Growth Performance Management Essay

In this report I have given a lot of research into the relevant subjects. I think that the way I have looked at the possibilities will help Helen Marsh and Brian Taylor overcome some of the obstacles in their organisation in order to make there business successful. Suggestions on what you should be specifically looking at in order to make your business a success, in my view would be the try to improve employee attitudes and training for employees. I think I have covered all the points that you have given me in depth if I have not apologies on my behalf. Introduction- Aims of the Report The aim of this report is to show Helen Marsh and Brian Taylor the problems of their business in more detail than the report give (case study). I will outline and investigate further into the following matters: * Growth * Performance Management * Performance Appraisal Systems and Motivation * Motivation * Rewards * Employee Turnover/Retention * Training and Development * Communication Growth To consider the growth of Brian and Helens company, we will look need to examine into the PEST (Political, Economical, Social and Technological factors) and SWOT (Strengths, Weaknesses, Opportunities and Threats) analysis for this company, this will help us identify if the company should continue to grow. By understanding about the SWOT and PEST analysis this will show us key information and help us identify some of the problems with the business. SWOT Analysis: SWOT Analysis is a very effective way of identifying your Strengths and Weaknesses, and of examining the Opportunities and Threats you face. Carrying out an analysis using the SWOT framework helps you to focus your activities into areas where you are strong and where the greatest opportunities lie. SWOT Analysis is a strategic method for identifying your businesses’ Strengths and Weaknesses, and to examine the Opportunities and Threats. These are just some of the Strengths, Weaknesses, Opportunities and Threats there may be more if you feel that there are, pleases do not hesitate to call me we can discuss these further. By reading the report that you gave me (case study) I found more weaknesses than strengths. This is not ‘bad’ as this shows you that you can improve on these to make your business a success. Read more:  Difference Between Performance Management and Performance Appraisal PEST Analysis: It is very important that an organisation considers its environment before beginning the marketing and decision planning process. In fact, environmental analysis should be continuous and feed all aspects of planning. The SWOT analysis shows a lot of weaknesses in the business, the points that I have mentioned in the SWOT analysis affect the future growth of the business. I think that if you over come the weaknesses that are outlined in the SWOT analysis this will help improve and develop the company significantly because the employee would contribute to the full potential and would also create a good working environment which means less staff turnover. I suggest that you should postpone in growing for the moment and consider improving on the weaknesses that I outlined in the SWOT analysis. I suggest that you should consider growing in the future rather than now. I found out that: †Weakness are not necessarily indicating bad things of the organization but showing a path to a better future†¦.† ORGANIZATIONAL BEHAVIOUR (1990) Northcraft. G page 437 You should consider improving the weaknesses into strengths as this would be beneficial in the future when you should consider to grow (it is not necessary yet) by improving weaknesses the business would function better and more advantages would be gained such as more share and profit. Performance Management In the report given to me (case study) I see that you have a problem on monitoring the ‘field based’ staff. This is a important issue as the staff may or may not be doing what you have told them this would cause all sorts of issues with your company for example you may be losing money, valuable resources and time. Field based staff may be difficult to manage but there are ways. Staff that work in the office are easier to evaluate on what and how that are doing. When managing or monitoring employees you have to be aware of their privacy and not to breach that mutual line as this may inevitably cause conflict in the work place. But When you can’t be present to observe employee performance, be sure that you have the right processes in place through which you can learn about how they’re doing this can be undertaken for ‘field based’ staff also. These processes should be open, fair, and understood by everyone. Options for obtaining input about performance in your absence may include, but are not limited to, the following: * Evaluate the output and products of the employee’s work. * Have routine one-on-one meetings with your employee and include discussions of performance. * Every so often review and discuss with your employee the standards of performance for his or her job and your expectations. * Ask your employee to do periodic reports and share them with you for discussion. * Obtain feedback from customers – in writing when possible. * Do brief stand-up check-ins or phone calls to ‘field based’ staff as well as ‘office based’ staff. * Ask an appropriate person who is present day-to-day to serve as a work leader or give the person authority to act in your stead, and ensure that everyone understands the person’s role. * Perform routine spot checks of the employee at work. * Ask for confidential evaluations of employee performance by peers (or direct reports of supervisors). This process should be clearly understood by everyone and applied fairly to all. Performance Appraisal Systems and Motivation Performance appraisal systems are designed to serve the company’s and employee’s interests. They are used to inventory the abilities and resources of employees and to let an employee know where he stands so that he will be stimulated to improve his performance. Employee motivation can be enhanced and performance improved with the monitoring of employees’ performance level and the use of feedback to advise those employees about their effectiveness. Performance feedback exchanges can be ongoing and informal, on a day-to-day coaching basis or on a formal basis, annually. I found this statement: ..Employers want to be sure their employees are doing a good job, but employees don’t want their every sneeze or there trip to the toilet logged†¦ Managing People 2nd edition Tomson. R I think that employee monitoring is acceptable to a reasonable level but should nod be exceeded. I used to work at ‘KFC’ (Kentucky Fried Chicken) and the manager was constantly monitoring me and other staff that work there. I can understand this as people in other restaurants have tampered with food for example a ‘Mc Donald’s’ restaurant in USA Mississippi once was shut down because of food tampering. So to some degree a lot of monitoring needs to be undertaken. But I think you should use some of the procedures I have given for example I would recommend these: * Perform routine spot checks of the employee at work. * Obtain feedback from customers – in writing when possible some sort of feed back sheet of possibly a questionnaire * Do brief stand-up check-ins or phone calls to ‘field based’ staff * Ask your employee to do periodic reports and share them with you for discussion. Motivation Staff motivation is the one of the most significant factors in managing people. No one style is better than another for motivating employees, but it is essential that leaders are aware of their staff motivation style and are able to adapt for different circumstances. Some circumstances will call for a strong direction to inspire staff motivation other circumstances will call for staff motivation to be influenced by a more advice-giving approach. The necessary skill is in knowing what motivates people and satisfying the needs of individuals and groups at a given time. Staff motivation in regard to reward and recognition means taking account of and balancing the needs of the organisation and its objectives as well as the needs of the people expected to achieve those objectives. One of the worlds most successful Software and Hardware entrepreneurs stated: â€Å"When we create a desirable workplace and find good ways to have work/life balance, we’ll attract and we’ll retain the best people and that’s our competitive advantage.† Lewis Platt, CEO, Hewlett-Packard (1001 Ways to Reward Employees 2000) Source: www.nelson-motivation.com/hpackard/ceo Hear is an example of a motivational theory: Douglas McGregor, was a American social psychologist, he proposed his famous X-Y theory in his 1960 book ‘ The Human Side of Enterprise ‘. Theory X and theory Y are still referred to commonly in the field of management and motivation. Mc Gregor’s X-Y Theory remains a valid basic principle from which to develop positive management style and techniques. McGregor’s XY Theory remains central to organisational development, and to improving organisational culture. McGregor’s Theory X and Theory Y THEORY X THEORY Y 1. Workers must be supervised as closely as possible, either through direct oversight or by tight reward and/or punishment systems. 1. People usually do not require close supervision and will, if given a chance to control their own activities, be productive, satisfied, and fulfilled. 2. Work is objectionable to most people. 2. Work is natural and enjoyable unless it is made offensive by the actions of organisations. 3. Most people have little initiative, have little capacity for being creative or solving organisational problems, do not want to have responsibilities, and prefer being directed by someone else. 3. People are ambitious, desire autonomy and self-control, and can use their abilities to solve problems and help their organisations meet their goals. Creativity is distributed â€Å"normally† across the population, just as is any other characteristic. 4. People are motivated by economic factors and a need for security. 4. People are motivated by a variety of needs only some of which involve economics or security. Figure Obtained from: MANAGING PEOPLE R. Tompson, 2nd Ed, Pub: Institute of Management I think that employee motivation in regard to reward and recognition means taking account of and balancing the needs of the organisation and its objectives as well as the needs of the people expected to achieve those objectives. I think that motivation should also have been included in the SWOT analysis. I think you should also consider how you can motivate staff you could use the web site I have given above for more information. The more you motivate staff the better they will work, this will also help with the monitoring of employees. You should also consider looking at the various patterns used by managers to encourage motivation in the work place, for a good example see Appendix 3. Rewards There are a staggering amount of reward types and schemes, you just have to make sure you have the right ones chosen for your business because performance of staff is the key to the success of any organisation. One of the main rewards that I think is relevant for your business is PRP (Performance Related Pay) One of the key contributors to effective performance is a well-designed performance management process. Such a process should incorporate objective setting, the day-to-day management of performance, the review or appraisal of performance, and rewarding performance. Your employees are your most important asset, they are the people who shape and form the company’s future. Rewarding staff can develop healthy in-house competition between individuals, teams or even departments. Another major factor in rewards are employment benefit packages. Reward and incentive programs are a popular part of employee benefit packages. Many employees value such offerings as flexible scheduling, tuition assistance, and child care in order to satisfy personal needs and professional development. I think that you too should consider re designing your employment package. Nowadays society, it is becoming more and more common to support these reward systems with the overall business strategy of an organisation in order to satisfy business needs and to improve shareholder value. In addition, many organisations are developing or restructuring their rewards programs based on employee performance. This trend is likely to continue as costs continue to increase and competition continues to thrive in a highly unpredictable economy. Some other useful reward types that can be used are as follows: Social Rewards: Which include praise, employee recognition, and social acceptance within the business. Psychic rewards: Which include self esteem, job satisfaction, and feelings of accomplishments You could also give piece-rate pay, commissions, merit pay and bonuses. When I was talking about the business and how it will grow in ‘Conclusion of Growth’ in the first part I think that in order for the business to grow you need the best employees you can get. So you would need to have the reward schemes that the employees are looking for. I the way you are rewarding employees at the moment is not working in fact ‘I know it is not working’ I think you should use the PRP (Performance Related Pay) method, and also consider giving annual bonuses. Also if you give PRP (Performance Related Pay) you will sort out the problem you have with the monitoring of ‘Field based staff’ as they too will be attracting more customers for the business. You should also give bonuses if the company is making a stable profit as this would encourage more work to be completed. Employee Turnover/Retention One of the most difficult problems companies had to cope with in the increasingly volatile business climate of the 1990’s was the high rate of employee turnover. When employees, particularly long-term employees leave a company that has made a substantial investment in them, they take with them training, skills, experience, and productivity. Output is inevitably diminished during the training process of new employees, no matter how qualified. additionally, a high level of workplace turnover rends the types of social bonds that encourage other employees come to work and maintain their normal levels of productivity. ..In today’s workplace, employers are not only having a hard time attracting employees, but are also having a difficult time keeping them.. (Harkins, 1998) I found out that employees leave for a variety of reasons, including poor supervision, unchallenging positions, limited advancement opportunities, lack of recognition, limited control over work, perceived pay inequity, and the perception of more favorable opportunities in other companies. Measuring Absence Obtained from: MANAGING HUMAN RESOURCES J. Weightman, 2nd Ed, (1996), Pub: Cromwell Press This overall figure, however, leaves many questions unanswered. For example, is the absence rate a reflection of a few employees suffering from long-term ill-health or are a substantial number of employees being regularly absent for relatively short spells? A more in depth way to monitor absence and retention is give in Appendix 1. Hear I found some of the ways in which to help with retention: * Align your employees with company goals and visions * Establish department goals and standards * Set employee goals and performance measurements * Conduct performance reviews that test the established goals * Train managers to effectively coach their staff * Identify barriers & find strengths to build upon * Isolate key performance gaps and craft a plan to improve performance * Define the relationship between job satisfaction, goal alignment and individual performance growth I suggest that you should consider some of the points above in order to combat turnover/retention. You should regularly try to monitor staff absence. Try to make the rate as nearer to 8.5 % as possible if it goes over this may be critical to the business. You should have a maximum number of days for employees to comply by, for example I work as Safeway Petrol station in the Penn, employees there are only allocated 50 hours off of work (excluding sick or acceptable absence). You should check out Appendix 1 in how to measure turnover and retention in your organisation. Training and Development There are a number of advantages to training and development and this is another point that was added in the SWOT analysis that needed to be improved in order for the business to function properly and effectively. Training has become the most important feature of a successful organisation. Training is necessary because it improves profitability and/ or more positive attitudes towards profit orientation. Enhances the job knowledge and skills at all levels of the organisation. The work force gets a high morale. Due to proper training employees can identify with organisational goals, corporate image gets improved. Training fosters realism, openness and trust. A boss an the subordinates get to work in a better environment and relationship. Some typical reasons for employee training and development can be initiated for a variety of reasons for an employee or group of employees, for example: * When a performance appraisal indicates performance improvement is needed * To â€Å"benchmark† the status of improvement so far in a performance improvement effort * As part of an overall professional development program * As part of succession planning to help an employee be eligible for a planned change in role in the organisation * To â€Å"pilot†, or test, the operation of a new performance management system * To train about a specific topic I found out some key topics for employee Training and Development they are as follows: * Communication- The increasing diversity of today’s workforce brings a wide variety of languages and customs. * Computer skills- Computer skills are becoming a requirement for conducting administrative and office tasks. * Customer service- Increased competition in today’s global marketplace makes it critical that employees understand and meet the needs of customers. * Diversity- Diversity training usually includes explanation about how people have different perspectives and views, and includes techniques to value diversity * Ethics- Today’s society has increasing expectations about corporate social responsibility. Also, today’s diverse workforce brings a wide variety of values and morals to the workplace. By giving the appropriate training and development you can gain a lot of advantages. The general benefits from Employee Training and Development are: * Increased job satisfaction and morale among employees * Increased employee motivation * Increased efficiencies in processes, resulting in financial gain * Increased capacity to adopt new technologies and methods * Increased innovation in strategies and products * Reduced employee turnover * Enhanced company image, e.g., conducting ethics training (not a good reason for ethics training!) * Risk management, e.g., training about sexual harassment, diversity training I think that training aids in developing leadership skill, motivation, loyalty, better attitudes and other aspects that successful workers and managers usually display which we discussed earlier in the report. The quality of work is also increased and so is the productivity. Its cost effective as well, it cuts costs in different areas e.g. production, personnel, administration etc. it develops a sense of responsibility to the organisation for being capable and knowledgeable. Labor management is also improved, as workers instead of feeling ignored, feel taken care of which develops a sense of loyalty Communication Effective communication skills are vital for success in a business environment with most business people being engaged in some form of communication activity most of the time reading, listening, writing or talking. Business communication is, however, different from educational or literary writing and speaking it requires precision, clarity and efficiency since business people just do not have the time to savor an idea or an expression. †Ã¢â‚¬ ¦Moreover, unethical behavior in the workplaces arising from the lack of ethical communication by the top management to the first-line supervisors proves the fact that employees are either directly or indirectly rewarded for unethical acts or harshly abandoned for going against the norm of practicing corruption†¦Ã¢â‚¬  (Zimmerman: Jansen and Von Glinow, 2001, p. 119). As explained in this text that I researched into, Jansen and Von Glinow through their in-depth study that encouraging â€Å"counter norms† in an organisation is also a form of promoting corrupt standards in a company in order to save the firm’s name or to avoid charges by this means reflecting the decreasing ethical communication in organisations. There are many factors that help establish an organisation’s ability and skill in maintaining the stability and organisation among its employees/members. One of these factors includes attaining an organisational communication process through effective communication skills. The most prominent forms used by most organisations are the development of verbal and non-verbal communication since these are the most obvious ways of communication that provide a dialogue for employees and the management in an organisation. However, what is not realized by both the employees and management is that listening is one important communication aspect that precedes verbal and non-verbal communication. I think that in order to attain effective communication verbally or non-verbally, communicators must first learn to listen in order to assess carefully the issues at hand and the required action that must be taken. If you have a look at Appendix 2 it shows you different types of communication processes. I would recommend that you try to focus on the ‘complete network’ as this would make communications in your business better. Overall Report Conclusion and my Recommendations I think overall this is what we should be doing in order to maintain and run a successful business: * Growth- we should not be growing just yet as there are to many problems as indicated in the SWOT analysis. We should be improving on the weaknesses and consider to grow and expand in the future. * Performance Management- monitoring needs to be undertaken but only to some degree that is acceptable by you and the employees. But I think you should use some of the procedures that I have indicated in this previous section (please refer to Conclusion for Performance Management). * Performance Appraisal Systems and Motivation- Performance appraisal systems are designed to serve the company’s and employee’s interests. * Motivation- You have to consider Douglas McGregor Theory X and Theory Y. to offer the best motivation go through the chart that I have drawn and consider what you can do to have a successful motivated staff. Look at Appendix 3 for patterns of managerial approaches to motivation. * Rewards- if you offer better rewards and better benefit packages then Turnover/Retention will be low, and employees will work more and contribute their highest potential. * Employee Turnover/Retention- you need to make sure that you monitor employees sickness and absenteeism and make sure it dose not go over 8% Check Appendix 1. * Training and Development- if you train and develop employees better the function of your business will be better, you should try to encourage more employees to gain different skills and knowledge. You should also try to offer recognised qualifications. * Communication- look at Appendix 2 I recommend that you try to bring in the process of complete network communication. There are numerous factors that help conclude an organisation’s ability and skill in maintaining the stability and organisation among its employees/members, one of these factors includes attaining an organisational communication process through effective communication skills.    References I recommend that you look at the following text as this will help you improve on the factors mentioned in this report and also help you with difficult decisions about your business. I recommend looking at this text: ORGANISATIONAL BEHAVIOUR: INDVIDUALS, GROUPS AND THE ORGANISATION I. Brooks (1999) 1st Ed, Pub: Financial Times HUMAN RESOURCE STRATAGIES Salman, (1998) Pub: The Open University MANAGING PEOPLE R. Tompson, 2nd Ed, Pub: Institute of Management ORGANISATIONAL BEHAVIOUR: A MANAGEMENT CHALLENGE G.B.Northcroft & M.A.Neale (1990), Pub: Ronda Colour PERSONNEL MANAGEMENT GA Cole, 4th Ed (1997), Pub: Ashford Colour Press MANAGING HUMAN RESOURCES J. Weightman, 2nd Ed, (1996), Pub: Cromwell Press The following Web-Sites are useful also: www.bized.com www.hrmang.co.uk www.humanrecourses.co.uk/text/hrissues www.resourcemanage.co.uk