Review of Performance Management Process

Question: Prepare a written report that describes and provides a critique of the performance management process of an organization. Answer: Background of Organization McDonald is considered as the largest chain of fast food restaurant in the world. It provides service to around 68 million consumers in 119 nations with 35,000 outlets. The revenues of McDonald's are generated from royalties, rent and payment of fees by franchisees. Mission To be at favorite place of customers and provide effective way to drink and eat and bring a smile and happiness on the faces of customers To strive for continuous improvement To operate business ethically To deliver better customer experience Business Strategy The business strategy followed by McDonald is Play to Win to maintain their brand value. In addition, the company majorly focuses on people, products, place, price, promotion and improving customer experience and operations and opening new outlets (Blogs.unive.it, 2015). Objectives and purpose for performance management process The major aim is to coordinate the activities of employees in order to attain the organizational goal. It helps in identifying and measuring the performance of the individual employee and also improving the fewer efficient employees for strategic goal of McDonald, Canada. On the other hand, gaps in the performance can be known so that strategic steps can be taken. The process can be effective in providing learning and development skills to employees so that their effort can be best utilized for the growth and expansion of McDonald. Through this process, the production, operation, supply chain can be improved that can help in engaging large customer circle and better work environment (Ellis, Margalit Segev, 2012). For this reason, the performance management can be valuable for employee growth and recognizing best employee. Organization Approach Planning: The unit strategy has to be established, and the goal of the employee has to be aligned. Further, for assessing the employees' performance, performance appraisal plan has to be developed so that their effort can be used for the organizational purpose. In addition, performance expectation has to be set for each employee or groups in order to channel their skills for the betterment of McDonald. On the other hand, a performance standard has to be planned so that each performance can be assessing on that basis of standard. The standard has to be in such manner that it can be understood, measured, achievable and verifiable (Jackson, 2012). For this reason, it can help in achieving the objectives of organizations. The performance plan for the employee has to be flexible so that adjustment can be made as per the work requirements. Facilitation: The leader or manager of the McDonald has to encourage and motivate the employees to give their best so that they can register growth and better future. The Individual Development Plan can be effective in acknowledging the leadership competencies of employees so that they can gain success in their current field. The manager has to engage the employees in training program in order to improve their performance and enhancing efficiency skill (Ahuja, 2012). On the other hand, the managers can make employees recognize their skill so that common objectives can be fulfilled. In addition, the employee has to be trained and supported so that they can unite their individual goals with the goal of the company and register success. Assessment: The performance plan has to be assessed by generating feedback from the employees so that it can be known whether the employees were able to match up to the performance standard or not. Apart from that, McDonald can build assessment team so that group performance can be judged on the basis of productivity. This would help in segmenting the best performing group and low-performing group. On the other hand, the managers can conduct a meeting for sharing the responses of employees regarding the performance appraisal so that their feedback can be sought for the better development of performance management plan (Pichler, 2012). Apart from that, a rating system can be adopted to rate the employees on the basis of performance, and it can help in motivating the employee. Development/Improvement: In this process, the manager can be able to know the till how much level the employees can achieve the performance standard. If the employees are not able to attain average standard the management can either sack them or provide training to them so that they can develop their skill and work can be done in more productive manner (Krats Brown, 2012). On the other hand, the management can deliver motivation speech to employees of McDonald so that can identify their inner skill and put their effort in the organizational activities. Apart from that, the employee that has excelled in their work then reward or promotion has to be provided. This would help better future development of employees. Detailed Description and Critique of performance appraisal criteria In order to conduct the performance appraisal, the management of the McDonald considers production. The production details help in knowing how much the particular employee has contributed to producing number of units. On the other hand, the production helps in providing information about the efficiency of the employees and their effort put into production and providing the best service to employees (Ahuja, 2012). Apart from that, production in given time can be known so that low performer can be segmented from the best performer. On the other hand, efficiency is also acknowledged so that their effort can be also assessed in order to develop the performance appraisal. The efficiency can help in knowing the competency of workers and bringing quality service to the company. As a result, effectiveness can be evaluated towards the organizational goal. Apart from that, training is useful as the criteria of performance appraisal. Through training, the management can know which employee is taking longer or shorter time to gain learning (Ellis, Margalit Segev, 2012). As a result, the employee who takes long time is considered as inferior and superior to those that takes shot time to learn. The behavior of employees at job is considered as performance appraisal criteria. The employees are rated on the basis of ineffective and effective behavior in relation to resulting produce. In addition, the leaders are judged on the basis of leadership skill applied by them for guiding and directing the employees. Also, the approach of employees towards work is effective in ranking the employees and forming performance appraisal (Jackson, 2012). The involvement of the employees in the group activities is regarded as one of the criteria to assess their performance and role in the activities. Apart from that, performance appraisal and development form is distributed among the employees so that their feedback can be known. On the other hand, in order to conduct the periodic performance reviews, the management adopts graphical rating scale and 360-degree feedback. The graphical rating scale helps in knowing the trait of each employee and on that basis the employees are rated. (Refer to Appendix 2) On the other hand, 360-degree feedback is effective in having better understanding of strengths and weakness of leaders and managers and further it helps in forming development plan (Krats Brown, 2012). Additionally, the behavior and competencies can be measured, and skills of the people of McDonald can be addressed so that their skills can be aligned towards the goal of the company. Apart from that, the performance appraisal process that is adopted by McDonalds: Identify: The dimensions of performance are being identified for determining successful job performance. For this reason, job analysis is considered for identification of performance dimension at McDonalds. Measure: In this process, the performances are evaluated in order to recognize the requirements of staff. Thus, the performance is calculated, and employees are motivated to engage themselves in the work with more effort. Manage: The managers of McDonalds try to find the cause of the problem in performance so that the skills of the employees can be developed for the better productivity and company's performance (Pichler, 2012). Recommendations The goal of McDonalds has to be clearly communicated to the employees in order to gain higher benefit from them. The goal can be higher income, better service, and quality productivity in a particular period. In order to improve the employee performance, the managers of McDonalds has to share information about the company's work plan and also the contribution made by employees so that employees can focus more on the effective performance. The employees should not be forced to do the job. This would decrease the efficiency of the staff, and they may not feel satisfied with their work and performance. As a result, flexible work opportunity has to be provided to them so that they can carry their work in better and productive way. The values and ethics have to be actively promoted among the employees so that they can conduct their work for the organization betterment and future development. This would also help the employees to grow as a person and professionally. The manager of a leader has to enforce feeling of trust in employees so that they can share their feeling with seniors and seek guidance from them without any fear or hesitation. For this reason, it will help McDonalds to have quality work environment. The constant feedback has to be provided to the staff about their performance so that the staff can know their level of performance. On the other hand, the low performing staff can get motivated from the staffs that are performing exceptionally well. References Ahuja, I. (2012). Total quality management implementation for reducing percent process defects in a manufacturing organisation. International Journal Of Business Performance Management, 13(1), 1. doi:10.1504/ijbpm.2012.044861 Blogs.unive.it,. (2015). Performance management of McDonand's Corporation. . Retrieved 6 February 2015, from https://blogs.unive.it/sandbox/groups/economicsmanagement/wiki/af526/attachments/4f654/PW%202%20_%2023_Facebook%20Inc.pdf?sessionID=168fa9043b224f031ccbadd7d585d65fa36533a6 Ellis, S., Margalit, D., Segev, E. (2012). Effects of Organizational Learning Mechanisms on Organizational Performance and Shared Mental Models during Planned Change. Knowledge And Process Management, 19(2), 91-102. doi:10.1002/kpm.1384 Jackson, S. (2012). Five secrets to success in business strategy. Journal Of Business Strategy, 33(2). doi:10.1108/jbs.2012.28833baa.003 Krats, P., Brown, T. (2012). Unionised employee's reactions to the introduction of a goal-based performance appraisal system 1. Human Resource Management Journal, no-no. doi:10.1111/j.1748-8583.2012.00205.x Pichler, S. (2012). The social context of performance appraisal and appraisal reactions: A meta-analysis. Human Resource Management, 51(5), 709-732. doi:10.1002/hrm.21499 Appendix Appendix 1: Why performance appraisal is important? The performance appraisal helps in separating the performing employees from the non-performing employees. Therefore, it helps in deciding the training program for those non-performing ones so that can contribute more to organization and enhance their efficiency. Moreover, it helps in taking decision regarding increment in salaries, rewards, promotions, etc. Does the employee provide enough information about the work delivered? Yes, most of the employees provide details about work that helps in providing recognition to them. The employees provide the details such time taken in completing task, problem faced while doing job, etc. On the other hand, some employees forget to provide details as they are new to the industry and they are not completely aware about it. Thus, through regular supervisor and training, the requirement of work delivery is passed on to them. What appraisal method do you mostly concentrate on? The three methods are mostly focused that are Management by Objective, Graphical Rating Scale and 360 degree feedback. These methods are followed from past may years which regularly provide details about the employees performance and engagement. Moreover, the appraisal methods are effective in providing training and development program to the employees. What do you think about the appraisal system in McDonalds? The appraisal system is well-organized at McDonalds. It helps in reviewing performance and setting expectations and goals for each individual. Moreover, the employees are satisfied with the current performance appraisal process as it helps them to develop and grow in McDonald and improve performance. Appendix 2: McDonalds Cashier performance appraisal and development form EMPLOYEE NAMELOCATION NAME NUMBER APPRAISAL PERIODFROM://TO:// MDYMDY APPRAISAL REASON (CHECK ONE)3 MONTH6 MONTH9 MONTH1 YEAR RATER NAME TITLE PERFORMANCE FACTORS Attendance: clocks in on time and is ready to work Attendance: clocks in on time and is ready to work 12345 Almost neversometimesalmost always Comments Has documented reason for calling off work 12345 Almost neversometimesalmost always Comments Comes to work when scheduled to work 12345 Almost neversometimesalmost always Comments Customer service Greets customers with a friendly attitude and with a smile 12345 Almost neversometimesalmost always Comments Appearance Wears clean and appropriate uniform to work (shirt, pants, hat, hair pulled back) 12345 Almost neversometimesalmost always Comments Knowledge of operating cash register knows the basics of the register with out the seeking help from management or other employees 12345 Almost neversometimesalmost always Comments OVERALL RATING ___________________________________________________________________ OVERALL RATING SCALE _______ - _______ = BELOW STANDARD/EXPECTATION _______ - _______ = MEETS STANDARD/EXPECTATION _______ - _______ = EXCEEDS STANDARD/EXPECTATION _______ - _______ = EXCEPTIONAL RATER SIGNATUREDATE EMPLOYEES COMMENTS: EMPLOYEE SIGNATUREDATE