http://hr.commerce.

gov/Employees/TrainingandDevelopment/DEV01_006173

Performance management plan

The company wants to maximize its efficiency and effectiveness through the performance
management system. The performance management plan can help identify and manipulate the
desires, the needs, the obstacles, or the chief characteristics of any employee. According to
Cascio (2013), one can think of performance management as a kind of compass, one that
indicates a persons actual direction as well as a persons desired direction. Like a compass, the
job of the manager is to indicate where that person is now and to help focus attention and effort
on the desired direction. Therefore, performance management can help the evaluation of business
performance and the performance of any individual employee.

Alignment of the performance management framework to the organizational business

strategy
According to Cascio (2013), at a general level, the broad process of performance
management requires that you do three things well: define performance, facilitate performance,
and encourage performance. So first, Landslide Limousine has to define performance. The
company can set up goals in improving performance and assist giving direction to employees.
When each goal set up, it should be specific and clear. So for Landslide Limousine, the company
wants 5% revenue growth over a span of years. The company can indicate this point to the
employees, thereby stressing that growth is the main objective of the company. Next, the
company has to facilitate performance. Each manager should recognize the obstacles the

employees might face and also provide appropriate resources to ensure good performance. So,
for instance, Landslide Limousine can provide steady maintenance on each vehicle, something
that is required not only to prevent accidents, but also to ensure that no employee is handicapped
in their performance. Final performance management encourages employees to operate to the
best of their ability. The company rewards to employee for good performance. To encourage
performance, especially repeated good performance, its important to do three more things well:
(1) provide a sufficient number of rewards that employees really value, (2) in a timely fashion,
and (3) in a fair manner. (Cascio, 2013, p.355). According to these rules, Landslide Limousine
can make a framework to reward employees for their performance.
Performance appraisal is also very important. It provides criteria judging good or bad
performance and also provides a feedback process. According to Cascio (2013), the purposes of
performance appraisal system are employment decision, employee feedback, criteria in test
validation, objectives for training program, and diagnosis of organizational problems. So
Landslide Limousine can appraise employees on whether or not they are well trained or not, and
reward or discipline employees on the basis of their decisions. Landslide Limousine can give
feedback to employees who need personal or career development, thereby helping them on their
way. Also, the landslide can ascertain and evaluate each employees skillset by criteria that
involve test validation. And Landslide Limousine can help the developmental needs of each
employee by establishing a training program. Landslide Limousine can judge who they will hire,
who needs training, and who is an effective or ineffective employee.

Organizational performance philosophy

The main philosophy of Landslide Limousine should be to maximize efficiency and the
effectiveness of each employees performance; and furthermore to facilitate communication
between the employees and their supervisors. According to University of California, Berkeley,
employees at all levels are responsible for actively communicating with their supervisors about
their performance, taking an active role in planning their development, being accountable for
their actions, and continually striving for excellence in their performance. And supervisors are
responsible for developing performance expectations with the participation of employees;
communicating throughout the performance management cycle about employees' goals,
performance, and development; recognizing successful performance and coaching for improved
performance; and ensuring that employees have the tools, resources, and training and
development needed to carry out their duties successfully.

The job analysis process you will complete to identify the skills needed by employees
Alternatively, the performance appraisal system can be used as a process to identify the
skills needed by employees. So Landslide Limousine can check the requirements of effective
appraisal systems like performance standards, sensitivity, reliability, acceptability, and
practicality. According to Cascio (2013), a performance standard filters job requirements into
levels of acceptable or unacceptable employee behavior. Sensitivity means that the process is
capable of distinguishing effective from ineffective performers. Reliability refers to consistency
of judgment. Acceptability is the most important requirement of all. HR programs must have the
support of those who will use them, or human ingenuity will be used to thwart them. And the
organization has to put much effort into garnering the front-end support and participation of
those who will use the appraisal system. Last, practicality implies that appraisal instruments

should be easy for managers and employees to understand and use. Following these
requirements, Landslide Limousine can set up the job analysis process.

Methods used for measuring the employee's skills

For measuring the employees skills, the landslide limo company can use behaviororiented rating methods and results-oriented rating method. Behavior-oriented rating methods
focus on employee behaviors, either by comparing the performance of employees to that of other
employees or by evaluating each employee in terms of performance standards without reference
to others. In comparison, results-oriented rating methods place primary emphasis on what an
employee produces; dollar volume of sales, number of units produced, and number of wins
during a baseball season are examples. Management by objectives (MBO) and work planning
and review use this results-oriented approach.
To take a hypothetical example, Landslide Limousine can use results-oriented rating
methods. They will then measure each employees contribution to the success of the
organization. The management in this case will be the part of the company that is responsible for
ensuring that this process is streamlined and effective.

Process for addressing skill gaps

Landslide Limousine may have mainly four different types of employees, like, for
instance, manager, driver, maintenance service technician, and call operator. To address any skill
gaps, we can use the work or service team method in the assessment of team performance.
Table-1 Appraisal methods of work or service team
Team

Who is

Who

What is rated?
Outcom Behavio Competenc

How is the rating used?

Developmen Evaluatio

Self

provides
e
rating?

Manager
Other
Team
Team
Membe Members
r
Customer
s
Work

Self
or
servic

Manager
e team
Other
Team
Entire
Members
Team
Customer
s

Self
Table-1 based on (Cascio, 2013, p.376).
Type

being
rated?

regulatio
n

So Landslide Limousine can set up the private work or service team table, and then the
company can reduce the skill gap of each employee by using team performance appraisal.

Approach for delivering effective performance feedback

Feedback, to be valuable, needs to be timely and specific. (Yale.edu, 2010). To
maximize performance, each manager has to communicate frequently before, during, and after
giving performance feedback. According to Cascio (2013), before giving feedback, getting
training in performance appraisal interviewing, planning to use a problem-solving approach
rather than tell-and-sell, and encouraging subordinates to prepare for performance-feedback
interviews, is important. Also, while giving feedback, each manager should be encouraging
subordinates to participate by being specific, being an active listener, setting mutually agreeable
goals for future improvements, avoiding destructive criticism, and judging performance and not
personality and mannerisms. Lastly, after the feedback is communicated, each manager should
periodically assess progress toward goals and make organizational rewards contingent on

performance. If Landslide Limousine can provide these before, during, and after feedback
activities, those activities can help better the performance of employees.

Conclusion
Basically, good performance comes from a good performance management plan.
Landslide Limousine wants 5% of the revenue growth for a couple of years. If Landslide
Limousine can make frameworks that promote performance framework, organization strategies,
and performance appraisal system, Landslide Limousine has a good chance at getting the
revenue that the company expects.

References
Cascio, W. (2013). Managing Human Resources (9th ed.). Retrieved from http://create.mcgrawhill.com
Rich, A. (2013). Performance management. The Queensland Nurse, 32(3), 34-5; quiz 36.
Retrieved from http://search.proquest.com/docview/1371839880?accountid=458
University of Berkley. (2014). Berkley HR. Retrieved from
http://hrweb.berkeley.edu/about/philosophy/performance-management
Yale.edu. (2010, July). Yale universitys performance management system. Retrieved from
http://www.yale.edu/hronline/focus/documents/2010JulyYALEPERFMGMNTGUIDERe
v6-7-10final.pdf

Once employees are on board, their personal growth and development over time become a
major concern. Change is a fact of organization life, and to cope with it effectively,
planned programs of employee training, development, and career management are
essential (Cascio, 2013, p. 287). Exploring the concept of training is important first
before developing the framework of a performance management plan (PMP). According
to Cascio (2013), Training consists of planned programs designed to improve
performance at the individual, group, or organizational levels (p. 290), and this mean
that for Landslide Limousines, we must place emphasis on the training and development
of our employees.

The strategy of Landslide Limousine is to operate with 25 employees with -$50,000 annual
net revenue, with a growth of 5 percent for the first two years and an employee turnover
rate of 10 percent. With these details, comparing the turnover rate to the national average
of only 3.2 percent, the strategy for development should be straightforward, and the goal
for the turnover rate should be easily attainable (U.S. Bureau of Labor and Statistics,
2013, para 1). The orientation process should most definitely include a face value
introduction into the organizations performance philosophy.

The skills needed by employees to carry out their tasks should dictate the PMP. There is
extensive research that details factors of effective training (K. Kraiger, n.d.). Measuring
employees skill levels, and the type of training that they will need is an important factor
that must be explored prior to addressing and ultimately closing and skill gaps that an
employee might have. Motivating employees, and effectively training them essentially
comes from the quality of the..

Performance management is a critical key component to the success of an organization. The

purpose of this report is to suggest a performance management plan for Mr. Bradley
Stonefield, owner of Landslide Limousines, a small service business located in Austin,
Texas. According to Mr. Stonefield, in the first year he expects net revenue of $50,000
with a 5% net revenue increase for the first couple of years in addition he plans to
employee 25 people and is predicting a 10% turnover rate.
The performance management plan developed for Mr. Stonefield will cover the following areas;
alignment of the performance management framework to the organizational business
strategy, organizational performance philosophy the job analysis process to identify the
skills needed by employees, methods used for measuring the employee's skills, process
for addressing skill gaps and an approach for delivering effective performance feedback.
The Organization and Performance Management
Organizational management refers to the company's business plan; performance management
refers to how the employees within the organization carry out the day-to-day operations.
Organizational management and performance management should align with one another.
The organizational management tool I am suggesting for Landslide Limousines is a
balanced scorecard. A Balanced Scorecard defines what management means by
"performance" and measures whether management is achieving desired results. The
Balanced Scorecard translates Mission and Vision Statements into a comprehensive set of
objectives and performance measures that can be quantified and appraised (Kaplan,
2005).
The scorecard will measure 4 areas: Financial performance, this will

ensure Mr. Stonefield has a way to measure the net revenue goal he has set of $50,000 in the first
year in addition to measuring the growth goal...
This week Atwood and Allen Consulting firm was assigned the task of recommending several
pertinent aspects of Landslide Limousine's company. We were tasked with identifying the
alignment of the performance management framework to the organizational business
strategy, organizational performance philosophy and job analysis process. Since
Landslide Limousines is expanding to Austin, TX we also discussed methods used for
measuring employee skills, process for addressing skill gaps and the approach for
delivering effective performance feedback. With these aspects covered for this limousine
business, Bradley will begin to see what a great investment he has made with consulting
with Atwood and Allen.
The performance management framework is an important factor to any business. In order to
align your framework to your organizational business strategy, you should follow the five
steps of strategic management process.
Facteurs de performance
White-Fairhurst TPR Model
: ...
The five steps include: goal setting, analysis, strategy formulation, strategy implementation, and
evaluation and control. The main focus behind goal setting is clarifying the vision for our
business (Robbins & Judge, 2013). Bradley stated that your vision is to provide
exceptional service, one ride at a time. In order to maintain your vision, you must
continue to improve your employee performance to keep your customers happy. During
goal-setting you must define short term and long term goals for the company.

It's also important to "walk the walk." What you do is far more important - and believable - than
what you say. Demonstrate the kind of behavior that you want from others. In order to
keep followers motivated, leaders need to constantly communicate that vision,
reinforcing the shared, positive outcome (Frost, 2000). Next, the analysis step involves
data gathering in order to assist in meeting the

A strong performance management framework is essential to the success of Landslide

Limousine. In order to have a successful performance management plan you must align
the framework with your business strategy, consider your organizational philosophy,
perform a job analysis to determine skills needed by employees, decide on methods you
will use to measure employees skills, determine a process for addressing skill gaps, and
an approach for delivering effective feedback. In this memorandum Atwood & Allen
will provide suggestions on how to create a performance management framework that
sets Landslide Limousine on the path to success.
Organizational Business Strategy
In previous communications you informed Atwood & Allen that you want to start a Limousine
business in Austin, Texas and that your business strategy is to provide first-class personal
transportation to your customers. Additionally, you stated your anticipated first year net
revenue will be approximately -$50,000, you expect a 5% net revenue increase over the
next several years, and you estimate a 10% turnover rate. Based on your short-term and
long-term goals Atwood & Allen believes Landslide Limousine has realistic goals for the
first few years of business. A well thought out performance management framework will

align these goals, encourage employee loyalty, and set the foundation for future financial
growth.
Organizational Performance Philosophy
As part of Landslide Limousines performance management framework it is imperative to
identify your organizational performance philosophy. In order to establish your
limousine business in Austin, Texas, amongst an

In order for Landslide Limousine to have success, strategic performance is necessary within
theframework of management. The business should be successful if the performance
management plan aligns completely with the business strategy. To help the company
dene the skills needed by its workers it must have a strong organizational philosophy
as well as a strong job analysis. It is of great importance to know what methods the
company will utilize for the measurement of employee skills, skill gaps, and an eective
feedback approach. !twood " !llen #onsulting willbe administering and providing this
vital information for the success at performancemanagement for Landslide Limousine.
The performance management plan will ensure business success with no lost revenue,
and income stability, and within target.
Performance management framework for business strategy
In prior communications with !twood and !llen, there was desire showed to start Landslide
Limousines in !ustin, Te$as. The main goal is to provide rst%class transportation
options for various customers by the limousine company. There is an anticipated net
revenue for the rst year of &'(,(((, and is e$pected to have a ') increase in net revenue
within the ne$t few years. There is also an estimation of a *() turnover rate. !ccording to !

twood " !llen, the short term and long term goalsare very realistic for the rst few years.
+ncouragement of employee loyalty, alignment of companys goals, and the setting of
the foundation for nancial growthwould come together by bringing together a strategic
performance management framework. The structure of the business strategy must consist
of eective employee skills, methods to measure skills performance, concentrate on
skills gaps,and eective employee feedback.
Organizational Performance Philosophy
In order to establish a strong strategic performance management framework,the company needs
to identify the organizational performance philosophy. In order to compete within the
e$isting competitive market in !ustin, Te$as, the business philosophy has to be built on
e$cellent customer service. To build a positive reputation in the market, employees have
to be clear with e$pectations. The organizational performance philosophy is the
companys values about how management is going to direct employees to accomplish
goal to succeed the organizational performance. -Transporting people eciently and safe
is our satisfaction/ is a possible philosophy phrase that Landslide Limousine can use as a
marketing strategy. The idea of the philosophy is to build trust within employees and
customers within the company to retain loyalty and condence within the service.
The job analysis process to identify employees skills
It is important for any business to employ personnel with the re0uired job skills and successfully
achieved organizational goals. The employee knowledge andskills can guarantee
customer satisfaction and positive reputation for the company. The te$tbook, 1anaging
2uman 3esources, 4
th

edition, by 5.6. #ascio, e$plains four levels of analysis to determine training needs and what can
be achieved. The four levels of training are organizational analysis, demographic
analysis, operations analysis, and individual analysis 7#ascio, 8(*9, p. 9*:;. The
organizational analysis identies if the training supports companys direction,
personnel training activity, and resources available. <emographic analysis determines
employees special need at dierent hierarchy levels. =perations analysis identify what
an employees should do to perform competently, and individual analysis focus on the
type of training should be provided to a specic individual 7#ascio, 8(*9;. !ccording to
#ascio, with a job analysis the business can identify tasks and re0uired characteristics to
perform a job 7#ascio, 8(*9;. The four levels of training is a helpful tool to identify areas
of improvement.
Methods to measure the employees skills
6or any business is important to measure employee skill performance and determine if targets
have been accomplished. The article, +mployee >erformance 1easurement Tools, by 3uth
1ayhew, e$plain how a company can measure performance with performance appraisals,
productivity tests, and 9?(%<egree 6eedback. The performance appraisal is an annual
method on where the employee is evaluated by management. The evaluation identify how
well is the employee doing for a period of time and if action in re0uired for improvement.
>roductivity test can help measure employee performance in 0uantiable terms. The 9?
(%degreefeedback is for supervisors and management to provide objective information
from every employee working for the business 71ayhew, 8(*@;. The balance card is
another crucial tool to measure the employees skills, as well as the organizational
performance. !ccording to The Aalanced Bcorecard% 1easures that <rive >erformance,

by 3obert B. Caplan and <avid >. Dorton, the balance scorecard gives management a
comprehensive view of the business with operational measures, such as customer
satisfaction, internal processes, innovation and improvement activities driven for future
nancial performances 7Caplan " Dorton, *448;. The balance scorecard is a tool that
Landslide Limousine can use to e$plain the results of actions already taken.
Process for addressing skill gaps
!n analysis to address skill gaps is important at any employee level. The analysis identies the
responsibility, knowledge, and skills re0uired for a specic job. If an employee is
currently performing a job but changes were made to the job description, addressing the
gaps will be to identify any characteristic missed to trainee the employee or improve the
process. It is common to nd skills gaps when an employee change jobs or it lack of
education and training to perform a job. The article, 2ow to <evelop a Bkill Eap !nalysis,
by Tara <uggan, provides four steps to develop a skill gap analysisF identify business
goals, collect data, understand data tomake recommendations, and develop a training plan
to address skills gaps in the current environment 7<uggan, 8(*@;. It is crucial to identify
business goals to remain competitive and create a project plan with the strategic
objectives. The collected data can help identify skills and knowledge of every employee
performing a role in the company. !fter data is collected, recommendations can be made
to improve areas, such as communication, leadership, teamwork, sales, service, and
project management. The training plan to address skills gaps in the organization can help
determine appropriate and eective training to retain employees to retention and business
performance.
Eectie performance feedback

It is very important to deliver eective performance feedback with positive attitude. +mployees
appreciate advice and positive coaching to help improve mistakes. The article, 2ow to
<eliver +ective >erformance !ppraisals, by Louise Aalle, e$plain dierent steps for
eective performance appraisalsF establish an appraisal method, eective eye contact,
start with negative feedback end with positive suggestions, set new goals, have an open
dialogue with the employee, e$plain if the employee is a candidate for promotion or raise
7Aalle, 8(*@;. The rst step is important because the method is selected to provide
eective feedback. Twoe$amples are the 9?(%degree feedback appraisal and self
%evaluation for employees to share thoughts and ideas. !t the interview, it is crucial to
maintain good eye contact to develop trust from both sides and show respect. Aody
language is important because it can show attitude or negative feedback. It is important to
startwith negative feedback to end with positive observations and set realistic goals for
the ne$t time period. <uring the feedback is important to have open dialogues to allow
employees share opinions or ideas. It is important for management to share decisions
made by upper level on behalf of the employee, as far as promotion or raises, to
encourage the employee to achieve better results in the future.
#ascio, 5.6. 78(*9;. 1anaging 2uman 3esources 74
th
ed.;. Dew Gork, DGF The 1cEraw%2ill #ompanies, Inc, 3etrieved from Hniversity of >hoeni$
eAook #ollection database. 5orkplace Training, #hapter . 1ayhew, 3uth 78(*@;.
Employee Performance Measurement Tools
. <emand 1ediaF #hron. 3etrieved fromF httpFJJsmallbusiness.chron.comJemployee
%performance%measurement%tools%*4'8.html<uggan, Tara 78(*@;.

How to Develop a Skill Gap Analysis

. <emand 1ediaF #hron. 3etrieved fromF httpFJJsmallbusiness.chron.comJdevelop%skill%gap
%analysis%94:8.htmlAalle, Louise 78(*@;.
How to Deliver Eective Performance Appraisals
. <emand 1ediaF #hron. 3etrieved===========

Performance Management Framework

Mr. Stonefield is starting his own business in Austin, Texas, called Landslide Limousine Service.
One of the fundamental elements to building this new business venture is creating a
framework for performance management. The framework must include necessary
employee job skills, the methods used for measuring these skills, the process for
addressing skill gaps, and the approach for delivering effective performance feedback. It
is important to understand how the performance management framework (PMF) aligns to
the organizational business strategy. Mr. Stonefield previously stated he wants to provide
first-class transportation to his customers. His goals are realistic for the first year with an
anticipated -$50,000 in revenue, and 10% turnover. The success of the businesss
performance management will ensure there will not be any additional lost revenue, and
turnover stays at, or under target. The goals set in place lay the foundation for the future
of this company, and a clearly defined PMF will foster highly engaged employees and
lead to continual revenue growth. It is imperative Mr. Stonefields employees have the
necessary job skills to allow Landslide Limousine to achieve its goals and gain a positive
reputation. A job analysis is The process of obtaining information about jobs, including

the tasks to be done on the jobs as well as the personal characteristics necessary to do the
tasks (Cascio, 2013, p.690).

Mr. Stonefield has elected Atwood and Allen Consulting to conduct the job analysis process to
identify the skills his employees will need. The job analysis process, or in this case,
processes, have been identified, but additional time is required to act out these processes.

The first process is observation. The analyst simply observes a worker or group of workers
doing a job. Without interfering, the analyst records..