Compensation and Benefits Strategies Recommendation
Diana Ali, Stephanie Mollinea, Jennifer Rodriguez, Paul Butterworth, Samantha Mealing
HRM/531
September 22, 2013
Yelena Paykina
PERFORMANCE MANAGEMENT PLAN / 8Performance Management Plan
Performance Management Plan
“Performance management requires willingness and a commitment to focus on improving performance at the level of the individual or team every day.” (Cascio, 2013). Performance management involves more than just providing an annual review for each employee. It consists of working together with all employees to help identify strengths and weaknesses in their performance and how to help be a more productive and efficient worker. Landslide Limousine is currently located in Austin, Texas and presently Landslide Limousine has reached out and expressed their interest to develop a performance management system.
Performance-appraisals play an important role within a sound performance management plan. A performance-appraisal is used to improve an employee’s performance, to help the employees realize what needs to be done to fulfill the business’s organizational goals and also to provide information needed to make correct and valid decisions for the business. One of the many purposes of a performance-appraisal is to reward the outstanding employees, and to correct the issues with underperforming employees. Outstanding employees can receive increases in pay, promotions while underperforming employees may need to be retrained or transferred to different positions within the company where they may succeed.
I recommend that Landslide Limousine’s performance-appraisal method should be the graphic rating scale. Where employees are ranked from unsatisfactory to outstanding based on their level of performance. Each employee is ranked on his or her level of performance, this method would allow change in the future as the rating factors can be adapted and changed over time. I would recommend that Bradley perform this method of appraisal at least twice per year. This would allow for management to filter through the employee performance issues and provide him or her with possible resolutions to these issues. It would also allow for each employee’s concerns being addressed and handled timely.
Performance management is a continuous cycle that involves planning, monitoring, developing, rating, and rewarding (“Performance Management”, n.d.). Landslide Limousine is a company started by our client with intention to provide limousine services to the local area of Austin, Texas. Landslide Limousine is anticipated to operate with twenty five employees with a ten percent turnover rate. In order to maintain a low turnover percentage, it is important that attention is directed by management to the performance at which the employees operate. Not only will a performance management plan assist our client with maintaining effective employee performance but it will also assist the employees to understand where they stand in the company.
Our client must understand that performance management is not an easy task to complete (Cascio pg.369). It is required that 3 areas are performed well when dealing with performance management which are defining, facilitating, and encouraging performance (Cascio pg.359). Our client is encouraged to conduct a job analysis, determine performance standards, and complete performance appraisals which allow the employee to understand clearly what the job requirements are, determine proper behavior for the job, and determine job related strengths and weaknesses of the employee. By implementing these strategies, Landslide Limousine will be a successful organization with loyal and satisfied employees that will greatly contribute to the success of the company.
Landslide Limousine Performance Management Plan
Landslide Limousine Performance Management Framework consist of six essential components that will be analyzed by providing the significance of each component’s attribute to the overall purpose of the Performance Management Framework.
Performance Management Framework and Organization Strategy Alignment
The alignment of the Performance Management Framework and Organization Strategy creates a cohesive foundation of how to accomplish Landslide Limousine’s objectives. Thus, creating a foundation for success by complementing each other structurally.
Organizational Performance Philosophy
If an Organizational Performance Philosophy is correctly implemented, a team structured Performance Management System environment will have defined employee expectations, selected the correct employee for employment and provide adequate resources and motivate employees through employee valued rewards in a fair and timely manner.
Identification of Required Employee Skills
The process of identify the skills needed for employees consist of identifying the combination of the three types of skills and skills derived from the expectations defined in the Organizational Performance Philosophy when selecting applicants.
Measurement Methods
Landslide Limousine is service based; therefore, the type of teams used should be service teams. To measure the individuals’ behavior and skills that were contributed to the team performance their immediate manager, teammates, customer (often through customer satisfaction surveys) and the individual should evaluate their performance. (Casio, pg. 356)
Skill Gaps
The purposed of a Skill Gap Analysis (SGA)is to identify skill areas that need improved or do not meet the defined standard. ("Skills gap analysis:," 2012 The process to complete a SGA consist of four steps examine the company’s strengths, determine the gaps, prioritize the identified gaps, and formulate a plan to correct the correctable.
Performance Feedback
The recommendation for Landslide Limousine’s best approach for delivery of effective performance feedback is to train the raters, provide frequent feedback in a timely manner, properly communication with employees on a daily basis, and have more frequent feedback encounters.
In conclusion, Landslide Limousine Performance Management Framework is cohesive and thorough. Each discussed component attribute contributes to the overall purpose of the Performance Management Framework, to guide an individual’s direction with company provided support of attention and effort to accomplish Landslide Limousine’s objectives.
Landslide Performance Management
This document is going to outline and suggest different items in regards to a proposed performance management plan for Landslide Limousine. This document will address the alignment of the performance management system to the organizational business strategy, the organizational performance philosophy, the function that job analysis will serve in the performance management plan, methods used for appraising performance, the process for addressing employee issues, and an approach for delivering effective performance feedback.
Business Strategy and Performance Management Alignment
The first thing that will need to be done is recognizing what the business strategy of Landslide Limousine is going to be. Landslide Limousine is suggesting that in the first year they will anticipate a net revenue of $-50,000 with a revenue growth of 5% over the next few years. Furthermore, Landslide Limousine is looking to have 25 employees on staff the first year with an annual employee turnover rate of 10%. It is imperative that the performance management plan created ensures that Landslide Limousine will meet or exceed the goals that are set forth.
Organizational Performance Philosophy
The philosophy that will ensure Landslide Limousine will be successful is the Management by objectives (MBO) philosophy. Management by objectives is a well-known process of managing that relies on goal setting to establish objectives for the organization as a whole, for each department, for each manager within each department, and for each employee (Cascio, 2013). For this to be successful Landslide Limousine will have to set major objectives and goals and meet on a scheduled basis, develop plans on how to meet these objectives, and create measurement tools to make sure the objectives are met. With this philosophy Landslide Limousine will promote success in its managers, employees and overall business.
Job Analysis
The next step in the performance management plan is to do and create a job analysis. The job analysis is going to describe each position within Landslide Limousine and the requirements that go along with each position. This analysis should be made available to all employees, not just the managers.
References
Cascio 9ed (1st ed). McGraw-Hill Create. Retrieved from http://online.vitalsource.com/books/9781121903814/page/359
Performance Management . (n.d.). Retrieved from http://www.opm.gov/policy-data-oversight/performance-management/performance-management-cycle/
Cascio, W. F. (2013). Managing Human Resources: Productivity, Quality of Work Life, Profits (9th ed.) Boston, MA: McGraw-Hill/Irwin
Skills gap analysis: why is it important?. (2012, March 7). Retrieved from http://innovatia.net/blogs/training_blog/2012/03/skills-gap-analysis-why-is-it-important/