Performance Management System

Contents
1.Introduction ............................................................................................................ 1 2.Overview of the Branch........................................................................................... 2 3.The Companys Performance Management System ...............................................8 4.Suggested solutions to improve the Performance Management System...............19 5. Conclusion............................................................................................................ 22

Topic:
Analysis about Performance Management System in Transport warehousing and Trade service Joint Stock Company, Haiphong Branch II 1. Introduction
Human Resource Management (HRM) has traditionally been considered as a necessary expense rather than a source of value to their company. However, it is proved that HRM practices might be valuable. Obviously, provided companies would like to improve its competiveness, for instance by investing in new technology, they also need to invest their training, staffing For several days going and visiting for practice at Administrative Accounting Department, THE TRANSPORT WAREHOUSING AND TRADE SERVICE JOINT STOCK COMPANY HAI PHONG BRANCH II , I have concluded that Human Resource might be much more valuable, if you know the way to utility this source. In order to use effectively Human Resource, managers should be aware of the position of Human Resource, and its pros and cons. As a result, I decided to choose a topic called Analysis about Performance

Management System in Transport warehousing and Trade service Joint Stock Company, Haiphong Branch II.

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This dissertation aims to reveal the impact of current Performance Management System (PMS) on the Branch. Subsequently, this also gives certain recommendation to improve the system. In the first part, I am going to have a consistent and comprehensive picture of the Branch with its Human Resource Management. Afterwards, I am giving a description of the process of the Branchs PMS. In this part, I am also pointing out challenges managers might deal with, the systems strength and weakness. Finally, certain solutions for managers to improve PMS are being shown. With these studies, my dissertation probably provides an insight in PMS to facilitate managers monitor their employees better and use this source more effective.

2. Overview of the Branch

2.1 Features of the Branch

2.1.1 General information

COMPANYS OFFICIAL NAME

Vietnamese name:
CHI NHNH CNG TY C PHN KHO VN V THNG MI DCH V HI PHNG II

English name: THE TRANSPORT WAREHOUSING AND TRADE SERVICE JOINT STOCK COMPANY HAI PHONG BRANCH II Abbreviation: VINATRANCOHP
CONTACT ADDRESS

Head office of enterprise: 52 Tran Khanh Du. Str May To Ngo Quyen Hai Phong Telephone: (84-31) 836625 Nguyen Thi Minh Trang HQ FBA 2 Fax: (84-31) 836168

Performance Management System

Email: vinatrancohp@hp.vnn.vn Registration number: 0213001689

VINATRANCO

TO AIM AT THE TARGETS:

The best quality The most reliable services The most competitive price The fastest delivery

2.1.2 BRIEF ABOUT THE BRANCH S FOUNDATION & DEVELOPMENT

The Transport warehousing and Trade service Joint Stock Company (VINATRACO) was The Vietnam National Trade Transport Warehousing & Service Company formerly, which is a state owned company belonged to Ministry of Trade since 1981. Company has branches and joint ventures with overseas partners throughout Hanoi, Hai Phong, Ho Chi Minh City. The Transport warehousing and Trade service Joint Stock Company Hai Phong II Branch (VINATRANCOHP) was found by merging Warehousing transport & delivery Company and Merchandise delivery & Transport Company, which both used to be belonged to Transport warehousing Company. The function was to receive and storage not only imports goods but also ones produced in Haiphong. In 1986, the Branch was transferred to Transport warehousing Company I, and took responsibilities of warehousing trade, transport agent. As Transport warehousing Company was re-organized in 1995, Transport warehousing Company I was also changed to The Transport warehousing and trade service Corporation Hai Phong II Branch.

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On 10thFeb, 2004, Minister of Trade enforced Decision No 013/Q BTM allowing the Company to capitalize. Subsequently, the company has formally become The Transport warehousing and Trade service Joint Stock Company Hai Phong II Branch since August, 2005.
2.1.3 SPECIAL FEATURES RELATING TO EMPLOYEES PERFORMANCE MANAGEMENT

THE INFLUENCE OF PERFORMING AS A BRANCH In terms of Performance Management, Vinatracohp has to, according to the charter of the Company, follow certain below regulations and rules: o The Branch have the right of setting up an own PMS, which is suitable for the Branchs situation, on the agreement of the Company, particularly the Chairman. o Whenever having a decision relating to Performance Management, for instance providing rewards to excellent performers, the Branch has to report to the Company and wait for the approval. o The function of the Branch includes in observing and identifying qualified employees. These might be potential human resource of the Company in the future, which partly play a vital role in its success.

SMALL NUMBER OF EMPLOYEES In fact, there are only 18 permanent employees working for the Branch. Thanks to a litter number, it is easier for raters to observe employees and give appropriate feedback. On the other hand, the workers in a Branch are a critical resource that can make the difference between the success and failure of the business. Therefore, just one person driving away customer can significantly affect on the operation of Vinatracohp.

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Moreover, due to this small number, certain people have to perform simultaneously two or even more tasks; this might be challenge for gaining an accurate performance measuring. Besides, a minor change in Human Resource can lead to a considerable influence on all employees. As a result, establishing an effective PMS is more important and necessary. 2.2 Scope of activities Domestic and global freight forwarding by air, sea, road, rail and multi modal transport together with related business such as: customs brokers, warehousing, packing, marking, stevedore, cargo distribution and consolidation, stuffing and unstuffy at CFS CY, shipping and prompting agents, charterers, port services Trading and directly import export lubricants, grease, petroleum, rubber processing oil, chemicals substances Vinatranco has been senior and prestigious distributor of ExxonMobil Vietnam since 1995 Trading and import export steels and irons, natural and synthetic rubbers, materials motor spare part & Tires; office equipments and consumers goods. Doing Join venture, investment co-operation in manufacturing exporting goods. 2.3 General Organizational Structure Administrative organization is basically divided into 2 main levels

LEVEL 1: DIRECTOR, DEPUTING DIRECTOR LEVEL 2: DEPARTMENTS , STORES

The following graph shows the Branchs Administrative System:

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Functions of each subject:

DIRECTOR: He is the leader of the Branch, appointed under the approval of Board of

Management. He is also Vinatrancohps legal representative, and a person taking responsibilities to the Company and Board of Management about all the Branchs day-to-day operating activities

DEPUTING DIRECTOR He is appointed by the Director through the approval of Chairman of the

Company. The Director assigns tasks and duties to the Deputing Director within the Directors authority on an oriented basis. On the presence of the Director, the Deputing Director is the person making decision, directly monitoring, examining operating activities in his own responsibility.

MANAGER He or she is appointed by the Director through the approval of Chairman of

the Company. They mainly support the Director certain task relating to tasks on professional.

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SALES BUSINESS DEPARTMENT Members belonging to this Department make a business strategy and

directly do transport warehousing and trade service.

ADMINISTRATIVE ACCOUNTING DEPARTMENT Members belonging to Accounting Division perform financial tasks, and

give recommend about the Branchs economical situation. Function of Administrative Division is going to be discussed deeply in the next part. 2.4 Function of Administrative Division Generally, Administrative Division has several obligations regarding to Human Resource Management.

PERSONNEL o To make workforce planning, recruitment and selection o To manage employees performance and set up salary system o To provide employees benefit and awards o To perform others personnel activities

OFFICE ADMINISTRATION

STATIONERY SUPPLIES

o To buy and provide promptly stationery supplies to departments

REWARDING

o To think over and make a plan of rewarding to contributors in the Branch o To identify people making mistake that affects seriously on the revenue of the Branch and give them appropriate punishment
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TRAINING

o To establish a training session for new members o To identify unqualified employees and encourage them to enter a training course o To facilitate good performers to study deeply

3. The Companys Performance Management System

3.1 The process of Employees Performance Management Clearly, effective performance management can tell top employees that they are

valued, increase communication between managers and employees, set up a uniform standards for evaluating employees. To meet these goals, there are several activities, which are separating into 3 main stages as the below chart.

3.1.1 Identification

The first step in the process is identification. In general, managers or member of Human Resource Department, in almost companies, determine what areas of work

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should be examined when measuring performance. Ideally, an effective PMS is surely tied to the organizations strategy, goals and culture. Because of getting this point, the Director decided to take into account identification stage. Hed like to set up a measurement system facilitating him accurately allocate raises based on performance. In his view, provided this system works, all employees will be motivated and go the best to gain higher salaries. In a meeting, he and certain members from Administrative Department started generating dimensions of performance. After a careful discuss, some following suggestions was listed and ready for setting up a PMS.

QUALITY OF WORK DONE All members realized that the first and most important variable is the quality of work. The question to be answered is: "Did the employee meet the job performance requirements set out for them over the appraisal period?" This is not question about how, or when they did what was required but what they did. Clearly, one employee gaining a high-value contract is deserved to being more appreciated rather than others.

QUANTITY OF WORK DONE The second variable is the quantity of work produced. This variable discriminates between two employees who do equally good quality work, achieving their job performance requirements, but have different levels of output. According to several managers observations, it was proved that a number of employees had had too much day-offs, compared to others. Transparently, it is in need for having an active motivation encouraging employees to work harder. As a result, measuring employees performance has been based on the quantity of work performed.

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COMPLEXITY OF WORK DONE An issue related to how tough to solve a work was also concerned. Unsurprisingly, different job roles require people to operate at different levels of complexity in order to achieve results. The complexity in any task lies not in the goal but in what you have to do to get there.

3.1.2 Measuring Performance

Although the performance dimensions had been listed, it was still important to qualify them. This stage clarifies the way to measure employees performance. In the past, the Branch used to some methods, kind of making comparison, but they did not work. As a result, new approach would be applied to replace ineffective ones. In the end, the Director decided to assess the results achieved by total sales. Obviously, provided the company get more done with a smaller amount of resources, either money or people, its revenue will increase. An experienced member from Administrative Department set up a system for tracking these measures and enhancing for feedbacks. There are certain features describing the system: Firstly, employees are divided into 3 main groups based on their task, exactly the complexity of their work performed. GROUP1: People directly trading lubricants, grease, petroleum, rubber processing oil, chemicals substances GROUP 2: People related to freight forwarding GROUP 3: People doing management Besides, depending on job analysis of each group, standards suiting to them were listed. This method helps managers avoid considering a qualified employee lower

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his actual ability due to the difference of the hard to making money between dissimilar jobs. Remarkably, in a formal document called Quy ch tr lng v phn phi thu nhp, a basic description about assessing employees performance is clearly given. According to this document, the performance of staff is coded into specific letters. In particular, people belonging to the two first groups might be ranked one of 11 levels; whereas, assessment for the last group is only divided into 4 levels, namely A, B, C, D (See Appendix A). The document also clarifies description about ranking appropriate levels. The below table is quoted from the document, specifically it describe how to rank members belonging to Group 3.
+ i tng: Cn b qun l, nhn vin chuyn mn nghip v phc v Loi A (K = 1,0): m bo ngy cng, hon thnh tt chc trch nhim v, chp hnh tt ni quy, quy ch ca n v, c thc trnh nhim, on kt tt Loi B (K = 0,9): Hon thnh chc trch nhim v, chp hnh ni quy, quy ch ca n v, ngh vic ring n 03 ngy hoc i mun v sm n 30 pht (khng l do) t 3-5 ln /thng hoc trong cng vic c nhm ln sai st nh song cha xy ra tn tht vt cht tin vn. Loi C (K = 0,8): Hon thnh chc trch nhim v mc thp hoc vi phm ni quy, quy ch hoc ngh vic ring n 04 ngy hoc ngh m 5- 6 ngy hoc i mun v sm n 30 pht (khng l do) t 6 7 ln/thng Loi D (K = 0,7): thc trch nhim yu, vi phm ni quy, quy ch hoc ngh t do 01 ngy hoc ngh vic ring trn 04 ngy hoc ngh m trn 6 ngy hoc i mun v sm n 30 pht (khng l do) t 8 ln tr ln/thng hoc sai st, nhm ln, tn tht trong khi thc hin cng vic

According to the table, when assessing an employee belonging to Group 3, the most vital dimension is how effective he works done. In other words, managers think over whether there are mistakes or not. Subsequently, the quantity of actual working day is considered.
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For members being in the two others, due to the link with doing business, the quality of work done is measured first by the revenue he gained to the Branch. In addition, figures for each employees actual working day are mentioned as well. In normal, on 30th day each month, a fixed member from Administrative Division collects the figure for employees revenue from Accounting Division and managers observation about the behavior of employees. He scores the others based on Quy ch tr lng v phn phi thu nhp. For instance, during June, 2012, an employee working for transport agent department achieved 77.000.000 VND of revenue and did not violate any rules and regulations of the company. On 30thJune, a rater realizes that the employee belongs to Group 2. After that, he uses standards in this area to score his performance. According to the defined requirement, managers might rank him A2 (See Appendix A). There are also, in each group, a few exceptions concerning about the first time performing task or doing a special situation. This may encourage staff to try their best to gain more revenue for the Branch.
3.1.3 Managing performance

The primary goal of any appraisal system is performance management. To manage and improve their employees performance, managers must explore the causes of performance problems and give feedback to the employees. It helps them to know that whether they are doing the right thing or doing the thing right. After receiving a useful feedback, the employees might get round to planning how to correct these shortcoming. Apart from regular meetings called Giao ban in every Monday morning, there are always 2 formal appraisal interviews per year, where managers play simultaneously coach and judge role. In these meeting, the performance feedback as well as some helpful advices about how to improve their performance is clearly given and analyzed. Afterwards, their salaries are also informed. Moreover, the leader also
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announces their ranking, salaries and rewards to improve employees perceive about their direct benefits relating to the productivity. Any disagreement between employees and managers is discussed, during this session. Furthermore, plenty of informal day-to-day interactions between managers and workers are popular. Consequently, when making a mistake, the staff might immediately be reminded and adjust their work. In addition, the company has relatively concerned about rewards for people have significant contributions to the companys mission. The regulations also cover a variety of contributions that can be rewarded, from suggestions to group accomplishments. At the end of each year, Board of Management takes place a meeting and informs a list of good performers coming from different Branches. Afterwards, their salaries also go up, based on the list. This regulation, surely, becomes a vital motivation of employees and partly, increases the companys revenue. There are, but once in a while, time off, and many nonmonetary items. 3.2 Source of information Regardless of which method managers use to manage performance, issue

involving in who will collect and analyze the performance information. A qualified person is required to have a deep understanding of the job requirements and/or the opportunity to see the employees doing the job. In the Branch, the most popular source of performance information is the employees managers as they possess the basic qualification for this responsibility. It is assumed that managers is likely people have not only an extensive knowledge of the job requirements but also chance of observing their employees. Apart from internal source, customers assessment is one main source of information, too. They are often the only people who directly observe the service performance, so using customers feedback probably supports the organizations

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performance management. The Director, managers regularly invites customers to have a meal; besides, customer satisfaction card or mail surveys are also used. 3.3 Challenges It is tough for managers to ensure accurate measurement of worker performance,

since there are various barriers that they have to face. Learning about these challenges might help them avoid making mistakes and give not only an accurate measurement but also appropriate feedback.
3.3.1 Rater errors and bias

Rater errors are errors in judgment that occur in a systematic manner when an individual observes and evaluates another. Personal perceptions and biases may influence how we evaluate an individuals performance. What makes these errors so difficult to correct is that the observer is usually unaware that she or he is making them. For instance, halo effect the tendency to make inappropriate generalizations from one aspect of a persons job performance. This is due to being influenced by one or more outstanding characteristics, either positive or negative. Besides, there are several types, namely leniency, central, contrast effect, first impression error, similar-to-me effect.
3.3.2 The influence of liking

Liking can cause errors in performance appraisals when raters allow their like or dislike of an individual to influence their assessment of that persons performance. The fundamental question, of course, is whether the relationship between liking and performance ratings is appropriate or biased. It is appropriate if supervisors prefer good performers to poor ones. However, it is biased if supervisors allow their liking, for other reasons than performance, influence on the measurement.

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3.3.3 Organizational politics

Organization politics is usually described as a self-serving behavior which seeks to achieve self-interests, advantages and benefits at the expense of others. The main characteristics of organization politics are the readiness of people to use power in their efforts to influence others and secure their own interests or, alternatively, avoid negative outcomes within the organization. Although accuracy may not be the main goal in organizations, it is the theoretical ideal behind appraisal. Careers have been ruined, self-esteem lost, and productivity degraded because of the political use of appraisal. Apart from these negative effects, politically driven appraisal also leads to employees willingness to quit their jobs.
3.3.4 Whether to focus on the individual or the group

In general, managers should think over performance appraisal at two levels: o Individual contribution to team performance o The performance of the team as a unit The problem is how to balanced two levels. Moreover, outcome measures may need to be complemented with measures of process. For instance, achieving a result may be important but so, too, is an interpersonal relation.
3.3.5 Legal issues

Due to the close link between performance measures and decisions about pay, promotions and discipline, employment-related lawsuits often challenge the companys PMS. There are sometimes discrimination claims, which allege that the PMS discriminated against employees on the basis of their sex. Besides, certain following factors may be influence legal decisions: o Use of job analysis
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o Providing written instructions o Allowing employees to review appraisal results o Agreement among multiple raters o The presence of rater training 3.4 Evaluation Being aware of the position of the current PMS is a critical knowledge for

managers. As a result, in this part, I am going to point out the main strength and weakness of the system. Therefore, the Branch can know which features should be conducted continuously, and which ones should be eliminated.
3.4.1 Strength
SPENDING PLENTY OF TIME ON STANDARDS

SETTING UP THE PERFORMANCE MEASUREMENT

Understanding the importance of an effective PMS, the Director with the members from Administrative Department invested various time in identifying relevant aspects, giving clear and easy-understand requirements for each tasks, and also has been taking into account providing appropriate feedbacks. From Shipping and Forwarders perspective, the Company knows that it is possessing a reliable image over the world; whereas, in terms of others, specially steels and irons, it still need an explore to expand its position and attract more customers. As a result, in order to fit with present companys strategy, there are rewards for employees significantly contributing to an increase in the companys market share, such as signing high-value contracts with new customers. Moreover, the well-planned document called Quy che tra tien luong va phan phoi thu nhap is adjusted on a regular basis and based on figures for previous years. Employees also take some chance of discussing about this issues; this makes the system
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become more a valid and acceptable one. In other words, this outcome approach provides clear and unambiguous criteria by which worker performance can be judged; consequently, when believing that they can reach the standards despite hard-working behavior, employees might have more motivation. In addition, employees are also told what is expected of them and how they can meet those expectations. To be more specific, even employees who are meeting expectation can become more valuable when they hear and discuss performance feedback. Effective feedback makes employees aware of their strength and of the areas in which they can improve. Because of more concentrating on this step rather than in the past, employees performance problems has been often promptly pointed out; which plays a significant role in the company development recently.

CHOOSING AN EFFECTIVE MEASUREMENT METHODS, WHICH DEPENDS ON THE

EMPLOYEES RESULTS

It is undeniable that productivity is an important measure of success, since getting more done with a smaller amount of resources leads to a rise in the companys revenue. Although this type of performance measurement takes obviously a great deal of time and effort, it can improve productivity due to its link between employees performance with the organization overall goals. Furthermore, one other advantage of this measurement method is avoiding several common rating errors. Ranking the employees performance based on their productivity reduces rater errors and bias, the influence of liking, organizational politics, whether to focus on individual or group, and legal issues. However, these still are 5 worrying challenges in performance management process. We will discuss deeply about them later.

USING BOTH INTERNAL AND EXTERNAL SOURCE OF INFORMATION

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Unsurprisingly, having just one person as a source of information poses certain problems. People, in an organization, tend to like some people more than others, and those feelings can bias how an employees efforts are perceived. Indeed, customers are often in a better position to evaluate the quality of a companys products or services than supervisors are. Supervisors nay have limited information or limited perspective; while, customers often have a wider focus. Besides, it is also appropriate where the company interests in gathering information to determine what products and services the customer wants. As a consequence, customer evaluations are useful both for evaluating an employees performance and for helping to determine whether the organization can improve customer service by making changes in HRM activities such as training or compensation.

AN APPARENT LINK BETWEEN EMPLOYEES PERFORMANCE AND THEIR SALARIES.

This approach provides employees an easy-to-see direct advantage. They might have an encourage to work harder or find out more incentive improving their productivity. Moreover, broader goals such as employee development, improving performance, team building, or providing effective feedback to employees are probably more valuable in an effective performance management system than just determining salary increases. Interestingly, the System will be based on merit and avoid personal bias and discrimination.
3.4.2 Weakness ONLY ONE PERSON MEASURES OTHERS PERFORMANCE

Although the system is conducted mainly based on their productivity - a quantitative figure, there is also a necessary behavioral dimension. As a result, provided the person scoring employees does not work with him, the results might be influenced by the relationship between raters and employees. A rater often tends to omit certain mistakes of people close to him, and strictly treat to others.

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THE PERSON DOING MEASURING MANAGEMENT IS FROM

ADMINISTRATIVE

DEPARTMENT. Consequently, he might not have an incentive to provide accurate and helpful feedback, since employees performance is not his business and do not affect directly on his income. Moreover, he does not have enough opportunity to observe the employee performing job duties, which can make his decision not really accurate.

CERTAIN SOURCES OF INFORMATION HAVE NOT RELATIVELY CONCERNED. Peers are a wonderful source of information about performance, as they can

directly observe other employees. Supervisor does not often do this, and sometimes can provide extremely valid assessments of performance. For evaluating the performance of managers, subordinates are a valuable source of information. Nonetheless, in the company, this subject is not really concerned. It should be recognized that subordinates often take chances to see how well a managers treats employees. There is only one way they can do, which is reporting to Labor Union; however, this is a time-consuming method. Surprisingly, self-rating is one way bringing benefits to valuable information. A well-used approach is to have employees evaluate their performance before the feedback session. This activity gets employees thinking about their performance. Dissimilar points between the self-appraisal and others might be thought over during the feedback session.

4. Suggested solutions to improve the Performance Management System

EXPANDING SOURCES OF INFORMATION

Using a few subjects as a source of information poses certain problems. Undeniably, people tend to prefer some people to others, which feeling can bias how an employees efforts are perceived.
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The Branch used to just concern 2 main sources of information; while other sources can provide unique and valuable perspectives to the performance appraisal process. o Peers Supervisors are sometimes unable to observe directly employees; whereas, peers may have the most opportunity to observe the employee in daily activities. The Branch may collect information from this source by surveys asking about peers performance. Especially, in case of projects requiring a group of employees, this method is really necessary. Employees might be questioned about the contribution of their colleges to the team work, and this information is really helpful for raters to score accurately the performance. Despite its value, this source also offers several risks relating to friendships or others, it is still an excellent source for raters. o Subordinates Actually, in regard with the performance of managers, subordinates are an extremely appropriate source of information. They are people taking chances of reporting directly to the manager, so they can see exactly how well the managers treat their employees. Nonetheless, this is not really a reliable source, due to their scare of telling negative about the managers. Moreover, in some cases, managers, who admire to have higher rating, tend to emphasize employees satisfactory, even at the expense of productivity. Anyway, it still benefits for the managers performance measurement process. At the moment, staff can report to Labor Union; however, it is quite time-consuming and complicated. There should be some meeting between employees and top managers to discuss about this issue.
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o Self No one has a greater chance to observe the employees behavior on the job than does the employee himself or herself. Consequently, self-ratings are valuable and it can contribute partly to the effectiveness of performance management. In my view, the Branch should perform self-appraisal process before the feedback session. This activity gets employees think about their performance, and perhaps, by themselves, they realize their strength and the weakness.

IT APPLICATIONS

Despite the rapid growth of technology, the Branch seems not to concern about these applications. The Company had a website; however, each Branch, particularly VINATRANCOHP, still not have its own website. Besides, the content of the Company website is a bit poor; there are just some contacts and a brief of the products. In the future, an effective website should be created; it is not only a page introducing products, but where for receiving claims or exchanging experience.

IMPROVING QUALITY OF SUPERVISION High-quality supervision has a crucial role to play in the development, retention

and motivation of the workforce. This should be trained in supervision skills and have an up-to-date knowledge of the legislation, policy and research relevant to practice in import-export trade. Moreover, an effective supervision makes the employees feel equally as well; which means that it does not allow personal bias appear, even rarely. o The number of member measuring employees performance should be

added. Currently, there is only one person scoring performance of employees; this easily lead to common raters errors or influence of liking. In next period, one another should be assigned to support or co-operate for the old-rater. They might independently rank, and
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subsequently, compare their result. Whatever significant differences between 2 results are discussed carefully or reported to the Director. o In addition to increasing the authority, a training season for them is also

necessary. This training has consistently been found to increase the accuracy of performance ratings. It is undeniable that suffering from this training provides raters ability of omitting personal influence. Perhaps even more important, it develops common evaluation standards among supervisors. However, due to the small scale of the Branch, these two staff might be supported to join in an outside course of performance management or study a hired lecture.

HAVING MORE APPROPRIATE MOTIVATION There should be, in the company, a broad range of forms that rewards good

performance, such as cash, time off, and many nonmonetary items. Moreover, some ways motivating employees should be used. Perhaps, one day per month the staff watch films together, or the Branch takes the employees on a surprise holiday.

5. Conclusion
Nowadays, Human Resource is more and more concerned and considered as be critical to the success of companies. From business perspective, the organizations will gain success, if it has its own sustainable competitive advantage. Therefore, managing employees performance is one vital process and partly gives companies more competitive advantages. Although the Branchs PMS has changed and been adjusting to adopt the situation, there are still various challenges, such as bias, liking, organizational politics, individual or group focus, legal issues. Consequently, The Transport warehousing and
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Trade service Joint Stock Company Hai Phong II Branch still need to take into account upgrading its own PMS. I hope that the Branch can take advantage of certain suggested solutions. To be more specific, it could partly contribute to their success of the Branch in the future.

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