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Running head: PERFORMANCE MANAGEMENT PLAN 1

Performance Management Plan


Manzoor Tallat
HRM/531
March 26, 2014
Malcolm Mumford
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Performance Management Plan
To: Mr. Bradley Stonefield
From: Manzoor Tallat (Atwood and Allen Consulting)
Date: March 26, 2014
Subject: Performance Management Plan
For the success of a business, a strong performance management framework is necessary.
Strong performance management plan includes alignment with the business strategy, considering
an organizational philosophy, performing job analysis, choosing methods to measure employees
skills, determining a process for addressing skill gaps, and an approach for delivering effective
feedback.
This memorandum will provide some suggestions on how to create a resilient
performance management framework, which will set Landslide Limousine on the path to
success.
Organizational Business Strategy
In prior communications we were informed that your business location is Austin, Texas
and that providing first-class personal transportation to the customers is your business strategy.
Furthermore, you stated your projected first year net revenue will be approximately -$50,000,
and you expect a 5% net revenue increase over the next few years, and you estimate a 10%
turnover rate. Based on your projections we believe 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 basis for future financial growth.

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Organizational Performance Philosophy
As part of Landslide Limousines performance management framework, it is vital to
identify your organizational performance philosophy. In order to establish limousine business in
Austin, Texas, amongst an existing competitive market, the philosophy must be built on top-
notch customer service. To build a positive reputation in the market employees must understand
what is expected of them. Behavior-oriented rating method is recommended in order to evaluate
the employees. Capturing customer satisfaction is the key to performing behavior-oriented
ratings. A simple, yet effective approach would be to create a behavioral checklist based on
questions asked on Landslide Limousines customer satisfaction survey (Cascio, 2013). Another
effective method would be to evaluate each employee using a graphic rating scale. Graphic
rating scales are set up with rating factors down one side, such as attendance, appearance, and
relationships with people, and level of performance across the top (Cascio, 2013). This
information can be obtained from customer feedback and individual evaluation.
Job Analysis
The next step in creating a solid performance management framework is to decide on the
job analysis you will complete in order to identify the skills needed by your employees.
According to Cascio, job analysis is the procedure of obtaining information about jobs and
includes information about the responsibilities to be performed on the job, as well as the
individual characteristics (education, specialized training, experience, personality) necessary to
do the task, (2013, p.165). There are several methods that can be utilized to determine the
necessary skills for your employees, but we suggest the observation and critical incidents
methods. The observation method requires an analyst to observe a worker and records the, why,
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what and how of different components of the job, (Cascio, 2013, p. 172). In order to accomplish
this method you should use the services of other limousine companies in the area and record the
information in a standard format (Cascio, 2013). The critical incident method is comprised of
concise actual reports that demonstrate particularly effective or ineffective employee
behaviors, (Cascio, 2013, p. 173). You can accomplish this method by recording situations that
you encounter while using other limousine services. This information will give you a clear
picture of job requirements and assist you in developing customer service that out performs your
competitors (Cascio, 2013).
Skills, Skill Gaps, and Feedback
Once you have determined the necessary skills your employees must have you need to
establish methods to measure the skills, how you will address skill gaps, and your approach for
delivering effective performance feedback. Previously Atwood & Allen suggested that you use
Behavior-oriented ratings in order to measure your employees skills and performance. In order
to establish this method Landslide Limousine must set goals for each employee. Goal setting
has a proven track record of success in improving performance in a variety of settings and
cultures, (Cascio, 2013, p.333). To effectively evaluate each employee consider assigning each
goal a value. When it is time for evaluation you take the numeric score, based on goals achieved,
and customer satisfaction input and you have established the basis for the evaluation. This
approach allows you to see where each employee ranks against other employees within your
organization. Benefits such as bonuses and pay raises should be tied to performance and the
evaluation. Atwood & Allen recommends quarterly performance evaluations in order to assess
employee performance and keep business on track with the companys strategic goals. If skill
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gaps are identified it is important to address them immediately. The most effective way to
address skill gaps is with training (Cascio, 2013). There are several training methods, but the
simulation and On-the-job training methods are appropriate considering the business. The
simulation training method uses techniques such as role playing and behavior modeling, which
are appropriate to improve skill gaps with customer service issues. Additionally, on-the-job
training (OJT) is another training method that you can utilize. A good time to use this method
will be if you have an employee that isnt getting good customer feedback. You can place the
employee with an employee that has exceptional feedback to let him/her see how to better handle
situations and interact with customers. Lastly, to complete your performance management
framework you must deliver effective performance feedback. Landslide Limousines reputation
and place in the market depend on superior customer service. Frequent feedback will assure
management and employees are working together to meet the organizations strategic goals.
Atwood & Allen recommends formal quarterly and annual written evaluations. Additionally, it is
imperative that Landslide Limousine keep the informal lines of communication open with
employees to include, providing immediate feedback to employees based on customer
comments. Management and employees should have regular meetings to discuss goals and
strategy. Frequent communication and feedback will assist Landslide limousine with
performance management.
The performance management framework suggestions laid out in this memorandum are
provided to assist you in getting Landslide Limousine off to a successful start. Please do not
hesitate to contact us if you require any clarification or have further information.


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References
Cascio, W. F. (2013). Managing Human Resources: Productivity, Quality of Work Life,
Profits (9th ed.) New York, NY: McGraw-Hill/Irwin
How to Start a Limo Company in Austin, Texas. (n.d). Retrieved from
http://smallbusiness.chron.com/start-limo-company-austin-texas-17300.html

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