http://hr.commerce.gov/Employees/TrainingandDe velopment/DEV01_006173

Performance management plan

The company wants to maximize its efficiency and effectiveness through the

performance management system. The performance management plan can help identify and

manipulate the desires, the needs, the obstacles, or the chief characteristics of any employee.

According to Cascio (2013), one can think of performance management as a kind of compass,

one that indicates a person’s actual direction as well as a person’s desired direction. Like a

compass, the job of the manager is to indicate where that person is now and to help focus

attention and effort on the desired direction. Therefore, performance management can help the

evaluation of business performance and the performance of any individual employee.

Alignment of the performance management framework to the organizational business

strategy

According to Cascio (2013), at a general level, the broad process of performance

management requires that you do three things well: define performance, facilitate performance,

and encourage performance. So first, Landslide Limousine has to define performance. The

company can set up goals in improving performance and assist giving direction to employees.

When each goal set up, it should be specific and clear. So for Landslide Limousine, the company

wants 5% revenue growth over a span of years. The company can indicate this point to the

employees, thereby stressing that growth is the main objective of the company. Next, the

company has to facilitate performance. Each manager should recognize the obstacles the

employees might face and also provide appropriate resources to ensure good performance. So,

for instance, Landslide Limousine can provide steady maintenance on each vehicle, something

that is required not only to prevent accidents, but also to ensure that no employee is handicapped

in their performance. Final performance management encourages employees to operate to the

best of their ability. The company rewards to employee for good performance. “To encourage

performance, especially repeated good performance, it’s important to do three more things well:

(1) provide a sufficient number of rewards that employees really value, (2) in a timely fashion,

and (3) in a fair manner.” (Cascio, 2013, p.355). According to these rules, Landslide Limousine

can make a framework to reward employees for their performance.

Performance appraisal is also very important. It provides criteria judging good or bad

performance and also provides a feedback process. According to Cascio (2013), the purposes of

performance appraisal system are employment decision, employee feedback, criteria in test

validation, objectives for training program, and diagnosis of organizational problems. So

Landslide Limousine can appraise employees on whether or not they are well trained or not, and

reward or discipline employees on the basis of their decisions. Landslide Limousine can give

feedback to employees who need personal or career development, thereby helping them on their

way. Also, the landslide can ascertain and evaluate each employee’s skillset by criteria that

involve test validation. And Landslide Limousine can help the developmental needs of each

employee by establishing a training program. Landslide Limousine can judge who they will hire,

who needs training, and who is an effective or ineffective employee.

Organizational performance philosophy

The main philosophy of Landslide Limousine should be to maximize efficiency and the

effectiveness of each employee’s performance; and furthermore to facilitate communication

between the employees and their supervisors. According to University of California, Berkeley,

employees at all levels are responsible for actively communicating with their supervisors about

their performance, taking an active role in planning their development, being accountable for

their actions, and continually striving for excellence in their performance. And supervisors are

responsible for developing performance expectations with the participation of employees;

communicating throughout the performance management cycle about employees' goals,

performance, and development; recognizing successful performance and coaching for improved

performance; and ensuring that employees have the tools, resources, and training and

development needed to carry out their duties successfully.

The job analysis process you will complete to identify the skills needed by employees

Alternatively, the performance appraisal system can be used as a process to identify the

skills needed by employees. So Landslide Limousine can check the requirements of effective

appraisal systems like performance standards, sensitivity, reliability, acceptability, and

practicality. According to Cascio (2013), a performance standard filters job requirements into

levels of acceptable or unacceptable employee behavior. Sensitivity means that the process is

capable of distinguishing effective from ineffective performers. Reliability refers to consistency

of judgment. Acceptability is the most important requirement of all. HR programs must have the

support of those who will use them, or human ingenuity will be used to thwart them. And the

organization has to put much effort into garnering the front-end support and participation of

those who will use the appraisal system. Last, practicality implies that appraisal instruments

should be easy for managers and employees to understand and use. Following these

requirements, Landslide Limousine can set up the job analysis process.

Methods used for measuring the employee's skills

For measuring the employee’s skills, the landslide limo company can use behavior-

oriented rating methods and results-oriented rating method. “Behavior-oriented rating methods

focus on employee behaviors, either by comparing the performance of employees to that of other

employees or by evaluating each employee in terms of performance standards without reference

to others.” In comparison, “results-oriented rating methods place primary emphasis on what an

employee produces; dollar volume of sales, number of units produced, and number of wins

during a baseball season are examples. Management by objectives (MBO) and work planning

and review use this results-oriented approach.”

To take a hypothetical example, Landslide Limousine can use results-oriented rating

methods. They will then measure each employee’s contribution to the success of the

organization. The management in this case will be the part of the company that is responsible for

ensuring that this process is streamlined and effective.

Process for addressing skill gaps

Landslide Limousine may have mainly four different types of employees, like, for

instance, manager, driver, maintenance service technician, and call operator. To address any skill

gaps, we can use the ‘work or service team’ method in the assessment of team performance.

Table-1 Appraisal methods of work or service team

What is rated? How is the rating used?Team Who is Who Outcom Behavio Competenc Developmen Evaluatio Self

Typebeing rated?

provides rating?

e r y t nregulatio

n

Work or

service team

Team Membe

r

Manager ✔ ✔ ✔ ✔ ✔Other Team

Members✔ ✔ ✔

Customers

✔ ✔

Self ✔ ✔ ✔ ✔ ✔

Entire Team

Manager ✔ ✔ ✔ ✔ ✔Other Team

Members✔

Customers

✔

Self ✔ ✔ ✔ ✔ ✔Table-1 based on (Cascio, 2013, p.376).

So Landslide Limousine can set up the private work or service team table, and then the

company can reduce the skill gap of each employee by using team performance appraisal.

Approach for delivering effective performance feedback

“Feedback, to be valuable, needs to be timely and specific.” (Yale.edu, 2010). To

maximize performance, each manager has to communicate frequently before, during, and after

giving performance feedback. According to Cascio (2013), before giving feedback, getting

training in performance appraisal interviewing, planning to use a problem-solving approach

rather than “tell-and-sell,” and encouraging subordinates to prepare for performance-feedback

interviews, is important. Also, while giving feedback, each manager should be encouraging

subordinates to participate by being specific, being an active listener, setting mutually agreeable

goals for future improvements, avoiding destructive criticism, and judging performance and not

personality and mannerisms. Lastly, after the feedback is communicated, each manager should

periodically assess progress toward goals and make organizational rewards contingent on

performance. If Landslide Limousine can provide these before, during, and after feedback

activities, those activities can help better the performance of employees.

Conclusion

Basically, good performance comes from a good performance management plan.

Landslide Limousine wants 5% of the revenue growth for a couple of years. If Landslide

Limousine can make frameworks that promote performance framework, organization strategies,

and performance appraisal system, Landslide Limousine has a good chance at getting the

revenue that the company expects.

References

Cascio, W. (2013). Managing Human Resources (9th ed.). Retrieved from http://create.mcgraw-

hill.com

Rich, A. (2013). Performance management. The Queensland Nurse, 32(3), 34-5; quiz 36.

Retrieved from http://search.proquest.com/docview/1371839880?accountid=458

University of Berkley. (2014). Berkley HR. Retrieved from

http://hrweb.berkeley.edu/about/philosophy/performance-management

Yale.edu. (2010, July). Yale university’s performance management system. Retrieved from

http://www.yale.edu/hronline/focus/documents/2010JulyYALEPERFMGMNTGUIDERe

v6-7-10final.pdf

“Once employees are on board, their personal growth and development over time become a

major concern. Change is a fact of organization life, and to cope with it effectively,

planned programs of employee training, development, and career management are

essential” (Cascio, 2013, p. 287). Exploring the concept of training is important first

before developing the framework of a performance management plan (PMP). According

to Cascio (2013), “Training consists of planned programs designed to improve

performance at the individual, group, or organizational levels” (p. 290), and this mean

that for Landslide Limousines, we must place emphasis on the training and development

of our employees.

The strategy of Landslide Limousine is to operate with 25 employees with -$50,000 annual

net revenue, with a growth of 5 percent for the first two years and an employee turnover

rate of 10 percent. With these details, comparing the turnover rate to the national average

of only 3.2 percent, the strategy for development should be straightforward, and the goal

for the turnover rate should be easily attainable (U.S. Bureau of Labor and Statistics,

2013, para 1). The orientation process should most definitely include a face value

introduction into the organizations performance philosophy.

The skills needed by employees to carry out their tasks should dictate the PMP. There is

extensive research that details factors of effective training (K. Kraiger, n.d.). Measuring

employee’s skill levels, and the type of training that they will need is an important factor

that must be explored prior to addressing and ultimately closing and skill gaps that an

employee might have. Motivating employees, and effectively training them essentially

comes from the quality of the..

Performance management is a critical key component to the success of an organization. The

purpose of this report is to suggest a performance management plan for Mr. Bradley

Stonefield, owner of Landslide Limousines, a small service business located in Austin,

Texas. According to Mr. Stonefield, in the first year he expects net revenue of $50,000

with a 5% net revenue increase for the first couple of years in addition he plans to

employee 25 people and is predicting a 10% turnover rate.

The performance management plan developed for Mr. Stonefield will cover the following areas;

alignment of the performance management framework to the organizational business

strategy, organizational performance philosophy the job analysis process to identify the

skills needed by employees, methods used for measuring the employee's skills, process

for addressing skill gaps and an approach for delivering effective performance feedback.

The Organization and Performance Management

Organizational management refers to the company's business plan; performance management

refers to how the employees within the organization carry out the day-to-day operations.

Organizational management and performance management should align with one

another. The organizational management tool I am suggesting for Landslide Limousines

is a balanced scorecard. “A Balanced Scorecard defines what management means by

"performance" and measures whether management is achieving desired results. The

Balanced Scorecard translates Mission and Vision Statements into a comprehensive set of

objectives and performance measures that can be quantified and appraised” (Kaplan,

2005).

The scorecard will measure 4 areas: Financial performance, this will

ensure Mr. Stonefield has a way to measure the net revenue goal he has set of $50,000 in the first

year in addition to measuring the growth goal...

This week Atwood and Allen Consulting firm was assigned the task of recommending several

pertinent aspects of Landslide Limousine's company. We were tasked with identifying

the alignment of the performance management framework to the organizational business

strategy, organizational performance philosophy and job analysis process. Since

Landslide Limousines is expanding to Austin, TX we also discussed methods used for

measuring employee skills, process for addressing skill gaps and the approach for

delivering effective performance feedback. With these aspects covered for this limousine

business, Bradley will begin to see what a great investment he has made with consulting

with Atwood and Allen.

The performance management framework is an important factor to any business. In order to

align your framework to your organizational business strategy, you should follow the five

steps of strategic management process.

Facteurs de performance

White-Fairhurst TPR Model

Русский: Цикл управления эф...

The five steps include: goal setting, analysis, strategy formulation, strategy implementation, and

evaluation and control. The main focus behind goal setting is clarifying the vision for our

business (Robbins & Judge, 2013). Bradley stated that your vision is to provide

exceptional service, one ride at a time. In order to maintain your vision, you must

continue to improve your employee performance to keep your customers happy. During

goal-setting you must define short term and long term goals for the company.

It's also important to "walk the walk." What you do is far more important - and believable - than

what you say. Demonstrate the kind of behavior that you want from others. In order to

keep followers motivated, leaders need to constantly communicate that vision,

reinforcing the shared, positive outcome (Frost, 2000). Next, the analysis step involves

data gathering in order to assist in meeting the

A strong performance management framework is essential to the success of Landslide

Limousine. In order to have a successful performance management plan you must align

the framework with your business strategy, consider your organizational philosophy,

perform a job analysis to determine skills needed by employees, decide on methods you

will use to measure employee’s skills, determine a process for addressing skill gaps, and

an approach for delivering effective feedback. In this memorandum Atwood & Allen

will provide suggestions on how to create a performance management framework that

sets Landslide Limousine on the path to success.

Organizational Business Strategy

In previous communications you informed Atwood & Allen that you want to start a Limousine

business in Austin, Texas and that your business strategy is to provide first-class personal

transportation to your customers. Additionally, you stated your anticipated first year net

revenue will be approximately -$50,000, you expect a 5% net revenue increase over the

next several years, and you estimate a 10% turnover rate. Based on your short-term and

long-term goals Atwood & Allen believes Landslide Limousine has realistic goals for the

first few years of business. A well thought out performance management framework

will align these goals, encourage employee loyalty, and set the foundation for future

financial growth.

Organizational Performance Philosophy

As part of Landslide Limousine’s performance management framework it is imperative to

identify your organizational performance philosophy. In order to establish your

limousine business in Austin, Texas, amongst an

In order for Landslide Limousine to have success, strategic performance is necessary within

theframework of management. The business should be successful if the performance

management plan aligns completely with the business strategy. To help the company

de ne the skills needed by its workers it must have a strong organizational philosophy as

well as a strong job analysis. It is of great importance to know what methods the

company will utilize for the measurement of employee skills, skill gaps, and an e ective

feedback approach. !twood " !llen #onsulting willbe administering and providing this

vital information for the success at performancemanagement for Landslide Limousine.

The performance management plan will ensure business success with no lost revenue,

and income stability, and within target.

Performance management framework for business strategy

In prior communications with !twood and !llen, there was desire showed to start Landslide

Limousines in !ustin, Te$as. The main goal is to provide rst%class transportation

options for various customers by the limousine company. There is an anticipated net

revenue for the rst year of &'(,(((, and is e$pected to have a ') increase in net revenue

within the ne$t few years. There is also an estimation of a *() turnover rate. !ccording to !

twood " !llen, the short term and long term goalsare very realistic for the rst few years.

+ncouragement of employee loyalty, alignment of company s goals, and the setting of

the foundation for nancial growthwould come together by bringing together a strategic

performance management framework. The structure of the business strategy must consist

of e ective employee skills, methods to measure skills performance, concentrate on

skills gaps,and e ective employee feedback.

Organizational Performance Philosophy

In order to establish a strong strategic performance management framework,the company needs

to identify the organizational performance philosophy. In order to compete within the

e$isting competitive market in !ustin, Te$as, the business philosophy has to be built on

e$cellent customer service. To build a positive reputation in the market, employees have

to be clear with e$pectations. 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 people e ciently 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 con dence within the service.

The job analysis process to identify employee’s skills

It is important for any business to employ personnel with the re0uired job skills and successfully

achieved organizational goals. The employee knowledge andskills can guarantee

customer satisfaction and positive reputation for the company. The te$tbook, 1anaging

2uman 3esources, 4

th

edition, by 5.6. #ascio, e$plains 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 7#ascio, 8(*9, p. 9*:;. The

organizational analysis identi es if the training supports company s direction,

personnel training activity, and resources available. <emographic analysis determines

employee s special need at di erent hierarchy levels. =perations analysis identify

what an employees should do to perform competently, and individual analysis focus on

the type of training should be provided to a speci c individual 7#ascio, 8(*9;. !ccording

to #ascio, with a job analysis the business can identify tasks and re0uired characteristics

to perform a job 7#ascio, 8(*9;. The four levels of training is a helpful tool to identify

areas of improvement.

Methods to measure the employee’s skills

6or any business is important to measure employee skill performance and determine if targets

have been accomplished. The article, +mployee >erformance 1easurement Tools, by 3uth

1ayhew, e$plain how a company can measure performance with performance appraisals,

productivity tests, and 9?(%<egree 6eedback. The performance appraisal is an annual

method on where the employee is evaluated by management. The evaluation identify how

well is the employee doing for a period of time and if action in re0uired for improvement.

>roductivity test can help measure employee performance in 0uanti able terms. The 9?

(%degreefeedback is for supervisors and management to provide objective information

from every employee working for the business 71ayhew, 8(*@;. The balance card is

another crucial tool to measure the employee s skills, as well as the organizational

performance. !ccording to The Aalanced Bcorecard% 1easures that <rive >erformance,

by 3obert B. Caplan and <avid >. Dorton, the balance scorecard gives management a

comprehensive view of the business with operational measures, such as customer

satisfaction, internal processes, innovation and improvement activities driven for future

nancial performances 7Caplan " Dorton, *448;. The balance scorecard is a tool that

Landslide Limousine can use to e$plain the results of actions already taken.

Process for addressing skill gaps

!n analysis to address skill gaps is important at any employee level. The analysis identi es the

responsibility, knowledge, and skills re0uired for a speci c job. If an employee is

currently performing a job but changes were made to the job description, addressing the

gaps will be to identify any characteristic missed to trainee the employee or improve the

process. It is common to nd skills gaps when an employee change jobs or it lack of

education and training to perform a job. The article, 2ow to <evelop a Bkill Eap !nalysis,

by Tara <uggan, provides four steps to develop a skill gap analysisF identify business

goals, collect data, understand data tomake recommendations, and develop a training plan

to address skills gaps in the current environment 7<uggan, 8(*@;. 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. !fter 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 e ective training to retain employees to retention and

business performance.

E ecti e performance feedback

It is very important to deliver e ective performance feedback with positive attitude. +mployees

appreciate advice and positive coaching to help improve mistakes. The article, 2ow to

<eliver + ective >erformance !ppraisals, by Louise Aalle, e$plain di erent steps for

e ective performance appraisalsF establish an appraisal method, e ective eye contact,

start with negative feedback end with positive suggestions, set new goals, have an open

dialogue with the employee, e$plain if the employee is a candidate for promotion or raise

7Aalle, 8(*@;. The rst step is important because the method is selected to provide

e ective feedback. Twoe$amples are the 9?(%degree feedback appraisal and self

%evaluation for employees to share thoughts and ideas. !t the interview, it is crucial to

maintain good eye contact to develop trust from both sides and show respect. Aody

language is important because it can show attitude or negative feedback. It is important to

startwith negative feedback to end with positive observations and set realistic goals for

the ne$t time period. <uring the feedback is important to have open dialogues to allow

employees share opinions or ideas. It is important for management to share decisions

made by upper level on behalf of the employee, as far as promotion or raises, to

encourage the employee to achieve better results in the future.

#ascio, 5.6. 78(*9;. 1anaging 2uman 3esources 74

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ed.;. Dew Gork, DGF The 1cEraw%2ill #ompanies, Inc, 3etrieved from Hniversity of >hoeni$

eAook #ollection database. 5orkplace Training, #hapter . 1ayhew, 3uth 78(*@;.

Employee Performance Measurement Tools

. <emand 1ediaF #hron. 3etrieved fromF httpFJJsmallbusiness.chron.comJemployee

%performance%measurement%tools%*4'8.html<uggan, Tara 78(*@;.

How to Develop a Skill Gap Analysis

. <emand 1ediaF #hron. 3etrieved fromF httpFJJsmallbusiness.chron.comJdevelop%skill%gap

%analysis%94 :8.htmlAalle, Louise 78(*@;.

How to Deliver E ective Performance Appraisals

. <emand 1ediaF #hron. 3etrieved===========

Performance Management Framework

Mr. Stonefield is starting his own business in Austin, Texas, called Landslide Limousine Service.

One of the fundamental elements to building this new business venture is creating a

framework for performance management. The framework must include necessary

employee job skills, the methods used for measuring these skills, the process for

addressing skill gaps, and the approach for delivering effective performance feedback. It

is important to understand how the performance management framework (PMF) aligns to

the organizational business strategy. Mr. Stonefield previously stated he wants to provide

first-class transportation to his customers. His goals are realistic for the first year with an

anticipated -$50,000 in revenue, and 10% turnover. The success of the business’s

performance management will ensure there will not be any additional lost revenue, and

turnover stays at, or under target. The goals set in place lay the foundation for the future

of this company, and a clearly defined PMF will foster highly engaged employees and

lead to continual revenue growth. It is imperative Mr. Stonefield’s employees have the

necessary job skills to allow Landslide Limousine to achieve its goals and gain a positive

reputation. A job analysis is “The process of obtaining information about jobs, including

the tasks to be done on the jobs as well as the personal characteristics necessary to do the

tasks” (Cascio, 2013, p.690).

Mr. Stonefield has elected Atwood and Allen Consulting to conduct the job analysis process to

identify the skills his employees will need. The job analysis process, or in this case,

processes, have been identified, but additional time is required to act out these processes.

The first process is observation. “The analyst simply observes a worker or group of workers

doing a job. Without interfering, the analyst records..