HR Assignment report on: Report on PM – Omega

Executive Summary

This report is based on the performance Management system of a small manufacturing company called Omega. The Company was facing problems due to the sales representatives who were being provided by the Franchised Dealers who operated independently. Due to ineffective performance management system and its feedback process there was a problem for sales representatives to understand their roles clearly and contribute towards the growth of Omega.

According to the given case the performance management system of this company had many loopholes. Though company had tried to fund to their Franchised Dealers for their training and development process, but there was no fruitful outcome because feedback of employees was only received properly during such sessions but on job performance feedback was not recorded properly. The company wanted to develop an effective model of performance management system to overcome this situation. There was problem in documentation, reviewing, and feedback process. This report also founded some ways that could change the process of performance management system at Omega.

Sum up, according to the analysis of the given case, this report provides some recommendations for Omega Company.

The company should ask Franchised Dealers to give the training to their sales representative by aligning their Company’s Mission, Vision & core values.

• A systematic plan should be made of by the top Management to overcome such situation. Certain steps much be followed before execution of the program.
• The new Performance Management system implemented by the company should be explained to all the employees, so that they know the importance of it, and can provide the better results.
• The employee’s performance should be linked with the rewards and recognition process which will motivate them to perform their best.
• It should be holistic, integrated and a continuous process being supported by the employee and as well as by the employer.
  • Table of Contents

• 1.0 Introduction………………………………………………………………………………… 4

    1.1 Background Information………………………………………………………… 4

    1.2 Aims…………………………………………………………………………………………. 4

    1.3 Scope………………………………………………………………………………………. 4

• 2.0 Discussion………………………………………………………………………………….. 5

   2.1 Performance Planning…………………………………………………………….. 5

   2.2 Performance Execution…………………………………………………………… 6

   2.3 Performance Assessment……………………………………………………….. 6

   2.4 Performance Review……………………………………………………………….. 9

   2.5 Performance Renewal and Recontracting…………………………….. 9

• 3.0 Conclusion……………………………………………………………………………….. 10
• 4.0 Recommendations…………………………………………………………………… 13
• 5.0 References………………………………………………………………………………… 13

1.0  Introduction

1.1 Background of Information.

Performance is the art of performing at workplace. This Phrase was first time used by Beer & Ruh in 1976. It helps in increasing the intellectual Capital. Every organization wants to perform better than the other organizations. To be successful it knows how to attract, develop, retain and align employee’s performance with Organizational Goals. It is a wider strategic process of defining performance requirements and communicating to all the employees and managers, supervising and developing performance of individuals, teams and organization on a continuous basis in line within the parameters of social legal framework to achieve growth and success for all stakeholders. Performance Management System helps to serve the various purposes such as improving work performance, Administering merit pay, Advising employees of work expectations, Counseling employees, making promotion decisions, Motivating employees, Assessing employees potential level, Identifying training needs , Better working relationships, Helping employees to set career goals, Assigning work more efficiently, making transfer decisions, deciding about layoffs and terminations, assisting in long range planning, validating hiring standards, justifying managerial decisions (European Business Journal   2004). The determinants of Job Performance are Knowledge, Motivation, feedback, Leadership, & Personality.

1.2 Aims

The aim of this report, based on the background is to set about a comprehensive analysis of the Performance Management System. Identify the issues that the company has, and some of the recommendations could be provided to make the status become better.

1.3 Scope

This report covers that at Omega Manufacturing Company, they have funded their franchised dealers who worked independently to improve the performance of the sales representatives. They had designed the Performance management system but there were many loopholes in this system which they were implementing to improve their business revenue. So they need to design a new Performance Management System because it is a systematic integrated & holistic approach which requires equal footing from the employees and the employer’s side. It provides an opportunity to Employees and Managers for creating a joint plan for achieving shared goals and professional development needs at the same time.

2.0 Discussion

The analysis would be undertaken through following steps.

2.1 Performance Planning

Performance Planning is the foundation of the overall program.It is the key phase of management. Performance Planning determines the various steps of employees career success in the Organization. Planning helps to know in advance what is to be done & how it is to be done. (Virginia Tech   2012). It indicates the collaborative process between the manager and the employee. It is developed to promote employees from current to the next level..Employee Performance plan will explain Core Competencies of all Employees , Leadership competencies(Superiors with their subordinates) ,Individual Goals , Job Analysis to know the roles and responsibilities and Individual development plan for the employees. It also should help in planning & training for developmental activities of employees including counseling and the mentoring process too. Planning has to be done from the organization & Department side. It will include the certain aspects of behavior, known as Knowledge, Skills & Abilities. Performance planning at Omega should be done by writing or making the employees understand about the Goals in a SMART way (State Personal Administration   2009).

S= Goals must be precise, definite, clear and understandable to their Employees.

M= It should be standard, exact and assessed from time to time.

A= It must be feasible and measurable as per the standards.

R= It should create linkage between the personal and the Management Goals.

T= Employees must be able to finish or complete their work with the given Time Frame.

2.2 Performance Execution

The execution process was complicated because they had not focused on the feedback forms & the documentation process of employees and the employers. Execution takes more time than the planning. They both are interdependent. It requires the proper communication to the organization in a departmental format. Proper control must be there for facing up  with the external shocks and the changes . The management should communicate & ask to all the department heads regarding the Job description of their employees. Job Description spells out the duties and responsibilities of the employees (Thomas Willingham  2012).The process of execution at Omega was not dynamic and adaptive. A proper team should be formed before successful execution .Too many managers also sometimes create problem to execute, the same was with the Omega because they did not have direct control over their sales representatives. Any change required for them was being planned by Franchised Dealers operating independently. It was also difficult because continuous assessment of employees was not there. While execution Omega need to manage a change which is challenging for them (Ivey Business Journal   2005). Performance Execution helps to breakdown the long term strategies into short term tactics, employees must be clearly explained and must also be accountable. Rewards must be there to support the outcomes, and focus should be on managing the change.

2.3 Performance Assessment

Certain Performance assessment drivers are there which are linked with the standards of the organization. Data must be collected and managed in data warehouse. It includes the performance benchmarks which will help in measuring the future gains. It includes the evaluation of business activities, management and production process. Assessment includes identifying the strengths and developing action plans for it (NCSMED 2012).The management at Omega could not identify the drivers of their business like Learning, Leadership, Innovative ideas, customer acquisition rate, Customer Conversion rate, & Timely Delivery. It requires timely reports and recommendations (Collaborative Consulting   2012).It will help to identify the Gaps in the performance of the employees. Assessment can also be done by matching the employee’s performance with the KPI (Key Performance Indicator) and KRA (Key Result Areas) written in the Job Description of their Employees. There are various methods of Performance Assessment. The Performance of sales employees was not related to the rewards and recognition. To implement this system successfully in any organization it requires commitment of employees, employers and approval of top management. The various methods of doing performance Assessment are explained below.

1. 360⁰ Feedback

It is a process where information about an individual performance is collected from multiple perspectives. It includes assessment by an individual, team members, Peer groups, Managers & customers. It is a tedious process to implement because it requires time and money. This method is helping in enhancing awareness, learning process, and motivates the change in the behavior of the employees (Mejorando Group   2012). The importance of this method is that it provides insights about individual to change the behavior .Before implementation of this process employees must know about the working process of this method. Certain scales are used to rate the performance of the employees. For this Organizational Goals must be identified and linked with goals given to the employees. Proper set of Questionnaire should be designed. It should  not be a bias system of judging the employee. It is linked to the KRA OF Employees which provides direction to their Performance.

2. Management by Objective (MBO)

It is applicable for knowledge based enterprises where employees are quite competent of what they do. It explains about what are the goals but fails to explain how to achieve such goals. It is a biased rating system. The responsibility and clarity of work and result of employees are not explained properly. It includes the involvement of HOD (Head of the department, Direct Reporting authority or the Supervisors. It is based on the SMART Method, which explains that goals must be Specific, Measurable, Achievable, Realistic and Time Bound (Tutorials Point   2012).

3. Balance Score Card Method

Balanced Scorecard method helps to clarify the impact on corporate strategy. BSC is a source that has been used for of making business decisions. BSC explains four factors which are directly linked with the performance of employees and the Management. They are financial, customer, internal-business processes, learning and growth (Integrating Performance 2009).

4. Narrative Essay Method

This is a time consuming method of performance appraisal. It includes time to prepare document draft & review for making an effective written assessment of employees. For doing it employees & supervisor’s need time to complete self assessment forms in an essay format. It provides feedback on every areas of employee (Hearst Communications Inc   2012).

5. Graphic Rating Scale System

It is a system where we do not consider statements or comments as a final version of performance review but we put the same comments in Quantity form or represent it in a numerical form with a help of Graph. It is more of a descriptive format applied in the performance management system.

6. Behavioral Anchor Rating System (BARS)

This method is related to the behavior towards the job success or failure. It is basically an individual’s reaction towards his or her job. Scale represents the range of behavior which varies from less to more effective basis. BARS help in analyzing the abilities, observation, benchmarking for the employees on various scale. It requires a lot of observation skills.

7. Halo Effect

This appraisal method is completely perception based. The more positive an employee is at work he is given more positive rating by the boss. A single characteristic will indicate the performance of the employee at his work (Changing Minds   2002).

8. Assessment Centers

They conduct variety of test and mental exercises for the employees. It is held under one roof. Assessment test conducted by those centers are done by the consultants who work as Professionals. Those centers are highly structured in their designing process. It helps to know about the skills abilities and compatibility with the organization’s culture. Various Assessment Centers conduct in tray exercise, panel discussion, role plays and psychometric tests.

2.4 Performance Review

Performance review mechanism in the organization should be authentic. There should be timely review either monthly, Quarterly and annual review to appraise the performance of the employees. It takes time to prepare forms and enter the data. Certain steps need to be followed to review the performance such as discussion should be held with the employee, performance should be matched against KRA mentioned in the well defined Job Description, Identify the gaps before and after training process, Identify the specific achievement, take corrective measure for the updating and measurement process. There should be meeting held by the HR manager from time to time basis to communicate about how to compile and record the feedback forms (The Communication Councils  n.d).The performance review form should be completed by the individual and the manger. If it is a 360⁰ method followed in any organization then the feedback form should be filled by employee, Managers, Team Members, Customers & peer group.. Avoiding feedback is not good for any organization who implements the Performance Management System for improvement.

2.5 Performance Renewal and Re-contracting

This is the last process where the results are being prepared and then the gaps are identified in the performance level of the employees. It also helps the organization in matching the performance of the employees before the training process .The performance is being judged by the managers of the employees. There is a huge cost involved in the training process of the employees. If there is gap in the performance and the employee is unable to perform then certain training sessions are being planned for improvement of the certain skills like technical skills, & soft skills. The term Transfer, succession planning, Promotions, Rewards and recognitions all are interlinked with the performance of the employee. To appraise the employees certain test are being conducted like computerized skill test, Interview. The problems are openly discussed by the employees and necessary actions are taken for the future improvement process. After the entire process of performance management is carried out it must be able to identify the effective and the ineffective performance of the employees, it must be reliable based on standard rating process, meaningful, the result must be valid one. It must be acceptable by everyone in the organization. There must be satisfaction from management side that whatever they are doing is better for their organization’s success and for their employees too. The feedback must be filled in a systematic manner mentioned in the form and used for future purpose.(HermanAguinis   2009).

3. Conclusions

At Omega though there a performance management system but it was ineffective. The sales representative lacked willingness and motivation to work because they were given targets but those targets were not linked with the rewards. There was a problem in the designing and the reviewing system. A systematic model can be designed by omega or by Franchised Dealers. The below designed Performance Management System will help Omega to achieve the desired result. At the beginning stage a proper plan should be formed in structured manner.

Proper Performance Planning  

It should be done by the Top management who wants to implement this system. A proper meeting should be conducted by the various departments Head at Omega Company. The Head of the Departments should be explained the Organizational, mission, vision, and goals. The Hr manager at the company should be able to do the Job Analysis. The Job Analysis will help in collecting various information’s about the employee’s job. It will include the employee’s job role, duties, responsibilities, qualification, key result areas. It will help in reviewing the job of the employees. A proper planning will help in achieving the points mentioned in the diagram.

(Esper Management Consulting Inc   2010)

Clear Objectives

At Omega the objectives were not clear to the employees because Franchised Dealers has linked the PMS with their objectives. The Objectives of omega should have been identified by the HR Manager and should be linked with the organizational mission, and vision. The each department goals must be identified. The goals of individual should be linked with the department and & the organizational goals. There must be a formal process of communication channel to communicate each and every thing clearly. Certain competencies of the employees will help in identifying the performance level of the employees. Everything planned should be written in a format of document to keep a record of all the activities. Since it is not a one day process it takes months and years to give a fruitful result.

Effective strategies

It will help in deciding how to carry on the activities and reach to the desired result. Strategies are planned by the leader that includes decision making process, budgeting for all activities, organizing in a sequential form. It will also include who will be designing the suitable Performance Management system for the organization to have a valid and authentic compilation process.

Align Organizational Structure & Plan

At omega the problem was will assessment & the review part which is very important for any organization. The performance level of employee will help in identifying whether he will be promoted or not to the upward position in the organization. 360⁰ feedback method will help to identify the performance of the employee in a systematic manner. In the case of OMEGA employee’s performance measuring form was not a systematic form. It should have included the required and the desired skills and accurate scale of performance rating. It will help in observing performance from all the sides. Employees will not be judged by a single person in this method. There is no point of biasness. On job training feedback was missing which would have linked the performance of employees to growth in terms of rewards and recognition. That would have also motivated the employees to achieve their targets on a monthly basis. The employee’s performance will be judged by the self, peer group, Sales Team, Supervisors, Customers, HR Training Manager, Department Head and etc. If anyone rates the performer’s performance to the lower scale then also there is a possibility that he might be rewarded or promoted because the other rating mangers might give a positive feedback for his performance. Every department must know how to work with this system.

Meaningful performance measures and effective Targeting setting

Goals at Omega were not planned in a SMART manner. There was a lack of motivation factor in the performance of the employees which impacted their on- job performance. The Salesperson were not clear about the goals of OMEGA. They lacked the BIG FIVE PERSONALITY IN THEIR skills which plays a very vital role for the successful performance at any organization. They are Extroversion, Openness, Emotional Stability, Conscientiousness, & Agreeableness (About   2012 ).The feedback should be given on the job duration.

Reporting and Monitoring Performance

Forms being filled by the sales representatives should be filed in a well document. A proper database should be maintained by the HR Head at Omega to document good and the unacceptable performance of the employees. The compilation reports must be presented to all the department heads to appraise the good performers and to provide training and development to those who are unable to perform. Continuous reporting and monitoring will help in developing the sales representative morale and ensure confidence in them. It will help in developing the career plans for the employees to move further in future. The Training and development plans can be also well designed by connecting it with the employee’s performance level.

4. Recommendations

• The company should ask Franchised Dealers to give the training to their sales representative by aligning their Company’s Mission, Vision & core values.
• A systematic plan should be made of by the top Management to overcome such situation. Certain steps much be followed before execution of the program.
• The new Performance Management system implemented by the company should be explained to all the employees, so that they know the importance of it, and can provide the better results.
• The employee’s performance should be linked with the rewards and recognition process which will motivate them to perform their best.
• It should be holistic, integrated and a continuous process being supported by the employee and as well as by the employer.

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