Performance Management Plan
May 1, 2014
Performance Management Plan
A performance management system allows a business to maximize its efficiency through the sum of all its parts. Controlling employee’s behavior, maximizing employee efforts, and minimizing unproductive down town, is at the heart of a performance management system. In fact, according to Clardy (2013), “…a performance management system is the total complex of factors that trigger, channel, and maintain productive task performance.” (pg.1, para.2) Making sure employees are doing their job is no longer an efficient method of performance management. According to Cascio (2013), performance management can be thought of ...view middle of the document...
Aligning Performance Management to Business Strategy
What becomes apparent, in maximizing employee efforts, is how human resources aligns human capital and performance management with business strategy. However, according to Schiemann (2007), “It's a tough challenge when you consider that, on average, fewer than 20 percent of employees know their organization's business strategy.” Therefore, what becomes a key issue is ensuring that employees have a clear understanding of the organizations business strategy. Fortunately, Landslide Limousine has a straightforward approach when it comes to business strategy, however, a few recommendations for further growth will also be included in this assessment and how to align performance management with the recommendations.
Landslide Limousine has a business strategy of being comparable to other limousine services in the Austin area, hiring 25 employees, ensuring world class customer service, and achieving five percent revenue growth over the next two years. In addition, we would recommend furthering growth opportunities within a specialty limousine market, offering non-traditional fleet options for non-traditional customers. The performance management system should be clear and concise and the recommendation would be for a simple but effective performance management system.
The first recommendation would be to clearly communicate the business strategy to all employees and ensure understanding through a survey of acknowledgement. It is important that all employees, especially limo drivers, understand the importance of how excellent customer service will effect business strategy and secondary benefits like pay. Second, setting smart targets for service and sales, monitoring and evaluating how employees achieve smart targets and sales. From initial contact and during limo service, upselling services and upgrades on every customer interaction, are important smart targets. Like McDonald’s, when an order is placed, employees will ask if the customer wants fries or a drink with their order, the same can be done with smart targets. When a customer orders limo service, asking if they would prefer a larger or more exotic limo would help align smart targets with strategy. Furthermore, monitoring smart targets could be completed using costumer surveys. Ensuring employees are properly supported throughout the process; evaluating performance and finally, further support through training and development. After a customer has completed their limousine service, managers will evaluate customer surveys and offer any performance evaluation if necessary and any further training to ensure employees are attempting to upsell customers on services. Following this framework is essential in aligning performance management with business strategy and maximizing employee efforts towards business goals.
Organizational performance philosophy
Performance management is essential in creating an organization that is high performing...