CanGo Company Managing Human Resources


CanGo is a company with talented managers and mainly responsible workers; nevertheless, the company experiences essential problems in the HRM sphere. Thus, business performance appraisal system, as well as the system of assessing the individual performance of every worker. Thus, the aim of the paper is to evaluate the business performance of the company, the assessment system, and provide the necessary recommendations on the matters of assessing the performance of the workers.

Originally, the problem is covered in the extensive leniency of the management team towards their workers. Thus, while responsible workers do their job properly, unreliable weak links of the team stay unpunished because of the low control level.


CanGo Company is an organization with a properly arranged managerial structure, and a professional executive team, which is able to perform the arranged set of tasks and assignments. Nevertheless, the key problem of Human Resource Management is the inability of the executive team to implement an effective appraisal system and reduce the number of failures by the means of HRM practices improvement.

Originally, the concepts of the problem are closely associated with the key practices of the HRM, aimed at evaluating the performance of the working assignments by the CEO. These are the problems with objective measures of performance, as the quantitative measures of the employees’ performance are rather weak, and are not able to provide the full picture of the performance. The server failure analysis and lateness for work are surely the objective indicators, nevertheless, the reasons are unknown, and the influence system (aimed at improving the results), has not been elaborated.

Subjective Measures of Performance, which include qualitative factors of workers’ performance are not set. Originally, this is associated with the personal attitude of the managers towards their teams, thus, the employees’ attitude towards their work and their ability to work in particular directions can not be identified. Nevertheless, considering the fact that subjective measures are hard to define, the entire performance of the team can not be estimated anyway, and this problem is associated with leniency and strictness errors. Thus, managers are too lenient towards the workers. Thus, as it is stated by Mcgovern (2008, p. 56):

Leniency errors refer to the tendency managers have to assign high-performance ratings to all or most employees, regardless of their actual job performance. Managers may do this because they do not take the time to think carefully about each aspect of a person’s performance, or because they want to avoid any uneasiness between themselves and the employee.

The Halo Effect is not applicable in this case study, as the problematic employee is shown as the weakest link in the team, thus, the only problem is the extensive leniency.

SWOT Analysis

Positive Negative
Internal Strength
  • The team is united and friendly
  • Everyone is determined to solve the existing problems
  • Everyone is ready to search for compromises
  • Often server failures, caused by team negligence
  • Uncontrolled (or weakly controlled) employees’ performance
  • The inability of the management to implement the fine system
  • Ineffective use of technical potential
External Opportunity
  • Quick solution of the appearing problems
  • Valuable business performance
  • The company has strong potential for improving the business performance
  • Low competitive potential because of the negligence of some employees
  • Vulnerable customer care strategy (because of often server failures)
  • Lack of appropriate managerial potential

In the light of this perspective, the necessity to rearrange the HRM strategy is obvious, nevertheless, considering the fact that management clearly realizes the problem, but is not able to influence the negligent workers, makes the problem even deeper. Thus, the entire business performance system should be improved. (Teo and Crawford, 2006)


The recommendations for the CanGo company will be closely associated with the matters of Human Resource Management. Thus, necessity to rearrange the business performance appraisal system will be required for the improvement of the entire performance of the company. The assignment of high priority is the arrangement of the fine / reward system and the solution of the leniency and strictness errors. When these problems and errors are solved, the issues of responsibility structure should be elaborated and effectively implemented. Finally, the values of managerial power should be reevaluated. As managers are not able to evaluate their employees objectively, the independent evaluation team should be invited in order to accomplish this assignment. In accordance with HR scholars, the HRM practices, which should be implemented, are closely associated with the issues of business performance assessment, and, in accordance with Budhwar (2004, p. 184):

“HRM techniques, when properly practiced, are expressive of the goals and operating practices of the enterprise overall. HRM is also seen by many to have a key role in risk reduction within organizations”


The HRM practices and principles, which should be implemented in the CanGo company will be linked with the assessment of the employees’ performance and responsibility level, nevertheless, the strictness and leniency errors require serious reassessment.


Budhwar, P. S. (Ed.). (2004). Managing Human Resources. New York: Routledge.

Mcgovern, P. (2008). Hrm, Technical Workers and the Multinational Corporation. London: Routledge.

Teo, S. T., & Crawford, J. (2006). Indicators of Strategic HRM Effectiveness: A Case Study of an Australian Public Sector Agency during Commercialization. Public Personnel Management, 34(1), 1