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Memo Performance Management Essay

Hi Marylee, having found our recommendations for the compensation and benefits strategy satisfactory to Clapton Commercial Construction’s needs I will next outline a performance management plan. “Performance management (PM) includes activities which ensure that goals are consistently being met in an effective and efficient manner.” (“Performance Mangement,” 2013, para. 1). According to “My Strategic Plan” (2012), “Performance Management is also known as a process by which organizations align their resources, systems and employees to strategic objectives and priorities”(Glossary). The performance management system is part of the companies strategic plan in achieving the goals set forth each year. There has to be an ongoing communication process with the managers and the employees throughout the year as part of the performance management plan. Below are actions that are part of the performance management system. (“Performance Management – Meaning, System And Process”, 2013).

▪ Developing clear job descriptions and employee performance plans which includes the key result areas (KRA’) and performance indicators. ▪ Selection of right set of people by implementing an appropriate selection process. ▪ Negotiating requirements and performance standards for measuring the outcome and overall productivity against the predefined benchmarks. ▪ Providing continuous coaching and feedback during the period of delivery of performance.

▪ Identifying the training and development needs by measuring the outcomes achieved against the set standards and implementing effective development programs for improvement. ▪ Holding quarterly performance development discussions and evaluating employee performance on the basis of performance plans. ▪ Designing effective compensation and reward systems for recognizing those employees who excel in their jobs by achieving the set standards in accordance with the performance plans or rather exceed the performance benchmarks. ▪ Providing promotional/career development support and guidance to the employees. ▪ Performing exit interviews for understanding the cause of employee discontentment and thereafter exit from an organization.

Effectively implementing a performance management system benefits the organization, manager, and employee in several ways. Your company will benefit with employee retention and loyalty, improved productivity, which will result in cost savings. The manager benefits are saving time, reducing conflicts, ensuring efficiency and consistency in performance. The employee has clear expectations of the job and clearly defined career paths. Providing open and transparent feedback will have a positive influence on job satisfaction and loyalty. (Managementstudyguide, 2013).

After implementing the performance management system in order for it to be effective the employees have to understand their roles and importance to achieving the goals set forth. Making the employee aware of the goals and having a performance metric and job description in writing is the role of each manager to go over with the employee prior to started any job. The managers will go over the in detail the key result areas with the employee and set up a reward package if the goals are exceeded in these areas. Benchmarking is a method that can be used to measure performance metrics. In the commercial construction field quality, time and cost are very important dimensions measured against best practices and other companies in the business.

Benchmarking will be invaluable to the success of the Clapton Commercial Construction. Benchmarking is a method to evaluate the performance, and will show the strengths and weaknesses within the company. Benchmarking will ensure the Clapton Commercial Construction can keep job costs, cycle times, and productivity within the industry averages. It will give you the data necessary to see the areas that additional training is necessary. The managers will be responsible to get the employees the proper on the job training to be the most productive while keeping costs down.

The performance appraisal component of the performance management system is where the manager will twice a year evaluate the employee’s performance. The manager will do a mid -year PE to determine areas of improvement needed to achieve or exceed the goals and deadlines set forth. For the employees which fail to meet or exceed expectations based on the performance metric set forth at the beginning of the year can be put on a performance improvement plan (PIP). This plan will set expectations and guidance for the employee to follow to help meet expectations by the end of the year. The final PE of the year will determine if the employee qualifies for a salary increase and bonus and how much it is. If the employee was put on a PIP and improved in the key areas and meet expectations set forth he/she will also be eligible for a salary increase and a bonus.

The performance management system is an important component of the organizational strategic plan for measuring and analyzing data to measure the performance of the company. It requires the cooperation and support of all employees, especially upper management to be successful. The performance management is proactive system for managing the individual and organization to achieve desired results. (“Performance Management – Meaning, System And Process”, 2013).


Benchmarking. (2013). Retrieved from http://Wikipedia. (2013). Retrieved from http://en.wikipedia.org/wiki/Benchmarking

Managementstudyguide. (2013). Retrieved from

My Strategic Plan. (2012). Retrieved from

Performance Management – Meaning, System and Process. (2013). Retrieved from http://www.managementstudyguide.com/performance-management.htm

Performance Mangement. (2013, Septmeber). WIKIPEDIA, (), . Retrieved from http://en.wikipedia.org/wiki/Performance_management

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