Performance Management Plan

Topics: Human resource management, Management, Organizational studies and human resource management Pages: 7 (1771 words) Published: May 26, 2014

Performance Management Plan
Emerson Oliveira
May 14, 2014
Mary Jo Payne
Performance Management Plan
Clapton Commercial Construction is a mid-size company on the construction segment, currently located in Detroit, Michigan and looking to expand their business to Arizona. The economically depressed city of Detroit, considered one of the most prosperous cities in the entire nation, has had some improvements lately, with the automobile companies, bringing jobs back to town and slightly increased the demand for commercial construction. Although it is noticeable the city’s evolutions that are gradually occurring, the recession effect still prevails impacting Clapton Commercial Construction’s ability to being profitable, resulting in net revenue decline in -3% for the second year. Considering this unfavorable scenario, the organization decided to expand the business to a more dynamic market of Arizona as its overall business strategy. Atwood and Allen Consulting was designate to develop a performance management plan to provide recommendations to Clapton Commercial Construction in effectively managing organizational and individual performance. Clapton Commercial Construction currently has 650 employees in its Detroit’s headquarter, and plans on adding 20% in the new location in Arizona, totaling 130 employees to be hired. Staff turnover rate based on historical data is 20%, forecasted by management to remain within the same rate after the expansion. The annual net revenue is $10,000,000 with no growth expectations for the first year, but aiming to maintain the same current -3% annual rate. The current business scenario of high turnover rate and decreased revenue indicates the need of reviewing the organization’s strategic goals to improve company’s revenue, and application of an effective performance management plan in order to meet objectives and optimize business results. Alignment of the Performance Management Framework to the Organizational Business Strategy Performance Management is about meeting objectives and translating goals into results. Employers that fail in aligning performance management with business strategy, result in employees that are unaware of how they can contribute to the company's strategic goals (Gray, 2011). Every company should have a well-defined (specific, measurable, acceptable, realistic and with timeframe) business strategy, based on the mission, vision and goals of the organization. The mission and vision of a construction company needs to be communicated clearly to all employment levels within the company. The "Burke Construction Group" (n.d.), whose vision is “to be one of the best and most respected general contractors in our industry”, and mission is “delivering high-quality, cost-effective projects on schedule by employing and supporting passionate, flexible, and focused project teams” (para 1), reflects their overall business strategy. When a company is in financial trouble, with declining revenue and low performance, it is imperative that fundamental modifications need to take place in order to change the course of the business to a more positive outlook. A renewal strategy would be an option for consideration to help stabilize operations, revitalize organizational resources and capabilities with reduced turnover rates, and prepare the company to improve profit margins and grow its business (Robbins & Coulter, 2012). The performance management framework drives business success by focusing on improving individuals and organizational effectiveness necessary to properly creating a healthy and sustainable results-oriented culture (OPM, n.d.). The performance management is critical to achieve growth and in order to be effective; firms must link their approach directly to corporate strategy and organizational culture that can be accomplished only by engaging their people in a continuous loop of improving performance. Organizational Performance Philosophy


References: Burke Construction Group - Vision Mission Values. (n.d.). Retrieved from
Cascio, W.F. (2013). Managing Human Resources: Productivity, Quality of Work Life, Profits (9th ed.) Boston, MA: McGraw-Hill/Irwin
COD - The High Performance Philosophy. (2012). Retrieved from
DOL. (2002). OSHA - Occupational Safety and Health Administration. Retrieved from
Gray, R. (2011). Aligning performance management with business strategy. Retrieved from
Michigan State University: Human Resources. (2013). Addressing Performance Problems. Retrieved from
OPM. (n.d.). Performance Management. Retrieved from
Robbins, S. P., & Coulter, M. (2012). Management (11th ed.). Upper Saddle River, NJ: Prentice Hall.
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