The Performance Management System of Sunny Side Pizzeria - Case Study Example

Performance Management Contents Contents 2 Case Analysis 3 Work Plan 3 Work Allocation 5 Appendix 2 (Quantitative Risk Analysis) 7 Appendix 3 (Performance Management Timeline) 8 Appendix 4 (Coaching Plan) 9 Appendix 5 (Performance Plan) 9 9 To increase sales by 5% 9 The sales has improved by 6% 9 Name of the Student Name of the University Course No. Date Performance Management Case Analysis Performance management is the process that ensures realization of organizational goals and objectives. With enhancement in degree of market competition and commercial complexities in the global business world, importance of performance management has augmented with time. This case study deals with the performance management system of Sunny Side Pizzeria. It is a pizza restaurant located in New York. The western outlets of the restaurant are facing problems related to food delivery and service. It is found that poor delivery system as well as excessive resignation and absenteeism of workers have lowered brand value of the company. Such problems have ultimately lowered company sales. The researcher was made responsible for enhancing performance of the western outlets of this restaurant, thereby increasing its aggregate sales by 5%. The following context of the paper will elaborate on the improvement plan formulated by the researcher. Work Plan The work plan is the primary document, which explains tasks that are needed to be accomplished for executing a performance management plan in a detailed manner. The technical approach employed in a performance enhancement project and its quality assurance is presented in the work plan. Purpose: The manager of Sunny Side Pizzeria aims to enhance the sales of its western outlets by 5% by way of lowering the ongoing operational issues. Objectives: It is most desirable for the manager to establish SMART objectives for successful execution of the plan. Specific Taking purpose of the work plan into consideration, the manager should specifically aim to improve revenue and profit of the company. Measurable It is rational to estimate that revenue would desirably increase by 5% and profit would enhance by 2% after the plan has been enacted. Achievable It is assumed that measurable targets established against the specific factors are achievable. Realistic The achievable targets of the work plan are considered to be realistic and rational. Time Bound The measurable targets are to be achieved within a period of one year. Resources Required: The manager would be able to plan and complete the task with the help of few resources, which are mentioned below. Labor Capital Entrepreneurship skills Constraints: Despite adequate resource availability, the manager will invariably encounter few constraints while accomplishing the target. These are: Cost Trade Union Competition Accountability: The manager (researcher) is primarily accountable for the purpose of accomplishing the task. Strategy: The manager would complete the entire task by implementing a participatory strategy. Under this strategy, he would consider the perceptions and values of subordinates while conducting any performance management task. Work Allocation Work allocation is the process by which individuals within a concern are assigned with specific tasks in accordance with their resources and capabilities. The manager could enhance sales of the company by incorporating various customized measures. However, the case study claims that such should be done on grounds of two primary means, namely service and work management. Work Management Work management encompasses the various activities, which help to enhance productivity of the labor force of an organization. These tasks are supposed to be accomplished by the human resource management officials of an organization. The manager must allocate the entire work load of Sunny Side Pizzeria in a strategic manner to the existing employees. The quality of food served in the restaurant is moderate, but as per the customers’ feedback, food quality should be enhanced. By maintaining proper record of the tastes and preference patterns of visitors, the company can modify its products as well as pricing and promotional decisions. For instance, the company can increase prices of certain food items that are experiencing high and inelastic demand. On the other hand, certain recipe modification programs can be introduced for specific items, which are not frequently ordered by the customers. In addition, special discounts can be offered during occasions for attracting more buyers. The quality of food served by the Pizzeria can be improved according to recommendations of the customers. Even so, all such activities can be practiced by the company by way of following a proper work allocation process. The task of collecting customers’ feedback, modifying recipes and product prices and establishing special promotional offers should be performed by separate groups of workers. Nevertheless, the final product, pricing and promotional decisions should be set by the manager and other senior officials of the company. Service Service quality of the workers is a crucial performance determining factor within the restaurant and hospitality industry as a whole. It is noted that the food deliveries of Sunny Side Pizzeria are not done in a timely manner and are also inefficient. The rate of workforce absenteeism and resignation is high in the company. This proves that workers of the organization are less productive and inadequately motivated at work. Poor motivation enhances discrepancies in ability and willingness of the workers towards job tasks. As a result, it is found that existing inefficient employees of Sunny Side Pizzeria fail to deliver food to customers on time. Such poor quality of service lowers customers’ loyalty towards the company and reduces the gross sales. The manager should introduce ways to motivate existing employees of the company. Special reward programs should be introduced for the hardworking employees. Furthermore, additional leaves and incentives provided to the workers would contribute towards enhancing their interest at work. Even so, special vocational and non-vocational trainings conducted at regular intervals can also help in improving productivity of the workforce. If the workers’ efficiency and productivity is enhanced, then most of the deliveries would be made on time. Also, the rate of absenteeism and resignations within workplace of the Pizzeria would fall. Specific workers should be allocated to oversee and execute the employee reward and motivational programs. Therefore, if the above activities relating to work and workforce management are executed, then in the long run, performance of Sunny Side Pizzeria would surely improve. Nevertheless, all functions pertaining to controlling and managing these activities must be cost efficient. Appendix 1 (Individual Work Plan) Measurable Objective for Year 1 Activities of Year 1 Impact for Year 1 Evaluation for Year 1 To increase sales by 5% Recording customers feedback Modifying according to customers’ feedback Introducing employee reward and incentive programs Analyzing the buyers’ taste and preference pattern s in the market Providing customized products according to consumers’ requirements Enhancing workers motivation at work Using customers feedback forms Accurately responding to the customers’ feedback forms Increasing financial and non-financial resource provision for the workers. To enhance profit by 2% Increasing price of products experiencing high demand Lowering price of products with low demand Introducing special promotional offers Enhancing productivity of workers Earning more revenue, given the cost Enhancing sales for less popular products Increasing base of loyal customers Yielding higher output with lower costs Increasing prices for products with inelastic demand Lowering prices for products facing elastic demand Discounts on bulk purchase or during occasions Conducting training and knowledge building sessions Appendix 2 (Quantitative Risk Analysis) Task Description Risk Level of Risk Recording customers feedback Implementing modifications as per customers feedback Introducing employee reward and incentive programs Recording wrong feedback Making faulty modifications Increasing operational costs 1 1 3 Increasing price of products facing high demand Lowering price of products facing low demand Introducing special promotional offers Enhancing workers productivity Losing out on potential demand Lesser demand due to Veblen Effect Increasing costs relative to revenue Trade unions opposing training sessions 2 2 3 1 1= weakest risk and 5 = strongest risk Appendix 3 (Performance Management Timeline) Factors Implications General Work and service management related tasks will be conducted from the beginning. Pricing and promotional initiatives will be provided after six months from the plans inception Probationary Staff In the third month after the plan’s inception Interim Reviews Quarterly Review Meetings Monthly Documentation Monthly Appendix 4 (Coaching Plan) Name: Mr. Peter Johnson Manager: Mr. Henry Ford Meeting Date: 13th January 2015 Performance Comment Areas of Good Performance The quality of food and interior ambiance of western outlets of the company are good Areas Needing Improvement Punctuality of service delivery and workers interest at job must be improved Additional Items New pricing and promotional decisions can be made Nest Steps Online promotions and outlet expansion Appendix 5 (Performance Plan) Key Performance Indicator Activity Targets Results Recording customers feedback Modifying according to the customers feedback Introducing employee reward and incentive programs To increase sales by 5% To increase profit by 2% To lower absenteeism by 70% To lower resignation by 90% The sales has improved by 6% The profit has enhanced by 3% The rate of absenteeism has fallen by 50% The rate of resignation has declined by 70% Increasing price of products facing high demand Lowering price of products facing low demand Introducing special promotional offers Enhancing productivity of workers After preparing the performance enhancement plan, it can be stated that the plan will prove to be successful as desired and sales generated from the western outlets of Sunny Side Pizzeria will increase. 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