Performance Management to Stay Ahead of Competitors - Essay Example

? MANAGING PERFORMANCE                PERFORMANCE MANAGEMENT Introduction Performance management is what institutions do in order to become very successful and stay ahead of their competitors. It is an approach that assists to define and execute a business or organisation’s strategies in order to ensure performance improvements and advances in the competition with other organisations or businesses. Performance management is mainly a set of processes of management that are supported by the technology in order to improve the strategic decisions made in the organisations. The highly performing organisations, both public and private are interested in developing effective performance management systems. This is because the system assists the businesses to maintain high performance levels (Neck, et al. 1999, p250). The performance management is always carried out by the team members of the organisation. The managers motivate the team as a whole and separately in order to ensure high performance of the whole organisation. They manage this through the structure and allocation of work (Temoshenko, 1992, p290). In addition, they are expected to have a clear vision of the business goal and work focusing their minds in successfully achieving the goals set to manage high performance. Preparation for performance management The best way of preparing for the systems performance is to practice the developmental management put by the business or organisation. For instance, the teams are expected to revise the objectives agreed on by the management department regularly (Managing Employee Performance, 2003, p90). Furthermore, the managers should review the performances at appropriate times and can also provide coaching in case an opportunity arises. Employees are needed to consider the interactions in order to prepare for performance evaluation. Moreover, the employer should review the stages of performance in the previous periods in order to decide on what to achieve during the evaluation process. Morrison’s supermarket performance management Morrison supermarket is the fourth largest supermarket in UK. It has over 400 stores that employ at least 300 staff and specialists in retail and manufacturing of food. Morrison’s is highly performing organisation serving a large number of customers compared to other stores. Morrison does actually produce a variety of products ranging from 30,000 to 35,000 items. When compared to other operations, this is a high variety. This range of variety is medium because it has limited flexibility in services and products. The organisation struggles to increase the flexibility, variety and flexibility of various operations in accordance to customer’s wishes. In addition, Morrison’s increases variety due to availability of in store, butcher, restaurant, fish monger, baker and delicatessen that enables it to provide customers with what they need directly from their fresh. Due to high number of customers, Morrison’s varies the number of staff operating in the store in order to accommodate the variations in demand. Moreover, the organisation has a high visibility because all customers are exposed to the front end operations of its operations. The performance objectives There are five performance objectives at Morrison’s which are common to all operations. These include dependability, quality, flexibility, speed and cost. These objectives help the company to control its performance and help it achieve its goals. The quality of services offered at Morrison’s satisfies customers’ needs. In addition, Morrison’s operation is controlled according to its schedules. For instance, it has regular opening and closing times making customers aware of shopping hours like other stores. Moreover, the company manages service properly by possessing huge number of checkout tills in order to reduce customers’ waiting through queuing.  Most companies today are flexible, profitable and efficient in order to compete in the global economy. Morrison’s supermarket aims at sustaining its growth. The supermarket offers training to its employees in order to ensure that they have the ability and skills in managing the company’s performance. In addition, the company works hard to improve its operations by introducing new technologies to reinforce the position of its branches and to improve performance. The main mission of Morrison’s supermarket is to secure its growths in a stable way and improve its profitability. It is stable financially to update its activities with the latest development in order to maintain and improve on its position.   The goals of the business The company aims at offering fresh food at a good value. The company is able to achieve this goal because it manufactures it locally in its stores exceeding 500 stores. They also aim at controlling and managing high quality of products that are fresh. The company offers quick services to customers because it has its own manufacturing, packing and distribution network that ensures faster distribution from the stores. Furthermore the company offers fresh products at affordable prices. It aims at moving from national services to nationwide in order to offer services to many people (Garengo & Bernardi, 2007, p530). In addition, they intend to offer the right products to the customers. Due to their manufacturing facilities, the company tries to offer products as quickly as possible directly from their stores and increase choices. The employees prepare fresh food as compared to other supermarkets hence providing the customers with what they need (Rea, & Rea, 2002, p81). The performance management measures and control systems According to Cowton (2004, p56), management is the employment of human, financial and physical resources in order to achieve the company’s goals . The processes are conducted by the managers. He explained that management focuses on teamwork. The managers are responsible for controlling the activities by planning, leading and motivating the organisation, assessing the work done by employees, organising and staffing, and ensuring good coordination through communication in order to achieve goals set by the organisation. In addition, Armstrong explained that performance management is reputable within the organisations because it enables employees to do their work perfectly. Moreover, he argued that performance depend upon the employees behavior and the results of their attempts.     The managers at Morrison’s supermarket use the business performance measurement and control in order to maintain the patterns in the organisation’s activities. The performance measurements assist the business to set goals periodically and provide the managers with the results concerning the goals set. Measurement of the business is mainly done in order to control, and monitor performance, to reward the hardworking staff, to achieve alignment with the goals and objectives and to improve on the business as a whole.       Social and cultural factors Morrison’s focuses on adding valuable products due to demographic changes such as the growing number of the customers. The company receives various customers with different cultures thus they produce a variety of products depending on the customer’s requirements. The company also applies the cultural web theory that helps to represent underlying assumptions related to structural, symbolic and political aspects of the company. It is used to consider the cultural contexts for its business. Culture consists of values, beliefs and ways of doing business within and out of the company. Morrison’s staff has friendly approach on how they relate to one another. The measurement and control of the business are constantly reviewed by the management in order to monitor the efficiency of staff and the decision of the managers. Learning organisations and 360 degree learning Morrison’s supermarket has its organisations where the staff members are being taught. The employees are taught at every stage of their development in order to enable them handle most responsibilities in the company. The company offers training to all its members to enable them have knowledge on how to improve performance. Furthermore, the learning organisations use 360 degree feedback to help the organisation to improve in its performance, profitability and its effectiveness. The company becomes more effective through 360 degree feedback by understanding how others view the organisation, the attitudes and behavior of the staff. 360 degree gives the executives and employees feedback from the managers, customers, peers and the subordinates. It encourages performance improvement (Rea, & Rea, 2002, p32). . Moreover, the company aims at increasing the number of training schemes and enlarges its recruitment programs in order to present to customers a well trained staff. Knowledge management The company uses its knowledge to develop technologically. It struggles to offer new innovative products ion a wide range to anticipate customers’ needs. The staffs are encouraged to learn so that they can improve on their approach to customers and quality of products provided. The knowledge management by developing technology benefits both customers and the organisation. The customers are advantaged as their satisfaction rises due readily available goods. Morrison’s uses several technologies in its stores including, wireless devices, self-checkout machine, intelligent scale, electronic shelf labeling.    Appraisals The performance appraisal system at Morrison’s is based on measurable standards and indicators. It has different objectives for both employees and the management. The employees like to know or assess their work like in the development of the business, satisfaction of work and personal development. On the other hand, the management assesses the employees’ performance in order to maintain the organisational control and reward or punish others to further the goals of the organisation. Comparing Morrison and Pizza hut Morrison supermarket has various similarities and difference compared to other supermarkets such as Pizza Hut. People mainly visit the supermarkets due to the quality of products and good services. The main responsibility of the management department in an organisation is to ensure that the team offers high quality services at the right time and in the right way to customers. The department also ensures that there is team work among the members to ensure that the results are pleasing. Furthermore, they operate and control the overall activities carried out in the right manner that satisfies the customers and the company members as well. Similarities Similar to Morrison’s, Pizza Hut also receives a great number of customers and produces a variety of products to satisfy the customers. “…Pizza Hut has a variety of customers…” Cowton (2004,p260) says that the general manager in both companies control the stores operation by scheduling work shift among the employees, ensuring that the company’s policies and objectives are being maintained and conducting or ordering the supply and distribution of food. Furthermore, it recruits the team members and offer interview to them. The companies are divided into sections according to the type of service one needs. Furthermore, the managements are very keen on cleanliness, hospitality, speed, maintenance, accuracy and products. The main role of control is to ensure that the financial statements are correct and reflect the performance of the business. Moreover, it ensures that all assets are protected through the right processes and control measures. Both the businesses offer training to their employees at every stage to ensure that they can handle a number of responsibilities in most activities in the company. Training encourages the employees and enables them to learn ways of developing the business. The managers assist by controlling all the activities of the business in order to improve performance.      Differences between Morrison and Pizza Hut Even though the companies share a lot in common, they also have various differences. Morrison Company is advantaged because it has its own manufacturing food processes while the Pizza Hut orders for supply. Morrison is therefore likely to provide fresh food than the Pizza Hut. Pizza hut offers products at a higher cost compared to Morrison’s thus contributing to its weaknesses. “…pizza hut has higher overhead costs….” Additionally, Pizza Hut produces fewer products at high prices unlike Morrison’s supermarket that produce a wide range of products at affordable prices. This contributes to its good performance by receiving a variety of customers. Morrison’s supermarket manufactures its products from its own stores while Pizza Hut receives its products from its suppliers. This makes Morrison’s more reliable hence contributing to its well performance. In addition, Pizza Hut focuses on pizza production while Morrison’s produces a variety of products making it more convenient to customers.  In conclusion, the performance management at Morrison’s super market contributes to its success and improvement. Morrison’s supermarket is one of the top food producers’ at U.K. and its management helps it to maintain the position and develop further. On the other hand, Pizza Hut also struggles to maintain a higher position in its production by improving in its performance management.       Bibliography "Managing Employee Performance: Design and Implementation in Organisations", 2003, Human Resource Management Journal, vol. 13, no. 1, pp. 90-91. 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