Chapter 8 Case 1
Performance Management System Helps Freeport-McMoRan Switch Strategic Gears
Wilfredo Gonzalez
University of the Incarnate World
Abstract
The company selected Taleo 's new online performance management system. This system includes a very easy-to-use interface to allow employees and managers to establish well aligned goals. “Standards must be set for each department and individual position. This process is essential for the organization and for each employee” (Schwartz, 1999, p. 29). Most performance management systems provide this capability - but in this case the company chose Taleo because of the company 's existing relationship with Taleo and the product 's extremely easy to use interface. Since many of the workers in the mines only have occasional access to computers, they needed a system which required a minimum of training.
Freeport is now in their pilot phase of rollout, and the results have already been excellent. For the first time in decades the company has visibility into the goals and operational targets of more than 500 mine employees (the pilot group). As with all implementations, they had to focus initially on building a set of core competencies for their employees and establishing clear guidelines for goal development, but in a period of only a few months the company put the pilot system into production.
Performance Management System Helps Freeport-McMoRan Switch Strategic Gears
Why did Freeport-McMoRan need a performance management system? How will it help the company if it has to adjust its strategy in the future? “A performance management system is the process of creating a work environment in which people can perform to the best of their abilities in order to meet a company’s goals” (Bohlander, 2013, p. 344). To have a strong and effective performance management system will enable Freeport-McMoRan to sustain profitability and performance by linking the employees pay to competency and contribution. It will provide
Wilfredo Gonzalez
University of the Incarnate World
Abstract
The company selected Taleo 's new online performance management system. This system includes a very easy-to-use interface to allow employees and managers to establish well aligned goals. “Standards must be set for each department and individual position. This process is essential for the organization and for each employee” (Schwartz, 1999, p. 29). Most performance management systems provide this capability - but in this case the company chose Taleo because of the company 's existing relationship with Taleo and the product 's extremely easy to use interface. Since many of the workers in the mines only have occasional access to computers, they needed a system which required a minimum of training.
Freeport is now in their pilot phase of rollout, and the results have already been excellent. For the first time in decades the company has visibility into the goals and operational targets of more than 500 mine employees (the pilot group). As with all implementations, they had to focus initially on building a set of core competencies for their employees and establishing clear guidelines for goal development, but in a period of only a few months the company put the pilot system into production.
Performance Management System Helps Freeport-McMoRan Switch Strategic Gears
Why did Freeport-McMoRan need a performance management system? How will it help the company if it has to adjust its strategy in the future? “A performance management system is the process of creating a work environment in which people can perform to the best of their abilities in order to meet a company’s goals” (Bohlander, 2013, p. 344). To have a strong and effective performance management system will enable Freeport-McMoRan to sustain profitability and performance by linking the employees pay to competency and contribution. It will provide
References: Bohlander, G., & Snell, S. (2013). Managing human resources (16th Ed.). Mason, OH: Thomson/South-Western. Schwartz, A. (1999). Performance management. Hauppauge, NY: Barron 's Educational Series. Sethi, S., Lowry, D., Veral, E., Shapiro, H., & Emelianova, O. (2011). Freeport-McMoRan Copper & Gold, Inc.: An Innovative Voluntary Code of Conduct to Protect Human Rights, Create Employment Opportunities, and Economic Development of the Indigenous People. J Bus Ethics Journal of Business Ethics, 1-30.