Performance Management Plan Essay
Performance Management Plan
In order for Landslide Limousine Service to have success in their business, strategic performance is necessary within the framework of management. The business should be successful if the performance management plan aligns completely with the business strategy. Mr. Stonefield has identified the course in which he plans to take his business and has identified his expectations. To help the company define the skills needed by its workers it must have a strong organizational philosophy as well as a strong job analysis. It is important for Landslide Limousine Service to establish a method of identifying and measuring employees skills, skill gaps, and establishing ways to provide feedback to its employees. Atwood & Allen Consulting will be administering and providing this vital information for the success and performance enhancement of Landslide Limousine Service. The performance management plan will ensure business success with no lost revenue, and income stability, and within target.
Framework for business strategy
In prior communications with Atwood and Allen, Mr. Stonefield identified he wished to open his limousine service in Austin, Texas. The main goal for Mr. Stonefield is to provide first class transportation options for various customers by providing a unique limousine service with attention to every detail in its service. There is an anticipated net revenue for the first year of $50,000, and is expected to have a 5% increase in net revenue within the next few years. There is also an estimation of a 10% turnover rate. According to Atwood & Allen, the short term and long term goals are very realistic for the first few years. By creating the performance management framework, Landslide Limousine Service will establish a base in which the company will align its goals in creating employee loyalty, and setting the financial growth of the company.
The structure of the business strategy must consist of effective employee skills, methods to measure skills performance, concentrate on skills gaps, and effective employee feedback. This will create proper communication between employees and management. Creating an environment where employees are comfortable approaching management with concerns can reduce mistakes which could result in customer being dissatisfied with the limousine service. Lastly, communication can also assist with identifying and correcting any problems with equipment which could reduce cost and will maximize the customers experience.
Organizational Performance Philosophy
In order to establish a strong strategic performance management framework, Landslide Limousine Service needs to identify the organizational performance philosophy. In order to compete within the existing competitive market in Austin, Texas, the business philosophy has to be built with a strong emphasis on excellent customer service. To build a positive reputation in the market, employees must look professional, and comply with all the rules and regulation to insure the customer experiences a safe ride. The organizational performance philosophy is the company’s values about how management is going to direct employees to accomplish goal to succeed the organizational performance. “Transporting clients efficiently and safe is our satisfaction” is a possible philosophy phrase that Landslide Limousine can use as a marketing strategy.
The idea of the philosophy is to build trust within employees and customers within the company to retain loyalty and confidence within the service. Once the customers trust has been obtained, Landslide Limousine Service must continue to work hard to maintain the trust. Creating monthly surveys can assist with identifying areas were the organization can improve. In addition, the sales representatives should have meetings with the clients at least every quarter (if not sooner) to build a relationship with clients. This relationship can help with better aligning the services provided with customers expectations.
Identifying employee’s skills
It is important for any business to employ personnel with the required job skills. These skills are important because it reduces the amount of training required to get the employee ready for service. The employees knowledge and skills can guarantee customer satisfaction and positive reputation for the company. According to the textbook, Managing Human Resources, 9th edition, by W.F. Cascio, explains four levels of analysis to determine training needs and what can be achieved. The four levels of training are organizational analysis, demographic analysis, operations analysis, and individual analysis (Cascio, 2013, p. 317-318).
The organizational analysis identifies if the training supports company’s direction, personnel training activity, and resources available. Demographic analysis determines employee’s special need at different hierarchy levels. Operations analysis identify what an employees should do to perform competently, and individual analysis focus on the type of training should be provided to a specific individual (Cascio, 2013). According to Cascio, with a job analysis the business can identify tasks and required characteristics to perform a job (Cascio, 2013). The four levels of training is a helpful tool to identify areas of improvement. Training at all levels is important because though training we improve our overall performance.
Methods to measure the employee’s skills
For any business is important to measure employee skill performance to determine if the employees targets have been accomplished. According to, Employee Performance Measurement Tools, it explain how a company can measure performance with performance appraisals, productivity tests, and 360-Degree Feedback. The performance appraisal is an annual method on where the employee is evaluated by management. The evaluation identifies how well the employee is doing for a period of time and if action in required for improvement. In the performance appraisal, identifying future goals and needs are important to insure the employee understands what is expected of him or her. Productivity test can help measure employee performance in quantifiable terms.
During the performance evaluation, management will determine if the employee will receive a raise and notify the employee what the raise increase will be and how they determined the raise amount. The amount of the raise has a direct correlation on the final scores of the performance evaluation. While employed at United Parcel Service (UPS), my employer used the performance evaluation and it was a great tool. Not only did this evaluation identify areas of improvements but it also allowed me to have a one to one meeting with my direct supervisor. Our meetings over lunch, allowed me to get to know my supervisor on a more personal level. The overall experience in my opinion was great because it energized me. My supervisor communicated how important I was to the organization and how my contributions affected the overall performance of the organization.
Process for identifying skill gaps
An analysis to address skill gaps is important at any employee level. The analysis identifies the responsibility, knowledge, and skills required for a specific job. If an employee is currently performing a job but changes are made to the job description, addressing the gaps will be to identify any characteristic missed to train the employee or improve the process. It is common to find skills gaps when an employee change jobs or lacks of education and training to perform their job. According to How to Develop a Skill Gap Analysis, provides four steps to develop a skill gap analysis: identify business goals, collect data, understand data to make recommendations, and develop a training plan to address skills gaps in the current environment. It is crucial to identify business goals to remain competitive and create a project plan with the strategic objectives.
The collected data can help identify skills and knowledge of every employee performing a role in the company. After data is collected, recommendations can be made to improve areas, such as communication, leadership, teamwork, sales, service, and project management. The training plan to address skills gaps in the organization can help determine appropriate and effective training to retain employees to retention and business performance. Identifying skill gaps within employees can also be useful in determining which supervisor is needed in that area. For example, if an employee is weak in a particular area transferring a strong and knowledgeable supervisor might assist the employee with better understanding his job function.
Effective performance feedback
It is very important to deliver effective performance feedback with positive attitude. Employees appreciate advice and positive coaching to help improve mistakes. According to How to Deliver Effective Performance Appraisals, the author explain different steps for effective performance appraisals: establish an appraisal method, effective eye contact, start with negative feedback end with positive suggestions, set new goals, have an open dialogue with the employee, explain if the employee is a candidate for promotion or raise. The first step is important because the method is selected to provide effective feedback. Two examples are the 360-degree feedback appraisal and self-evaluation for employees to share thoughts and ideas. At the interview, it is crucial to maintain good eye contact to develop trust from both sides and show respect.
Body language is important because it can show attitude or negative feedback. It is important to start with negative feedback to end with positive observations and set realistic goals for the next time period. In addition, it’s important for management to focus on the employee and his related job and not combine personal feelings or emotions into the feedback. During the feedback is important to have open dialogues to allow the employees to share his or her opinions and ideas. It is important for management to share decisions made by upper level management on behalf of the employee.
In conclusion, it’s important for management to understand the recommendations described above evolve. As time and the level of growth of the organization changes, so will the methods. it’s important for management to understand that change is always important. As customers, technology, expectations, and workforce change, the organization must be ready for what is to come. Most of the successful organizations of 2015 have anticipated a change in the market. So when the change occurred, they were ready and adapted instead of playing catch up with the change.
El-Shishini, H. (2001, December 13). Integrating Financial and Non-Financial Performance Measures. Retrieved April 27, 2015, from http://cours2.fsa.ulaval.ca/cours/gsf-60808/bsc.pdf
How to Become a Certified Limousine Driver in Austin, Texas. (2012, September 5). Retrieved April 27, 2015, from http://en.netlog.com/diannarosemary/blog/blogid=11780256
Cascio, W.F. (2013). Managing Human Resources (9th ed.). New York, NY: The McGraw-Hill Companies Inc, Retrieved from University of Phoenix eBook Collection database. Workplace Training, Chapter 8.
Duggan, Tara (2014). How to Develop a Skill Gap Analysis. Demand Media: Chron. Retrieved from: http://smallbusiness.chron.com/develop-skill-gap-analysis-39872.html
Balle, Louise (2014). How to Deliver Effective Performance Appraisals. Demand Media: Chron. Retrieved from: http://smallbusiness.chron.com/deliver-effective-performance-appraisals-23603.html
University/College: University of California
Type of paper: Thesis/Dissertation Chapter
Date: 23 September 2016
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