Performance Management Programme of Sia Lee Swee Construction

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1.1 Company Selection

SIA LEE SWEE (SLS) CONSTRUCTION CO. is the company that has been selected by our group as the targeted company in this assignment. The reasons for our group to select this particular company are because of as the following:

1.1.1 It is a Multi-Level Organization

Our group believes that the Performance Management Process (PMP) is complicated for a company or an organization, which consists of Multi-level of Managerial and Operational. As for SIA LEE SWEE (SLS) CONSTRUCTION CO, they are with 3 level of Managerial and Operational Levels, which include:

- [1] Top Management Level,

- [2] Middle Managerial Level, and

- [3] Lower operational Level.

1.1.2 It is a Multi-Dimensional Organization

Our group believes that a company or an organization, which with Multi-Dimensional Departments and several different kinds of Operational models should be backed up with a good Performance Management System (PMS), in order for the company or the particular organization to increase their overall competitiveness, as well as their productivities. As for SIA LEE SWEE (SLS) CONSTRUCTION CO, they are with Multi-Dimensional Departments, which in general are performing different kinds of tasks, but in details are all inter-related within one another. As an example, the tasks performed by a Sales Personal within the company are simply focusing in making sales, and the responsibilities for a Public Relationship Officer of the company are focusing in building company's images or reputation. Both positions of the company were performing totally different tasks in their daily jobs. However, they are all inter-related and linking to each another. Yet, if the sales are dropping, it is extremely hard for the top management to distinguish whether the Sales Personal or the Public Relationship Officer should be taken the responsibilities for the dropped sales level.

Besides, the tasks required by the managerial employees are also totally different with the tasks that allocated to the operational staffs. Both of these groups' job's requirements, job's specification, as well as the job's responsibilities are totally different. As for Multi-Dimensional companies such as SIA LEE SWEE (SLS) CONSTRUCTION CO, we believe that their Performance Management Process (PMP) and their Performance Management System (PMS) are both valuable to be learned by us.

1.1.3 It is a Family-Based Small Medium Enterprise (SME)

As the main objective of this assignment is to develop or rebuilt a much better Performance Management System (PMS) for a company, but is not just study the particular company's Performance Management System (PMS), yet we believe that a Small Medium Enterprise will be the better target for us to select rather than a well established public listed company. The reason is simply because of we believe that a Performance Management System (PMS) of a SME Enterprise will posted higher chances to be improved or to be rebuilt, rather than a Performance Management System (PMS) of a well established public listed company. And SIA LEE SWEE (SLS) CONSTRUCTION CO is fulfilling this requirement, as it is a family-based Local Small Medium Enterprise.

1.2 Company's Profile

The selected company for this assignment is SIA LEE SWEE (SLS) CONSTRUCTION CO. Generally, this company is a family based local construction company, which falls into Small-Medium Enterprise (SME) categories of businesses. The company is located in Bukit Bakri, Muar, Johor Darul Tazim since its establishment. The main businesses involving by the company are as the following:

[1] Private Housing Estate Projects Development,

[2] Contacted Home Construction,

[3] Roads Building,

[4] Drainages Construction, and

[5] Building Materials Supplier.

Over the years, the company had contributed to the several development projects within town of Muar. Until the date of this assignment, the largest private housing estate project that had been developed by the company is Taman Sri Jaya. Besides, the company had also contributed to build a large residential park wholly by themselves, and also contributed partly as the sub-developer to the Muar town most popular hawker centre - Jalan Bentayan Hawker Centre.

The company is currently employing 62 full-time employees and 10 to 25 part-time workers, which build up approximately a total number of 72 to 87 employees as a whole from time to time. The majority of the full-time employees were allocated into top or middle managerial levels, and all of the part-time workers were working as the builders in the building projects' fields. Another very significant impact to the company employees' positions level allocation is simply depends on their personal identity relationship to the company background's family. In order word, the company only allows the direct family members to be in the top management level, and indirect relatives of the family to be in the middle managerial level within the company, as well as hire external workers and placing them to work in the lower operational level or at the most in the middle managerial level only.

In general, all of the 8 top managerial positions were monopoly by the company family direct members, and the positions are:

[1] Director,

[2] Deputy Director,

[3] General Manager,

[4] Finance Manager,

[5] Legal and Contactors Manager,

[6] Projects' Management Manager,

[7] Sales Manager, and

[8] Public Relationship and Publicity Manager.

As in middle managerial level, there are with 24 in total, which can be further divided into:

4 Accountants,

2 Legal Personals,

10 Sales Personals,

1 Public Relationship Officer,

4 Marketing Personals, and

3 General Clerks.

All of the positions within the middle managerial level were occupied by the direct family members or their indirect relatives, except the 3 General Clerks.

The last level is the lower operational level, which is also the level where the employees have no relationship with the company background's family. Besides this is also the only level where the company placing their hired staffs into. However, there are also with 30 full-time staffs in this level, together with 10 to 25 part-time staffs that will be hiring, depending on the total number of the development projects needs, from time to time.

1.3 Company's Background

SIA LEE SWEE (SLS) CONSTRUCTION CO is the subsidiary company of the SIA LEE SWEE (SLS) CONSTRUCTION SDN. BHD. The SIA LEE SWEE (SLS) CONSTUCTION SDN. BHD was originally founded by the father of the director of SIA LEE SWEE (SLS) CONSTRUCTION CO, who is with the name Mr SIA Lee Swee. Mr SIA Lee Swee has three sons, and in order to eliminate conflicts among his sons, as well as for better managing purposes. He was then setup another two companies, which named :

[1] Sri Bakri Development Sdn. Bhd, and

[2] Sia Lee Swee (SLS) Construction CO

When Mr SIA Lee Swee decided to retire, the SIA LEE SWEE (SLS) CONSTRUCTION SDN. BHD. had been passed to his elderly son for managing, and the Sri Bakri Development Sdn Bhd had been passed to his second son, as well as Sia Lee Swee (SLS) Construction CO is now leaded by his third son, who is with the name SIA B.H. (Ah Hoh).

Although in generally, both three companies were independent managed by each of the Mr SIA Lee Swee's son, but in fact their activities are closely related to each another. All of the three companies are always sharing the same projects, and each of the sons had actually owned certain degree of shares in their brothers' companies as well. Besides, all of the three companies' main offices were closely located to just beside each another, and shared one same piece of land.

1.4 Interviewee's Profile

NAME

Mr SIA B.H. (Ah Hoh)

POSITION

Director

COMPANY NAME

Sia Lee Swee (SLS) Construction Co.

COMPANY ADDRESS

NO. 15-1, Bakri New Village,

84200 Bakri,

Muar,

Johor Darul Tazim,

Malaysia.

COMPANY TEL NO

06-9866206

06-9866207

COMPANY FAX NO

06-9868001

PERSONAL HP NO

019-6265449

011-663795

PERSONAL HOUSE NO

06-9866414

Performance Management Process (PMP)

SIA LEE SWEE (SLS) CONSTRUCTION CO is a family based Small Medium Enterprise (SME), which consists of 3 levels of organization:

[1] Top Management Level,

[2] Middle Managerial Level, and

[3] Lower Operational Level.

The company as a whole is leaded by the Director of the company, who is Mr Sia B.H. (Ah Hoh) - the interviewee of this assignment. However, due to the style of the managerial, where all the decisions making are totally centralized in the hand of the company's director, hence the company does not really follows a proper completed Performance Management Process (PMP), nor implemented a systematic Performance Management System (PMS) since its establishment. However, the company cultures are placing more concern on the rewards system to reward the contribution of the employees directly, as what the company top management believe that "Monetary rewards are the key motivator for employees at all levels."

In general, there is no proper Performance Management Process (PMP) and systematic Performance Management System (PMS) in both Top and Middle managerial levels employees within the company. The main reason that contributed to this scenario is simply because of the employees within this two levels are mainly the direct family members or the indirect relatives of the company's director. Besides, as for Chinese ethic cultures, which emphasize in priority should be given on family relationships, also contributed to such situation. In other words, the company's director basically feels that there is not necessary to evaluate employees who are with relative relationships, as any negative feedback given might cause unhappiness and yet hurt the relationships within his family's members or his relatives.

As further investigation on the company, we found out that significant more proper Performance Management Process (PMP) is established in the lower operational level, as all of the workers within this level have no relationship at all to the director's family. In operational level, all the workers can basically to be classified into two categories, which are:

[1] The Supervisors, and

[2] General Construction Workers.

These two categories of employees will be evaluated by using two different approaches, which are result approach and behaviour approach. Anyway, result approach is going to assess the performance of the Supervisors, as the result approach is used to evaluate the final outcome that produced by the particular group of supervision workers, the workers responsibilities and their performance standard. Besides, in result approach, behaviour of employees is related with the result that produced by them, and a particular supervisor must always make sure that the jobs allocated to their supervision group of workers must always meet the scheduled time-lines, as well as the required quality of jobs performed.

The appraisal period that used to evaluate and review the performance of the Supervisors is set on annually and in November. The fundamental for implementing the evaluation system can result in increasing the understanding the perception of employees towards the company and the improvement of their performance throughout the year. In this period, employees will be requested to fill up self appraisal form and general manager will evaluate employees by using the mechanical system. In mechanical system, general manager will rate the marks that an employee deserve and then calculate the total marks that earned by each employee. The evaluation will base on various important criteria such as responsibilities, objectives, quality of work and effectiveness and efficiency of completing the task.

Furthermore, employees will receive the feedback on what employer has evaluated them and they may appeal if they are unsatisfied with the marks given, then the general manager will re-evaluate and review the employees' performance by having a meeting with employees. Employees need to fulfil the minimum requirement of getting the marks of 75/100 and above then only they are able to get the rewards as part of appreciating their contributions. Rewards that given to the employees are including: 13th month bonus, extra 1 day of annual leave and an adjustment on their base pay if employees are able to achieve the requirements. In other words, employees who are does not fulfil the minimum requirements would not get the increment on their base pay and bonus.

On the other hand, the General Construction Workers will be evaluated based on their task performed. Their abilities and skills are significantly important in this field. Hence, behaviour approaches are used to measure their outcomes. Behaviour approach is link between individual behaviour and environment which the person is in, and as well as their actions and problems. Therefore, company could evaluate them by observing their behaviour. Besides, behaviour is determined by purely external factors such as compensation factor.

Indeed, human capital plays an important role in the company. Hence, behaviour and result approaches are not obviously link because personality of a construction worker does influence the levels of effort and so as the quality of their outcomes. Poor results might due to bad attitude of the workers but, in between, outcomes which achieved might relate with the environment which is not under the workers' control. As the result, good attitude does not mean that they are able to achieve good outcomes because there are some barriers prevent them to achieve the target. Thus, reward system is useful to motivate lower level workers to put them in persistent effort for achieving the desired outcomes. Therefore, the company has regulated the rules and the criteria for rewards. Rewards will only distribute for employees who have achieved the pre-suggested target and they would deserved to gain extra bonus, which is half of their monthly base pay, and paired with a one time monetary incentive for them, as the key motivator for all workers at the lower operational level.

Besides, it is employee's responsibilities to participate in strategic goal so that they would commit to achieve goals. Furthermore, in the evaluation system, supervisor adopts ongoing request for feedback and coaching in the same time. By this, there are with two ways of communications between the supervisor and the workers. Obviously, the evaluation flows which implemented on the construction workers are slightly different with the supervisors. The reason is because they are emphasizing on sharing the performance data and collect the data on the spot. Also their appraisal period that had been used to evaluate and review the performance is different in the evaluating criteria and aspects, as what had been used for the Supervisors level of employees.

As the general logic, the educational level of the construction workers are generally low, hence the supervisors might need to gather the entire workers to have a meeting and demonstration of the instructions for works. In the period of such meeting, supervisors could evaluate workers by identify their behaviours, what has been done for them, provide feedback in either positive or negative comments, discuss the implications of changing the workers' behaviours and explain how to improve performance by amendment of their behaviours. These can lead to further development of person-based structures, such as skill plans to overcome problems and achieve the effectiveness. Person-based structures like pay to the SKA, which is relevant to the works, and which can make clear for the workers that with better performance might lead to greater reward. This will not only become the motivator to motivate the performances of the workers, but also will create an environment of transparent, as well as fairness to all the workers.

Besides, the company has also provides safety and health policies for the construction workers in all of the company development projects' venues. This shown that they company are complied with the government requirements, which monitoring by the ministry of man power. In addition, the company also provide medical and accidental insurances coverage to all of the employees regardless the levels within the company organization as a whole. Such insurances coverage is not only to meet the government requirement, but also as a way to minimize the company's liabilities as the construction fields are often dangerous. Besides, it could also increase the motivation to perform among the construction workers, as they will have the sense of feeling that the company is willing to take the responsible not only to their safety within the working environment, but also their psychologically safety and physically security needs.

The Issues within the Company

An effective and efficiency Performance Management System (PMS) which rely on the proper Performance Management Process (PMP) are very helpful to the top manager to evaluate each of the employees based on their behaviour, attitude, and performance, responsibilities on each assigned tasks, and result which produce by employees in its company in a proper way. It enables the top manager to identify the employees' strengths and weaknesses, in order to further developing them to increase the overall competitive advantages of the company to meet their strategic goals.

However, after investigate the company as a whole, we have notified the company actually posted big weakness, as there is no well established Performance Management System (PMS) within the company, and the Performance Management Process (PMP) is identified to be very limited in only monitoring the lower operational level of employees. We believe that this weakness will become the barrier for the company to growth properly, and also this weakness is possibly the main source of the majority of the hidden problem within the company.

Based on the system currently using in the company, we noticed that there are with significant problems and issues that the director has either chosen to be neglected with (due to his philosophy which stated the family and relatives relationship should be placed at the top priority), or the director are not aware with the benefits that might arrived once a proper Performance Management System (PMS) has been established within the company. The current process of measurement for the employees is not really accurate, but in fact is biases to the employees, as it is totally depending on the director's own preferences. In order word, a reward given to the particular employees might not because of their performance, but might because of their relationship with the director, they are the preferences key persons for the director or might due to simply give-away by the director without any proper reason. This however will further lead to misused of company resources, de-motivating other employees, and reduce the company overall competitiveness. Overall, the employees were not treated fairly and reasonably in the company. Although the interviewee ( Director of the company) stated in the interview that no significant problems had been notified by him in his company so far, but our group members are still believe that the problem as dissatisfaction of feeling among the employees should occurring in some degree within the company.

The lack of transparency also caused the employees might not clear about what is the tasks that should be performed by them. In fact, they might just 'act' or perform tasks, which they think will become the favour for the top managers. The impact might lead to the employees began to play 'politics', as the way to make them favourable for the company top managers. Such immoral activities will definitely hurt the company as a whole, when it become out of control by the company top management.

Besides, we had also identified another issue that faced by the company, which is the some of the employees are having work over load. Some employees have the problems when they need to bear too much of responsibility, and need to be reported and instructed by too many managers. This problem occurred due to there is neither systematic Performance Management System (PMS) nor proper Performance Management Process (PMP) over the top and the middle managerial levels within the company. As an example, a Supervisor might face difficulty when he receives different instructions or targeted orders from different top managers. It is somehow very difficult for supervisor to fulfil every manager's intentions or requests, but when one of the managers are not satisfy he or she will choose to deal with the supervisor but not the other manager directly. This is simply because of all of the managers are direct family members, which will try their best to avoid direct conflicts within one another. Yet, such scenario is the main source of frustrations to the Supervisors, as the supervisors are fall within the lower operational level, which are also no relationship at all to the director's family.

Hence, we believe that once there is with the established of proper Performance Management Process (PMP) and systematic Performance Management System (PMS) within the company, it will create way for the top managers to identify such problems much easier. The top managers can identify the real condition, and yet lead to better communication among the top and the middle managerial levels, as well as the decreasing of responsibilities workload for the supervisors. These will be the prefect solution for to handle the Supervisors' turnovers, as the Supervisors are currently the position which recorded the highest turnover rates within the company.

The Challenges of the Company

Challenges mean the external factors that influence a company to continue move forward or prevent it for success in future time. That can divided into two major factors, which are opportunity and threat. Opportunity is any external circumstances or characteristics which favours the demand of the system or where the system is enjoying a competitive advantage. There have several opportunities to look. Firstly, continues private sector housing boom in the town of Muar will create more construction opportunities to the company, since it is a well-known local construction company. Secondly, public sector projects through Public Private Partnership (PPP) will bring further opportunities to the company as well. Although they company is Chinese ethic based which are not qualify to bid the government projects directly, but the company can join partnership with another Bumiputra construction company to bid the government projects, or even become the secondary bidder to bid those parts of the projects that outsourced by any Bumiputra construction company. The Public Private Partnership (PPP) program is the arrangements of the involvement of government agencies and the private sector, for the purposes of securing investment and increate the efficiency in the delivery and the development of public infrastructure, social community facilities and other related community's services. Such partnership arrangement enables the sharing of investments, risks, responsibilities and rewards between the government and the private sector, which will then increate the number of development projects and create opportunities to the company to become one of the beneficial.

However, as the perspective in the constructional industrial is increasing, yet it will attract more competitors to enter the industry. Also the development of the Town of Muar make it become attractive for construction companies, which was not original based in Muar Town, to involve themselves in the Muar Town construction projects as well. This will posted the increasingly challenges to the company, as they are currently need to increase their competitiveness, in order to survive while competing with other bigger and well established construction companies.

Another very significant challenge is that the mass development of the construction industrials within the town of Muar has already produced many houses and shops for the buyers to choose on. In other words, the increasing supply of the town housing properties have cause the company-built housing properties have to face more and more competitors. Also, the buyers preferences are now keep changing massively, due to they are currently with the supply of higher standard of choices from many construction companies locally or from foreign states. This scenario is become much complicated if compared as in the past where there were basically only few local construction companies that will become the suppliers for the local town housing development projects.

Besides that, developing supply chain through involvement in large projects is likely to enhance the chances in construction. Renewable energy projects will offer opportunities to develop the skill and capacity in the new market. Financial supports like loan and insurance and growth in income of people is in support of construction industry. All of these factors will contribute to bring in more and more challenging competitors to the construction industry, which will posted the challenges directly to the company.

Also, historical culture heritages like the TAZ MAHAL encourage and provide a creative platform for the industry. As the result, the local residents are now request to more innovative and creativities fashionable houses, rather than just only a place to stay. This will further increase the challenges of the company, as they are now not only have to build nice house, but also have to build creative and fashionable houses, in order to meet the demands need and make it easier for them to sell their built properties.

As we know in the general, threat is a challenge of an unfavourable trend or any external circumstance which will unfavourably influence the position of the system, In short, threat is another one factors as obstacle to prevent the company for the success in future. There have several threats to analyze for the company, in which might become the challenges for the company from time to time. As at the top priority is the Long-Term market instability and uncertainty that may damage the opportunities and limit the expansion of the employees' training and facilities' development within the company.

Besides that, the current economic instabilities are also become a very significant challenges to the company, as what we know an housing estate development project might need to spend several years to be completed, however, it is hardly to predict what will be the economic prospects in the years later in future. If the economic turning bad and fall into recession in future, it might hurt the company badly. This is because in the period of recession, more people are unable to purchase houses and choose to hold liquidity assets. This may cause the construction industry to face the cash flow problem, if they are with too many supplies of houses with much lesser demand of buyers. The cash flow difficult might indeed lead a company to acquire more credits loan with higher interests or even have to declare bankrupt at the end. This situation is not uncommon, but it's totally possible to be happened, especially within the Locally Small and Medium Enterprise (SME).

Another very critical challenge is the government. This is because political and security conditions in the region and late legislative enforcement measures are always the threats to the companies especially the construction companies. The lack of political willingness and support on promoting new strategies of the company can also cause the company difficulty to successfully get the projects' bids, finish the bided projects, and yet liquidity the built projects to become profit at the end. Also, it is undeniable to say that the company has to face additional challenges due to it organizational structure, which is totally Chinese ethic based. This scenario has limited the company to involve them directly in bidding the government constructions projects. In a more direct say, the company is not qualify to bid any government constructions projects throughout the country, due to the qualification of more than a minimum of 50% of Bumiputra shares in a construction company is a must for the particular construction company to place a bid within any government project.

As from financially factor, the company might need to face the challenges of the both possible increasing inflation rates and interest rates. This is because the government is now intended to decrease their subsidies, which will directly lead to the increasing cost in the logistic due to the higher patrol price. And also lead to the rising inflation rate, which might cause the public to have lesser consumption power, yet decrease the demand to own housing properties. Once the inflation rate is reaching certain level, it will force the Central Bank of Malaysia (Bank Negara Malaysia) to increase the key interest rate to a higher level. This scenario will further decrease the willingness of the general public to buy housing properties, and also will cause the company have to pay higher cost for their loan of development capital.

The last possible challenges for the company is the natural abnormal casualties, such as: earth quake, and floods, which might lead to the increasing of the cost of building materials, due to the damages within the logistic network or the decreasing supply of the building materials, once the raw material locations are destroyed. Beside, the floods issue also forced the company to pay more for upgrading their storage security of the building materials, as well as the safety of their managerial offices. The company has to spend a lot for the maintenance, just to prevent the possible losses that might be arrived due to the floods in future.

Conclusion and Recommendation

After studied in depth within the SIA LEE SWEE CONSTRUCTION CO, we can concluded that the company is lack of the proper Performance Management Process (PMP) at the top and the middle management levels, and also lack of the establishment of systematic Performance Management System (PMS) in all level. The main impacts that contributed to such scenario is because of the company's director is practising centralized decision making, as he is holding all of the company decision making power, regardless the size of the issue, as well as what is the particular decision regarding with. Another significant impact that contributed to such scenario is because of the company is mainly totally family based small enterprise, which mean that the majority of the positions in top and the middle managerial levels are hold by the company background's family members directly, or their respective relatives. Such situation caused the company organizational cultures where are totally depends on the relationship (GuanXi). In addiction, the employees might bring the company issues back to become the conflicts within their family, or otherwise, since that there is no systematic Performance Management System (PMS) and proper Performance Management Process (PMP), which can actually help all of the company's employees to distinguish their personal role as the company's employees, and also their role as a family member while outside the company.

Such company organizational cultures are actually limiting the growth of the company in the short term and placing the company at risk in the long term. The company might lose it creativities to create innovations final buildings, since all the decision making are come from the director himself and all the top and middle managerial employees are closely related to once another. In order words, it is hardly for the company to gain newer innovative ideas, as no outsiders are allowed to involve and participate within the company at middle or higher levels.

Besides, the lack of systematic Performance Management Systems also contributing to the problems of lack of transparency, biases in measurement, rewards upon preferences but not performance, and the work overload within certain positions. All of these problems will yet lead to conflicts within the same level or among the different levels of employees within the company as a whole. Also the competitiveness of the company are unable to be increased, as the misused of power and biases in allocating the company resources for unnecessary rewards are both lead to the reduction of the company overall competitiveness, as well as higher turnover rates within certain positions.

As for the company's director, we recommend him to decentralize the decision making power accordingly to the degree of issue, and also the functional department of the decision making. The decentralized decision making practise can decrease the work loaded for the company's director himself, and also enables timely decision making for lower degree decisions, as well as daily operational decisions. Also, the decentralized practise can fulfil the 'Needs for Authorities and Power' among the other top managers and middle managerial employees, as the way to motivate them. The more challenging goals and difficult tasks for the top and middle managerial employees can also increase their motivation to perform.

Besides, the company should also review its Performance Management Process (PMP) at all levels, and create a systematic Performance Management System (PMS) for all employees within the company, regardless their levels of positions. The company's director as well as other top managers should accept the possible benefits of the systematic Performance Management System (PMS) and beware to the dangerous or possible risks due to the lack of a systematic Performance Management System (PMS).

In general, we believe that any Reward System that without a link with a systematic Performance Management System (PMS) is often biased, not transparent and inefficient. However, due to the company organizational cultures which are totally based on Relationship (GuanXi) , and also the lack of willingness of the company's director to implement a systematic Performance Management System (PMS) at all level, hence our group had decided to recommend a broader guideline of implementation for the company.

The proposed broader guideline of implementation for the company can be basically divided into 3 stages :

Stage 1 :

Make an overall review on the Performance Management Process (PMP) at all of the three levels of organizational: Top Management Level, Middle Managerial Level, and Lower Operational Level. Identify the problems and issue within each level of Performance Management Process (PMP), and further finalized the whole Performance Management Process (PMP) within the company accordingly to the loop of: Prerequisites -> Performance Planning -> Performance Execution -> Performance Assessment -> Performance Review-> Performance Renewal and Reconstructing.

Stage 2 :

Notify the important and the purposes of the Performance Management System (PMS) to the company's employees, especially the top managers and the middle managerial employees. And make sure that all of them are aware that a systematic Performance Management System (PMS) is actually a very good tool to certain that:

[1] The tasks performed by the employees are always meeting the job's requirement of the company.

[2] Employees at all level are always aware about what should be performed by them and how to do their job well.

[3] Employees receive ongoing feedback on their performance and enable them for self improvement.

[4] The rewards system become transparent and eliminates conflicts or doubts within the employees.

Stage 3 :

Clearly stated the components of a systematic Performance Management System (PMS) and show the valuable of the system.

The components of a systematic Performance Management System (PMS) include:

[1] The way of informing the employees about their performance expectations

[2] The procedure in how to conduct the annual performance appraisals

[3] The procedure for on-going feedbacks, including both positive and negative

[4] The way in encouraging the development of employee's KSA

[5] The training for Top Managers and Middle Managerial employees managing skills and performances, in order to establish better administrative system

[6] The procedure to resolve performance benefit or pay disputes

Stage 4

Developing the systematic Performance Management System (PMS) and implementing it at the lower operational level at the very beginning due to the following reasons:

[1] The lower operational level workers are all have no relationship with the company background family; hence there is no worry about the possible conflict that might affect the relationship within the director family members or their respective relatives.

[2] Since there is with no relationship occurring within the lower operational level, yet the company's director would be more willing to implement the system, as he need no to worry about any possible negative feedback given might hurt the relationship within his family members or his respective relatives.

The systematic Performance Management System (PMS)

[A] The Performance Management System Process

- The Supervisors need to take the responsibilities to manage the performance of their supervision construction workers, and they need to make sure that the given tasks are able to be completed and meet the targeted quality of their respective managers.

[A.1] The ways of informing the construction workers about their performance expectations are as the following:

- At the beginning of a year or a given project, the supervisors shall gather all of his directly supervision construction workers to:

[1] Clarify their performance expectations,

[2] Explain the way for performance measurement,

[3] Telling them how their tasks can contribute to the company success, and

[4] At the end gains possible more rewards to them.

- All of the performances expectation will be documented and become the criteria for performance evaluation.

- It is advisable that all of the performance evaluation forms or documents should be signed and dated by the supervisor as well as their directly supervision construction workers, as the way for greater transparency and biases elimination.

[A.2] The ways for performance maintaining

- The construction workers should be responsible for their given tasks.

- Supervisors are necessary to provide guidance and to support their directly supervision construction workers, in order for them to meet the expectations.

- Supervisors need to inform, clarify, and demonstrate new changes during the work cycle. It is necessary for the supervisors to make sure that the construction workers are able to adapt to changes.

[B] The Annual Performance Appraisals

- The supervisors need to evaluate employees during the past year or after the end of a give project work cycle.

- The use of proper standard format, which named Performance Appraisals, is a must for effective evaluation and proper documentation.

- The evaluation should be appraised in the rating scale format. A 5-level of rating scale is appropriate for performance appraisal.

- Both of the Supervisor and the involved worker should sign on the appraisal form, as the way to eliminate biases and for more transparent evaluation.

[C] The Procedures for On-going Feedback

- Feedbacks should be provided by the supervisors to the construction workers at regularly basis, regardless it is positive or negative.

- When there is with workers who are unable to meet the performance expectations, yet the supervisor should document the under-performance with clearly listing out:

[1] The issue

[2] The steps that be taken for improvement or correction making

[3] The outcome of the failure or the damages

[4] The suggested improvement or correcting action

[5] The follow-up dates

[D] The ways in Encouraging the Employee Development

- The Supervisors should identify the strengths and weaknesses for their directly supervision construction workers.

- The Supervisors should try to assist the workers to solve their possible weaknesses, which might be the source of their under-performances.

- The Supervisors should documented all the identified strengths and weaknesses of the workers and reporting them to their reporting managers.

[E] The Transition of Positions

- When there is with new worker joining a particular supervision group, the supervisor should closely supervise the particular worker for a probationary periods of time (Ideally will be 2 weeks to 1 month).

- The Supervisors should make sure that the particular new worker are able to meet the performance expectations before the end of the probationary periods, otherwise documenting the issue and reporting to the managers.

- When a worker wish to transfer from one group to another, the releasing group's Supervisor should send a review of the worker's performance to the General Manager and also to the receiving group's Supervisor. The review should be providing together with the written requests from the worker, or proposal to transfer from the supervisor.

- When a supervisor are decided to resign, the General Manager should make sure that all the performance documentation of the particular supervision group workers are properly documented, and is available to the worker's new supervisor.

Stage 5

Restructuring the above Performance Management System (PMS) to suit to the Top and the Middle managerial level of employees and implementing the restructured PMS into these levels confidently, once the significant results of the above PMS have been notified within the lower operational level.

We believe that the company will be able to increate their overall competitiveness, once they have successfully developed, implemented and conducting systematic Performance Management System (PMS) at all levels of organizational within the company as a whole.

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