Performance Management Plan

Performance Management Plan Tierney Kennedy HRM/531 Karin Wagner December 23, 2013

Performance Management Plan

Performance Management Plan Mr. Stonefield has come to our consulting firm and asked for us to develop a performance management framework for his new business venture, Landslide Limousines. The performance management framework will include information that helps him understand the organizational strategy, performance philosophy, job analysis, methods for measuring employees skills process for addressing skill gaps, and how to deliver effective performance feedback. In order to make sure that the whole process is efficient and effective, it is imperative that plans framework is aligned with the organizational business strategy. Therefore, having a defined organizational business strategy is the first step in creating the performance management framework. Performance Management Framework and Organizational Business Strategy To be effective, the performance management process must be firmly link to and rooted in the organizations core strategy and business goals. Strategy involves the formulation of the organizations mission, goals, objectives and action plans for achievement. In the University of Phoenix simulation (2013), Mr. Stonefield stated that he wants to provide first-class service transportation to his customers and anticipated -$50,000 in revenue, and a 10% turnover in the first year. With these clear goals and objectives emphasized, the performance management strategy needs to facilitate the successful achievement of the organizations strategy. The most important business strategy is to provide first-class service. Competencies translate the strategic vision and goals for the organization into the actions or type of behavior employees must display for the company to be successful. Performance management should always be a positive tool

Performance Management Plan

and aligning the framework with a positive business strategy from the beginning sets high expectations. Organizational Performance Philosophy As a new company within a very competitive market, Mr. Stonefields philosophy should be centered on building a positive reputation along with a customer friendly environment and superior customer service. It is sometimes hard for employees to relate their work and performance to the organizations overall success. Competencies help them see how their attention to quality or their concern for the customer contributes to the success of their organization. The customers should have the expectation that they are getting the best service that their money can buy. To get to this point, the companys organizational performance philosophy should be linked to the performance management frame by measuring employees skills, addressing skill gaps, and providing an approach for effective and positive feedback through coaching and mentoring. Job Analysis Job analysis is important to the company because it provides the framework for identifying the content of the job based on activities involved and attributes needed to perform the job. It also identifies major job requirements. According to Cascio (2013), performance standards translate job requirements into levels of acceptable or unacceptable behavior (p. 338). In Landslide Limousines case it is important to identify and employ the right people with the required skill set to get the job done. Service orientation will be one the most important attributes needed. It requires employees to be committed to excellent customer service. They understand that limousine driving is an important service that requires patience and helpful

Performance Management Plan

attitude. Having professional etiquette and a strong work ethic should be required in order to meet company standards. Understanding the required skill set and hiring the right workers is what leads to repeat business, referrals, and lasting relationships between customers and the company. Now that these skills have been identified, the company must translate them along with acceptable measures to the employees through the performance management plan. However, before the translation can begin, the company must identify methods for measuring the skills. Methods for Measuring Employees Skills There are several different methods that can be used to measure employees skills. They are management by objectives (MBO), observations, performance appraisals, and feedback. The first method, MBO, can be used to evaluate employees according to the percentage of their goals they obtain during the year (Mayhew, 2013). For example, the employee can be measured on the percentage of times they were on time either to work or picking up customers. The goal for these tasks should be 100% always. MBO focuses on results rather than how the results were accomplished (Cascio, 2013). The next method that should be used is observations. Managers should conduct a-ride-along with the drivers at least one monthly to observe behaviors and get a first-hand view of the employees skills at work. The manager should evaluate the driver, document the observation, and provide immediate feedback or corrective action(s) that should be taken to improve the drivers performance. Feedback is next and should be gathered from the customers served to ensure the customers needs were met. The company should construct and implement a customer service satisfaction survey accessible on the companys website or from the drivers. The manager

Performance Management Plan

should give immediate feedback to employees based on the customer surveys. Customer service is the most important organizational goal and should be measured constantly. Another way feedback can be gathered is from the manager ride-a-long observations. The final method should be performance appraisals. The appraisals should not come as a surprise to the employee and should be a summation of the feedback gathered from the other methods used to measure the employee skills. Once the employee has been given the review, the manager, as well as the employee, should sign off on the document. This will signify that both parties acknowledge the discussion and agree upon the performance review. The appraisals should not be a once-a-year occurrence but ongoing throughout the year. Process for Addressing Skill Gaps The determination of gaps involves comparing skills and knowledge held by the organization with the skills and knowledge required. Landslide Limousine is a customer service focused company and delivering effective performance feedback is crucial to addressing skill gaps. The feedback should be constant and ongoing. According to Cascio (2013), managers should perform certain activities before, during and after performance-feedback interviews. The activities include communicating frequently with employees about their performance, be specific and an active listener, and assess progress towards goals. Performance reviews provide an opportunity for managers to help align an employees role to the business needs and identify an employees career aspirations or future potential. It also give the opportunity for the company to gain better insight and address skill and knowledge gaps. Employee goals should be in alignment with the business objectives as well as their own career aspirations. The coaching should focus on service orientation, professional etiquette, and culminate with an assessment that requires a passing score.

Performance Management Plan

Delivering Effective Performance Feedback A good feedback for performance can increase the productivity, enthusiasm, and satisfaction levels among employees. This, in turn, helps in improving the performance of employees, eventually leading towards the growth of the company. A genuine feedback helps employees to analyze themselves in a better way, which paves way for self-improvement
(Management Study Guide, 2013). When managers are providing feedback it should be done in a timely manner, scheduled appropriately and in a defined location. The discussion should include any description of any performance problems, the reinforcement of performance standards, and a development plan for improvement if needed. A good idea would be to alternate negative and positive comments and emphasize potential. During the reviews the use of clear, nonjudgmental language that focuses on results and behavior is important. Be sure to give specific comments and examples of feedback both negative and positive. It should be documented and performances measures outlined should have purpose to support the intent and be agreed upon mutually between the manager and the employee.

Conclusion The outlined performance management framework includes information that will help Mr. Stonefield understand the organizational strategy, performance philosophy, job analysis, methods for measuring employees skills process for addressing skill gaps, and how to deliver effective performance feedback. With this plan, this give Mr. Stonefield the confidence that the company will be effective in firmly lining to the organizations core strategy and business goals. By setting these standards of competencies, the strategic vision and goals for the organization will be the actions or type of behavior the employees display for the success of the company.

Performance Management Plan

References Cascio, W. F. (2013). Managing Human Resources: Productivity, Quality of Work Life, Profits (9th ed.). Retrieved from The University of Phoenix eBook Collection database.

Management Study Guide. (2013). Retrieved from http://managementstudyguide.com/jobanalysis-process.htm. Mayhew, R. (2013). Employee Performance Measurement Tools. Retrieved from http://smallbusiness.chron.com/employee-performance-measurement-tools-1952.html University of Phoenix. (2013). Voicemail from Bradley Stonefield [Multimedia]. Retrieved from University of Phoenix, HRM531 - Human Capital Management website.