Introduction to Employee performance management(EPM) -Performance Management ...
Core Management - Task 2
1. CILT UK Professional Diploma in Logistics & Transport
Supply Chain Management Module
Core Management
Task 2
Prepared for Samantha Mars
2. NZ Student: Helen McGinty
Module: Core Management
Task: 2
October 2014
Page 2
Introduction
Whenever a significant change occurs within a business, such as the recent
merge into SCILplc, there requires change to be made to the company’s
development to improve performance or realign to a new strategy.
It is the role of a manager to lead and support change within their team. This will
be essential for the newly merged companies and all their employees to ensure
disruption to business is kept to a minimum. Managers must remain focused and
continue to encourage their teams to achieve results.
It is recommended that SCILplc take a ‘self-management’ approach with
employees once the company merge and restructure is complete. The flattening
of the company structure allows employees to step up and take on more
responsibilities. This approach emphasizes individual commitment from
employees rather than external control from a manager. The performance
planning and objective setting that will be completed by SCILplc employees will
assist in this approach as goal setting will be carried out by each individual.
When managing activities amongst employees; it is important that emphasis is
put on why the activities are done and what the company is working towards
together. Individuals are more driven if they have an understanding of the logic
behind their objectives.
This report will recommend guidelines for management in handling individual and
group activities to ensure the company reaches its objectives with focused and
goal driven employees.
3. NZ Student: Helen McGinty
Module: Core Management
Task: 2
October 2014
Page 3
Individual Activities
Recruitment & Training
Development of employees begins with recruitment and training and will be the
critical factor in the success of an individual within the business. The selection
process should include the Manager of the position so they can decide whether a
candidate will fit into the team and achieve desired results.
Training for new employees at SCILplc should be completed by another
individual who is in the same or similar position to ensure they receive ‘hands on’
learning.
Performance Management
Performance management is ensuring an organization and all its employees are
working together to achieve the desired results of the business, both as
individuals and as groups.
Benefits of performance management:
Puts the focus on results – not on behaviors or activities
Aligns personal objectives with business objectives
Allows employees to feel valued and know how they are performing
Creates a team culture within the business
Gives employees the opportunity to feel involved in setting goals to
improve the company rather than being told what to do by management
Performance Plan – Setting Objectives
Development of an individual performance plan must begin with understanding
the company’s objectives. The main objectives for SCILplc are to:
- Optimise supply chain management
- Improve product availability
- Maintain customer relationships
- Improve manufacturing efficiency
These objectives form the main goals for the company to improve sales by 15%
a year for the next three years whilst raising profits by 20% a year.
4. NZ Student: Helen McGinty
Module: Core Management
Task: 2
October 2014
Page 4
Objective setting should be completed at the beginning of each year.
It is beneficial for each department within SCILplc to hold a strategic planning
meeting prior to writing objectives. Each department will communicate their own
objectives so that they are aligned in reaching their goals. Objectives should be
drafted and prioritized by importance and value and then allocated to each
employee. All employees are encouraged to be actively involved in this process.
Objectives should be “SMART” – specific, measurable, attainable, relevant and
time phased and should not include ‘fuzzy’ meanings like usually, frequently,
mostly, regularly etc.
Managers are recommended to train staff in using a follow through plan to
ensure objectives are broken down into tasks so that employees remain focused
and not overwhelmed by the objectives as a whole.
Performance Review – Appraisal
A mid-year review should be carried out between Managers and each employee.
This review will ensure employees are on track to meeting their objectives or
offer support and resources to ensure the objectives are reached by year end.
At the end of the year, employees will communicate their achievements via their
managers for review by Human Resources. This will coincide with the annual
salary review. Pay increases or bonuses should support behaviors directly
aligned with reaching the company goals.
This process ensures employees are rewarded for their achievements during the
year and that the company has benefitted from each employee’s objectives.
Performance Problems
Any issue with individual performance must be acknowledged immediately. A
manager should not observe poor performance for any period of time before
discussing it with the employee. This ensures the employee can correct their
performance and builds a sense of respect between the Manager and individual.
It is important that any issues with performance are based on behaviors that
have been observed as opposed to an individual’s characteristics. These can be
viewed as personal opinions or often a ‘personality clash’ that are perspective
and not factual.
5. NZ Student: Helen McGinty
Module: Core Management
Task: 2
October 2014
Page 5
Managers will need to ensure they clearly state the behavior that is unacceptable
to the employee and what is expected from them instead. Notes should be taken
during this meeting and a copy supplied to the individual to ensure in future if the
problem is escalated that they were advised of it. Any further performance
problems after this can be referred to Human Resources.
Group Activities
Managers at SCILplc should encourage team work and cross functional
relationships where appropriate. Teams are a highly effective way for a company
to reach its goals with dramatic results. For team work or group activities to be
successful; they must be led by a driven leader and consist of a reasonable
number of focused individuals.
It is essential that all individuals under the supervision of their manager are able
to work together productively on a day to day basis. Team building exercises and
workshops can be greatly beneficial for a work force. A manager must ensure
they have ongoing control of the group by monitoring and evaluating group
interaction.
Managers will communicate to their teams the company’s performance standards
and expectations and clearly state that offensive or inappropriate behavior will
not be tolerated within the department. This must be actioned and not just
verbally communicated.
A manager will need to decide when and where formal group activities are
appropriate and ensure the desired outcome will be beneficial to the company.
Group activities can become time consuming if not planned or managed well.
Meeting agendas should be distributed before a group meeting occurs and a
follow through plan communicated afterwards to all relevant participants.