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week 5resdis

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Please response to the 2 peer response: Review, Cite two academic/scholarly sources and the course text.

1A

Walmart’s performance management system fulfills a variety of important purposes, including identifying training and development requirements, boosting productivity, identifying top performers for succession planning, and coordinating employee performance with organizational goals (MindTap, 2025). Walmart, one of the biggest employers in the world, needs a well-organized system that encourages employees and encourages ongoing development.

Walmart’s has different strengths and weaknesses in relation to traits, behaviors, and outcomes measurement for the company outcomes. Walmart may find that traits-based measurement such as dependability and attitude helps evaluate long-term potential and cultural fit, but it is subjective by design and not necessarily supported by the law (Moran, 2018). Although behavior-based assessment enables actionable feedback and is consistent with Walmart’s focus on service, it may miss results if actions don’t provide the intended company consequences (The Top 5). While outcome-based measurement like sales goals and inventory accuracy gives measurable outcomes related to Walmart’s company strategy, it can also result in unhealthy competitiveness or disregard for compliance and teamwork (RethinkFirst, 2022).

“Graphic rating scales are one of the most widely used assessment and feedback devices…they involve a scale that gives the evaluator the performance measures for traits, behaviors, or results (MindTap, 2025)” This approach is affordable and simple to use, particularly for Walmart’s many employees. It enables managers to swiftly assess several aspects of performance. But it lacks thorough feedback, is prone to bias, and might not accurately represent the impact on the job (Jay, 2021). Management by objective, is the….“process involves having the employee meet with his or her immediate supervisor prior to the time period for which performance is to be assessed. The two parties jointly agree on the employee’s work objectives for the forthcoming time period (MindTap, 2025).” By including employees in goal setting, this method increases motivation and aligns employee goals with business strategy (Hayes, 2024). MBO enables personal accountability and offers a strong sense of direction. It can take a lot of time, though, and if objectives aren’t clear or quantifiable, it may result in misunderstandings or efforts that aren’t in line.

Management by objective is likely the best strategic fit for Walmart’s management-level roles because it places a strong emphasis on responsibility and goal alignment with company strategy (Thompson, 2024). At the hourly employee level, when uniformity and usability are essential, graphic rating systems may continue to be useful. The system can be improved by combining the two approaches, MBO promotes leadership performance, and graphic scales ensure uniformity and efficiency by streamlining assessments across stores (Thompson, 2024).

References: 

Hayes, A. (2024, June 14). Management by Objectives (MBO) Definition. Retrieved from Investopedia website:

(2022, July 15). Outcome Measures: The Pros, The Cons and The Solution. Retrieved April 11, 2025, from RethinkFirst website:

Jay, S. (2021, September 5). Graphic Rating Scale: Pros, Cons, Examples, and Best Practices. Retrieved from AIHR website: 


MindTap – Cengage Learning. (2025). Retrieved April 10, 2025, from Cengage.com website:

Moran, B. (2018, October 24). Pros and Cons to Personality Assessments. Retrieved from www.nnsc.org website:

The Top 5: Pros and Cons to Behavioral Assessments – Copier Careers. (n.d.). Retrieved from website: employers/hiring/the-top-5-pros-and-cons-to-interview-behavioral-assessments/

Thompson, A. (2024, June 4). Walmart’s HRM: Training, Performance Management. Retrieved from Panmore Institute website:

2B

The purpose of performance management systems is to provide an organization with data collected on an employee to facilitate their development progress within the organization (Mello, 2019). The evaluation of the individual or team permits the organization to identify the weakness and strengths, which can be utilized to establish a development plan that meets the organization’s objectives. Another major purpose for the use of performance management systems is to utilize the data collected to determine what will be the appropriate compensation, promotion, or bonus for each employee (Mello, 2019).  

Performance management can also be utilized to motivate the employees and teams to enhance their performance for the recognition and compensation benefits. That is the result of employees meeting or exceeding the expectations of the organization’s metrics and expectations in performance. This is a major strengthen with the implementation of performance systems, as employees are highly motivated by recognition, promotion, and compensation. Another strength is that the performance data gathered in these performance management systems provides HR with more information to facilitate its planning process.  

There are some identified weaknesses in performance management systems, which can limit the employee’s succession and development. It is nearly impossible to list all an employee’s achievements at times, as too much data can lead to more significant information about the employee’s performance being left out of the evaluation. Another weakness identified in performance management systems is the halo effect, in which one positive or negative trait influences other performance measurements. Which is the residuum of a bias or stereotype of the employee based on characteristics instead of their performance (Mello, 2019).  

The multirater system also known as 360-degree feedback system is a method of evaluation, which gives employees the opportunity to receive multiple perspectives and insights of their performance (Mello, 2019). This has become a popular evaluation method among many organizations, such as Walmart that are in a fast-paced business environment. Walmart has implemented the 360-degree feedback system, as a performance evaluation system to gather feedback from employees at all levels (Pisco-Smart, 2024). By utilizing this evaluation method Walmart has been able to influence more employees to engage in performance evaluations. This evaluation method has made it feasible for Walmart to make data-driven decisions to address any identified operational inefficiencies (Pisco-Smart, 2024). Additionally, this evaluation approach has also helped Walmart foster an inclusive culture by being more transparent across the organization, which also increases employee morale.  

The traditional form of performance evaluation is performed by the employee’s direct leader, which can have some deficiencies due to the limited interaction and observation opportunity of the employee’s day to day performance (Mello, 2019). Walmart uses both direct and indirect methods of evaluations to ensure that each employees’ performance fits their current job and the organization culture (Thompson, 2024).  Walmart used the direct method of evaluation by gathering data on the employee’s perception of the company and level performance in their current jobs (Thompson, 2024). Walmart utilizes the direct method of evaluation mostly in its retail stores, in which the direct leaders evaluate the performance of their employees. Walmart’s HR implements the indirect evaluation method to determine if the overall person-organization fits throughout the global organization (Thompson, 2024). 

 

References:

Mello, J. (2019). Strategic Human Resource Managment (5th ed.). Cengage Learning Inc. Mindtap. 

Thompson, A. (2024, June 5). Walmart’s HRM: Compensation, Career Development. Business Management. Panmore Institute. Retrieved from; 


 

Pisco-Smart Editorial Team. (2024, August 28). How can 360 degree evaluations enhance decisionmaking and leadership skills amount executives? Vorecol. Retrieved from; 


 

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