Limousine Service Company

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Table of Contents

Performance Management Framework
Organization Performance Philosophy
Job Analysis Process
Methods Used For Measuring Employee Skills
Process for Addressing Skill Gaps
Approach for Delivering Effective Performance Feed back
References

This is a performance management framework of a Limousine service company which has just been started in Austin, TX. The company’s workforce comprises of 25 employees who are expected to steer it in achieving the targeted scales in the market. The company expects a 5% revenue growth for a couple of years to come.

An annual employee turnover rate of 10% is also another significant target which the company expects to achieve in the near future. Our business strategy alone will not enable us reach our targets, and therefore, there is need for more action to be applied through performance management.

The company will have to incorporate a few management approaches that are essential for business success in its operations. Following is an overview of some of the key approaches that are appropriate for the business and a summary of how each of them will be developed to give the desired results.

Performance Management Framework

This refers to a set of business practices that would tend to play a key role in helping organizations achieve their business goals in the market. These practices are crucial for business success, since they help to improve the management strategies applied by business organizations, thus enabling them to execute their roles better and more effectively (Ferreira & Otley, 2009).

As the foundational element of business success, performance management has become a common tool of success in modern-day business environment. Performance Management Framework refers to a comprehensive platform which is designed by an organization to serve as its guideline towards a successful execution of the performance management process.

The development of a performance management framework is necessary for any business that needs to be successful in its operations. Through this platform, everyone who is part of the organizational structure of any company is empowered with everything that is needed to make a positive contribution towards the overall performance of the business.

In order to be successful in our operations as a Car Service Company, we shall have to come up with a strong performance management framework that matches our organizational business strategy. Our main goal is to ensure that the targets we have set for the business are achieved within the shortest period possible.

For instance, we expect $50,000 annual net revenue in the first year of our existence in the market and a 5% revenue growth for a couple of years, among other things.

These targets may be difficulty to achieve within the projected timeframe, especially for a company such as ours which has just ventured the market. However, this obstacle can be eliminated through the development of a viable performance management framework that will enable effective management of operations across all sectors in the company.

Our performance management framework will mainly constitute of management approaches that are likely to bring a significant impact in the contemporary business world.

The model will feature both basic and integrated processes that fully define our business objectives and goals. More importantly, the model will be used to measure performance, analyze performance, review performance, and report performance, among other key aspects.

The figure below is a simple illustration of how basic performance management processes can be used to improve business operations within the company.

A simple illustration of how basic performance management processes can be used to improve business operations within the company

In order to achieve maximum benefits, the company will do everything possible to ensure that there is a perfect alignment and integration of key business processes with the performance management framework. Some of these processes include, but are not limited to, performance reporting, programme management, financial planning, staff or employee management, benefits or rewards, and risk management.

Integration of technological aspects in business has been a key aspect of success for many organizations nowadays. In this regard, we shall embrace the power of technology and apply it in our performance management practices to improve the overall corporate performance.

This process would entail the use of modern technologies and state-of-the-art applications to enhance our performance management practices. By aligning these performance management practices to our organizational business strategies, we shall be able to analyze our progress and make good decisions that would eventually lead to improved business performance.

The figure below illustrates some advanced performance management approaches that would be aligned to the business strategy in ensuring that projected business goals are successfully achieved.

Business Performance Management

Organization Performance Philosophy

Performance philosophy refers to a set of specific and attainable goals or objectives developed by organizations to serve as a basis for the business strategy. In order to register outstanding business results, we shall have to clarify our business strategy and try to align workable practices and systems to that specific strategy.

There are certain things which matter a lot in business, and these are the things that come first when it comes to business performance management.

These things are the fundamental principles of the business that should be followed by each and every person in the organization, ranging from the high-profile employees to the lowest-ranking people at the company (Giacalone & Jurkiewicz, 2003). Following is a set of principles that define our performance philosophy.

The strategy of the organization is clear and understandable to every person who is a contributing factor to our business goals such as employees, shareholders, and customers.
Employees are viewed as the greatest asset of the organization. In this regard, they should always be engaged in activities or practices aimed at improving their performance in business such as training, benefits or rewards, and recognition in work. With these rewarding engagements, the employees can play a key role in the running of our business, thus contributing towards its success in a significant manner.
People should focus not only on what is important to accomplish, but what adds value to our business.
The management task is constantly changed from supervising people in work and solving rising issues to defining the business strategy, offering useful resources, and establishing suitable working and business environments where people would feel satisfied.
People, especially the workers govern themselves by being adherence to the spirit of commitment and existing principles instead of strict working policies.
People within the organization are well organized into working teams that would be responsible for handling reasonable segments of work in the workplace.
Work processes and systems are tailored to support the business strategy.
Performance appraisals are better enough to achieve their main goal of improving individual and organizational performance as well as effectiveness in work.
The business consistently registers better outcomes for itself and for the customers or clients.

Job Analysis Process

Job analysis or performance analysis is the process of observing certain aspects in an organization to determine in detail the type of interventions that are needed to make appropriate improvements in those areas.

In this regard, information about certain aspects such as employee responsibilities and duties, skills, performance, conditions of work, and working environment will be gathered on a regular basis to determine the most appropriate interventions that are needed for business improvement.

More importantly, this analysis will also play a key role in preparing job specifications that would in turn help the organization absorb the right people in its workforce.

Following is a job analysis process that would be used to identify the skills needed by the employees.

Information Collection

This is the initial stage of job analysis or employee analysis whereby relevant information is collected and analyzed to identify their strengths and weaknesses in business (Brown, 2002).

Here, key information about the targeted persons is gathered using various methods such as questionnaires, observation, and interviews, among other approaches. Some of the common observation elements here will include things such as performance, customer or client satisfaction on services offered to them, employee enthusiasm in work, and turnover, among other aspects.

Reviewing Background Information

Once all the information about employees has been collected, it is compared with previous information whereby the differences are noted down along with their possible determinants.

Skills Assessment

Once the collection of information and review of past performance has been done, it is time for the assessment process. Here, the targeted employees will be taken through a self-assessment to determine their skill levels in various performance areas.

Developing Skills Description

This is the final step of job or employee analysis whereby a final draft showing the employees and their skill levels is prepared based on the information gathered in the above steps. The personal qualities, knowledge, and skills needed by each employee to perform better in their work are summarized.

Methods Used For Measuring Employee Skills

Employee skills in business are measured and determined using a variety of methods as follows:-

Productivity Tests

Productivity tests are applied on a regular basis to determine whether the workers do possess the skills needed to successfully meet certain business expectations.

The primary test here is to determine how better employees can handle different assignments allocated to them in the workplace. In this case, workers’ strengths and weaknesses are identified using qualitative approaches, thus enabling the management to take the most appropriate interventions.

Job rating checklist

This is a method of performance appraisal whereby the evaluators are supplied with templates bearing statements or questions about specific aspects of skills or ability. In this case, the workers are needed to respond with either ‘yes’ or ‘no’ to answers that apply to their skills or abilities in work.

Questionnaires

The use of questionnaires is a common approach when it comes to employee skill testing. In this approach, questionnaires targeting the skills one possess in handling some aspects of performance in the workplace are prepared for the evaluators to give their feedback on a rating scale. The feedback acquired is then analyzed to determine the skill of the workers in those areas.

Interviews

These are one-on-one experiences between supervisors and their workers where the latter are interviewed about their skills and what needs to be done to make them more talented in their work (Tansky & Cohen, 2001). In this case, both closed-ended questions and open-ended questions are used to evaluate the employees’ expertise or skills on various areas of performance.

Multi-racer assessments

This is an assessment method where people who may include managers, colleagues, and in some cases, clients are asked to respond to brief questionnaires about a particular worker, particularly regarding their skills and abilities in work. The worker also completes a similar questionnaire and the final results are tabulated for comparison.

Process for Addressing Skill Gaps

Skill gaps refer to differences between a company’s current capability situation and the skills it requires in order to achieve its business goals. After identifying the skill gaps through the interventions discussed above, the training professionals in the company work along with the managers to create a plan that will address the matter appropriately.

Skill gaps can seriously impact the overall performance of businesses, and therefore, it is necessary for any company to deal with the issue in a proper manner to avoid losing its competitive advantage in the market (Keep, Mayhew & Payne, 2006). Following is the process that would be used to address skill gaps in our company.

Setting Strategic Direction

The first action is to plan about the things that need to be checked and applied. This involves understanding where the business is headed. In this case, the business management body will review the strategic plan and identify the practices that are necessary in helping the business meet its objectives.

Skills Analysis

Analysis of the current employees’ skills and abilities for every job carried out in the company. This way, it would be easy to identify the existing skill gaps and the desired action plans. Using the information gathered from the evaluation, it will be easy for the managers and supervisors to come up with an educational program that would effectively address these gaps.

Generating an Action Plan

Once the gaps have been identified, it is now time for the process of closing the gaps to begin. Here, decisions about key interventions such as training and restructuring are made.

Plan Implementation

This is the most significant part of the process where the plans generated are applied using the most appropriate actions to enable the company achieve its goals.

Approach for Delivering Effective Performance Feed back

According to Aguinis, Gottfredson and Joo (2012), effective performance feedback can be achieved by ensuring that the principles of performance management are well aligned to the business strategy.

This process begins with the establishment of attainable business goals and linking them to the aspects of higher level of management. Following is a four-point approach that can be used to deliver effective feedback performance in the company.

Aim for Self-evaluation

Managers should try to establish constant dialogue platforms throughout the year to relieve employees from tensions that tend to accompany unexpected evaluations. In this regard, employees would be aware of their performance weaknesses in time, thus raising them themselves to their managers or supervisors. This helps to reduce the perception that supervisors are being overly critical.

Putting the Individual First

It is important to establish a safe working environment where people can feel relaxed to express themselves in a free manner. On this note, managers and supervisors should be careful with the way they express themselves to their subordinates. While the use of wrong tone can distort the message being passed, a smart tone will make them more understandable to their subjects.

Developing objectives, making accountability explicit, and reinforcing

The reviews made should be based on the future and not the past. Managers should try to figure out what is moving on the right direction and what is not and apply the necessary interventions to make improvements. Employees should be well informed of the changes expected from them and how they should go about their tasks. Good communication will also help to establish key objectives in business.

Tolerating discord, but being specific

Even though it is not easy to avoid conflict, it should not be allowed to get personal. Disagreement makes people turn against each other, thus bearing undesirable outcomes to business. In this regard, it is always good to point out such behaviors and the consequences associated with them. The main aim of performance-oriented communication is to bring people together, not to separate them.

References

Aguinis, H., Gottfredson, R., & Joo, H. (2012). Delivering effective performance feedback: The strengths-based approach. Business Horizons, 55(2), 105-111.

Brown, J. (2002). Training needs assessment: A must for developing an effective training program. Public Personnel Management, 31(4), 569-578.

Ferreira, A., & Otley, D. (2009). The design and use of performance management systems: An extended framework for analysis. Management Accounting Research, 20(4), 263-282.

Giacalone, R. A., & Jurkiewicz, C. L. (2003). Handbook of workplace spirituality and organizational performance. New York: Me Sharpe.

Keep, E., Mayhew, K., & Payne, J. (2006). From skills revolution to productivity Miracle – not as easy as it sounds? Oxford Review of Economic Policy, 22(4), 539-559.

Tansky, J. W., & Cohen, D. J. (2001). The relationship between organizational support, employee development, and organizational commitment: An empirical study. Human Resource Development Quarterly, 12(3), 285-300.

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