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BSBHRM512A Develop and Manage Performance Management Assignment
From: General Manager, Human Resource
To: Ben Russell, CEO
Subject: Incorporating a New and Effective PMS for Star Industries
Through this report I am giving you a brief idea about the current performance management system and the changes that are to be made for the development of the organization. As we know STAR Industries are a manufacturer, wholesaler and retailer of quality windows and doors for residential and commercial premises. The company wants to improve its performance management system. Let’s first begin with an understanding of the meaning of performance management system.
Performance management is an ongoing process of communication between a supervisor and an employee that occurs throughout the year, in support of accomplishing the strategic objectives of the organization. The communication process includes clarifying expectations, setting objectives, identifying goals, providing feedback, and reviewing results. Performance management is basically aligning an organizations resources and employees to its strategic goal. It is one of the most indispensable activities of a firm.
Need and Goals of a PMS
We are all aware that the market has become very competitive. If a company does not create focus for its employees and provide them with sufficient motivation and work techniques it is bound to fail miserably. This is where techniques like PMS come for rescue. It is a tool that will definitely help STAR INDUSTRIES to align its functions with its goal. It is a dynamic process involving planning, implementing, evaluating and finally reviewing the productivity and development of an organization on both personal and organizational level. If the employees of an organization are not focused and lack clarity and competence then the organization has to face the consequences. If emphasis is given on rewarding and giving feedback to the employees it would definitely be a great idea for motivating and developing the employees thereby ensuring a firm’s success. Such HR practices are a silver lining in the era of cut throat competition and helps on getting an advantage over competitors. Performance appraisal has been an old practice but earlier the diameter was not clearly laid out hence the whole appraisal system lacked objectivity. Since there was no involvement of employees in the appraisal system they lacked a motivation which showed in their work. So the performance management system overcomes the setbacks that a typical conventional performance appraisal had (Fleetwood & Hesketh, 2009)
If we apply a sound Performance Management System (PMS) to our company STAR INDUSTRIES it will have varying benefits:
1. It is a strategic tool which will help in the management of individual, team and the overall performance of the organization.
2. It will improve the quality of relationships and will build a climate of mutual respect and trust thereby increasing the overall productivity.
3. It will help in setting smart goals for the company which in turn will motivate the employees to deliver a superior performance.
4. Will help in realization of the corporate goals and missions by streamlining the activities of the employees.
STAR INDUSTRIES is bound to comply with its performance management procedures. No discrimination should be made amongst the employees on the basis of age, gender, marital status etc. Companies no matter how big or small they are, make sure that the laws and regulations are complied. It is important for the company to carefully design the various procedures related to employee hiring, training and evaluating. Laws like employment act, minimum wages act, occupational safety and health act must be complied (Steve, 2009).
Also the following points have to be kept in mind:
1. A manager must not use these appraisal methods to get even with the employees. Performance management should not be used in a punitive fashion.
2. PMS should not be used to discriminate against the employees on the basis of their cast, creed, color, age, gender etc.
3. In case of any discrepancies proper records should be maintained by the manager so as to save the organization from any legal issues (Moon, 2005).
Processes and Documentation of a PMS and How These Will Support the Goals of Star Industries
The United States department of commerce office of human resource has laid down that in case the company is making any appraisal plan then it has to be understood and signed by the employee not less than 60 days before the appraisal period begins.
Monitoring and Evaluating Employee Performance
According to the United States department of commerce office of human resource, an employee must be given an appraisal period of minimum 120 days that is an employee’s performance has to be evaluated for 120 days by the human resource team. Along with evaluation the HR team must provide timely feed back to the employees so as to help them overcome their flaws and make corrections if any. Also the HR team has to make sure that before the appraisal period ends, each employee must be given at least one formal review of their performance. In case of any irregularities or deficiencies in the performance the employee should be formally evaluated at the end of appraisal period (Ojo, 2012).
For any system to work and for any employee to feel motivated, a sound reward system is a must. Formally any employee who meets the performance goal must be showered with incentives and cash-non cash benefits. A sound recognition system will help the company to reducing its employee turnover rate and thus trained, efficient and old employees would prefer to stay in the company. Retention of the best employees will help the organization in an overall manner and since these employees will have a higher level of job satisfaction they will perform better and better.
There are various ways by which a company can develop its team. A few are listed hereby…
1. Efficient training systems through new software.
2. Arranging seminars by the best in the industry faculty.
3. Multi faceted employee development programs
4. Giving monetary help for pursuing a college degree etc.
A continuous employee development process will help STAR INDUSTRIES in retaining its work force which is a big plus for any company in business.
D (I) the Relevant Policies Currently Used by Star Industries & Strategic Objectives that Support the Implementation of an Integrated PMS
(!!) The Role of the PMS In Relation to the Broader HR & Business Objectives
Performance management enhances both the financial and non-financial results of an organization. Top management plays a pivotal role in the entire process. They act as role models for the employees. A high performance culture must be created in the organization so as to improve the overall productivity.
The role that PMS play can be summarized as follows:
1. Communicating an organization’s vision and values to its customers and staff.
2. Defining the business goals and work expectations for ensuring success.
3. Keeping the employees informed about the goals and suggesting corrective actions if required.
4. Establish a shared belief amongst the employees for improving the overall work culture.
For a company, its biggest wealth is its employees. An open communication with the management helps build a conducive work culture in the organization (Poul, 2013).
The Process of Implementation Including Consultation and Communication Mechanisms
For securing quality results it must be kept in mind that a sound planning and a strong introduction will do half of the job. Treating it like a project and moving forward with a systematic approach will do the needful. Project phases like defining, planning, people, resource management, stakeholder management, implementation, monitoring, measuring etc. are to be considered deeply. Some other activities and elements include
Analysis of the Present Situation
The first step will obviously be the analysis of the present situation of STAR INDUSTRIES.
The points to be touched will be:
1. Star industries previous PMS plan and the study of its implementation and effectiveness.
2. Whether the employees were given any compensation and benefit packages and will they be a part of the new PMS.
3. The lines of reporting in the organization and who will be the part of new PMS.
4. Study of evaluators.
5. Analysis of the corporate culture and how supportive the culture will be to the new PMS.
Expectations and Opinions from Stakeholders:
Unless the new PMS is not accepted by the top management, owners and employees, chances are rare that it can be implemented. Better to come up with a stakeholder’s management plan that will keep the stake holders informed during the implementation process. Separate meetings and seminars can be organized and the following points need to be discussed
1. What is expected from the new PMS plan.
2. Any ideas that they have regarding the PMS.
3. Any limitations or directions regarding the same.
Then a general framework has to be drafted for presenting it to the management and the employees. The purpose it to see if the new approach will meet the expectations of one and all in organization.
Designing the Performance Management System:
Since all the necessary homework has been done already, we are now ready to design the PMS. Major stake holders have approved of the plan so the process, rules, elements and directions should be clearly laid out. All the other functional areas of STAR INDUSTRIES have to be checked with the associated managers. For example, in case of electronic evaluation IT department must be contacted and consulted.
Alignment on Top Management Level and Formal Level
Once the design is finished, it is important to align the PMS at the top management level. It has to be made sure that the top managers don’t have any major objections from the PMS. Once the approval is made the PMS is all set to be implemented.
Role of Coaches and Mentors and Skills Required
Coaches and mentors play an important role in helping individuals to improve their performance. In organizations it is the manager who plays the role of mentor. If we provide the employees of STAR INDUSTRIES with good mentors and coaches It’s going to be a win win situation for both, the company and the employees. The managers develop the employees by guiding and motivating them to perform better in turn increasing their own chances of promotions. And this in turn helps the employees to realize the organizations goals more effectively. These mutually benefitted relationships play an important role in achieving success both the individual and the organization.
The record says that those employees who have found there mentor and coach in there manager have achieved success much early in their careers.
Mentors help the employees to provide them with valued skills, industry information or information in key areas pr may be provide them with important contacts. The potential benefits of coaching and mentoring are many mainly all ultimately leading to professional development. A good relationship between a manager who play a mentor and the employee leads to higher levels of job satisfaction for both and a satisfied employee will definitely give his 100 percent to the organization. The skills required for a manager are diverse in nature. A mentor has to be good at multi tasking and should be good at communication. He should have the capacity to deal with situations and conflicts and must be ethical. His capability to deal with constant changes will give him an upper hand in dealing with the competition. Thus helping STAR INDUSTRIES create a success story of its own (Brewster, et al. 2007).
Training Required for
Our company STAR INDUSTRIES has suffered because of lapse that has occurred in the training programs of both managers and the employees. It is one of the most essential aspects to PERFORMANCE MANAGEMENT yet one of the most ignored one.
Steps for training the managers:
1. Managers should be made clear about the purpose of performance management and how it is important to business
2. Managers should also understand the importance of how performance management is important to staff.
3. They should be aware of their right to manage performances.
4. They should be given tools and techniques to assess performances.
5. Managing performance should be the top priority of the managers.
In short managers have to be trained in a way that they excel in getting work done from the employees and also motivate them to work better in order to achieve their individual and organizational goals (Frolick, 2006).
Training of Staff on Using PMS
Staff must be well aware of the purpose for which performance management system has been developed.
1. Staff must have a full fledged idea as to what is the reason behind managing their performance.
2. They should treat their managers as mentors in order to grow.
3. They should try to follow the company policies and procedures in order to accelerate their performances.
4. Staff should learn and grow from the feedback and evaluation that the manger has provided him with.
There are many ways to gauge and monitor the performance of an employee. STAR INDUSTRIES is a company on the move and it is extremely important to monitor the performances of the employees. The following points should be taken in account while monitoring the performances:
Punctuality: do the employees arrive and leave office in time? If some employees are forever not punctual then what is the reason behind that? Do they have adequate training?
Quality of work: how much effort are the employees putting in the project? Do they understand their duties towards the organization? An in timely completion of projects might prove detrimental to the company’s growth in the long run.
Observing personal habits and checking attitudes: any disrespect for company and co workers should not be tolerated. If an individual doesn’t meet the objectives and responsibilities allotted to him then steps must be taken to correct the same (Dresner, 2009).
Carry out a client survey: a poor performance on the behalf of employee will obviously lead to customer dissatisfaction. So carrying out a client survey will solve such issues.
Carry out random checks: even if the employees are aware of the policies and procedures, timely random checks including reviewing phone calls and checking other records will motivate the workers to perform consistently.
A proper employee performance evaluation plan should be drafted. A performance evaluation system will motivate the employees to do their best. It will also improve the communication between the mangers and the employees. Evaluation should be conducted fairly and without any discrimination. To create a performance evaluation plan these points have to be taken into account
1. Develop an evaluation form for the employees.
2. Performance measures have to be identified.
3. Feedback guidelines to be decided.
4. Creating appropriate termination procedures.
5. Setting up an evaluation schedule.
General Policy on Performance Management of Star
Quality and Performance of a product relate with each other. While quality means the condition of excellence of the product, Performance means managing the activities in such a way so that the desired goals of the company are met in an effective way. If the quality of the product is enhanced it will surely enhance its performance (Hodgson, 1997).
STAR INDUSTRIES has plans to expand its business operations and the general manager feels that some of the performance related systems have been found inadequate. So definitely some changes have to be made so as to smoothly n swiftly shift the organization from one PMS plan to another. Coming up with a new PMS policy is not easy. It is a tricky job. The new policy has to be easy enough so that the staff is ready to adapt to it and at the same time it should be readily offering quality results to the organization. Thus, a sound PMS has to be formed for STAR INDUSTRIES keeping in mind all the factors that affect the company and the employees (Modaff, et al. 2011).
B General Procedures and Time Frames
Performance Testing: There are many types of performance testing which can be done on the Start industries in a timely repetition so the major error regarding the hardware or system failures can be minimized. The types of testing are namely load testing, stress testing, endurance testing, spike testing, volume testing and scalability testing.
The performance testing process differs widely in different applications but their basic aim is same i.e. to find out whether the system meets satisfies the performance criteria which is predefined. The main processes of performance testing are as follows.
Test environment identification: Here the environment of the test is identified. Software and hardware details need to be understood.
Performance criteria identification: Here the acceptance criteria are decided.
Planning and Designing of Performance test: In this step planning is made as how to run the test and the design of its blue print is made.
Test environment configuration: In this step the testing environment is set up.
Test run: Here the actual process or test runs.
Analyze the test, tuning and taking retest: In this step the test results are investigated. The results are then fine tuned and the test is taken again to check whether the performance has degraded.
Objectives of New Policy
STAR industries have plans to expand its operations. It is facing certain limitations because of its old performance appraisal system. The policies and strategic objectives of star industries are
1. Alignment of individual goals with organizational goals and creating a conducive environment where every individual of the company believes that attaining organizational objectives will help them to grow n develop together and will be a win win situation for the company and employees both.
2. PMS should make employees more committed and focused towards their role and responsibilities. So that they can develop their skills and competencies.
3. The employees should have a crystal clear idea as to what is expected out of them and what kind of a work behavior they need to display at work place.
4. Overall the organizational performance should improve as compared to the current performance.
5. Business and individual goals must be aligned.
6. A performance culture should be developed where people are focused on development and improvement (Brignall, 2002).
A performance Counseling is used to give appraisal and recognition to the employees of a company and their assessment. A proper PMS can raise the motivation levels of the workers and thereby increasing productivity. This is a multiple step procedure along with the documentation for a comprehensive performance management system
The very first step for an effective PMS is planning. The company’s long term goals are to be identified and then it as to be seen whether the employee responsibility and these goals fall in a line. Also performance indicators have to be evaluated. Employees must have a clear idea about the standards they have to adhere to for the company’s overall success.
Procedure for Counseling and Discipline
A direct communication between employees and different levels of management is the first step towards a formal counseling procedure. Any employee can request an intervention from a HR if he considers that there is a conflict or need of an intervention. There is a formal procedure of circumventing the immediate supervisor if a employee feels that he or she is being treated unfairly.
Communication strategies like an unbiased communication, removal of barriers in communication and ensuring that communication remains transparent and accessible to all should be used when dealing with a conflict.
Counseling should be done in such a manner that it can be understood by each person involved and it should not be highly technical in words. Lastly a team leader should be able to assess the body language of members who are involved in an active conflict. This way it can be assessed if they are open to suggestions or making flexibility in their stand or not. This way an appropriate and effective resolution can be provided of the conflict.
Conflict Personal Counseling
Intrusive behavior of the employees: The high expectations of the upper management, rigorous company policy, irregular office timing, and insecurities have all contributed to the conflicts If this problem is not mitigated it can lead to uneasiness and lack of harmony both at the employee and organizational level leading to the debilitation of the company (Deal and Kennedy, 1999).
Three primary reason why conflicts occur in a group project are identified as difference of personal opinion among team members, difference between the expectations and personal output and lastly it is because of barriers of languages and cultural differences. All these conflict reasons come naturally in a project which comprises of members belonging to different cultures, nationalities and community upbringing.
In a conflict team leader should be involved fully to resolve it and if deemed necessary or conflict is over an issue which can impact the entire team then all members of team should be involved in a conflict. Many times a team leader is also not able to reach a decision or he might be ethically conflicted to make a decision, in such situation he can approach his superior authority as well to resolve the issue. There is alternative way of resolving issues as well in which team members can communicate with the superior authority who are supervising all the projects and inform them about the conflict. This is an unconventional method of conflict resolution and it is used only when it is absolutely necessary and previous methods are already attempted (Hofstede, 2001).
Thus to conclude I would like to seek permission from you to allow me to build a new performance management system in the company for making the company capable enough to face the market challenges and extend its operations.
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Steve, D. (2009). “Performance Management: The Three Laws of Performance.”, Rewriting the Future of Your Organization and Your Life (1st ed.), pp. 256
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Fleetwood, S. & Hesketh, A. (2009) Understanding the Performance of Human Resources Cambridge: Cambridge University Press 270pp
Brewster, C,, Sparrow, P.R. & Vernon, G. (2007) International human resource management. 2nd Edition. London: Chartered Institute of Personnel and Development. 323pp
Moon, J. (2005) Reflection in Learning and Professional Development: Theory and Practice. Kogan Page, London.
Hofstede, H. 2001. Culture’s Consequences: Comparing Values, Behaviors, Institutions, and Organizations Across Nations. Sage Publications.
Modaff, D.P., DeWine, S., & Butler, J. (2011). Organizational communication: Foundations, challenges, and misunderstandings (2nd Ed.). Boston: Pearson Education. (Chapters 1-6)