Primark Performance Management,
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Published: Wed, 12 Jul 2017
Primark is a leading retail group in the value sector and operates a total of 187 stores in UK, Ireland (Penneys brand), Holland, Spain and Germany. Primark employs in excess of 27,500 people. In GB, in terms of market share, TNS ranks Primark as GB’s second largest clothing retailer by volume and Verdict Research now places Primark as the leading retailer in value clothing. Primark was voted ‘Best Value High Street Fashion’ by GMTV and ITV viewers.
Strategic Aims and Objectives of Primark:
Primark is mainly focuses on young people, those are less than 35 year offering them a superior quality and fashion trends at the value of their money.
A strong consumer proposition has been developed for the Primark brand and embodied in the line “Look Good, Pay Less”which communicates Primark’s value-based offering in a precise manner, to its core target audience.
Primark is offering to one of the high quality merchandise to their customers, at value for money, is supported by service promised by Primark.
It’s a mission of Primark staff and management to supply quality and class clothing and merchandize at the worth professed.
Super competitive prices (the result of innovative technology, supply and volume buying, efficient distribution)
Mainstream market product quality, clear focus on the target market, superior store fit, and high street locations.
Primark is a high street retailer which has a family of brands and focuses much more on buying, logistics and supply chain managementrather than branding.
1. Set the performance targets of teams to meet strategic objectives.
1.1 Access the link between team performance and strategic objectives.
- Performance Management:
Performance management is an integrated approach enabling managers to set targets, measure and review performance and re-define goals, giving a clear indication whether the activities undertaken by individuals and the organisation are achieving the organisation’s key objectives.
“Management is a process of directing and supporting employees to work as effectively and efficiently as possible in line with the needs of the organisation.” (Walters)
Performance management will look different in different places, but effective organisations share some common characteristics. These are:
- real-time, regular and robust performance data
- can-do culture inspired by strong leadership
- agreed lines of individual accountability
- clear performance management review, combining challenge and support
- transparent set of performance rewards and sanctions
Effective performance management requires:
- Aims, objectives, priorities and targets
- Improvement, action or service plans
- Performance measures
- Performance reporting
These plans and actions fit within a framework that we summarise as ‘plan, do, review, revise’. Through this framework, learning can be harnessed in a continuous cycle of improvement.
1.2 Evaluate tools and techniques available to set team performance targets.
“When you can measure what you are speaking about and express it in numbers, you know something about it.” (Kelvin)
Some are the following techniques and tools used for setting the team performance targets.
- Six Sigma
- Just in Time (JIT)
“Six Sigma is a method to achieve near perfect quality. Any service or element of production can be focused by six sigma analysis and has a strong emphasis on statistical analysis in design, manufacturing and customer-oriented activities.” The UK Department for Trade and Industry (2005)
Just in Time (JIT)
To grasp the concept JIT is very simple for example for my journey to college I could have left the house just in time to catch the train.
JIT can also be defined as producing the necessary units, with the required quality, in the necessary quantities, at the last safe moment. It means that company can manage with their own resources and allocate them very easily.
Kanban system is Japanese concept. Simply described a “pull” production or manufacturing system that controls the flow of work through a factory by only releasing materials into production according to customer demands i.e. only when they are needed. Within the production field, the Kanban process is the most significant of these services.
Kaizen is also Japanese management method of incremental change. This philosophy assumes that every aspect of our lives needs to be improved. The key elements of Kaizen are:
- Willingness to change
- Involvement of all employees
1.3 Access the value of team performance tools to measure future team performance.
Primark focus on supply chain management concept in their business to deliver their merchandize to their stores from warehouses in right time, right quantity and right location.
Right now for Primark Just in time (JIT) concept works with full swing their one of the most strong business strategy that is Supply chain management of their products. They believe that JIT concept can provides the company huge and diverse benefits. JIT has helped a lot in the following way.
- Reduced set up times in warehouse the company in this case can focuses on other processes that might need improvement.
- Improved flows of goods in/through/out warehouse, employees will be able to process goods faster.
- Employees who possess multi-skills are utilized more efficiently. The company can use workers in situations when they are needed, when there is a shortage of workers and a high demand for a particular product.
- Better consistency of scheduling and consistency of employee work hours. This can save the company money by not having to pay workers for a job not completed or could have them focus on other jobs around the warehouse that would not necessarily be done on a normal day.
- Increased emphasis on supplier relationships having a trusting supplier relationship is important for the company because it is possible to rely on goods being there when they are needed.
- Supplies continue around the clock keeping workers productive and businesses focused on turnover employees will work hard to meet the company goals.
2. Be able to agree team performance targets to contribute to meeting strategic objectives.
2.1 Analyse how to determine the required performance targets within teams against current performance.
Performance criteria what so ever the aims and objective of the organisation it should be falling in SMART criteria.
- T-Time bound
In order to ensure what you aims and objectives have set by the management either they are realistic achievable and measureable against the required level of objectives and company strategies. Company should having a system on different hierarchical levels to access.
Discussion of hierarchy and their responsibilities.
Dedication and struggle for the achievement of company goals and objectives.
Documentation of the work
Ongoing requests for feedback and training
Observations and step for improvement at work
Communication with seniors, supervisor and managers
Get the feedback
Insurance of quality of work and professionalism
Using of resource at right time and right place
Collecting and sharing performance data and analysis
Reinforcement and backup
Preparing for performance reviews and promotions
Provide essential training
Strategic objectives and performance measurement systems
Reviewing the performance of an organisation is also an important step when formulating the direction of the strategic activities.
The main reasons are:
- Ensure that customer requirements have been met
- To give standards for establishing comparisons
- To be able to set sensible objectives and comply with them
- To highlight quality problems and determine areas for priority attention
- To provide feedback for driving the improvement effort
Primark core strategic objectives and performance indicators
Strategic core objectives
Focusing on logistic, supply chain management of the goods rather than branding.
Primark is a family of brands, they have more than 20 brands name in their stores. This clearly indicates that they are focusing on continuing supply of their good in the store.
Focusing on labour laws for their suppliers in different part of the world.
They have implemented the ethical trading initiative rules and regulation in the supplier’s factories to ensure the labours laws caring and obligations.
Maintaining financial suitability
To maintain a healthy profit margin they always buy in bulk, whenever you buy in bulk your production cost goes down.
Always giving and focusing good quality product to their customers in cheap prices.
Mostly people ask how Primark keep low their prices. Primark is focusing on following five things.
1. They do not go for big advertisement.
2. They are buying in bulk.
3. They are just producing most popular sizes.
4. Designs are simple not much complicated.
5.They do not third part interaction in the business.
Primark distinguish the blow of environment on its business.
Release to air, let go to water, and land filling of solid wastes.
Expansion of business in Europe.
They are opening 2 new stores in Germany and Belgium. In future they are planning to open store in France.
2.2 Discuss the need to encourage individual commitment to team performance in achievement of organisational objectives.
- Concept of team:
Mullins (2007) “Team occur when a number of people have a common goal and recognize that their personal success is dependent on the success of others. They are an interdependent.”
The following definitions of motivation were gleaned from a variety of psychology textbooks and reflect the general consensus that motivation is an
- internal state or condition that activates behaviour and gives it direction
- desire or want that energizes and directs goal-oriented behaviour
- influence of needs and desires on the intensity and direction of behaviour
(Kleinginna and Kleinginna, 1981)
Primark is basically a retail company, in case of it every employee or team member is depended the work of other team members. For example a task is given by the night manager to ensure the availability of new lines in the department till 7 AM. To complete this task supervisor need 6 staff members but he is having only 4 members, 2 are on sick leave.
In this case all the remaining for people has to do some extra effort for the completion of task. Team needs to be motivated to put more energy in achieving their targets. This motivation can be done by fulfilling the needs of the employees so that they get more devoted to the goals or targets. This can be done by giving bonuses i.e. cash, promotion or any other facilities for their social needs.
2.3 Relate the application of delegation, mentoring and coaching to the achievement of organisational objectives.
The process of entrusting somebody else with the appropriate responsibility and authority for the accomplishment of a particular activity. Delegation involves briefing somebody else to perform a task for which the delegator holds individual responsibility, but which need not be executed by him or her. (BNET Business Dictionary)
Primark is growing company having a good number of managers they should need to much more focus on their strategic way of decision making and delegate to fulfilment of their operational and statistical responsibilities. This will help them to open the new way of decision making, project and task sharing.
This will reflect the positive and effective way for employees and workers they will start building the trust; the delegation should make the objective clear. Training and guidance should be given. It should also be reviewed and monitored but too much control will not fulfil the idea of delegation.
- Monitoring and coaching:
Actually monitoring an coaching is the way to support those who are in learning and trying process and want to learn and try to achieve something for the prospectus of the organisational goals and objectives. It really plays an important role for the achievement of the common objectives, who are in learning stage. Learner’s employees get a chance to explore their views and ideas and then they take guidance from experienced and skilled staff or people. This will help them learn the skills and attributes which may help them achieve the Primark goals.
2.4 Evaluate a team performance plan to meet organisational objectives.
Thus far, the nature of management has been examined primarily from the point of view of the individual manager. It has been shown how management as the board responsibility for a work process, together with the management functions of planning, allocating, motivating, co-ordination and controlling work are separated from the execution of work itself and dispersed through different managerial positions. Analysis of the common features and variations in managerial work showed that much of what managers do reflects their responsibility for planning, allocating, motivating, co-ordinating and controlling the work of others and the inherently problematic nature of this responsibility.
An Initial Performance Plan is a detailed plan for either an individual or a team and is used to:
- Identify the desired performance levels
- Identify how these performance levels will be achieved
- Provide guidance and direction
- Measure progress towards the desired performance levels
Individual and team Performance Plans should align with the organisation’s overall objectives. This can be achieved by aligning the:
- Performance Plans with the Team Operational Plan
- Team Operational Plan with the Team Purpose
- Team Purpose with the organisation’s Strategic Plan
3. Monitor actions and activities defined to improve team performance
3.1 Access the process for monitoring team performance and initiate changes where necessary.
- Monitoring Team Performance:
Monitoring the team is one of the most critical aspects of performance management. This involves not only managing internal staff but also managing any customer personnel and subcontractors assigned to the project team.
Key aspects of effective people management include:
- Delegating responsibility for work assignments and witnessing the commitment of each team member.
- Building co-operative working relationships and ensuring effective communications among all members of the project team.
- Monitoring team morale and taking action to correct problem areas.
- Providing effective performance review and appraisal to motivate staff and facilitate career development.
The processes for monitoring are:
- Set Up Standards and Procedures for Team Performance
- Assign Responsibilities
- Meet with Team
- Recognize Success
- Monitor Team Morale
- Conduct Team Performance and Reviews
In Primark high level management and managers are responsible for monitoring of the performance of teams and employees. The main and basic idea includes fro monitoring to ensure that:
- All the assigned responsibilities are being full filled as per required goals,
- To identify the opportunities and chance for improvement in the work,
- To make out the progress against the goals,
- Evaluate the progress against the internal and external standards.
Feedback and reviews:
Harry Levinson (1996) The greater the emphasis on measurement and quantification, the more likely the subtle, non-measureable elements of the task will be sacrificed. Quality of performance frequently, therefore, loses out to quantification.
Feedback is a message which tells the team how it is performing. Feedback is essential for a team to improve its performance. If the team doesn’t get feedback, it has no objective measure to guide it.
The managers of Primark are responsible for seeking of feedback from their employees and customers. It is very important to know what the company is delivering in term of their objectives and goals are satisfying in real means to the people or not. The employee feedback should be in the form of asking them whether they are satisfied with the current policies of the company, the environment of work, facilities they are being given by the company and are they being over burdened of the work.
McKinsey’s 7-S model is a helpful framework for exploring why a performance deviation might have occurred.
The model starts on the premise that an organization is not just Structure, but consists of seven elements:
- Strategy Plans for the allocation of a firm’s scarce resources, over time, to reach identified goals. Environment, competition, customers.
- Structure The way the organization’s units relate to each other: centralized, functional divisions (top-down); decentralized (the trend in larger organizations); matrix, network, holding, etc.
- Systems The procedures, processes and routines that characterize how important work is to be done: financial systems; hiring, promotion and performance appraisal systems; information systems.
- Skills Distinctive capabilities of personnel or of the organization as a whole.
- Staff Numbers and types of personnel within the organization.
- Style Cultural style of the organization and how key managers behave in achieving the organization’s goals.
- Shared Value The interconnecting centre of McKinsey’s model is: Shared Values. What the organization stands for and what it believes in. Central beliefs and attitudes.
3.2 Evaluate a team performance against agreed objectives of the plan.
Assessing the performance can be done by taking the feedback and comparing it with the planned targets. Amending or changing it according to the need. Inform the team their areas of responsibilities and where focus or change is needed. Motivating them and keeping record of all the documents.
At Primark there is group of manager who are responsible for the evaluation of team. What they do?
- Access the daily based achieved targets against the given tasks.
- Monitor the individual participation for the purpose of promotions.
- Get feedback from new employees and their contribution in doing job.
- Do analysis of required documentation related to work and their presentation.
- Access the planning of job and alignment for achievement of goals.
- Judge the interest and commitment of employees for doing the job.
- Monitor the allocated resources for particular task are they enough or not.
- Do give the awards and appraisals for the motivation and dedication of employees.
3.3 Evaluate the impact of the team performance in contributing to meeting strategic objectives.
Team performances in contributing the strategic objectives have a great impact by doing this team performance can enhance. Team performance measures can be set:
- The objectives and targets for the teams
- Customer satisfaction targets
- Commitment with the company and objectives
- Skill and expertise levels for the teams
Primark management is keeping proper record and control of the overall objective of the company whether they are being achieved by team or not. Are the customers being satisfied by the service provided by the company’s employees? Are the staff members doing their responsibilities as a team member i.e. achieving targets, following company policy, time punctuality and absenteeism etc., and the level of skill for doing job. If any of these things is not being achieved then positive steps should be taken in order to achieve the company objective and maintain the standards and policies.
Use of Key Performance Indicators (KPI):
- Aligned with goals
- Can be used as a benchmark
Reasons for Variance:
- Lack of training work and motivation
- Insufficient resources at work place
- Socio Political environment
- Unexpected working circumstances
- Bad KPIs
It is the liability of the management of Primarkto execute and bring any needs compulsory for the better performance and achieving of company goals. Have to check is there any lack of training or motivation, reasons should be sought and proper and required training should be given to the staff. Proper resources to be arranged for the like providing proper uniform and working tools and stuff. Working environment should be examined on periodic basis to avoid any misshape related to health and safety, any strikes or resignation of the workers. If the Key performance indicators are not as per requirement they should be replaced and should introduce reworking realistic and achievable standards.
4. Apply influencing and persuading skills, to the dynamics and politics of personal interactions.
4.1 Determine influencing and persuading methodologies to gain the commitment of individuals to a course of action.
Influence is defined here as the attempt to modify others’ behaviour through the mobilization of or reference to power resources. Leaders are the people who have influence with power having clear focus on the company objectives; they can motivate the employees and can change or modified the company strategies accordingly.
There is no single method of influencing or persuading everyone.
There are two types of climate sunny & stormy.
Sunnyteam climate mean people are allowed to take initiatives and understand their contribution to do good performance. People know their abilities, skill, and motivation of team members are recognized. There is a clear direction and good communication. Workload is distributed evenly. Physical work environment is conducive to good performance.
Stormyteam climate mean people are not allowed to take initiative and they do not understand their contribution to do good performance. People have little understanding of their role. There are conflicting goals and mixed messages. Work is spread unevenly amongst the team. Physical environment prevents good performance.
Climate in team can be improved by
- Create a shared vision
- Improve the physical environment changes
- Use ideas from the team to make improvements
- Consider people’s skills, abilities and aspirations
Influence and Power:
Deploying power to influence others’ behavior is only rarely an obvious, straightforward, visible process: influence mat take a variety of different forms. First, power resources may used to influence behavior either positively, in the sense of providing the resources to the benefit of the recipient, or negatively, in the sense of withdrawing or withholding the resources to the cost of the recipient.
There should be a balance between the power and influence taking the example of Primark if the managers of the Primark are having power and authority but no influence to the employees and supervisors than this can be the lost of the company and resources to achieve the strategic objectives of the company.
Motivational Value System:
Elias Porter, everyone has a basic desire to feel good about themselves, but we achieve that in different ways.
- Philanthropic person is motivated and most rewarded by helping others.
- An analytical person will find reward in carful analysis of a problem and minimizing risks.
- People feel empowered when they are able to express their natural style.
Individual impacts on others:
Understanding the individual impacts on the others; get feedback from colleagues. A questionnaire is used that is called 360°.
The idea of 360-degree feedback is that the performance of an individual is rated by people who are related to the individual’s work. This could include reports, peers, managers, customers or clients, colleagues etc.
360-degree feedback gives the employee of the veterinary practice insight into how peers and other relations perceive him.
- It increases self awareness and position in the context.
- 360-degree feedback encourages self-development.
- It increases understanding of the behaviours required to improve personal and organisational effectiveness.
- It increases communication within the veterinary practice.
- It’s a powerful trigger for change.
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