The growth of an organization is one of the stages of its lifecycle that poses certain challenges and opportunities for the company. On the one hand, larger companies are able to make more profit, access more resources, and reach more people. On the other hand, large businesses can be difficult to manage since more complicated operations emerge. The performance management system is instrumental in ensuring the sustainable growth and proper functioning of an organization. Performance management is a lasting process implying the identification, measurement, and development of employees’ performance and its alignment with the established organizational goals (Aguinis, 2019). The procedure involves such stages as prerequisites, performance planning, execution, assessment, and review. Some of the essential elements of the system can be illustrated based on the case of KS Cleaners (KSC). This company currently has nine employees, including the owner, and has no formal management tools. The business is successful, and the owner considers opening a new facility. This paper includes a brief description of some aspects of the performance management process that should be applied at KS Cleaners.
The growth of KS Cleaners is a logical direction to consider due to the success of the current shop. Kevin, the manager and the owner of the existing shop, is willing to open a new one, and he wants to implement a similar business strategy that has proved to be effective for the company. The organization’s growth and the focus on an existing culture are the primary prerequisites of the implementation of the performance management process. This procedure will enable the manager to identify and establish the standards that will ensure the proper functioning of two (and potentially more) shops. It is necessary to add that KSC has a certain organizational culture based on the principles of freedom, collaboration, and diligence. Importantly, it is critical to identify organizational goals properly as the alignment of employees’ performance with “assumed” objectives can have unintended adverse consequences (Franco-Santos & Otley, 2018, p. 696). Therefore, the initial stage of the performance management system is the identification of organizational goals and job peculiarities.
Performance management is necessary for KSC because this process will also unveil some of the most effective elements and strategies that already exist at the company. Employees’ performance may be analyzed with the focus on the premises for future growth. It has been acknowledged that the implementation of a proper performance management system results in improved employee engagement (Smith & Bititci, 2017). The manager will also identify some weaknesses and areas for improvement, which will be instrumental in enhancing the performance of the entire organization.
Formal Job Descriptions
Performance planning, the second stage of the process, involves the development of job descriptions that can be seen as sets of standards for specific employees, as well as companies’ expectations regarding their conduct. When crafting formal job descriptions, the manager should implement sound research and use the existing standards that are accepted at other companies (Aguinis, 2019). It is necessary to analyze the responsibilities of the employees who will work at a new shop.
However, job description development needs to be aligned with organizational goals, culture, and practices. Hence, the manager will discuss the responsibilities, duties, and activities performed by the current employees. People will share their views regarding the most important elements of their jobs and some aspects they find negative, challenging, or counterproductive. The owners’ expectations and priorities should also be considered as employees’ performance is often evaluated based on these criteria. Additionally, the manager should pay attention to the potential workload of new employees since this factor can influence the way work is done. For instance, if people are overloaded, they may be less willing to collaborate and assist their peers. In simple terms, formal job descriptions will be a combination of the standards existing in the industry and company-related peculiarities.
Performance Plan Development
Performance plan development is an important element of performance planning. This process is a pathway to aligning organizational goals with employee performance. The creation of this plan establishes the direction of every employee development that should be linked to the company’s major objectives and culture (Smith & Bititci, 2017). The company benefits from crafting these plans as no additional funds are needed for external recruiting since current employees will address all the necessary processes. One of the primary steps to undertake to come up with performance plans is to conduct the observation. The manager should supervise employees’ operations to identify the central points that have to be included in these plans.
When working on such plans, the manager will launch discussions with employees. The current employees will describe the level of knowledge and skills they have and the levels needed for proper performance. New and existing employees will also share their wants and plans concerning their professional growth. The manager will develop a set of goals for every employee, as well as measures to undertake to achieve these objectives. The dry cleaner receives the highest salary at KSC, so it is important to pay specific attention to this employee’s performance plan. The document should include a detailed description of the employer’s expectations regarding this professional’s duties and diligence. It is critical to set clear objectives that must be attainable, measurable and timed. Development plans should be among the results of performance planning because employees’ further professional growth should be aligned with organizational goals.
Similar to the creation of the performance plan for any other employee, the manager needs to consider the performance of the employed dry cleaners thoroughly. Since no formal performance assessment has been implemented so far, the owner does not have quantitative data regarding dry cleaners’ conduct and achievements. Hence, the manager will need to discuss their performance, as well as possible standards, with these employees (Smith & Bititci, 2017). It is important to ask workers about their highest achievements and the major challenges they have faced. The implementation of a formal assessment can also be implemented in order to facilitate performance plan development.
In conclusion, it is necessary to note that effective performance management will ensure the sustainable growth of the company under consideration. KSC needs standards that will guide the work of new employees and will have a positive effect on current workers’ motivation. Such documents as job descriptions or performance plans will make the interaction between the employer and the employee clear and proactive. The stakeholders will understand the expectations of each other, so they will choose the most appropriate behavioral patterns. The analysis of several elements of performance management shows the role it plays in the development of a company and its relevance in the contemporary business environment.
Aguinis, H. (2019). Performance management (4th ed.). Chicago, IL: Chicago Business Press.
Franco-Santos, M., & Otley, D. (2018). Reviewing and theorizing the unintended consequences of performance management systems. International Journal of Management Reviews, 20(3), 696-730. Web.
Smith, M., & Bititci, U. S. (2017). The interplay between performance measurement and management, employee engagement and performance. International Journal of Operations & Production Management, 37(9), 1207-1228. Web.