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Identify the core assignment question: The task involves analyzing and answering specific database and performance management case study questions. The first part asks about a company's need for a performance management system and its impact on strategy and effectiveness. The second part involves interpreting database table structures, including identifying primary keys, foreign keys, and relationships, and assessing entity and referential integrity.

Determine the essential instructions: Write detailed, well-structured responses to these questions based on the case study about Freeport-McMoRan’s performance system and the provided database tables. Use academic language, incorporate relevant concepts from HR and database management, and support answers with appropriate justification and references.

Paper For Above instruction

The case of Freeport-McMoRan underscores the critical importance of an effective performance management system in facilitating strategic flexibility and operational alignment in a rapidly changing business environment. The company faced the challenge of shifting from a focus on cost control during a period of low copper prices to aggressive production and strategic expansion once commodity prices surged. This transition necessitated a comprehensive approach to aligning employee contributions with corporate objectives across diverse and geographically dispersed operations. A web-based performance management system proved integral to this transformation, providing real-time data and fostering organizational agility.

Firstly, Freeport-McMoRan needed a performance management system to coordinate its multifaceted operations effectively. Prior to the system’s implementation, management lacked clear visibility into individual and departmental goals, performance metrics, and overall organizational alignment. The absence of such information hindered strategic decision-making and delayed the company’s ability to respond swiftly to market changes. A robust performance management system helps identify high performers, set clear expectations, and monitor progress objectively, thereby enabling the company to adjust its strategic activities accordingly.

Strategically, the system facilitated several key functions. It allowed for streamlined communication of corporate priorities throughout the organization, ensuring that all mines and divisions, including the oil and gas sector, worked towards congruent objectives. By providing a platform for continuous performance feedback, the system enabled managers to make data-driven decisions regarding resource allocation, staffing, and operational adjustments. Consequently, Freeport-McMoRan could enhance productivity during high-price periods and quickly recalibrate when market conditions shifted, maintaining profitability and shareholder value.

In addition, a performance management system enhances motivational aspects by recognizing and rewarding employee contributions based on clear performance criteria. This recognition fosters a culture of accountability and continuous improvement, essential for operational success in complex, multi-site operations.

Regarding its impact on strategy, the performance system broadens organizational capacity for agility. It allows rapid implementation of strategic changes and real-time monitoring of their effectiveness. This capacity was crucial when Freeport-McMoRan ventured into oil and gas, requiring new competencies and adjusting existing workflows. The system's ease of use, especially being web-based accessible remotely, was vital given the limited computer use among field employees, ensuring widespread adoption and consistent data collection across diverse locations.

Secondly, a pen-and-paper performance management system would generally be less effective than the web-based system adopted by Freeport-McMoRan. Traditional paper-based systems are often limited in scope, slower in data processing, and less capable of providing real-time insights. They are also prone to human error, delays in feedback, and difficulties in aggregating data for organizational analysis. Conversely, a web-based system offers immediate access to performance data, facilitates instant feedback and communication, and allows managers to track progress continuously. Moreover, digital systems can incorporate automated alerts and sophisticated analytics, supporting proactive management.

Implementing a paper-based approach would have hampered the company’s ability to respond swiftly to market shifts and to align its diverse operations efficiently. It would have increased administrative burdens, reduced data accuracy, and limited strategic agility. Therefore, the web-based system’s real-time capabilities, accessibility, and scalability are indispensable for effective strategic management in contemporary complex organizations.

References

• Bersin, J. (2008). Performance Management Creates Agility in Copper Mining. Bersin & Associates. Blog.
• Twentyman, J. (2011). Talent Management: Software Highlights Stars and Slackers. Financial Times.
• Smith, D. L. (2011). You Can’t Afford to Pass Up Freeport-McMoRan. Motley Fool.
• DiLallo, M. (2014). Freeport-McMoRan Copper & Gold Inc’s Big Oil Deal Still Looks Smart. DailyFinance.
• Armstrong, M. (2014). Armstrong's Handbook of Performance Management. Kogan Page.
• Aguinis, H. (2013). Performance Management. Pearson.
• DeNisi, A. S., & Williams, K. J. (2014). Performance Appraisal and Management. Routledge.
• Galunic, C. J., & Borzaga, C. (2018). Strategic Performance Management. Palgrave Macmillan.
• Kaplan, R. S., & Norton, D. P. (1996). The Balanced Scorecard. Harvard Business Review.
• Heathfield, S. M. (2020). The Role of Performance Management Systems. The Balance Careers.