Performance Management Framework Essay Example for Free

Performance Management Framework Essay 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 business’s 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. Stonefield’s employees have the necessary job skills to allow Landslide Limousine to achieve its goals and gain a positive reputation. A job analysis is â€Å"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. â€Å"The analyst simply observes a worker or group of workers doing a job. Without interfering, the analyst records Team Reflection: Performance Management In week 4 Team â€Å"D† reviewed and discussed the following information and how it applies to Landslide Limousine. Alignment of the performance management framework to the organizational business strategy, organizational performance philosophy, the job analysis process completed identifying the  skills needed by employees, methods used for measuring an employees skills, process for addressing skill gaps, approach for delivering effective performance feedback. Alignment of the performance management Aligning the structure of the performance management plan with the business strategy is a key element for its success. For Landslide Limousine Services, it was previously communicated that this strategy entailed providing first class transportation to its customers. Its prospective goals indicate a $50,000.00 first year net revenue, a 5% net revenue increase over the first few years, and a turnover rate of approximately 10%. In order to achieve the realistic goals set and for the business strategy to be met, you must consider what it would take to reach them. Understanding that employee loyalty will be an asset to the business is a good start. This means developing a flexible framework that expresses the companys culture and shows managements commitment to developing a strong team of employees. Providing the right training opportunities is essential for meeting business objectives. Many companies just go through the motions of a performance management plan without fully evaluating the needs of the employees to develop their morale and commitment in return. In order to provide first class transportation to its customers, opportunity for development in this area with the proper guidance and encouragement will engage employees in the direction of the companys strategy. Organizational performance philosophy Every business and its culture differ from one Introduction Creating a performance management framework ensures that Clapton Commercial Construction will achieve its business venture goals. A critical tool for a company is its performance management. It gives the employees an opportunity to succeed and for the organization to prosper. Outlined are recommendations that we here at Atwood and Allen consulting feel should be utilized to maximize the potential this company has. Performance Management For any business to be successful it is imperative that they implement a  performance management framework. This structure must be effective for the company to meet its goals and ensure that internal decisions are made based on the work performance of its employees. The performance management framework aligns with the business strategy because the structure is created based on the goals and vision of the business. Recommendations Clapton Commercial Constructions desire is to deliver quality top notch construction and customer service. A clear vision and realistic goals are needed to target areas of improvement. An effective performance management framework ensures consistency in reviews and brings the business success they are anticipating. It is recommended that Clapton Commercial promote growth by making sure that all employees are properly trained and feedback be analyzed from the employees and customers. The job analysis is an in-depth study of the position. It provides information for job descriptions (Job Analysis-Human Resources Management for Employers, 2011). We recommend that the employees be involved by completing a job analysis form, this is a way of collecting information about the work. Interview the employees by asking them specific questions about their job duties and make a list of the specific task performed. Also, identify the experience, education, and training levels PERFORMANCE MANAGEMENT SYSTEM ABOUT PERFORMANCE MANAGEMENT SYSTEM Performance Management involves the entire gamut of processes in identifying critical dimensions of performance setting work plans against laid down objectives, reviewing the work done against indicators of performance and developing and enhancing competencies for improved performance. THEORGANIZA TIONAL GOAL PROVIDES THE PERSPECTIVE TO DETERMINE THE DEPARTMENTA L (REGION/ THEME/UNIT) GOAL WHICH IN TURN PROVIDES THE CONTEXT FOR AN PROCEDURE FOR EFFECTIVE PERFORMANCE MANAGEMENT SYSTEM An effective Performance Management System should be based on :a) Setting up Key Result Area (KRAs) for the Region/Theme/Unit/ Department b) Clarity of Individual Roles and Responsibilities c) Laying down Plans and Performance  Indicators for each position d) Periodic assessment of performance of the individual against such Plans/ Performance Indicators e) Identifying factors facilitating and hindering achievement of Plans development of action plans for overcoming hindering factors and strengthening facilitating factors f) Periodic review of role incumbents behavior, which contributes to effective functioning and working out action plans for developing such behavior. g) Identification of role incumbents developmental needs and preparing plans for staff development through training and related activities. h) Implementation and review. HUMAN RESOURCE MANAGEMENT: PERFORMANCE MANAGEMENT SYSTEM PAGE STAGES OF MANAGING PERFORMANCE SYSTEM : 1. Identification of KRAs (Key Result Areas)  KRA(s) for the Organisation need to be identified and collectively agreed upon. The KRA(s) for the organization will be drawn out from the Country Strategy paper (2005-2010) which has evolved through a bottom-up approach, from consultations held with over a 1000 persons, with participation from the partners and communities AAI-India works with. KRA(s) for the organization will hold good for the Performance Management Plan Performance Management Plan HRM-531 March 17, 2014 Patrice Cloutier Mr. Stonefield, I am very happy to hear that you are considering a Performance Management Plan for your business expansion in Austin, Texas. As you may know there are sound organizational payoffs for implementing a strong performance management system. Study indicates that companies with a strong management plan is likely to outperform competitors by 51% on financial measure and by 41% on nonfinancial metrics. The performance management plan for the limousine operation with 25 employees, with a net $-50k revenue, with a growth of rate 5% for the first two years and expected rate of turnover of 10% should be straight forward. Here below I am presenting to you our recommendations for a very comprehensive performance management plan. (Cascio, 2013, P.332) The first step a business must consider is alignment of performance management to the business strategy. Once you have the vision for the Limo operation in Austin, identify the drivers or Key Performance Indicators to achieve the vision. The KPIs then can cascaded down to the functional areas then to individual level. The next step in the process should be of defining goals. The process of goal setting should be a collaborative process between a manger and the employee. Once the company wide strategy is established the strategy and the goals should be shared with each employee. This is a critical step in the process. One thing to keep in mind in goal development is that the goals should be specific, measurable, achievable and timely. Specific: Well-defined to inform employees exactly what is expected, when, and how much. Measurable: Provide milestones to track progress and motivate employees toward achievement. Achievable: Success needs to be attainable with effort by an average employee, with a bit of a stretch. Relevant: The goals should focus on the greatest impact to the overall