Performance Management Plan
August Monday 4, 2014
Performance Management Plan
With a new business, there must be procedures and goals put in place in order to succeed. Procedures and goals are needed to keep the company and its' employees on track. In order to achieve business incentives, performance management is essential to monitoring employee progress. Mr. Stonefield at Landslide Limousine has established several organizational strategic points for his business. The company is looking to accomplish a net income of -$50,000 during their first year of business in Austin, Texas with 25 employees starting off. Mr. Stonefield has the expectation that the company revenue will grow 5% for the first couple of year while maintaining an annual turnover rate of 10%. In order to accomplish these strategic points, the company will need to address employee performance to ensure the quality of work as well as goal setting methods in order to create the proper goals for Landslide Limousine and its' employees. In order for a company to succeed, the right people have to be in the right jobs. These individuals will need to meet company standards. These measures will need to be job specific. For example, if the company is looking at hiring new drivers then required standards should include past driving records to ensure that the individual is capable of driving customers safely while adhering to state and local laws. Other requirements would include professional references of past employers so that the company can follow up on what a potential candidate is telling the company about their past. Having a set of standards for hiring employees will ensure that the right people are those that the company is looking for. These individuals would be more likely to succeed in an environment created by Landslide Limousine, which in turn will help the company be successful. Putting the right people in the right job, also, makes it easier for goals to be set for these individuals and for managers to monitor job performance to ensure the quality of work being done. Performance management is the process in which "managers provide feedback to employees regarding their past and present job performance proficiency, as well as a basis for improving performance in the future" (Cascio, pg. 221). Performance management can be looked at "as a kind of compass, one that indicates a person's actual direction as well as a person's desired direction" (Cascio, pg. 352). Creating business, and individual goals are not easy tasks. For Mr. Stonefield, utilizing the SMART method for goal creation increases the chances of creating valuable, worthwhile goals for employees that will align with the goals set by the company. It will make sure that goals are "Specific, Measureable, Appropriate (consistent with the vision and mission, Realistic(challenging but doable), and Timely" (Cascio, pg. 178). With the SMART method of setting goals for employees, managers will be able to push employees to be better than they were the day before. Attainable goals help with employee confidence and adds a feeling of accomplishment which will boost quality production of service. Having set goals will allows for managers to have a means to manage each employee based on the goals that each has for themselves. For example, customer satisfaction is a big factor in whether a customer based continues to use a particular business, so having a set customer satisfaction rating should be. An 80% customer satisfaction goal establishes a quantitative number that each employee can adhere too. This goal will, also, allow managers to manage better due to the specific measurability of this goal whether it is to encourage positive behavior or to correct negative behavior. Managers set goals in order to promote production and to create certain behaviors that drive positive progression for the company. In order to drive progress, managers must learn...
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