A strategic performance management framework is very essential for the success of our client, Bradley Stonefield of Landslide Limousine. It is imperative to explore the characteristics for a performance management framework. For us to create an efficient, successful performance management framework, we must incorporate the four levels of training assessment in developing a comprehensive job analysis. The recommendations for a performance management framework are also aligned to the organizational business strategy as identified by Mr. Stonefield.
As stated in previous communications, Landslide Limousines will be located in Austin Texas with 25 employees planned during the first year with anticipated net revenue $50,000 with a revenue growth of 5% over the next few years and an estimated 10 % turnover rate. We here at Atwood & Allen Consulting, believe the business goals both short and long term is realistic for the first few years. This information will be used for a performance management framework which will be created to identify employment skills needed, organizing performance philosophy and job analysis process. This framework will also assist Landslide Limousine in describing procedures used to ascertain employee skills and skill gaps with an approach for delivering effective performance feedback. These strategies will set the foundation not only for financial growth but encourage employee loyalty. Performance Management Framework and Business Strategy
In order to develop a successful performance management framework, it is imperative to align it to the organizational business strategy. During his interview with us, Mr. Stonefield stated the anticipation of 25 employees with a 10% turnover. This is an indication that there could be a loss of approximately 3 employees within the first year. This performance management framework will allow Landslide Limousines to create an employee appraisal system that will focus on the company and employee needs and the projected employee turnover. Performance management “requires managers to define, facilitate, and encourage performance by providing timely feedback and constantly focusing everyone’s attention on the ultimate objectives” (Cascio, 2013, p. 693). To realize this goal, Landslide Limousines must establish performance standards by defining levels of performance that are acceptable and unacceptable. “When processes are executed well, the organization delights its internal and external customers through high performance” (Cascio, 2013, p. 161).
In order for Landslide Limousines to be successful in the Austin marketplace, the company must provide highly efficient level of performance. Research shows that “firms facing intense market competition, should produce and market high quality products to meet customer expectations and competitive quality standards” (Chong, 2004, p. 167). At Landslide Limousines, the product is the service provided by limousine drivers and dispatch. Improved product quality leads to increase customer satisfaction (Chong, 2004). To provide a high quality product, the company must focus on hiring employees with high levels of competencies. They must maintain a high quality product therefore the company must focus on incentives of work practices that inspire employees to maintain a high quality performance. Organizational Performance Philosophy and Job Analysis
Developing performance philosophy and job analysis allows Landslide Limousines to identify the required skills for each employee position. Transportation, a key service of Landslide Limousines, is provided by drivers. It is important for Landslide Limousines to establish organizational performance philosophy for the drivers and dispatchers that support them in the performance of presentational services. Studies show that behavioral aspects are formed by employee as a result of positive job satisfaction and intention to remain employed by the company (Valentine, 2010). “Positive job responsible parties employees will influence their level of ethical job performance, such that employees with more positive job responses will engage in higher levels of ethical job performance that employees with less positive job responses) (Valentine, 2010, p. 197).
Since drivers are unsupervised and interact directly with clientele, it is of paramount importance that drivers display professional attitudes and exemplary customer service. To aid better attitude and exemplary job performance, it is recommended that a philosophy of autonomy and free will is incorporated into the job narrative for drivers and dispatch. Studies show that when employees leave that there is an element of free will in their work, they perform better and demonstrate better workplace behavior (Stillman, 2010). Specifically, research has concluded that “belief in free will facilitates control behavior and buffers against impulsive action, which, in turn, translates to better job performance” (Stillman, 2010, p. 48). Therefore, by incorporating a philosophy of autonomy into employee expectations and job analysis, Landslide Limousines will increase the positive performance of employees. Measuring Employee’s Skills and Skill Gaps
Analyzing jobs for an effective performance management framework, measuring employee’s skills and skill gaps should be properly measured. Job design is dependent upon the analysis of the job and the employee skills needed to perform specific roles and responsibilities. To comply with the Americans with Disabilities Act (ADA) it is important that essential functions of the job are clearly established by Landslide Limousines (EEOC, 2008). “Essential functions are those that require relatively more time and have serious consequences of error or nonperformance associated with them” (Cascio, 2013, p. 170). Establishing requirements such as standing, walking, sitting, lifting and pulling for each job and analyzing the skills that an employee must perform on each job allows Landslide Limousine to measure skills and skill gaps while complying with ADA requirements.
In addition, it is important to incorporate competency models in job analysis for Landslide Limousines. Competency models identified individual characteristics that fit organizational goals. “They focus on the full range of knowledge, skills, abilities, and other characteristics (e.g., Motives, traits, attitudes, personality characteristics), so-called KSAO’s, that are needed for effective performance on the job, and that characterize exceptional performers” (Cascio, 2013, p. 172). By identifying those motives, traits and attitudes necessary performing as either driver or dispatch operator, Landslide Limousine also identifies how employee skills will fit organizational goals and establish skill gaps. By pairing skills and competencies specific to industry leaders, Landslide Limousines can assure that the hiring of well-qualified employees is based on a solid job analysis, design and description. Delivering Effective Performance Feedback
In order to deliver effective performance feedback, it must first establish appropriate performance appraisal system as well as performance evaluation standards. In appraising employee performance, it is important for management to follow a well-established system that complies with applicable law. Although Texas law establishes that employment within the state is employment-at-will, there are several statutory requirements that must still be met (Texas Workforce Commission, 2014). To avoid potential litigation, the company will document all employment decisions including performance evaluations and the standards used in the appraisal of employees. Performance evaluations are required for many reasons, to include assurance that individual employees are performing their job as expected and in accordance with organizational goals. “Regular assessment of progress towards goals focuses the attention and efforts of an employee or a team” (Cascio, 2013, p. 334).
Successful evaluation of an employee’s performance is a direct result of performance facilitation and encouragement by the organization. Performance facilitation includes enabling employees to perform job responsibilities to the best of their ability. This includes providing employees with proper equipment and training. Employees must also have adequate resources to perform well at their assigned jobs (Cascio, 2013). An interpersonal relation within the company, especially between dispatchers and drivers, is also an important performance indicator that must be evaluated within the organization. This is important because internal conflict can lead to negative external relationships with clients. Research shows that “Performance, interpersonal facilitation, and job dedication are all important components of supervisor’s judgments of overall performance” (Van Scotter, 1996, p. 530). It is important that performance evaluations call to attention the specific competencies expected in accordance with organizational goals.
Delivering effective performance feedback is an important aspect of effective employee management. Effective performance feedback is dependent upon the level of effectiveness of the appraisal system used. Effective appraisal systems must be relevant, provided clear link to performance standards, and address critical job elements (Cascio, 2013). Feedback must be based on specific employee performance as it relates to organizational goals. “In all cases, it is important to pay attention to the things that the customer believes are important” (Cascio, 2013, p. 337). Each employee’s immediate supervisor is responsible for evaluating the performance of the individual employee against the established performance standards that “translate job requirements into levels of acceptable or unacceptable employee behavior” (Cascio, 2013, p. 338).
Research indicates that highly effective appraisal systems are dependent upon the adequacy of the system to identify and measure skill sets of individuals (Lawler, 2012). “What organizations need to do is create performance management systems that are integrated with the other human resources management systems they have and the overall talent management strategy of the organization” (Lawler, 2012, p. 199). Effective performance feedback is totally dependent on the entire performance management framework and the success of its integration to meet organizational goals. Landslide Limousines will benefit from looking at employee feedback from a wider perspective. Conclusion
In conclusion, it is recommended that Landslide Limousine create a performance management framework that incorporates all areas of organizational performance philosophy. By encouraging autonomy among employees and facilitating leadership mentality, the company can achieve an organizational goal of employing a workforce of elite drivers and dispatchers that rival competition. Though it is important that job analysis, description and design comply with legal requirements, it is as equally important that each employee be encouraged to act with free-will and autonomy in performance of their job responsibilities. Performance feedback is directly linked in establishing performance standards which highlight above standard employee behavior as exemplifying leadership qualities and providing the customer with the best possible transportation experience in the Austin area. Encouraging employees to take ownership of their jobs and facilitating positive interpersonal relationships, the company designs a performance management framework that enables employees to perform as leaders in the limousine industry.
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