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Performance Management Assessment

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Diagnose the performance management system of your current or former organization (name optional), or an organization with which you are familiar, to assess the system and determine if there are business need(s) for change to the system. Research and evaluate three or more options to enhance the effectiveness of the performance management system; recommend the best option and create an implementation plan.

Situation Description
Briefly describe the organization including size, location, product or service, and types of employees, as well as the current performance management system; include relevant background and history.

Performance Management System Diagnosis
Refer to Critical Performance Management Design Questions (Hunt, 2014, chapter 6.4) and/or other respected sources to analyze the strengths and weaknesses of the current performance management system identifying the business need for change.

Improvement Options
Based on business needs, research alternatives to enhance the effectiveness and impact of the performance management system. Support your analysis with proven results and outcomes.

Recommendation
After determining evaluation criteria, critically assess each alternative identifying advantages and disadvantages in addressing the identified business needs. Select and justify the best performance management alternative to address the identified business needs; discuss the benefits to the organization of adopting the recommendation.

Implementation Plan
Propose an implementation plan including timing, stakeholders, resources needed, and costs.

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Solution Preview

In compliance with BrainMass rules this is not a hand in ready paper but is only guidance.

Situation Description:
The organization I am familiar with makes plastic molded toys. It is located in Minneapolis, it has 143 employees. There are thirty marketing/sales employees, the rest are managers, administration staff, and production employees. The production process is done by teams of two types, the plastic molding teams and the finishing teams. The background and history of the company is that before 2011, the company produced plastic molded toys using forecasts and production plans which were based on historical data. The result was large unsold inventory that pushed up the costs. The situation changed in 2011 when the company started using point of sales information to identify the current trends in the market and adapting the production to changes in market trends. This has resulted in improved profits and growth of the company. The current performance management system is based on employee evaluation by the supervisor. The HR sends a performance evaluation form to each supervisor which has the name and designation of the employee being evaluated. The supervisor must return the completed form by the deadline mentioned on the form. The criteria on the form are different for sales and production employees. During most years, the criteria are repeated so the employees and supervisors know the factors that will be used for evaluating employees. For example, the criteria for production staff were productivity, contribution to the team, efforts at cost reduction, waste reduction, and flexibility to changes. These criteria are considered adequate for production staff. The supervisor has to rate the employee on a five point scale from five-excellent to one-inadequate. The performance management score is used for annual increments, promotions, and bonus. There are different criteria for sales/marketing staff and the forms are sent to the Sales Manager for distribution to supervisors/team leaders.

Performance Management System Diagnosis:
We use the 6 key questions for effective performance management: First, can employees describe their jobs? No, in my company there is team based structure and each employee is required to take up any task assigned to the team. For example, in a production team for making molded plastic toys, I have seen team members who are experts in making iron castings for plastic molding, helping with wooden frame-making. Every team member may do any task assigned to the team. Such teams are required because production teams must respond fast to market changes.

Second, do employees understand and have access to what they're expected to know? Yes, in my company sharing of information is very important. The market trend information is shared with designers and all production teams. The designs are shared with all team members so that each helps in putting in place the changes required in production. In my company there is not gap between what the team leaders expect the team members to know and what the team members actually know. The employees have critical knowledge (1).

Third, do leaders and employees understand the most critical processes of their jobs? Yes, in my company the critical process is designing, making wooden frames based on designs, making iron casts from the frames, and using the casts to produce toy molds. There are no multi-shifts in my company and every team member knows and understands the process in its entirety.

Fourth, which qualities and skills do employees need to do the job? Initially, the teams in the company are formed based on the skills and abilities of employees. For example in the plastic molding team, there is one specialist wooden frame-maker, there is another person who has experience in iron-casting, and a third person who is an expert in injection molding process. However, the culture of the organization is such that team members join in and do the task at hand with their utmost effort. For example, when a design is received the injection molding expert joins in with the wooden frame making. Similarly, when the injecting molding process is on, the frame maker will pour plastic pellets in the molding machine.

Fifth, do employees and their leaders ...

Solution Summary

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