Disrupted Links in the Performance Management Process at “Omega,

Inc.”

Omega is a small manufacturing company which sales representatives were employed

by franchise dealers that were operating independently. Omega Inc. has no control over sales
representatives as they were hired by franchise dealers and these franchise dealers had their
strategy. Skills and knowledge of sale representatives weren’t also at a same level. Most of
the sale representatives wasn’t motivated to make additional sales. Sale representatives’
responsibilities weren’t clearly defined. The situation wasn’t satisfactory. So, Omega fund
partially to train the sale representatives. Franchise owners agreed with that they conducted
job analysis of sale representatives and also made franchise wide mission statement whose
mainly focus was providing high quality customer service. Performance goals were also
made in form of sale quotas. Managers provided the feedback according to standing of each
employee. The problem that sale representatives didn’t have any criteria on which they could
walk toward the progress. Sales representatives couldn’t perform at par level. The customers
weren’t satisfied so sales were declining gradually. Somehow, it was better to have
performance management system but not with full transitional through which all matters
could resolve in a better way.
QNO.1 Consider each of the links of the performance management process as shown:
a. prerequisites performance  planning
b. performance planning performance  execution
c. performance execution  performance assessment
d. performance assessment  performance review
e. performance review  performance renewal and recontracting
f. performance renewal and recontracting  prerequisites

Discuss whether each of the links is present, and in what form, in the performance
management system described.

Ans.
The six links in the performance management process outlined in the text are
interrelated. If any of the links is missing, unclear, or compromised, it will have an effect on
the entire process, and employees may not understand what is required of them.
1a. Prerequisites  Performance Planning
 There is not much of a stronger connection between the prerequisites and the performance
planning process. From the case, it can be seen that the prerequisites namely;
(a)Knowledge of the organization’s mission and strategic goals
(b)Knowledge of the job in question were already taken into consideration.
Omega Inc. lacks proper prerequisite for appropriate performance planning. There is
no direct link between the company top management and sales representatives who are
crucial determinants of the company success. Besides, there is no clear definition of the sales
representative roles. The managers and the employees had agreed on a set of goals. But these
goals could not relate to meet the organization’s main goal i.e. of providing high-quality
customer service, as the link between the two was broken. Even though the job description
was laid down, it did not describe the knowledge, skill and abilities that were required to
accomplish the job.
1b. Performance Planning  Performance Execution
 There is the link between performance planning and execution in the organization. It is
mentioned that the managers set performance goals for each employee. Furthermore, after the
training, the employees were given feedback regarding their performance and during the
job they were given feedback regarding their stand in relation to their sales quotas. Hence, it
can be said that both the managers and employees had understanding of their goals and
timely feedback was given so as to achieve these goals.
1c. Performance Execution  Performance Assessment
As mentioned in the case, it can be seen that the main issue the company’s employees are
facing is regarding the performance assessment as they have no way of monitoring their
own progress towards their quotas. Hence, it can be said that there is no strong link between
the performance execution to performance assessment. Also, as the key accountabilities and
skills were not identified; the manger just documented the sales results.
1d. Performance Assessment  Performance Review
 There is no formal assessment procedure in the organisation which has broken the link to
performance review process. Even though the manager and the employee met and discussed
the progress, they did not have a specific form to follow and hence all the discussions were
not documented.
1e. Performance Review  Performance renewal and recontracting
As the performance review process is not specified or mentioned clearly, it is difficult to
identify the parameters wherein the performance is going down and where it is going good.
Hence, there cannot be any process for renewal or recontracting.
1f. Performance renewal and recontracting  Prerequisites
As there is no renewal or recontracting process in place, it cannot be linked to the
prerequisites that are required.
QNO. 2. Given your answers to question 1, what can be done to fix each of the disrupted
links in the process?
Ans.
To fix the disrupted links, the following steps can be followed:
2a. Performance Planning  Performance Execution
 To strengthen the link between prerequisites and performance planning process the franchise
can develop job descriptions and an appraisal form which lists all the accountabilities of the
employees. It should also explain on what parameters their performance will be judged.
Also, the organization’s mission of providing high-quality customer service needs to
be communicated through the goals which are set and the performance should be evaluated
on the basis of the same.  Top management should focus on building the performance among
the franchisees and also have transparent communication whereby goals, mission and vision
of the company will be well defined and understood by all the employees of the company.
2b. Performance Planning  Performance Execution
 This link already exists in the organization and it will improve when the employees start
having a better understanding as to what their performance level should be in order to receive
high performance ratings during the assessment.
2c. Performance Execution  Performance Assessment
 The employees have to be given regular updates on the comparison of the number of sales
they have achieved and how many they should be achieving. Also, any details regarding the
customer feedback which has been received along with the feedback from their respective
managers on their performance in different tasks should be informed to the employee.
2d. Performance Assessment  Performance Review
A standardized appraisal form will result in the improvement of the review phase and it will
strengthen the link with the performance assessment process.
2e. Performance Review  Performance renewal and recontracting
 There has to be a formal meeting set between the manager and employee for the performance
review wherein there should be written goals and a standardized appraisal form. This meeting
should be used to reassess the goals which had been set, to ensure that the organization’s
needs are being met, to come up with ideas for areas of improvement, and redo the process
again.
2f. Performance renewal and recontracting  Prerequisites
If the organization’s needs are being met then the organizational goals remain unchanged and
the prerequisites are in alignment to begin the process again. If the organization’s needs are
not being met, then the organizational goals and individual job descriptions have to be
changed accordingly so as to meet the desired needs of the organization.