Developing Performance Management Processes To Support Organizational Goals: Australian Hardware Case Study

Developing Integrated Processes for Performance Management

Question 1.

Most of the companies value the importance of building organizational capabilities which include leadership development or lean operations. However, majority of the organizations have not yet found a way to do it effectively. Most of the organizations prioritize lean operations, talent, and project management (McKinsey & Company,2010). But very few try to build their training programs on building capability that adds value to their business performance. Australian Hardware has identified the value of building the capability by establishing a training program that will enhance the skills and abilities of the employees. Australian Hardware has signed a contract with Train Your Way Up which will be offering training sessions to the organization’s employees. The training program is designed to meet the organizational policies and goals which include good customer service and sustainability. Through building foundational capabilities such as talent management and development the organization will gain a competitive advantage in the industry.

Objectives for performance management and integrated processes

• To ensure that individual objectives are aligned with the objectives of the organization.
• To assess the current performance and create plans for improvement with an aim of improving the overall performance of the organization.
• To ensure that the organization provides adequate resources and opportunities for personal development.
• To build an organizational culture founded on performance, where all the members are focused on the objectives, improvement, and development.
• To ensure that the management balances on the level of performance that should be delivered, how and where it should be delivered. This will help in improving efficiency and effectiveness of the business as well as the organization.

Implementation plan of the performance management plan

The best way that Australian Hardware can implement the performance management plan is by identifying the talents then developing them. The organization will ensure that the all the employees are engaged with the short-term and the long-term goals of the organization and identify the skills that they need to develop to achieve those goals (Hansen, 2017). Employee morale is an essential element that the company will need to focus on to ensure that its employees are satisfied so that the organization can retain its employees (Ferreira & Otley, 2009).

Australian Hardware will also give priority to the existing staff instead of sourcing employees from outside to come and fill the vacancies available in the organization. This will demonstrate that the contribution of the current team of employees is valued and will enhance their loyalty to the organization as well as their performance.

Question 2

Australian Hardware objectives to be addressed in the performance management.

• Developing the employee performance through training.
• Creating sustainability practices awareness among the customers.
• Identifying customer satisfaction with their Australian Hardware shopping through customer reports.
• Ensuring that the employees put into practice what they learn form the training sessions through monitoring their performance.

Australian policies to be addressed in the performance management

• Sustainability practices policy.
• Customer satisfaction policy.
• Employee performance and practice.
• Development of organizational capability through training.

Question 3

Performance objectives

Performance management objectives	To ensure that the objective and the key performance measures (KPI’s) of the organization are integrated both vertically and horizontally in all job levels. The entire systems collaborates and focuses on the important bottom line measures and the results.
To ensure that there is consistent performance improvement, organization development and culture change.
To attain effectiveness and efficiency to make sure that needs of customers are met and they are satisfied with our services and products.
To provide clear performance expectations and standards and reducing work stress, wastage of time and resources and solving of conflicts appropriately.

Question 4

Tools designed to help managers develop KPIs for employees reporting to them

Key Performance Indicators (KPI’s) are factors that a company needs to regularly monitor. KPIs are techniques that are used in measuring and evaluating specific factors with an aim of evaluating their progress or effectiveness. KPI outlines the factors that need to be measured and assessed and the techniques that will be used in measuring and assessing the outlined factors. KPIs are essential as they help in evaluating the success of an organization by showing the progress made by the organization towards the attainment of its long-term goals (Marr, 2014). KPIs includes information from various sources, calculations and defines the measures used and states the timeframe within which monthly data should be submitted.

The following are the tools and method’s that will assist managers in Australian Hardware develop KPIs for employees reporting to them.

• Quantity- the manager should measure the amount of units produced, processed or sold this can be used as a performance indicator. However, while quantity is considered the manager should also be aware of the quality.
• Quality- the managers can use several indicators to measure the quality of work performance. For instance, the manager can assess the percentage of the work that is rejected. While considering sales that mangers can measure the percentage of inquiries that have resulted to a sale.
• Timeliness- the time used in completing a task can be an important indicator in very business. In sale the amount of time the customer spends in the business can be identified. While in the manufacturing sector this can be measured by the number of units produced per unit time.
• Cost-effectiveness- if the employee can affect the cost work performance then this can be used to measure the performance of an employees.
• Adherence to the policy- this can be measured by observing how an employee adheres to the organizations policies. Some of the employees’ performance goals may not be in line with the organization goals.
• Personal appearance-the managers can observe the dressing of the employees despite most of the employees knowing the dressing codes of the organization some of the employees are ignorant and need to be reminded regularly. Personal appearance may have some impact on the performance of the employee.

Performance appraisal

There is need to assess performance indicators in measuring performance. Performance can be assessed using the following indicators.

• Manager appraisal- the manager assess the performance of the employee and delivers the results to the employee. However, this approach discourages employee participation since it is a top-down approach and usually employees tend to resist it.
• Self-appraisal- in this approach the employees carries an assessment on his or her performance. Mostly self-appraisal is compared to the manager appraisal. Self-appraisal are essential as they show the disagreements of the factors that the management and the employees think are important in performance. This helps in providing feedback and the adjustments that need to be made by both sides(Marr, 2014).
• Peer appraisal- This refers to the performance assessment done by employee at the same working level. This approach assumes that co-workers are familiar with the performance of each other. This approach has been essential in identifying undesirable practices that an employee need to change.
• Team appraisal- this a similar approach to the peer appraisal however in this approach the employees hold different working positions. This approach assumes that the contribution of an individual to a team can be assessed by the team members.
• Assessment center-in this approach the performance of the employees is assessed by professionals through simulated activities or actual work practices. The assessment centers are less likely to provide biased results since there is no personal relationships between the employee and the assessors.
• 360-Degree appraisal- in this approach the performance of an employee is assessed by the people that he or she interacts with mostly this may include the managers, customers, and peers among others.

Importance of Building Organizational Capability and Managing Talent

Question 6

Action	Resources	Strategy/tactics	Timelines
Development of KPI’s across or the organization	KPI tools Finances to fund the process.	Integrate the various KPI approaches to get better results	The end of FY 2014-15
Ensure there is consistent performance improvement, organization development and culture change.	Line managers	Frequent monitoring	After every 3 months.
Attain effectiveness and efficiency to make sure that’s needs of customers are met and they are satisfied with our services and products	Questionnaires	Use of questionnaires	Regularly
Provide clear performance expectations and standards and reducing work stress, wastage of time and resources and solving of conflicts appropriately.	managers	Setting of common goals and expectations	Quarterly

Part B

A reflection on the activities undertaken during the assessment

The activities that I undertook in this task are essential in developing the performance management process and plan. The activities have provided me with an opportunity to put into practice the knowledge gained in studying the building organizational capability and managing talent to achieve both the short-term and long-term goals of an organization (Lillis, 2010). Through performance management the organization is able to ensure that there is exists healthy relationship between the management and the employees thus improving the overall performance. Performance management also ensures that the entire system of the organization works as a unit to ensure efficiency and effectiveness which result to increased customer satisfaction.

The Australian Hardware goals are essential to the performance of the organization and individual employees. One of the goals of the organization is to train 4000 employees on the scope of services including sales model training and training on sustainability policy and relevant products. This will help the employees improve their relationships with the customers’ thus ensuring customers’ satisfaction. By engaging the employees in a training programs they will be able to educate the customers on the attributes of the organizations products. By ensuring that the customers have knowledge on the various products of the organization is an important tool that will help the organization increase its sales since it builds trust, faith, and respect in the customer. The sustainability policy of the organization is also an important tool in the performance of the organization since customers are mostly attracted by organization who value corporate social responsibility.

From the activities in this task I also learnt the importance of performance appraisals in an organization. Organizations are able to improve their performance by carrying out performance assessment across all the levels of jobs. Through performance appraisal individuals are able to realize where they go wrong and they make necessary adjustments.

The development of the performance management plan I was able to incorporate the organizations goals and policies so that they can help the organization achieve its long-term goals. The process provides opportunity to every stakeholder without discrimination on the basis of the race, religion, or gender. The privacy of the employees and the customers will be observed to ensure that the whole process is in harmony with the organizational goal. During the development of the performance management process consultations were made with the relevant stakeholders to ensure that any grievances were sorted before the implementation of the plan. This was aimed at ensuring that every involved stakeholder was satisfied with the process.

Part C

1. Process of terminating an employee incase intervention is unsuccessful

After taking several action to ensure that the employee improves his performance but not signs of improvement. Then it may be time to fire the employee. However, the process of firing the employee must observe legal and ethical issues. Frist it is essential to note how the action may impact the remaining staff either positively or negatively. In any case termination of the employment should be the last step you take against the employee. However, you should not put the success of the organization or department or other employees at risk because of the underperforming employee (Heathfield, 2016). Write a dismissal letter to the employee to ensure the success of the business and the employee. The following are steps to employment termination.

1. Start a progressive disciplinary action if the employees show no signs of performance improvement. In this step it is important record and document the actions taken. This can be recorded in a disciplinary form.
2. Disciplinary actions taken should be consistent to every employee fired. It is also essential to provide the employee with alternatives such as performance improvement plan step.
3. Consider the choice of the employee whether he wants to quit voluntarily instead of participating in disciplinary actions then ensure that you have agreed on a set timeline when the employee should give the feedback (Heathfield, 2016).
4. As the manager you should show evidence that the employee was not capable of handling the job. Provide severance pay for several weeks and part with the employee.
5. Contact with the attorney to explain all the options that you have. In case where severance pay is made the employee should be requested to sign a release.
6. Lastly hold an employment termination meeting. Ensure that you give the employee enough time to prepare for the meeting by informing him early enough to avoid unnecessary worry and disappointment. Ensure that you do not take too long to fire the employee if his conduct is affecting the activities of the organization (Heathfield, 2016.)

1. Personal performance evaluation

Tools to Develop KPIs for Employees

	Vocational competence	Responsibility at  work and activity in the work place	Quality and performance
Level 9
Level 8		ü
Level 7	ü		ü
Level 6
Level 5
Level 4
Level 3
Level 2
Level 1

1. Effectiveness of existing performance management.
2. Dealing with underperforming employees.

The existing performance management have a slight impact on the underperforming employees since the implementation of the process has been overlooked for a long time. The process has not need been implement as planned thus it has not been effective in the organization. Very few improvements can be identified on the performance of the underperforming employees in the organization.

1. The ability to help the managers achieve the short term and long-term strategic aims of the organization.

Since their implementation have been partial they have not enabled the managers to achieve all the targeted goals both in the short-term and in the long-term. If they were implemented as planned they would have helped the managers achieve the set goals.

1. Timeframes for regular evaluation of performance management.

The evaluation of the performance management will be carried out after every three months to ensure that the process is being implemented as planned.

Task 2

Question 1

A report to the senior management team

Executive summary

This a report on the external training programme by the Train Your Way Up. The report includes the achievements of the program up to this moment. The report also has outlined the planned actions that will make the program become more successful and achieve its objectives.

Introduction  

Following three months of a pilot training which has been delivered by an external training provider to the sales staff. As the Human Resource Manager I have carried out a review on the effectiveness of the training that have been provided for the time three months. The outcomes of the review indicate that the training program is failing to meet its goals as agreed between the training organization and Australian Hardware.

The program aimed at training 4,000 sales staff under the following categories

• An average of seven sales people for every product team.
• Four products teams per store.
• 138 store

The program required 30 trainers to carry out the training activities across all the 138 stores of the organization. To ensure that there was continuity in the activities in the organization only one employee in very team would be trained per session. One session takes a day to be completed which is a face to face interaction session. Considering that the program was aiming to have 4,000 employees trained on news sales model by the end of six only 367 employee have been trained after three months. This clearly indicates that the training program will not meet the targeted number in the next three months and interventions have to be made to ensure that the process is implemented as planned.

First it is essential to note that the training programme is progress at a very slow pace and ways in which the process should be improved must be formulated. To hasten the progress of the program the sessions that take place per day should be increased. This will be done by reducing the time that each session is taking place. For instance, instead of having one session taking place per day we can have two session where the interviews will be short and the employees shall be provided with written information on the new sales model such that they can continue learning even after the training session. The next step would to increase the number of employees form each team taking part in the training program for just one to three team for every session. The line managers should also participate in regular monitoring and support of employees to apply sales training on the job.

Consideration of Policies in Planning Processes

The training organization should also increase the number of trainers to ensure that more employees are trained every day. And lastly both organizations should agree on extending the training duration with at least 2 months to ensure that all 4,000 employees are trained as planned

 It is my hope that if the above changes are implemented then the training program will meet its goal.  

Question 4

Introduction

The programme had targeted to training 4,000 employees in the new sales model after six months. However, after three months only 367 which is 18.4 percent and only 270 employees have been trained in sustainability practices which is 13.5%.  At this time the programme was expected to have trained at least 50% of the employees across all the Australian Hardware stores. This shows that the program will not meet its goal in the scheduled period.

The assessment of the score of trainees completing the training is 90% compared to the targeted 80% this show that the training program as achieved its objective in this area. However, the trainees putting what they learn in the training programme is 45% compared to the targeted 80% this indicates that the programme has failed to meet its goal thus the reason why it has failed should be established. The budgeted cost for each trained salespersons was estimated at $ 35,000 but is it costing $ 20,000 thus the program has remained within its budget.

The report also shows that 68% of the customers are aware of sustainability practices compared to the targeted 95% thus efforts have to be made so as to reach the target. And finally the program targeted attain 95% customer satisfaction and up to this point customer satisfaction has been calculated at 67% thus it is yet to achieve its goal.

To achieve the goal of the program the Australian Hardware should meet again with Train Your Way Up to strategize on how the program will be implemented as agreed. If the implementation of the programs planned will be impossible the two organizations must find appropriate steps to take. If the organization need to increase the time for training. However, if extra cost will be incurred by increasing the period then Train Your Way Up will need to undergo the cost. They should also reduce the period of taken on each session to accommodate at least two sessions per day since the current session are very long and thus wasting  a lot of time.

Conclusion

From the report only a small part of the program has been implemented thus considering the outcomes that have resulted the programme is having some positive impacts and if fully implemented on time then it would help the organization attain its goals.

.Question 5

Timeframe	Activity: (training/assessment, coaching or others support , monitoring)	Teaching or assessment  strategy or approach to achieve training objectives	Resources: Trainer (number 1-30) managers
5 Months	Sales model Training	Face to face teaching and provision of written note to the trainees	2 trainers per session
6 months	monitoring	Ensuring that the employees  practice what they are trained	Line managers
5 months	Training on sustainability policy and relevant products	Face to face teaching and provision of written note to the trainees	2 trainers per session

 Question 7

Renegotiation of the agreement

Service agreed 3 April 2014

Between

Train Your Way Up

Service agreement sponsor-Director of studies for Train Your Way Up, Jan Powers.

And

Australian Hardware Human Resource Sponsor- Susan Black, human resources General Manager. 

Action Plan

Timeframe	Activity: (training/assessment, coaching or others support , monitoring)	Teaching or assessment  strategy or approach to achieve training objectives	Monitoring	Resources: Trainer (number 1-30) managers
5 Months	Sales model Training	Face to face teaching and provision of written note to the trainees	Assess the scores of the trainees	2 trainers per session
6 months	monitoring	Ensuring that the employees  practice what they are trained	Should be continuous even after the completion of training	Line managers
5 months	Training on sustainability policy and relevant products	Face to face teaching and provision of written note to the trainees	Assessing trainee scores.	2 trainers per session

Scope of services

 Sales training to up skill sales in the new sales model:

1. Greet the customer.
2. Proactively ask questions.
3. Present possible solutions and discuss sustainable or environmentally friendly options
4. Close sales and facilitate transaction.
5. Follow up to maintain customer relationship, gather feedback and lay foundation for repeat business.

Service specifications

Service	Scope
Sales model training	4,000 employees
Training on sustainability policy and relevant products	4,000 employees

 Fee and payment terms

Service	Fee	Payment term
Total cost of training delivery	$ 2,000,000 and additional $ 200,000 bonus	Paid on completion of training by fourth quarter of FY 2014-15
	$ 100,000 penalty for underperformance in training

References

Ferreira, A., & Otley, D. 2009. The design and use of performance management systems: An extended framework for analysis. Management Accounting Research. 20

(4), 263–282

Hansen, D. 2017. 5 Keys for Developing Talent In Your Organization. LinkedIn. Available at: https://www.forbes.com/sites/drewhansen/2011/12/02/5-keys-developing-talent-in-your-organization/#5476c61b29a8

Heathfield, S. 2016. How to fire an employee: Legal, ethical employment termination. Available at: https://www.thebalance.com/how-to-fire-an-employee-1917907

Lillis, A. 2010. The role of performance measurement and evaluation in building organizational capabilities and performance. Accounting Organization and Society Journal.

Marr, B. 2014. The Top 5 Performance Management Tools: Good News And Cautionary Tales. LinkedIn. Available at: https://www.linkedin.com/pulse/20140522054403-64875646-the-5-most-popular-tools-to-manage-performance-good-news-and-cautionary-tales

McDowell, B. 2017. How to implement an effective performance management system. Longer Reads. Available at: https://www.hrlocker.com/hr-software/blog/implement-effective-performance-management-system/

McKinsey & Company.2010. Building organizational capabilities: McKinsey global survey results. Available at: https://www.mckinsey.com/business-functions/organization/our-insights/building-organizational-capabilities-mckinsey-global-survey-results