Performance Management Systems at CoPro Supermarket - Case Study Example

CoPro Case Study On Реrfоrmаnсе mаnаgеment systems NAME: UNIVERSITY: COURSE: INSTRUCTOR: DATE: © 2013 INTRODUCTION The use of performance management systems have grown in popularity with amazing speed in recent times. Any organisation that is bent on succeeding is currently applying performance management system in virtually all her departments. This popularity is in line with the definition generally accepted to explain the meaning of this concept. Fraser (2007) for example contends that performance management systems apply to those measures that are put in place to help in evaluating the performance indices of both the manager and the staffs. Similarly, Wireman (2005) argues that a foolproof performance management system helps in achieving the desired outcomes originally set out during the formulation of organisation’s strategic objectives. In line with the provisions of this argument therefore, the present paper traces the path that should be followed by the human resources manager tasked with the development and implementation of a performance management system for the Stock & Delivery section of CoPro supermarket. The paper thus purposes to answer some pertinent questions that are associated with the process of developing and implementing performance management systems in organisations in the sections below here. CoPro Case Study From the case study provided, CoPro is indicated to be a large cooperative society supermarket located in the regional town of country Victoria. The supermarket is operating under the guiding mission of providing an extended hours shopping facility, capable of offering an affordable range of day-to-day household commodities and services. Similarly, the cooperative society has effectively formulated some operational strategic goals and objectives that are deemed fundamental in developing a performance management system for her Stock & Delivery Section. Generally, Wireman (2005) contends that organisational goals, objectives as well as key performance areas are very critical in developing performance management systems for most of the organisations’ departments. In line with realization, McNair (1998) stresses that organisational strategic objectives need to be in line with the desired outcomes and performance indicators as expected. Organisational goals and objectives are known to play critical role in the development of performance management systems in organisations. It therefore means that the setting of organisational objectives must demand the inclusion of specific performance targets as well as other outcomes that the organisation needs to achieve within a specified time frame. Additionally, the said organisational objectives are supposed to be SMART, implying that they must be “Specific, Measurable, Achievable, Relevant, and Timely” (Fraser, 2007). Following this requirement therefore, the objectives of CoPro will be key in carrying out the task bestowed upon me as the human resources manager. Policies, Standards and Codes applicable During the process of developing performance management systems, there are certain policies, standards and codes that must be instituted as agreed upon by Fraser (2007) and Wireman (2005). Included here, McNair (1998) cites accountability as a key component of the performance management system development and implementation process. In fact, this aspect includes ensuring that employees develop performance management plans on a regular basis. The same applies to chief executives of organisations who must uphold the obligation of regularly reviewing and evaluating all the processes occurring in their various departments (Wireman, 2005). Likewise, specific standards also abide which variously explain how organisations must behave when coming up with appropriate performance management systems. According to the foregoing provision, organisations must ensure that the envisaged performance management system will be universally accepted and appropriate to all staff across the various levels (Fraser, 2007). As far as CoPro is concerned, the intended performance management system will be used to measure an individual’s performance in line with the strategic objectives outlined at the outset. Additionally, CoPro’ values and priorities contained in her strategic plan must be communicated to the staff on a regular basis and as consistently as possible. This will lessen the strain and stress that may abide when including them in the process of developing and implementing performance management systems. Finally, the process of developing and implementing a performance management system requires that codes governing the behaviours and conducts of staff members be strictly observed. This in my view will uphold the ideals of an effective performance management system. The Legal Issues There are mandatory legal issues that need to be brought to the attention of all team members in the Stock & Delivery department of CoPro. This is considered fundamental in guiding those involved in the whole process of developing and implementing a performance management system to respect the rule of law. For instance, it is within the legal provisions for employees in any organisation to be represented by a workers’ union that is mandated to speak on behalf of the employees as noted by Fraser (2007). In view of this development, it becomes good practice for anyone mandated to develop and implement a performance management system to discuss with the staff about their rights as employees, as well as belonging to a union (McNair, 1998). It must be insisted that all the employees in an organisation together with their union to be brought on board before commencing the process of developing a performance management system. According to Wireman (2005), involving employees and their union in the process of developing a performance management system serves the purpose of eliciting commitment, understanding and support for the system from the staff. Range of Processes, Procedures and Tools Used Monitoring forms an integral part in the management function in organisations. McNair (1998) observes that monitoring should not be confused with ‘spying’ on the employees, as a twofold process touching on the management as well. This exercise must therefore be as open as possible where information is shared freely across the board and problems are solved on an equal footing (Fraser, 2007). According to highlights by Wireman (2005), the monitoring process is not a ‘one time’ event but an ‘all time’ undertaking initiated at the outset of the organisation’s lifecycle. Whenever monitoring is done at the right time, certain benefits are bound to be realised, both by the individual employee and the organisation at large. At the individual level, monitoring can truly encourage the support of individual team members to produce their full potential towards the achievement of company goals and objectives (Fraser, 2007). Similarly, the manager can cultivate the required confidence in the employees under his or her charge. Wireman (2005) therefore underscores the importance of avoiding the use of monitoring as an instrument of incrimination and or punishment for not achieving targets. Measuring of the performance of each team member in certain departments deviates from the monitoring function in that it dwells on the quantitative aspect rather than the qualitative (Fraser, 2007). It considers how much of the outcomes have been achieved by the individual employee. Likewise, no retributions should be levied upon the non-achieving employee to avoid eliciting animosity from the victim. It has been established that the performance of individual employees in an organisation should be reviewed as regularly as possible in order to track the progress of objectives achievement. A delayed review process may all be in vain because a lot of ‘water will have gone under the bridge’ by the time this is complete. Workplace Example of Performance Objectives Committed to providing a 24 hour service the shoppers To be providing service of its own class Serving the local community for longest hours a day on daily basis Offering goods to the taste and preferences of the customers Be involved in research to improve the quality of services and goods to the customers Constantly keep on appraising the skills base of their employees through timely training Keep on adopting technology to keep abreast with the current trends in the market Performance Indicators, Standards and Objectives Ordinarily, performance indicators can be taken to imply to those factors that can be measured to give an idea of how much of the objectives and outcomes of an organisation have been achieved. In the case of the Stock & Delivery section of CoPro, performance indicators, standards as well as objectives are very obvious. For example, the successful stocking and movement of stock in the departmental store as well as the attendance to duty by a big percentage of the team members are quite indicative. It is also very easy to quantify performance indicators since they only use figures and numbers as opposed to using qualitative measures. This can be demonstrated by the following preliminary plan of action as is in the case of CoPro. Key result area: Stock & Delivery Section Outcome: Food supplies and other commodities to be in large stock and delivered in time Performance indicators: Enough supply in stock and minimal disruptions of operations due to shortages and late deliveries of commodities. Formal and Informal Communication Channels Communication is a very important component of the management function in any institution. This fact is vested upon those who are involved in the running of the organisation’s affairs on a daily basis. The concerned in this respect are both the staff and management, but Wireman (2005) lays more emphasis on latter, claiming that their input reigns supreme. Guided by this revelation therefore, I want to indicate here that I will have a myriad of information sources at my disposal as the human resources manager for CoPro. These said sources are both formal and informal, and will be instrumental in helping me in broadcasting certain features of performance management systems to the rest of my staff. First of all, colleague workers are known to offer a crucial segment of information valuable in communicating to the staff (McNair, 1998). Similarly, managers in other sectors as well as the general clientele will supersede the use of surveys in supplying me with the much needed information for communicating the organisational achievement to the rest of team members. These various sources of information will thus become handy in helping me disseminate the flexibility, adaptability and responsiveness of performance management systems to my employees. Four Issues Taken Into Account There are certain issues that can be addressed to the staffs for them to fully accept and own the introduction of performance management systems. These same features are also capable of exciting the team members to commit themselves to apply the system in their area of jurisdiction as noted by Fraser (2007). Amongst these features, I would underscore the importance of highlighting goal setting to staff at the outset. At this juncture, it will be important to align “individual as well as team goals with those of the corporate” (Wireman, 2005). Alongside this provision, performance appraisal and development planning will both assist encouraging team members to become more receptive to the introduction of performance management systems (Fraser, 2007). Apart from the foregoing, embracing the concept of “pay for performance” will be an added plus to the issue under discussion in the present paragraph. According numerous study findings by Wireman (2005) and McNair (1998), it can be upheld that recognition and reinforcement through appropriate reward system leaves employees a happy lot. Feedback Processes and Procedures Feedback processes and procedures have been lauded to be very critical in the running of organisational affairs can be alternatively used to give and receive feedback on either poor or exceptional performance as well as career development potential (McNair, 1998). In giving or receiving feedback on poor performance for instance, it will be in order for me to first identify all the areas requiring improvement and then institute immediate measures. This in effect is aimed at preventing further escalation of the performance problems abiding. To address exceptional performance on the other hand, it will be prudent to offer “positive feedback, encouragement and assistance” more regularly, permitting extra time for the individual employee to complete the improvement process (Wireman, 2005). Finally, career development potential aspect will call for consultative feedback to identify training gaps that need redeeming intervention. Dot Point Plan Sometimes it becomes necessary to discuss some organisational issues touching employee performance with other managers. Interviewing an underperformer for instance will include addressing the following: Reasons for not performing Personal performance expectations Expected responsibilities Necessity for performance review Moreover, conducting a disciplinary interview may also require a discussion with other managers, particularly the CEO. In this area, disagreements are common and may therefore call for the intervention of the grievance resolution committee if the head is incapable of settling the same (Fraser, 2007). The same will apply when conducting a formal performance counselling session where a rigorous consultative process is required. A Follow-up Action Sheet for Interview with an Under-Performer As earlier illustrated, under-performers are usually a cause of distress to a majority of managers and as such their conduct is constantly under scrutiny. The following contains a brief used to interview this category of worker. Why do you find it hard to achieve your targets? What are your expectations on performance management systems? Are your responsibilities too much than you can bear How useful are performance reviews to you What is your take on performance management systems? CONCLUSION The foregoing has clearly demonstrated the benefits and challenges of developing and implementing performance management systems in organisations. The presence of organisational goals and objectives are key in formulating performance management systems. But apart from these positives about performance management systems, there are multiplicities of challenges that abide. These are beyond the scope of this discourse and that’s why I refrain from dwelling on them. BIBLIOGRAPHY Fraser, R (2007) Developing an Effective Performance Management System. HouseMark publishing agency McNair, C. J (1998) Tools and Techniques for Implementing Integrated Performance Management Systems, Institute of Management Accountants, USA. Wireman, T (2005) Developing Performance Indicators for Managing Maintenance 3rd Edition, Industrial Press, Inc., New York, NY Read More