which of the three main approaches to measuring performance would be
most suitable for Oliver’s job? Provide a reason for your answer with reference to the
scenario. (4)
The most suitable approach for measuring Oliver's performance is the results-based method. This
approach assesses employees based on their outcomes, such as the achievement of sales targets
(Dessler, 2020). In Oliver's situation at Red Arrow, performance measurement is clearly centered
around the number of properties sold, with the top salesperson being determined by annual sales
figures. Given that Red Arrow operates on a commission basis, Oliver's success is directly linked
to his sales capabilities. Therefore, evaluating his performance based on the results he generates
makes the results-based approach the most fitting.

QUESTION 2: Briefly explain how the approach you suggested in question 1 is generally
applied to measure employee performance. (4)
The results-based approach evaluates performance by establishing specific goals or targets for
employees and measuring their success in meeting these objectives (Aguinis, 2019).

This approach typically includes several key steps.

1. Goal-Setting: Employees are assigned clear and measurable targets that align with the
organization’s strategic objectives.
2. Ongoing Monitoring: Employee performance is continuously tracked to ensure progress
towards the established goals.
3. Evaluation: At the conclusion of the performance period, the actual results are compared
to the predetermined goals to assess performance.
In Oliver's case, his performance would be monitored based on his sales figures, and at
year-end, his results would be evaluated against the targets set with Felicity.

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