BMP4006 People and Performance

Sample Answer

Improving Organisational Performance Through Effective People Management

Introduction

People management plays a central role in determining organisational performance and employee wellbeing, particularly within small and growing businesses. For organisations such as BUNI Travel, a local travel agency based in Bolton, the way employees are managed directly affects productivity, customer satisfaction, staff retention, and long term business growth. Historically, BUNI Travel has relied on a traditional personnel department that focused mainly on administrative tasks rather than strategic people management. However, senior management has recognised that to expand the business and improve performance, a shift towards modern Human Resource Management practices is necessary.

This report is written from the perspective of the newly appointed Human Resources Manager at BUNI Travel. It explores the tools and techniques that can be used to improve organisational performance, the importance of employee wellbeing in enhancing motivation and performance, and the impact of external factors on managing people. The report draws on relevant academic theory and applies it directly to the context of BUNI Travel, ensuring that recommendations are practical and realistic for a small organisation operating within the UK travel sector.

The Importance of Effective People Management for Organisational Performance

Effective people management is closely linked to organisational performance because employees are the main drivers of service quality, innovation, and customer experience. In a service-based business such as BUNI Travel, employees interact directly with customers, meaning their motivation, skills, and engagement significantly influence business outcomes. According to Armstrong and Taylor (2020), organisations that manage people effectively are more likely to achieve higher productivity, improved customer satisfaction, and stronger financial performance.

At BUNI Travel, the previous personnel-focused approach may have ensured basic compliance with employment law but did little to actively support employee development or motivation. Modern HRM shifts the focus from simply managing employees to developing them as valuable assets. This includes aligning individual performance with organisational goals, supporting learning and development, and creating a positive working environment. When employees understand how their role contributes to business success, they are more likely to be engaged and committed.

Effective people management also supports employee wellbeing, which in turn reduces absenteeism and staff turnover. High turnover can be particularly damaging for a small organisation like BUNI Travel, as recruitment and training costs are high and customer relationships can be disrupted. Therefore, investing in people management is not a cost but a strategic investment that supports sustainable growth.

Tools and Techniques to Improve Organisational Performance at BUNI Travel

One of the most important tools for improving organisational performance at BUNI Travel is performance management. A clear and fair performance management system allows employees to understand expectations, receive feedback, and identify areas for improvement. Regular one-to-one meetings between managers and staff can help set realistic targets, review progress, and provide support where needed. According to Torrington et al. (2020), performance management is most effective when it focuses on development rather than punishment.

Training and development is another key technique that can enhance performance. The travel industry is constantly changing due to new technologies, customer expectations, and global events. Providing employees with ongoing training in customer service, digital booking systems, and destination knowledge can improve confidence and competence. For BUNI Travel, this could involve short internal training sessions or online courses that are cost effective and flexible.

Employee involvement is also a valuable tool for improving performance. When employees are encouraged to share ideas and contribute to decision making, they feel valued and are more motivated to perform well. Simple practices such as team meetings, suggestion schemes, or involving staff in service improvement discussions can have a positive impact. Guest (2017) highlights that employee voice is strongly linked to engagement and organisational commitment.

Reward and recognition systems further support performance by reinforcing positive behaviour. While BUNI Travel may have limited financial resources, non-financial rewards such as verbal recognition, flexible working hours, or small incentives can still be effective. These approaches help employees feel appreciated and recognised for their efforts.

The Role of Employee Wellbeing in Improving Motivation and Performance

Employee wellbeing refers to the physical, mental, and emotional health of employees. It has become increasingly important in people management, particularly following the challenges faced by the travel industry in recent years. Research by CIPD (2022) shows that organisations that prioritise wellbeing experience higher levels of employee engagement and lower levels of stress-related absence.

At BUNI Travel, focusing on wellbeing can significantly improve motivation and performance. Employees who feel supported are more likely to be committed and willing to go the extra mile for customers. Wellbeing initiatives do not need to be expensive. Simple actions such as promoting work-life balance, offering flexible working where possible, and ensuring reasonable workloads can make a meaningful difference.

Mental wellbeing is particularly relevant in customer-facing roles, where employees may deal with demanding customers or travel disruptions. Providing managers with basic training in recognising stress and supporting employees can help prevent burnout. According to Maslow’s hierarchy of needs, employees must feel safe and supported before they can achieve higher levels of motivation and performance. By addressing wellbeing, BUNI Travel creates a foundation for sustained performance improvement.

Wellbeing also influences organisational culture. A positive and supportive culture encourages trust and collaboration, which are essential for high performance. Employees who feel that their employer genuinely cares about their wellbeing are more likely to remain loyal, reducing turnover and retaining valuable skills within the business.