Macquarie Group Limited - Performance and Compensation Management Assessment - Case Study Example

Performance and Compensation Management Assessment Name Course Tutor Unit Code Date Background Information Company Information Macquarie Group Limited provides Lending (Banking, Mortgages and Leasing), Capital Markets (Advisory, Facilitation, Underwriting, Property Development, Broking, Corporate and Asset Financing), Investment, Funds (Assets and Wealth) Management, Financial Markets (Fixed Income, Securities, Capital, Equities, Currencies, Commodities and Derivative Products) Services through its various company segments. Macquarie Group Limited is run as a Non-Operating Holding Company (NOHC) (Macquarie Group Limited, 2013). Macquarie Group Limited was established in 1969, and at present provides work for over 13,600 individuals in 28 national states. As at 31 March 2013, Macquarie Group Limited had an asset base of $A347 billion (Macquarie Group Limited, 2013). Business Unit Strategy Organizations can build up strategies on several stages such as nationwide, regional, commerce, or multi-business. Nevertheless, possibly business unit level strategy is for the most part regular. Business unit strategy or competitive strategy involves knowing who the business should serve, accepting the present and prospective basis of competitive advantage in that business, followed by creating a plan to develop the key competencies and position the business (Galpin & Wellington, 2012). Macquarie Group Limited's executive administration promotes entrepreneurial customs amongst its employees. Sturdy sensible administration is elementary to this approach. Healthy risk management exercise is entrenched in business unit organization with vital supervision of all risks. Macquarie Group Limited’s objective is to assist customers propel their trade to complete economic performance. This is facilitated through far-reaching knowledge in serving clients. Also, the company pulls together a pledge to convey custom-made solutions for each one customer with our decades-long legacy of idea guidance. Macquarie Group Limited’s business strategy is based on the generally accepted concepts including the experience curve, time-based competition, as well as deconstruction (Macquarie Group Limited, 2013). Our staffs help customers to grow self-motivated decision-making abilities that give support to policy improvement in the midst of improbability. Different situations are created by expanding large-scale, business and competitive developments to establish probable closing stages. Though, given that the likely set-up may perhaps not be the one that happens businesses too could do with a course of action to build up strong and flexible strategies, to keep an eye on definite scenario end results and to contain choice adjustment as required (Macquarie Group Limited, 2013). According to Galpin & Wellington (2012), customer contentment can be triggered in numerous ways; one is by making your client's time easier and additionally comfy through mobilization. Mobilization actions are centred on assessing difficulties to execution and outcomes by attending to risks, restraints, individual as well as aptitude loopholes from the start of the strategy development. Being in touch early on with key stakeholders is vital to this practice to warrant buy-in along with helpful criticism spheres that permit the management to scrutinize implementation. In addition, since the most excellent tactical options are from time to time outside the compass of the existing business model, Macquarie Group Limited proffers support with business model improvement as well as new-business structures (Macquarie Group Limited, 2013). Job Specifications: Risk and Controls Assurance Tasks Macquarie Group Limited’s Risk and Controls Assurance practitioners help customers to spot openings to perk up their most important controls across dealings, people and expertise procedures. The job involves working openly with associates and higher-ranking parties. In addition, the individual will work on explicit projects to considerably improve as well as develop the competence plus value of our procedures, deliverables and thinking guidance in order to boost revenues of Macquarie Group Limited. As a trustworthy risk advisor, the person will convey and spot risk and control openings that boost Macquarie Group Limited’s growth scheme and assist our financial services customers realize their risk consequences (Macquarie Group Limited, 2013). Duties and Responsibilities Being aware of main risks as well as evaluation and analysis of main controls across big business procedures along with financial reporting procedures plus IT controls in an intricate and varied business setting Disclosing results as well as suggestions to clientele according to their company policy and risk enthusiasm also aligned with high-quality industry standards Ascertain and widen Macquarie Group Limited’s in-house system across tax, advisory and assurance Aggressively make out and trail opportunities with main customer contacts at your objective records with associate support Offer legal supervision and guidance to make sure that the company is well-versed as regards all risks Engage and effectively communicate with management and multiple stakeholders Initiate fresh risk and compliance undertakings to replicate continuing brand strategy Report writing and presentation Performance Management Process Introduction Performance management entails a procedure for setting up a mutual understanding concerning what is to be accomplished and how it is to be realized. This approach is brought into play so as to supervise employees in a manner that boosts the likelihood of succeeding. The following details introduce Macquarie Group Limited’s performance management process by making information available to employees, supervisors plus others interested in performance management. The performance management process is intended to be a year-round corporation involving employees and supervisors in the planning, coaching and improvement and reviewing of work performance (Adhikari, 2010). Guidelines Appraisal of all employees’ performance is conducted through the use of a standard document. This is the performance management plan. Each and every one employee ought to obtain a performance management plan from their supervisor at the commencement of the performance plan year or else in 30 days upon being employed, transferred, and upgraded or downgraded (Agha & Onyeizugbe, 2011; Elzinga et al, 2009). Supervisors are to make available concluding records of employee performance appraisal at the close of each one performance year. This will be done through recording performance observations and ratings, on the basis of existing performance information, for the period of review for the yearly performance appraisal phase. In addition, a section of the employee assessment recording procedure is the once a year review summit carried out by supervisors. All through the annual review summit, supervisors present comments and confer ratings as regards each employee’s performance for the concluded yearly performance evaluation. At the time this meeting comes to a close, the done once a year performance evaluation constitutes each employee’s standard employment account (Adhikari, 2010; Waal & Counet, 2009). The performance management process is a year-long practice that will not often overlap the calendar year starting in January. Various supervisors will set in motion a performance management process at the opening of a financial year, as others will initiate the process on the employee’s employment centenary of commencing at Macquarie Group Limited. A fresh performance management process is set on track every time a member of staff is at first engaged, transferred to a new supervisor, or is promoted/demoted to a new position in Macquarie Group Limited. From beginning to end of this course of action the employee carries out the performance plan and the supervisor offers continuing coaching as well as improvement. The performance evaluation record at the close of the year is the conclusion of performance planning, coaching and improvement and review flanked by the employee and the supervisor all the way through the year (Adhikari, 2010; Holloway, 2009). Objectives Personal employee performance potential is improved Supervisors are held answerable for administering the practice in their departments Personal employee targets side with department as well as company objectives Stronger performance is known and weaker performance is improved Performance levels are improved Prospects for growth and improvement are recognized Employees are accountably apprehended for their performance Employee commitment, fulfilment and retention gets better The underside is that an efficient performance management process is of assistance to Macquarie Group Limited to better control their human capital and optimize personnel along with organizational performance (Elzinga et al, 2009). Features Year-round procedure The performance management process entail pointers linking the supervisor and employee all through the year, not just at any specific point of the year. Exceptional emphasis is positioned on the supervisor’s monitoring and coaching of the employee in order for them to be able to accomplish the potential described at the start of the year (Agha & Onyeizugbe, 2011). Core Competencies With the performance management process, each and every one employee has an opportunity to be rated on the subsequent behaviours: Customer Service, Teamwork and Cooperation, Initiative, Judgment and Decision-Making and Leadership (if applicable). The Behaviours will be rated Exceeds Standards, Meets Standards or Does Not Meet Standards or Not Rated. The ratings elements are made clear later in the paper (Elzinga et al, 2009). Partnership The performance management process supports corporation among the supervisors and employees, centred on habitual deliberations, performance outlook and development schemes. The supervisors together with the employees start on the year with a general deliberation of what is anticipated from the employee. The supervisor and the employee jointly bear the duty to instigate discussions with reference to performance right through the year (Waal & Counet, 2009). Guidance for supervisors Every one supervisor is mandated to peruse a training curriculum prior to conducting whichever performance evaluations with the performance management process. Supplementary training resources, material guides and explanations of behaviours will be availed to them so they know how to do a fine task of evaluating employees’ performance along with assisting them to perform better (Holloway, 2009). Phase 1: Planning This is the first phase of the performance management process. During this phase, the supervisor is entitled to give explanation of the performance management process to the employee, describe the roles, discuss job necessities, and respond to the employee’s concerns regarding the performance management process, work with the employee to strike an agreement on and pledge to performance values (Adhikari, 2010; Waal & Counet, 2009). For the performance management process to be successful; it is essential that each person occupied is aware of: What the process encompasses Why Macquarie Group Limited makes use of the process How the process is carried out What is anticipated from employees in their role When performance parameters will be evaluated and rated In addition, a personal development plan for the employee is incorporated to help out the employee enhance their success in their present job or prepare them for upcoming roles (Agha & Onyeizugbe, 2011). The supervisor and the employee will fill in several sections of the performance management process form that is found at the appendixes of this paper. The supervisor will fill in the employee data (name, job title, job code, supervisor, plus the department). The supervisor will discuss with the employee Macquarie Group Limited’s five requisite core competencies. They will furthermore talk about the employee’s personal development plan. The supervisor will give explanation of the weighting of the divisions used in the performance evaluation process. The supervisor is supposed to discuss the rating scale, explained later in this paper, and lay down performance prospects at the meet standards level. The supervisor and the employee will craft the employee’s personal development plan, which must consist of actions, assignments, classes or seminars that add to the improvement of the employee. Employee contribution is vital in the crafting of the personal development plan. The personal development plan is not rated, but encouraged for flourishing employee development. On completion of the performance plan, the supervisor will present it to their manager for analysis and authorization ahead of a closing meeting is seized with the employee to obtain their signature. Phase 2: Coaching and Improvement Coaching entails activities when the supervisor helps out the employee to improve their performance. This may well be carried out in short and concise deliberations with the employee. Coaching possibly will engross longer exchanges targeted at assisting the employee meet or exceed the standards of performance projected by Macquarie Group Limited. Regular coaching moreover helps certify that ambitions set for the period of the planning phase are chased (Holloway, 2009; Waal & Counet, 2009). Besides, during the performance period, the supervisor is obliged to monitor and document employee performance outcomes and behaviours. The supervisor and the employee are equally expected to maintain a performance account of activities plus undertakings all through the performance period (Waal & Counet, 2009). Coaching meetings entail: Opportunities for the supervisor and the employee to ensure performance is in line with the core competencies An opening to spot troubles in the early times for them to be rectified immediately A time for the supervisor to hoist the employee in words or laud them on paper The supervisor is required to offer developmental opportunities to the employee Phase 3: Review Cheng et al (2007), postulate that review is the closing phase of the performance management process, during which the supervisor and employee look-back at the accountabilities and behaviours, chat on the subject of how finely the employee performed on the job, and wrap up the appraisal year with the complete filling out of the performance management process form (see appendixes). The mid-year review ought to be more of an official get-together than a coaching meeting, excluding the year-end review’s aspect of jotting down ratings as well as comments. Both review meetings must be seen as an extension of the corporation that commenced between the supervisor and the employee in the planning phase. The mid-year and year-end review assembly should be held in a secretive area to guard the privacy of the employee. At the same time, the supervisor is supposed to endeavour to make the dialogue prolific and non-threatening. The supervisor must disconnect the rating of the job performance from any individual opinion regarding the employee (Agha & Onyeizugbe, 2011; Waal & Counet, 2009). Rating The table below describes the levels of ‘numberless’ rating scale to be made use of to decide the employee’s performance right through the evaluation in the review phase. Although the rating scale is not employed pending an official review, the employee is required to know in earlier times what their performance prospect is so as to do well and to make every effort to be an excellent performer (Cheng et al, 2007; Holloway, 2009). Rating Description Exceeds standards (ES) Employee exceeded every single one performance expectation. Employee was an outstanding contributor to the accomplishment of their department activities and the company. Employee exhibited a role model character Meets standards (MS) Employee satisfied all and exceeded more than 50 percent of the laid down performance expectations. Employee was a firm contributor to the achievement of their department and the company Needs improvement (NI) Employee met more than 50 percent, but failed to meet less than 50 percent of the performance expectations. Employee needs to further improve in one or more areas of expected job results or behavioural competencies Does not meet standards (DNMS) Employee did not meet more than 50 percent of the agreed upon performance expectations. Employee needs momentous improvement in vital areas of expected job results or behavioural competencies Not rated (NR) New hire, transfer or promotion/demotion within five months of close of the performance period Appendixes Evaluation Form Performance Management Process Form Part 1 Employee Details Employee Name: Job Title: Job Code: Department: Supervisor Name: Part 2 Definition of Ratings Rating Description Exceeds standards (ES) Employee exceeded every single one performance expectation. Employee was an outstanding contributor to the accomplishment of their department activities and the company. Employee exhibited a role model character Meets standards (MS) Employee satisfied all and exceeded more than 50 percent of the laid down performance expectations. Employee was a firm contributor to the achievement of their department and the company Needs improvement (NI) Employee met more than 50 percent, but failed to meet less than 50 percent of the performance expectations. Employee needs to further improve in one or more areas of expected job results or behavioural competencies Does not meet standards (DNMS) Employee did not meet more than 50 percent of the agreed upon performance expectations. Employee needs momentous improvement in vital areas of expected job results or behavioural competencies Not rated (NR) New hire, transfer or promotion/demotion within five months of close of the performance period Instructions Describe the employee’s contributions in each of the performance categories below. It is IMPERATIVE that you illustrate specific, detailed examples of the performance evaluation. Ratings MUST support and be substantiated by narrative comments. Customer Service Rating ES MS NI DNMS NR Personally demonstrates that external (or internal) customers are a high priority. Identifies customer needs and expectations and responds to them in a timely and effective manner. Anticipates and prevents delays or other things that can adversely affect the customer. Keeps customers informed about the status of pending actions and inquires about customer satisfaction with products or services. This is in sharp contrast to behaviour patterns that tend to disappoint customers, leave them feeling forgotten and unimportant or that otherwise result in unmet needs or expectations.      Comments/A Teamwork and Cooperation Rating ES MS NI DNMS NR The employee is an effective team player who adds complementary skills and contributes valuable ideas, opinions and feedback. Communicates in an open and candid manner and can be counted upon to fulfil any commitments made to others on the team. This is distinctly different from those who withhold ideas and opinions, offer ideas or opinions that rarely add value to team discussions, have established a track record with many unmet commitments, and/or have not contributed skills that complement the skills of others on the team.      Comments/A Initiative Rating ES MS NI DNMS NR Recognizes opportunities and initiates actions to capitalize on them. Looks for new and productive ways to make an impact. Demonstrates this characteristic when it comes to generating new ideas or processes, capitalizing on new business opportunities, seeking-out and taking-on increasing responsibility or resolving problems as they occur. Uses sound judgment about when to take action and when to seek guidance or permission. This is in contrast to those who fail to notice opportunities, wait to be asked or instructed before taking action, seldom offer new ideas or express reservations about taking on additional responsibilities.      Comments/A Judgment and Decision-Making Rating ES MS NI DNMS NR The employee is on-the-lookout for new and innovative approaches that will improve efficiency. Embraces and champions new ideas and encourages others to do likewise. Recognizes and rewards people and teams who are creative and innovative. This is in sharp contrast to those who tend to embrace the status quo, struggle with new approaches and discourage others when they are creative and innovative in the pursuit of increased efficiency or effectiveness.      Comments/A Personal Development Plan The employee and the Supervisor will craft at least one developmental objective for the employee. Each goal should have a descriptive title which should be entered in the Title box. Then identify what results or measurement criteria will be used to determine successful completion for each goal in the box below the Title box. Next, identify a due date for completion of each goal and enter this in the Due box. The developmental objective should help the employee develop or enhance a skill, knowledge or competency. New Goal Title & Action Plan: Due: New Goal Title & Action Plan: Due: References Adhikari, D. R., 2010, Human Resource Development (HRD) for Performance Management, The Case of Nepalese Organizations, International Journal of Productivity and Performance Management, 59(4), 306-324 Agha, N. and Onyeizugbe, C., 2011, Reward Management and Organizational Performance, Nigerian Journal of Business, 5(1) Cheng, M. I., Dainty, A., and Moore, D., 2007, Implementing a New Performance Management System Within a Project-Based Organization, International Journal of Productivity and Performance Management, 56(1), 60-75 Elzinga, T., Albronda, B. and Kluijtmans, F., 2009, Behavioural Factors Influencing Performance Management Systems’ Use, International Journal of Productivity and Performance Management, 58(6), 508-522 Galpin, T. and Wellington, J.L., 2012, Sustainability Leadership: from Strategy to Results, Journal of Business Strategy, 33(4), 40-48 Holloway, J., 2009, Performance Management from Multiple Perspectives: Taking Stock, International Journal of Productivity and Performance Management, 58(4), 391-399 Macquarie Group Limited, 2013, Company Profile, Accessed on 12 September 2013, Waal, A. D. and Counet, H., 2009, Lessons Learned from Performance Management Systems Implementations International Journal of Productivity and Performance Management, 58(4), 367-390 Read More