Performance Management Plan
Performance management is critical for any organization. Without it, goals and metrics could not be met and the organization would ultimately fail over time. Great thought and consideration must be given when developing performance management frameworks for an organization that are relevant to the type of business as well as promotes the overall goals of the company. The purpose of this paper is to outline the proposed performance management plan for Bradley Stonefield and his limousine business and the benefits to the organization by following this plan.
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Vehicle performance, such as dependability and accident free operation can be a goal for drivers and mechanics, while attendance goals can be for all employees. By setting these goals at the beginning of each review period, Stonefield can ensure that his employees understand their expectations (Cascio, 2012, pp. 333-334).
Facilitation of goals is very important as Stonefield must ensure his employees know how to achieve their goals and are given the necessary tools. Obstacles such as poorly trained mechanics and cars in poor condition will provide challenges for all to meet their defined goals. Additionally, office staff cannot manage balance statements when their computer systems are inadequate to run the software needed or when all of the financial data is not available in a timely fashion. By allowing employees to identify these potential obstacles and bringing them to the attention of management, these obstacles can be addressed and corrected (Cascio, 2012, pp. 333-334).
Another important aspect in the facilitation process is to ensure that employees are well suited toward their role. As stated previously, those that cannot manage a balance sheet would make poor financial staff. By having regular performance discussions with employees and regularly reviewing their work, a manager can identify an employee that is deficient in their skills for a particular role. This allows the manager to provide the necessary up training to meet their goals and to craft a performance improvement plan that outlines the expectations of the role and action plan to help the employee improve their performance. By ensuring that this plan uses SMART goals, the manager can ensure that the employee is given the tools and direction needed to improve their previous performance (How to Establish a Performance Improvement Plan, 2013).
Encouraging performance by management is an extremely important part of the process. To do this, management must provide enough rewards that are valued by employees in a timely and fair manner. This can include financial and nonfinancial rewards in the companyâ€™s organizational reward system. Stonefield must work to ensure that these reward systems are sufficient to maintain his employee turnover at or under his 10% target. By ensuring he has a sufficient number of rewards to fill employee needs, competitive pay both internally and externally, and fair treatment of employees, he can provide a positive workplace environment that will limit his attrition and help to encourage performance to meet company standards (Cascio, 2012, pp. 422-423).
Performance Appraisal Systems
Tying all of this together is the performance appraisal system. Generally given at the end of the year or defined review period, this gives the employee performance related information on their results for the review period, information to improve their future performance and reviews, and information to help all parties make work-related decisions (Cascio,...