Ailment of the Performance Management System to the Organizational Strategy
Creating a performance management plan for a company that already has its traditions, organizational culture and set of principles, in accordance with which the firm’s processes run, is not an easy task. However, once a problem is spotted, it must be addressed properly.
Despite the fact that the interview with the CEO of the Clapton Commercial Construction, Marylee Luther, has revealed some major issues with the way in which the company is run, especially regarding the evaluation of staff performance, by introducing better principles of leadership and human resource management, one can possibly not only raise the company’s standards a few notches, but also contribute to a slight increase in the company’s net income and the net profit margins – at least to the point where the net profit will be positive instead of the current -3%.
Organization Performance Philosophy: Positive Reputation and Customer Satisfaction
Researches show that the organizations, in which customer satisfaction is considered the top priority, traditionally show the best results. Therefore, it will be crucial that the company’s values and organizational performance policy should be reconsidered (Cascio, 2013).
When changing the company’s performance philosophy, one may need to reinvent the organization’s mission and vision. Judging by the results of the interview, the firm is currently concerned with delivering better results, which is not a bad mission, yet it clearly needs polishing.
To be more exact, it will be required that the principles of relationships between the company and its customers, as well as the company managers and its employees, should be included into the organization’s mission and vision statement.
Key Function of a Job Analysis: Defining the Further HR Planning Strategy
In order to succeed in creating perfect premises for the Clapton Commercial Construction Company to evolve in, it will be required to make sure that the company’s Human Resource Department should be aware of the company’s standards towards selecting the staff.
For the company to raise the performance standards and increase the net profit, it will be required to reconsider the human resource policy. To be more exact, it will be necessary to conduct thorough background checks on the previous records of the people applying for the job.
The person that may seem a perfect choice for the company may have some major issues, which the previous records will indicate about, and vice versa – the candidate that may seem not very impressive can have a huge potential, which needs the proper environment to evolve in.
Another crucial part of the human resource strategy, which Clapton Commercial will have to adopt concerns benefits.
As a range of sources show, most candidates prefer to know for sure what the company has to offer to them, which is why it is necessary to prove the candidates that their professional and personal growth will be encouraged in Clapton Commercial.
Methods Used for Appraising: Financial Incentives vs. Signs of Appreciation
Therefore, enhancing the employees’ motivation is the most efficient method of improving their organizational performance. When it comes to defining the methods of motivating employees for delivering better results, one must admit that financial incentives are by far the most important part of encouraging the staff.
Seeing how the company’s net profit is currently at the -3% mark and is expected to remain there next year, it will be reasonable to suggest that the financial incentives should be reasonable and should not exceed 40% of an employee’s salary.
It should be noted, however, that, in the light of the company’s expansion plans, the CEO should consider the idea of outsourcing as well. It is crucial to share experience and understand how other companies have tackled the complexities related to expansion, which is why the Clapton Commercial Construction Company should consider the outsourcing option as well.
However, monetary rewards are not the only means to increase employees’ productivity. It will also be required to offer the staff support and encouragement, such as non-monetary rewards, such as public appraisal of high quality performance, non-monetary rewards for achieving excellent results, etc. (Brandt, 2013).
Addressing Key Performance Issues: Motivation and the Means to Enhance It
As it has been stressed above, it will be required that the staff’s motivation should be increased a few notches. However, apart from encouraging the staff for better performance, it will also be required to provide the employees with the chance for personal and professional growth.
On the one hand, investing into the staff at present, when the company is clearly threatened by losing an impressive chunk of its revenues, may hardly seem reasonable.
However, it is important to keep in mind that investing into the staff guarantees to some extent that the employees will be more loyal towards the company; more to the point, having competent staff that only needs accurate directions and updating their skills is much more trustworthy than newcomers, who will also have to be taught the basics and undergo training, not to mention the fact that some of them may fail the trial period.
On the other hand, training is essential, just as the recruitment of new qualified specialists is. It will be reasonable to suggest that 15% of the company’s annual net income should be spent on human resource management in order to facilitate the staff’s professional growth (Varma & Budwar, 2013).
Other Major Issues Concerning HR: Organizational Behavior and the Means to Improve It
One of the key means to improve the employees’ organizational behavior standards, the introduction of a model for the staff to follow can be considered the key to the company’s success (Cascio, 2013).
However, reconsidering the company’s standards does not seem enough to reinforce the positive organizational behavior among the employees.
In order to convince the latter that they should follow the ethical and professional principles that will be introduced, it will be required to provide the staff with a role model to follow and make an example of.
The leader of the company seems the most obvious choice for the role model in question. Hence, the principles of transformational leadership mixed with the elements of a charismatic leadership style (Avolio & Yammarino, 2013) must be provided so that the company could prosper.
Effective Performance Feedback: Evaluating the Company’s and the Employees’ Growth
Apart from creating a cohesive strategy for enhancing and evaluating the staff’s performance, the leader of the Clapton Commercial Construction will also have to gather feedback from the staff efficiently.
Thus, the slightest issues will be spotted at the earliest stage of their development, and employee satisfaction rates will remain high.
Providing the staff with surveys and questionnaires seems to be the most efficient way of gathering feedback (Cascio, 2013). Once the Clapton Commercial Company ensures its employees’ satisfaction and upgrades its performance standards, a rapid increase in net profit can be expected.
Conclusion
Introducing efficient performance management into a company that has most of its traditions cemented in the employees’ memory is very difficult.
For the company to shape its principles of organizational behavior and introduce the motivation for the staff to deliver better performance, it will be required to change the entire leadership strategy.
Moreover, a range of details concerning the performance standards, the corporate ethics, the customer relationships, etc. will have to be changed. However, with an efficient performance management plan, these goals can be achieved within a relatively short amount of time.
Reference List
Avolio, B. J. & Yammarino, F. J. (2013). Transformational and charismatic leadership: The road ahead. Bingley, UK: Emerald Group Publishing.
Brandt, T. (2013). Eva-based bonus systems and the influence on motivation of employees in companies with branch- or profit-centre structure. Berlin, DE: GRIN Verlag.
Cascio, W. F. (2013). Managing human resources: Productivity, quality of work life, profits (9th ed.) Boston, MA: McGraw-Hill/Irwin.
Varma, A. & Budwar, P. S. (2013). Managing human resources in Asia-Pacific (2nd ed.). New York, NY: Routledge.