Given the need to improve organizational productivity through increasing employee performance, develop a performance management program that focuses on linking the organizations strategic objective with the individual effort outlining the benefits of improved performance, the consequences for lack of performance as well as the employee and managerial training that will be needed for implementation.
Purpose of the performance management program (PMP)
The purpose of the PMP is to align the motives of the employee with that of the organization so that the employee is encouraged to work for the good of the organization. Objectives are formulated that are in line with those of the employee, a system of rewards and consequences are established that attract the employee, and a system of monitoring and work appraisal, formalized together with employee, is established.
The PMP is strategic so that the organization's goals are clearly aligned with that of the individual and both are moving in the same direction. Plans are outlined, a strategy is set, and manager and employee collaboratively work towards accomplishing strategy.
The PMP is likewise administrative in that clear communication has to be set at the outset and throughout between administrator and employee. Implementing and maintaining goals involves establishing clear specific expectations and reviewing those expectations so that administrative functions of the organization are held in check and accomplished. In fact, one of the important functions of the PMP is to enable manager to control tasks and projects of organization so that it is moving in desired direction.
The PMP is also developmental in that administrator and employee are involved in a continuous loop of performance, review, evaluation, and assistance to meet the organizational goals. By so doing, the individuals, himself is likewise progressing towards his goals. A state of continuous learning is, therefore, involved in the process, as well as progress and moving forward since goals are contrasted to and modified according to benchmarks in order to reform and ensure progress.
2. Performance measurement criteria
In order to be as effective as possible, the PMP has to cohere to certain criteria. These measurements gauge whether the individual is indeed following he contract according to benchmark characteristics or initially agreed-upon objectives.
The criteria have to be valid, reliable, and acceptable.
The criteria has to measure what it says it will measure. For instance, if I wish the worker to perform excellent work. I have to concisely and clearly define what I mean by the term 'excellent'. I have to be specific. In this way, the term, if actualized, will meet my objective
The criteria has to be the same form situation to situation. If I, for instance wish my worker to demonstrate 'excellent' behavior, I have to be consistent in my expectations of this 'excellence' placing upon him expectations that he can meet and not irrationally and arbitrarily differing in my demands
Before the start of the program, I will establish work criteria and expectations with employees. I will also clarify job expectations and descriptions. I will make sure that workers understand my work criteria and that they agree to abide by them.
3. Performance measurement system
An effective PMP has to establish employee's attention on what matters most to success. Measures are identified, targets and thresholds are established, and baseline and benchmarking data is set.
a. Link to business strategy (What is to be accomplished?)
Since business depends on customer satisfaction for success, to me one of the prime characteristics is excellent customer service. I also wish my employees to be content. Content employees will produce quality work. The contentment of the employees, therefore, a as well as quality of work environment, and the level of their interaction with peers will likewise be assessed. Finally, their general performance and adherence to rules will be reviewed.
1) What metric measurements are important?
I will consider sales increases, customer satisfaction surveys, employee satisfaction surveys, attitude and feedback at regular meetings, the general environment in store (such s level of small talk and greeting amongst employees and between employee and customer as well as between manger and employees). Reduced absenteeism is another effective metric as well as R&D effectiveness index
b. Link to organizational cultural issues (What is to be measured?)
The employee's performance will be measured; as well as his attitude to and treatment of customers. The employee's treatment of other workers will also be assessed and his adherence to rules. Finally, the quality of the work environment and elements of employee satisfaction will be reviewed.
c. System Structure: What has been selected and why?
The PMP is structured according to the philosophy / ideology of the management. There are various approaches. One approach can wholly, or partially, directs the structuring and implementation of the system.
1) Attribute Approach
This focuses on the attributes of the employees rather than on results. For instance, rather than focusing on the amount of money made per month, I will focus instead on the happiness level noted in the store the past month, or on other non-economic results metrics. Quality rather than quantity will be the outcome of my PMP.
2) Comparative Approach
I will establish some benchmarks and assess whether outcome meets those initial objectives. For instance, I may have conducted some research beforehand that tells me that a competitor, implementing certain steps, had invented a certain successful program in the course of 10 years. My comparative approach would be to carefully simulate those steps in order to achieve the same end. Performance and review will be constructed with his performance and outcome.
3) Behavioral Approach
Environment and stimulus generates and influences results. These include positive reinforcement (where employees receive reward); negative reinforcement (where employees are treated in such a way that negative behavior is prevented); punishment; and extinction of action.
The focus will be placed on the environment in the belief that the environment and environmental influences (such as conduct of mangers to employees) will motivate employees
4) The Results Approach
This will focus on outcome. Metrics used here include market share, sales increases, margins, R&D effectiveness index, and reduced abseeintism
5) The Quality Approach
Focus will be on the quality of the work rather than the quantity. In other words, rather than focusing on the leverage of sales made during the past month, focus instead may be on increase in quality of work, or intensity of customer satisfaction -- whether customers are more content with organization during the last month.
d. Administrating the Performance Management Program
Administrating the PMP requires collaborative and open communication between employer and all members of the team. Each must be involved in wishing the program to work and in continuously reviewing it to ascertain that objectives are being met.
1) Input from managers, employees, peers this includes observations, informal discussions, formal meetings and written documentation where managers, employees, and peers- in fact all stakeholders -- are involved. Coaching and feedback will occur on a regular basis throughout the performance management cycle. It is especially important for supervisors to provide feedback on performance issues in a timely manner and to discuss performance improvements and progress towards agreed upon goals/work priorities
2) Consequences of success
There will be bonuses; extra vacation' rewards such as vehicles; promotion. High-performers will be praised and publicly rewarded for their performance. They may receive special awards
3) Consequences of failure as a first stage, employees will be privately castigated and their shortfalls will be clearly pointed out. They will be given a chance to rectify their actions. There will be demotion; and expulsion from job as a last resort.
e. Training employees and managers in the system
Depending on the position of employee, employees will receive monthly training in particular aspects of their work with more senior employees receiving training…