STRATEGIC PERFORMANCE MANAGEMENT provides a detailed blueprint for turning corporate vision into reality - breaking down the things an entity needs to achieve as a business into real actions that can be measured.
What is PM (Performance Management)?
Performance management (PM) includes activities that ensure that goals are consistently being met in an effective and efficient manner. Performance management can focus on the performance of an organization, a department, employee, or even the processes to build a product or service, as well as many other areas.
Why is PM Crucial?
Time Consuming: It is recommended that a manager spend about an hour per employee writing performance appraisals and depending on the number of people being evaluated, it can take hours to write the department's PA but also hours meeting with staff to review the PA. I've know managers who had 100 plus people to write PAs on.
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Discouragement: If the process is not a pleasant experience, it has the potential to discourage staff. The process needs to be one of encouragement, positive reinforcement and a celebration of a year's worth of accomplishments. It is critical that managers document not only issues that need to be corrected, but also the positive things an employee does throughout the course of a year, and both should be discussed during a PA.
Inconsistent Message: If a manager does not keep notes and accurate records of employee behavior, they may not be successful in sending a consistent message to the employee. We all struggle with memory with as busy as we all are so it is critical to document issues (both positive and negative) when it is fresh in our minds.
Biases: It is difficult to keep biases out of the PA process and it takes a very structured, objective process and a mature manager to remain unbiased through the process.
Performance Management Model
McKinsey's 7-S framework, difficulties with alignment, organisation's strategy, vision & mission and promoting alignment laterally.
The 7s model was is known as a Mc Kisneys 7s because of two person who has create this model. McKisney's 7-S framework was designed by Taneters and Robert waterman in 1980. The model was designed to improve the performance of the company and to examin the effect of future changes in the company.
In order to improve the improve the performance of the company 7s model was used by Tesco. The Mc Kisneys 7s model include seven interdependent which are categorised as either hard of soft elements. Hard elements are easy to define and management can directly influence them. These are policy statement , organisation chart and reporting line of process in IT system.
The model can be used by any organisation in order to improve the performance of the company or team. The best time to use the model is when any organisation merge with any other organisation or the leadership change or a new system were establish in the organisation
Strategy : To create a plan to take a advantage of the competitive market
Structure : The way that how the structure of the organisation was created
System : The daily routine activities in the organisation by managers and employees
Style : The way of working or behave to do something different
Staff : capability , knowledge and skills of the employees
Skills : The actual skill and compentences of the employees working with the organisation
Tesco have use the 7s model in two ways. First is to identify the strengths and weaknesses of the organisation by gathering all 7s to each other. No S will consider as a strengths and no S will consider as the weakness. How the 7s model made to impact on other all 7s. Though the plan will according to 7s model it will make some effect on the other part of the organisation.
Difficulties to Align it:
Tesco have faced some difficulties to implement the 7s model, tesco wanted to bring the technological change in the organisation as a self checkout which was not a easy task for tesco. There are so many changes to do in the organisation but the area is very big, to implement it there are lot of things which were missing which called 7s features such as this should be bias of action but because of poor data of technology it was very hard to do. This system is new for the customer and it was the first experiment by tesco in retail industry so it was very risky for tesco.
Models and approaches :
Always on Time
Marked to Standard
Common PM models, MBO, EFQM Excellence Model, BSC and how these are helpful to meet your organizational needs. The EFQM model was introduced in 1992 as the framework for assessing organisation. EFQM model helps organisation to how to make a development plan of the organisation. Where it includes the leaders of the organsition who create a vison of the company and people who helps to achieve the goal and to achieve the goal have to design a strategy that how to achieve the goal.
The EFQM is working in a three different part like Input , process and output. In order to improve the cuetomer services EFQM model was adopt by the Tesco. As in leadership shows that tesco mission and objective policy is continuous plan to become market leader. As a first part of the EFQM model it shows input process or output process. The input process is worked in three different section like people , strategy and partnership and resourcs. On that a job has been done by tesco when they decide to bring the technological change in the organisation. To input that change tesco have design a policy that how to implement the plan in the organisation. Once the policy and strategy has been designed than it goes to the next stage which is called process where all the three different inputs have been gathered and put all of them in to process mapping and review, and health and safety plans, EU regulations ,logical framework approach , balance scorecard are self assessment by the IIP. When the process was done there are three other points which mention the output as it results the three points are people result as people satisfaction , customer result as customer satisfaction and the society result as an impact of the society.
The whole excellence model put an impact on organisation results as improving the finance indicators and other indicators which support the organisation , the reason is that the employees for organisation, internal audit to support the activities in the organisation which is beneficial for the others who are directly or non directly connected with the organisation.
Learning outcome 2 : Be able to agree team performance target to contribute to meeting strategic objectives.
Engaging people :
For few years ago employment engaging was a very hot topic in the corporate market. It is a birs phrase which captured the attention of work place observer and hr managers and the executives as well.
The main reason to engage the people is to achieve the goal for the organisation. For any organisation it is difficult to achieve the goal if the employees will not work as a team. To create a team top management will design a strategy that how they will have to work. The top management have a power of authority so that they can implement the strategy as which is suitable to achieve the vision. Another part is when a vision or mission is create by the top management they should have to share with the every employees so vision is clear in the mind of every employees and they should also have to discuss about the benefits of the vision that if they achieve then what the benefits the employees will get.
The tesco have create the vision to become the market leader in the UK market and for that tesco decide to its customer services. In order to improve customer services tesco decide to bring technology change as a SELFCHECKOUT which was well accept by the customers and as a result the sales of tesco was increased by 4% in just within two months.
Developing people , performance and team :
The plan of SMART goals :
The co operative plan for tesco with models and approaches, though there are many models were used to achieve the goals but it is dame sure that the goals are SMART means Specific, Measurable, Attainable , Realistic and Time base. If any of them is missing then the vision can not be achieve. Tesco needs to engage the customer by using the power, power means no by the force but by influencing them. Tesco want the give the customer what they need like good customer services etc. which will make the clear way to achieve the goal for the organisation.
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The graph illustrate the situation of the vision of the tesco which tesco want to achieve. It shows that after implement the self checkout the growth of the company is keep going on. Every vision have some previous category but currently it shows the achievement of tesco from bottom to top level in all categories like change environment etc. Though tesco have well planned policy which help him to improve and also beneficial for the employees.
Handling under performance :
As a strategic manager when you are giving your feedback to any employee of the organisation who is not performing well you should know that you are telling against him. You should have to use the proper communication language which don't effect the other person in a wrong way. As a manager you are giving your feedback that what you have observe in his job. The feedback should be intentionally but not personally. The impact of your feedback is either positive or negative.
A positive feedback have two benefits. First is it gives confidence to the employees to be capable and second one is it helps him to promote his greater success. You must have to know that the motive of the feedback is to give motivation.
Learning outcome 3 : Be able to monitor action and activities define to improve team performance.
Team performance :
"Wisdom of Teams " "A team is a small number of people with complementary skills who are committed to a common purpose, performance goals and approach for which they hold themselves mutually accountable."
The second importance factor on which company is reliable is performance. If the top management and the employees of the company will not perform well then the company will never get progress. The management and the staff are always working in two different types whether they are on X axis or on Y axis. These are the two theories which shows the working criteria of the company.
In everu organisation the staff works in two different way. One is theory X and the other is theory Y. On theory X the staff is happy with what ever they have and they do not want to improve any thing though they can improve. The way they work is always repressive , authoritarian and hard control to show no improvement on their services. As a result it became a depressed or dead culture. At the other side in theory Y is focusing on liberating and development. The department ehich need control and always ready for other improvement.
Tesco was also facing some problems as a part of theory X but the tesco has improve its technological power to reduce the pressure of work and to improve the customer services and to cover the more market share. Before implementing the self check out there was a threat in the employees that they may loose their job but once they have been trained and they realise the benefits of the new system they became stress free and start enjoying the work mentally and physically. If the organisation is in the stage of theory X then the development will never come and the management will have to use the force or coercion to get the staff compliance. On the other hand in theory Y we don't need to use the force to make threat. In theory Y there is no need of any kind of improvement in policy which remain stable. So the organisation can motivate the employees by giving them some incentives, good salary package, bonus , reward and many other extra facilities to improve the moral of the employees and reason for this is if the management wants to work with theory Y and staff wants to work with theory X then the company have to focus on the theory X so the incentives will motivate the employees and they will make progress.
Without political skill the Performance management will never complete the major key of the company to fulfil the vision of the company. Though the politics is every where around the world but in the working area we need a positive politics.
To manage the environment of the organisation by positioning which increase the creadibility in the pocket by getting some formal and informal success criteria in which the pocket challenge the status for the best term reason of the organisation.
LEARNING OUTCOME 4:
Be able to apply influencing and persuading skills, to the dynamics and politics of personal interactions
Monitoring and measuring performance ;
J.Chappelet, E.Bayle (2005) "... an effective monitoring system for use in an organisation require an adequate information system that allow quick and flexible input, retrieval, and treatment of information...."
As the statement tells about the flexible input, recovery and the treatment of information is essential Tesco do such thing with it to calculate and to observe and give the precedence of benefits, services to get improved and efficient performance by the employees.
Tesco was measuring and monitoring the performance of the employees by separating in two parts extrinsic needs and fundamental needs. The extrinsic needs is that which needs external or outside show which is able to gathered the security and social terms like organisation benefits , job satisfaction , salary etc. On other side fundamental needs in built , inherent , legal , natural which collect the opportunities for the individual growth or as a team.
Performance appraisal :
"Performance appraisal is nothing but a process by which a manger or a consultant check and judge an employees work behaviour by comparing with the present standard"
Tesco have adopt some method to appraise the employees such like :
Give staff discount
Free gift vouchers on some special occasion
Salary increase after certain period
Providing a good training to employees
Ready to take the action against the staff complaint
Also communicate with the staff to take some decision about the store
Give bonus to the employees
These are some appraisal methods which really motivate them to work hard and powerfully.
BENEFITS TO EMPLOYEE:
By appraisal there are so many benefits which the employees will get like their communication skill will generate and the employees will more focus on the customers and try their best to do good job , what ever the decision they make is more refined and they wil get proposal by appraisal and the main benefit is they can also generate their interpersonal skill which help them to know their job better. Another main benefit is that they can do better planning for the organisation work by heart and they became able to generate their productivity and team work.
BENEFITS TO Tesco :
After giving the appraisal to the employees the productivity will also increased in the staff members, new ideas will come in front of the management from the employees , team work will generate in all tesco workers , critical problems were solved and get possibility to improve the sales of the organisation by good performance of the team.
FINDING AND RECOMMENDATION:
The changes are cery big in the organisation. The tesco should make working policy to improve the performance and make a step which will guide them at every step. The Tesco is very vast by burden and it can consider the change in such a way to implement it. In any organisation change will take some time which organisation cant show clearly. There should be a tile limit for every vision which they cant go over the boundry. The theory which is based on the strategy can make better in compare to others, at the end when they see that how much the benefit they got it will always in positive only the condition is that it take some time to achieve.
On above assignment we discuss about tesco that how tesco will come through in the market about the organisation performance. The discussion tells about the better performance of the employees and how they are beneficial for the organisation. There are so many models which be use to improve the performance but the two main model which are very famous is 7s model and EFQM model which shows that how the improvement require in the tesco and which model play an important role within the organisation.