Hrm 531 - Performance Management Plan

Performance Management Framework

Jonah Mock

HRM/531

28 September 2015

Mrs. Connie Ferguson-Rangel

Performance Management Framework

        Clapton Commercial Construction (CCC) is a medium sized organization (650 employees) currently based out of Detroit, Michigan posting annual net revenue of $10,000,000. Clapton Construction is seeking to expand their existing operations by opening a new location in the State of Arizona. They have completed their research on employment laws/compliance and now solicit recommendations in drafting a performance management plan for the new AZ location. Fundamental, performance management plans outlines standards that indicate actual performance, and potentiality for performance, paralleled against specific requirements for the achievement of organizational goals; also outlined therein (Cascio, 2013). Though not required or limited to, performance management ordinarily consist of: appraisals, training, progress reports of some kind, mentoring, supervising, moral, etc. dependent largely on the industry, economy, demographics, and most importantly, the plan’s concurrence to the organizational business strategy and philosophy.

        Proper alignment of a performance management plan (PMP) with the company’s vision, requires:

• Defining ‘performance’ such that the entire workforce comprehends
• Facilitate “performance” in effort achieve optimum organizational-performance
• Encourage “performance’ as defined thereunto

These key aspects serve to establish understanding of expectations, afford availability and capability for achievement, and deliver adequate motivation for intent to achieve.

        Clapton Construction’s organizational performance philosophy should factor in certain existing data, for example, the standing [20%] turnover rate: Research suggests construction industry turnover to be quite high; in 2013 the rate was 62.5% compared to 38% overall (BLS – 16, 2013). In addition, the quit rate for construction workers was 20.3% (BLS – 18, 2013). These numbers are indeed seemingly high, and concurrent with stated rates of Clapton Construction. Although their rates are similar, it would behoove the client to reduce their rate as much as possible to avoid the costly effort of recruiting and training new employees so frequently. Considering such, the organizational philosophy must ensure a fair system of review, and provide a consistent feedback. Such a system will effectively stave anxieties, making employees less prone to vacating their positions.

        At minimum, a performance management system should entail annual formal review cycles for all employees. The cycle begins with goal setting and training definition for each employee. The goals are to be set to match the organizational strategy, for instance, if the company guarantees superiority and consistency, the performance plan might then necessitate certain quality/productivity goals able to quotient their engineers, trainers, laborers, etc. Set alongside such goals in the PMP, requirements of management to rigidly monitor the applicable functions at specified intervals, ergo assuring uniformity of associated feedback and controls. Training differs from establishing goals in that training enables the employee to improve on their individual’s skill set, and ensures the employees are effectively knowledgeable in their area of expertise.