The Best Quality of Service and Nature of Customer Complaints - Essay Example

? Case Study Based Report - Performance Management Table of Contents Introduction 3 Answer to Question 3 Review of the organisation’s previous approach to performance management 3 Answer to Question 2 5 Recommended improvements in the performance management framework and their benefits 5 Implementation Plan for the suggested improvements 6 Answer to Question 3 9 Outline of the possible performance measures for the position of Manager 9 Reference 11 Bibliography 12 Introduction The main purpose of the project is to develop a performance management system in a restaurant. The system would primarily emphasise on the key operational staff which would include the area managers and the restaurant managers. This represents the top 20% of the operational staff in the organisation whose salary exceeds $60,000 per annum. The project tries to identify and bring forth the loopholes of the previous performance management system in the organisation. Based on the drawbacks, a new system is developed. The impetus for the new system of performance management was driven by the arrival of a new CEO in the organisation. His mission is the creation of a culture which is completely based on performance and the creation of a proper career path for the operational staff. Answer to Question 1 Review of the organisation’s previous approach to performance management The previous performance management system for the senior operational staff was meant to evaluate the performance of the employees against the set standards of performance. This would consequently help in the development of action plans for addressing the gaps identified (David, 2009, p.288). Since they were senior operational staff in the organisation, their performance were indirectly accountable for the performance of the personnel working under their supervision. The first step in the system included identifying the personnel’s performance dimensions. The operational staffs’ responsibility includes identifying obstacles, problems, and opportunities and taking necessary actions for addressing the issues. He is supposed to maintain proper working relationships with subordinates under his supervision, namely the chief chef, the procurement personnel, the accounts manager and the public relations officer. He is responsible for completing his assignments on time through the performance of his subordinates. He is supposed to demonstrate budgetary controls, monitor the subordinates’ activities, initiate the effective and timely corrective actions and suggest budgetary recommendations (California State University, p.1). Certain pitfalls have been identified with regards to the performance management system for the senior operational staff in the organisation. Firstly, the system is not found to promote or enhance productivity in any way. Moreover, it is not a favourable system which drives commitment in the workforce or motivates employees towards continuous improvement of performance (Montebello, 2004, p.1). Firstly, there are divergent goals and objectives. In other words, the goals are not very defined and do not provide a proper guideline to the operational staff for proceeding in his work activities. Secondly, there are loopholes in the implementation plan of the system. The system is not implemented aggressively. Moreover, the technology used for implementing the plan is not based on the latest technology which allows errors and loopholes in the system. There is lack of transparency in the system which eventually causes improper performance appraisal. Inefficiencies creep in and at times, there is biasness in the appraisal system. The performance appraisal forms are constructed poorly. This implies that the factors for rating are not well defined and allows ambiguity. The rating scale also contains certain problematic terms. Thus, it is difficult to evaluate whether the performance meets requirements, exceeds it or is at par. The problem that arises because of this is that the process lacks validity and value and is considered to be impractical. The forms are also not unanimously accepted by all (Grote, p.X). It is also said to cause damage in the working relationships arising out of disagreements over the terms. There are cultural differences and potential differences between members of the organisation due to which the performance standards can vary (David, p.285). The performance review techniques lack uniformity and consistency. The performance review techniques should be such that it helps in the identification of opportunities and motivates the employees. The technique lacks innovation making the managers least accountable of their performance. Moreover, the operational managers are likely to shift the burden of their responsibility to the subordinates (Oakland, p.117). Answer to Question 2 Recommended improvements in the performance management framework and their benefits It is important that the goals are well defined and not divergent in nature. The goals should be complemented with proper directions and guidelines which would be followed by all senior operational staff in the organisation. For example, the time and deadline should remain fixed when he is reporting to a higher authority. The goals should be such that it is unanimously agreed by all (Murphy & Cleveland, p382). However, it must be ensured that in doing so the organisations objectives are met. The appraisal forms should be constructed carefully. This would include exclusion of terms which cannot be understood by all. There should not be any kind of difficulty in the understanding the requirements. It should be very specific with regards to meeting the objectives or the timeline required for the same. There should not be any biasness towards specific personnel. The performance review technique should be based on such tools like PERT (Program evaluation review technique) or MBO (management by objective). Since the activity of the senior operational staff involves the coordination of activities of various departments and finally integrating them, PERT would be a suitable technique. It can include a visible network of the activities and events of the work process starting from inception till completion (Golightly, p.75). Implementation Plan for the suggested improvements Following is the plan for the implementation of the performance system for the senior operational staff in the organisation. The objective should be to operate, evaluate and also improve the overall performance of the senior operational staff in the fast food restaurant (Kahn, “McCallum-Turner Recommendation on IPM”). It must be ensured that the performance measures comply with the laws and regulations. For example, while fixing the numbers of hours of work, the working environment or even the remuneration of employees, it should comply with the laws and regulations of the nation. Employees should be made to work according to the number of hours fixed by the government. The organisation must also provide the respective safety and security benefits to the employees. Moreover, the terms and conditions of work must also be in alignment with that laid down by the labour laws in that nation. The first step in the performance management implementation plan would include developing a long term vision and mission for the organisation. The purpose of this would be to align the work activities of the personnel towards the organisational goals. This step would also include the individual role definition. The respective output associated with individual roles of the personnel would have to be mentioned. It would also mention the competency requirements for the role. In this case, it would include improving the operational system, policies and processes, supporting of better management reporting and information flow. It would include increasing the effectiveness of the support services like the public relations departments, the accounts department of the restaurant, the master chef or the procurements division. He would implement budgetary control and management in coordination with the accounts department. He is also supposed to implement long-term planning and gear the organisation towards operational excellence. The next step would be to determine the performance measures. The performance measure should be such that it would identify the performance trends of the senior operational staff in the organisation. The measure should allow comparison between similar positions in - other similar organisations (Department of Environment and Resource Management, p.8). The next step would include implementing a performance appraisal system in the organisation. The appraisal of the senior operation staff would be undertaken by his colleagues, the management, the subordinate staff or the feedback taken from customers. A part would also be allocated for self assessment of the personnel. This step would include developing a performance appraisal form. It would include aspects like functional competencies and requirements, communication between departments. There would be personal interviews with members of the organisation. Questions would be asked to both the appraisee and the appraiser about their expectations regarding the system. It should be open to receiving suggestions from employees and implementing the same (Grote, p.204). The next step would include evaluating the system. Evaluation would involve measuring the actual performance of the senior operational staff against set standards. What needs to be determined is whether the personnel perform as per the requirements of the position, or performs above that standard or below the set standard. The appraisal forms would play a critical role in this regard. The form should weight the work outcomes or the work behaviours. The forms should also provide weightage to the individual goals and behaviours (Grote, 208). The final step would include providing the necessary feedback to the personnel. There should be a system of performance recognition and rewards. Appraisals should be associated with promotions. The system of promotion should be made transparent without any biasness towards specific employees. It is important that the management takes account of the self assessments of the senior personnel also. This would provide insight into the factors affecting the performance of the personnel. The feedback provided would allow the personnel to identify the drawbacks and areas which need to be looked into. The responsibility of the system does not end over here. After getting the feedback, the personnel would have to work on the respective areas and remove the drawbacks. After a certain period of time, the system would have to be repeated. The final evaluation would throw light over whether there has been any change in the performance and would also show the extent to which the performance has improved towards objectives. Answer to Question 3 Outline of the possible performance measures for the position of Manager The performance measures for the restaurant manager would quantify how effectively managers were performing in their positions. Performance measure would highlight how well the manager were performing, the extent to which goals were being met, extent of customer satisfaction, extent of statistical control of the work activities and identify the necessary areas of improvement (Artley & Stroh, p.19). The performance measures for the position of manager would include: Effectiveness Efficiency Quality Timeliness and Productivity Effectiveness would include the degree to which his work output caters to the process output or the process requirements. For example, if the manager proposes a fixed number of working hours for the restaurant, it needs to be evaluated whether that working hour is yielding the optimum results. If it is seen that altering the working hours has been reducing the output, it requires readjustment to align with the desired objective. Efficiency would refer to the cost effectiveness of the role that he has been undertaking. For example, if he chooses to fix the price of particular services at a certain price, it is to be seen whether that price is being cost effective or not. Efficiency would be directly linked to profits and revenues. Quality would include whether the manager has been effectively producing the best quality of service. In the case of a fast food restaurant, it would include quality in terms of food, time, production process and even customer satisfaction. The public relations department are also to be evaluated in terms of quality standards. The quality aspect would be based on the extent of time that the customer waits from the service, the feedback collected from them, the number of service returns, or even the number and nature of customer complaints (Artley & Stroh, p.20). Timeliness would show whether the manager is being able to perform a particular work activity within a given stipulated time or not. In the case of a restaurant manager, this would include budget allocation for the respective departments, especially the availability of funds for the procurements department, arranging for the required tools and equipments for the regular running of the organisation and most importantly whether the customers’ requirements were being met on time. Productivity would reflect through the value added by the manager to the fast food restaurant in terms of the value of his labour or the capital consumed. This would be evaluated on the basis of the revenue that he generates against his remuneration (Artley & Stroh, p.20). Reference Artley, W. & Stroh, S. Establishing an Integrated Performance Measurement System. 2001. March 16, 2010. < http://www.orau.gov/pbm/pbmhandbook/volume%202.pdf>. California State University. 2010. Performance Evaluation of Managers/Supervisors. March 15, 2010. . David, L. Human Resource Management. Pearson Education India, 2009. Department of Environment and Resource Management. Determining the performance measures. 2010. Performance Management. March 16, 2011. < http://www.derm.qld.gov.au/water/regulation/pdf/guidelines/tmp/2001_guidelines/implementation/performance_1.pdf>. Golightly, C. K. Creative problem solving for health care professionals. Jones & Bartlett Learning. 1981. Grote, R. C. The complete guide to performance appraisal. AMACOM Div American Mgmt Assn. 1996. Kahn, S. M. McCallum-Turner Recommendation on IPM. April 17, 2008. Integrated Performance Management at SLAC: Plans for Implementation in PPA. March 16, 2010. < http://www-group.slac.stanford.edu/ppa/kahn_IPM_041708.pdf>. Montebello, A. R. Pitfalls and Best Practices in Performance Management. 2004. March 16, 2010. < http://www.communicare.com/DT/pdf/Pitfalls&BestPracticesPerformanceManagement.pdf>. Murphy, K. R. & Cleveland, J. Understanding performance appraisal: social, organizational, and goal-based perspectives. SAGE. 1995. Oakland, J. S. Total quality management: text with cases. Butterworth-Heinemann. 2003. Bibliography Chapman, C. S. Controlling strategy: management, accounting, and performance measurement. Oxford University Press. 2005. Brown, D. R. The restaurant manager's handbook: how to set up, operate, and manage a financially successful food service operation, Volume 1. Atlantic Publishing Company. 2003. Guilding, C. Accounting Essentials for Hospitality Managers. Butterworth-Heinemann. 2009. Johnston, R. Service Operations Management: Improving Service Delivery, 2/E. Pearson Education India. 2007. Neely, A. D. Business performance measurement: theory and practice. Cambridge University Press. 2002. Read More