Performance Management Plan.
It is important to determine methods the company will use to measure employee’s skills, address skill gaps, and an approach for effective feedback. Atwood & Allen Consulting will provide Information on creating a successful performance management framework for Landslide Limousine. Organizational Business Strategy In previous communications with Atwood and Allen, the desire to start Landslide Limousines In Austin, Texas was expressed. The objective or strategy for the limousine company Is to provide first-class transportation options for a variety of customers.
The anticipated net revenue for the first year is $50,000 with an expectation of 5% increases in net revenue over the next several years and an estimated 10% turnover rate. Atwood & Allen believes the businesses short-term and long-term goals are realistic for the first few years. A strategic performance management framework will align the company’s goals, set the foundation for FIFO Organizational Performance Philosophy The company must identify the organizational performance philosophy by establishing a strong strategic performance management framework.
The philosophy of the business should be built on excellent customer service to compete n the existing competitive market in Austin, Texas. Employee expectations must be clear to help build a positive reputation in the market. To evaluate employees, Atwood & Allen recommends the company use a Behavior- oriented rating method. When performing behavior-oriented ratings, it is important for the company to capture customer satisfaction. An effective approach would be to create a behavioral checklist based on questions used on Landslide Limousines customer satisfaction survey (Socio, 2013).
The company could also use other effective methods to evaluate employees, such as graphic rating scales. Graphic rating scales are created with rating factors down one side, such as attendance, appearance, communication skills, and driving skills, and across the top would be level of performance (Socio, 2013). Customer feedback and individual evaluations will offer the company the opportunity to obtain this information. Job Analysis It is important for the company to create a solid performance management plan to help decide on an effective Job analysis.
The Job analysis will assist with identifying the skills required by Landslide Limousine employees. Job analysis is the process of obtaining information about Jobs and “typically includes information about the tasks to be done on the Job, as well as the personal characteristics (experience, education, personality, specialized training) necessary to do the task” (2013, p. 165). Atwood & Allen suggest the observation and critical incidents methods compared to the other methods available to determine the necessary skills for the employees.
The observation method requires an analyst to observe a worker. During the observation stage the analyst records, “what, why, and how of various parts of the Job” (Socio, 2013, p. 172). To use this method, information is gathered from services of other limousine company’s in the area to record in a standard format (Socio, 2013). The critical incidents method is comprised of “brief actual reports that illustrate particularly effective or ineffective worker behaviors” (Socio, 2013, p. 173).
To accomplish the critical incidents method, the company should record situations one encounters while using other limousine services in the area. The information the company gathers will give a clear picture of Job requirements and assist in developing excellent customer service to out perform competitors (Socio, 2013). Skills, Skill Gaps, and Feedback Once the company identifies the necessary skill for employees, methods to measure the skills, address skill gaps, and approach to deliver effective performance feedback must be established.
To establish the Behavior-oriented ratings method, Landslide Limousine must set goals for each employee. “Goal setting has a proven track record of success in improving performance in a variety of settings and cultures” (Socio, 2013, p. 333). Assigning each goal a value will help to effectively evaluate each employee. Performing evaluations is effective if the numeric score, based on goals achieved, and customer satisfaction input is calculated to establish a basis for the employees with other employees within the company.
Benefits such as bonuses and pay raises should be linked to performance and evaluations. To keep the company’s strategic goals on track, Atwood & Allen recommends the company perform quarterly evaluations to assess employee performance. During the evaluation process, if skill gaps are identified it is important to address them immediately. The most effective way to address skill gaps is with training (Socio, 2013). Considering the limousine reversion, the simulation method and On-the-Job training method are the most appropriate training methods.
The simulation training uses techniques such as behavior modeling and role-playing to improve skill gaps with customer service issues. On-the-Job (TOTS) is another training method the company can use. This method is appropriate when an employee is not receiving positive customer feedback. This method works by placing the employee with negative feedback with an employee who received exceptional customer feedback to train him or her on how to handle situations and interact with customers more effectively. The company must deliver effective performance feedback to complete the performance management framework.
Landslide Limousine’s reputation and place in the current market depends on excellent customer service. To assure management and employees are working together to meet the organizations strategic goals, the company must provide frequent feedback. Atwood & Allen recommends the company perform quarterly and annual evaluations. It is crucial that Landslide Limousine stress open communication for employees with immediate feedback to employees based on customer comments. Regular meetings should be scheduled or management and employees to discuss goals and strategy.