In order for Bradley to implement a successful performance management plan he must first understand what makes up such a plan. To facilitate the operation of a successful organization, a performance management plan should be in place. Performance management requires attention from every manager on a daily basis (Cascio, 2013). It is the job of the manager to provide each employee with timely feed back. The managers must also focus the employee’s attention on obtaining the overall goals and objectives of the organization (Cascio, 2013). Furthermore, it is important to know that performance management requires a willingness, ability, and commitment on improving individual employee performance every day (Cascio, 2013). For performance management to be successful, the management must define performance, facilitate performance, and encourage performance (Cascio, 2013).
Defining performance ensures that individual employees and teams know what exactly is expected of them. This also allows them to stay focused on effective performance. First the managers must set goals for the employees in the organization (Cascio, 2013). The goals need to be specific and challenging to motivate the employee.
It is important to provide assessments when defining performance. Performance appraisals play an important part in the overall effectiveness of performance management. According to Cascio, “Regular assessment of progress toward goals focuses the attention and efforts of an employee or a team” (2013). These appraisals provide feedback to the employees about their job performance. The appraisal informs them of what they do well, what they need to work on and their overall ability to perform. It is important that Bradley conduct performance appraisals of his employees. Typically, appraisals are done annually, however, Bradley would benefit from conducting these appraisals quarterly. This will allow his employees to be more aware of what their performance and will provide the opportunity to correct any behavior necessary.
An important aspect of being a manager is to eliminate any obstacles that employees may face. Additionally, it is the job of the managers to ensure adequate resources are provided to the employees so they are able to properly perform their job functions (Cascio, 2013). Bradley needs to ensure that his employees have the resources needed to be able to carry out their daily job functions. This may include maintenance on the limos, adequate human resources, or obtaining licenses for the drivers. Additionally, Bradley needs to ensure that he has carefully selected his employees. Hiring people that are not suited to perform the job will lead to high employee turnover or possible overstaffing in an attempt to compensate for the employee’s poor performance.
To ensure the success of his employees, Bradley needs to encourage the positive performance of his staff. To do this, he should offer rewards for positive performance. He needs to focus on rewards the employees desire, such as a bonus, and provide it in a timely manner (Cascio, 2013). Offering the rewards after the positive performance will encourage the employee to continue the behavior. He also needs to make sure he is providing rewards fairly and not favoring certain employees. All of this will lead to positive reinforcement and happy employees.
Alignment of the performance management framework to the organizational business strategy The performance analysis must be relevant. Relevance means that there is a clear and obvious link between the performance standards established for a particular job and the organization’s objectives (Cascio, 2013). Bradley needs to establish clear goals and objectives for his organization. Based on those goals, he will then need to establish the performance objectives for his employees. It is important to establish clear guidelines and expectations that the employees are aware of and understand. In doing this, Bradley will be working toward the overall goals of the company.
Organizational performance philosophy
Traditionally, organizations used a salary entitlement method to provide compensation for their employees. Salary entitlement is when employees receive salary increases based on things like seniority or time served in an organization. In this model, performance is not taken into account when deciding on pay increases. Employees and organizations are moving toward a pay-for-performance method. In this model, managers set standards for employee performance. Based on the success or failure of the performance, raises are determined (Cascio, 2013). This method is focuses on results, which in turn benefits the organization. This type of result oriented performance philosophy provides motivation and incentives for the employees to perform their job functions successfully (Cascio, 2013). Thus, Bradley should base his raises on how well the employee is performing. For Bradley’s company, the standard may be related to customer satisfaction. The happier the customer, the more likely it is that the employee is performing up to standard and bringing in revenue for the organization (Cascio, 2013).
The job analysis
In order to complete a job analysis, Bradley must consider the skills necessary for employees. The job analysis process should involve describing in detail the skills required to complete each particular job. Creating job description will identify certain standards for every position. Thus, Bradley should also include specifics regarding the standards of performance and the responsibilities of each position. Providing a job description will allow Bradley to select the appropriate people to hire. Establishing performance standards plays a critical role in job analysis. “Job analysis identifies what is to be done. Performance standards specify how well work is to be done” (Cascio, 2013). For example, the drivers need to be qualified and licensed to drive a limousine and chauffeurs clients.
Methods used for measuring the employee’s skills
Though there are many ways to measure an employee’s skills, the most common in the U.S. is the management by objective (MBO) approach. Management by objectives is a process of managing that relies on setting goal to establish objectives for the organization, the managers, and the employees (Cascio, 2013). MBO is a results-orientated rating method. Results-oriented rating methods place primary emphasis on what an employee produces (Cascio, 2013). MBO measures each employee’s individual contribution to the overall success of the organization. It does not measure employee behavior (Cascio, 2013).
In order for Bradley to successfully establish a MBO rating system, he needs to meet with his managers to discuss and establish the company’s major objectives. They need to establish a time frame (i.e., a month, six month, one year) and determine what goals should be accomplished by that time. Bradley and his managers need to next develop and establish plans on how those objectives will be accomplished. Additionally, Bradley and his managers need to agree on how they will measure whether the objectives have been met or not (Cascio, 2013).
Additionally, employee appraisals should shed light on an employee’s skills. Appraisals should be conducted by numerous people, including the employee’s supervisor, co-workers, the employee himself, and the customers served (Cascio, 2013). Gathering information and input from managers, subordinates, peers, and customers to provide a perspective on performance from all angles is called 360-degree feedback (Cascio, 2013). Utilizing multiple sources allows the manager to get a better insight into the employee’s performance. According to Cascio, an additional benefit for the 360-degree feedback method is “[d]iscrepancies between self-ratings and those received from others may create an awareness of a person’s needs for development, and motivate individuals to improve their performance in order to reduce or eliminate such discrepancies” (2013). Process for addressing skill gaps
One way to address the skill gap is to identify the specific skills needed to complete a task then evaluating and comparing it against the skills an employee has. Once the required skills have been identified and compared to the existing skills, the manager will be able to identify what areas need to be improved. Managers should then develop a training plan to teach the employee the skills needed and not yet possessed. Once the training program has been developed and conducted, the employee’s skills should be reassessed to determine the effectiveness of the training. If it was successful, the employee will now possess the required skills to complete the job. If it was not, the managers need to go back and redevelop the training to better suit the employee’s needs.
Approach for delivering effective performance feedback
The best way for Bradley to provide performance feedback is through feedback interviews with each employee. Feedback on an employee should be given as close as possible to the action performed. This is when it will have the most impact (Cascio, 2013). It is important that Bradley does not judge the person in the interview, but rather judge his performance. Placing an emphasis on the employee as a person, as opposed to the task performance, is likely to lead to lower levels of future performance (Cascio, 2013).
Additionally, Bradley needs to focus on the information relating to performance improvements and avoid destructive criticism. Destructive criticism produces negative feelings for the employee receiving it (Cascio, 2013). Additionally, it will provide a negative impact on goal setting for the employee. Rather, constructive criticism should be offered, allowing employees the opportunity to understand what areas of performance need to be addressed.
In sum, establishing employee performance standards will allow Bradley to assess his employees. Ensuring that the performance management plan and the organization’s goals are aligned will provide accurate feedback on employee performance. It is important to make sure the employees know the organization’s goals and what is expected of them. Additionally, providing a performance based incentive system will enable employees to strive to meet the goals.
I would be happy to discuss any of these concepts in further detail.
Cascio, W. F. (2013). Managing human resources: productivity, quality of work life, profits (9th ed.). Retrieved from Retrieved from The University of Phoenix eBook Collection database.