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Electparts Co Ltd is an electronic manufacturing and distribution company which is operating in South East London. The company was established to fulfil demand of PC parts in the electronic market. The company has been spread wide range of products and services through branches in South East London. The company is well known as innovative management, corporate governance, and sound management to achieve organisational target. The main focusing area of this company is to get assess it's product to all economic group of population.
Our vision is lead in the global elective electronic manufacturing company through utilising the most advantage technologies, tested and granted product and working with the pioneers, innovators and leaders in the electronic manufacture industry.
Our mission is to grow and spread our network globally and provide the highest quality and technology based superior products and services that fulfil people's electronic demands.
To achieve the company's vision and mission the ElecParts Company has been set strategic corporate SMART objectives they are:
Best choice and value:-Full range of PC parts production in great monetary value.
Customer:-Targeted activities based on delight our customer and branch in right location.
Partnership:-To go in global relationship built on trust for long for mutual benefit.
Operational efficiency:-Optimise labour use of and minimise other manufacturing cost or utilizing economise of scale.
Cost:-Focus on effective utilisation of resources.
Management:-Strategic alignment with goal.
Value our people:-Attract, develop, engage and retain the best people to deliver the quality product and service.
Our value:-Collective ambition of team and confident.
The team goal must be closed align with strategic objectives, vision, mission and corporate strategy. To achieve strategic goals the performance of strategic business unit (SBUs), departments, teams and individuals needs to be align with corporate strategy. The team is not the group of people more it talks about works together as cohesive unit.
This paper is going to talk about ElecParts Part Company which is electronic manufacture and distribution Company operating in south east London. The main objective of this assignment is enlightening the strategic object of ElectParts alignment with strategic performance of team and individual. This assignment has great role to know about 'strategic performance management' and its breath and importance, and it gives knowledge on various performance management modals on the basis of today's business scenario. There are some views on it according to Walters -"Performance management is the process of directing and supporting employees to work as effectively as possible in line with the needs of the organisation." Similarly according to Armstrong and Barn (1998) -"Performance management is a strategic and integrated approach to delivering sustained success to organisations by improving the performance of the people who work in team by the developing the capabilities of team and individual contribution."
This study mainly highlights four different sections of performance management in an organisation. The first section it align teams performance and targets with organisations strategic objectives, second contribution and performance of team to meet the organisation's strategic objectives, similarly in third section talks about monitoring, controlling of performance, and recommendation for improvement, and finally in fourth section this study intended to apply influencing and persuading skills, to the dynamics and politics of personal interactions.
Assess the links between team performance and strategic objectives of ElectParts
The key result areas of company are:
To overcome from sales slipping
To overcome from high staff turnover rate
To increase performance across the organisation
To improve quality in product
To improve these areas the company has vision, mission and to visualize vision and mission it has SMART strategic objective which works as specs to weak eye sight. To achieve the desire target there is crucial roll of team. There is no value of best vision, mission and strategic objective without link with team performance. To achieve the above strategic objective ElectParts using some tools of performance management to link team performance with strategic objectives of ElctParts. ElectParts is communicating about what is to be achieved, developing people's capacities which are needed to achieve the objectives, provide the support and guidance individual as well as team, where need to improve their performance. It not only parts of performance management beside of this there is also great part of change management. So to good perform, the team leader is developing change culture in organisation. To overcome from resistance there is developing easy communication way and to encourage them there is reward system to potential employee. Employee has open relationship with management and cohesive unit. To achieve the goal there is a set of work individual as well as team. They are capable to develop their individual skill to drive job satisfaction and get full potential utility from employee.
1.2 Evaluate tools and techniques available to set team performance targets
The word 'performance target' talks about the business current two difference levels of business performance i.e. current level of performance and desire level of performance. Here, this report going to evaluate about some available tools and techniques which helps to set team performance targets of ElectParts Company. In the business practice there is many tools are available. Here, this report going to evaluate about two tools i.e. 'The McKinsey 7S Framework and The Balanced Scorecard.'
The McKinsey 7S Framework was developed by Tom Peters and Robert waterman, two consultants working at the McKinsey and company consulting firm in the early 1980s. The main concern of this framework is the performance of the team with alignment of the organisational goal. There are 7 components independent factors involve in this model which are categorised as soft and hard elements according to easy and hard to influence. The 7S looks at and stand for following elements.
<http://www.mindtools.com/pages/article/newSTR_91.ht m> 18/03/11The McKinsey 7S Framework
Ensuring that all parts of your organization work in harmony
Strategy: the strategy plan of ElectParts is exploit the maximum competitive advantage from the market.
Structure: the way of organisational structure responsibilities.
Systems: culture of ElectParts to get job done.
Shared Values:Â called "super ordinate goals" when the model was first developed, these are the core values of the company that are evidenced in the corporate culture and the general work ethic.
Style:Â the style of leadership adopted.
Staff:Â the employees and their general capabilities which helps to meet goals of ElectParts.
Skills:Â the actual skills and competencies of the employees working for the ElectParts.
This model based on 7S framework which covers the all elements needed to set good performance target of a team.
The model is very clear about the combination of the elements to achieve target.
These 7 elements are very useful to analyse the current situation and get the desire performance.
There is some question in this model in every component which helps to set the good team performance target.
These are the strength of this model similarly other hand it has weakness as well.
There are in inconsistency between some of the elements.
There are same share of all seven elements if there is weak in one element then there is chance to fail to over come team performance target.
This model is not explaining from financial prospective.
Balance scorecard is another very popular tool to set strategic team target which was first introduced in 1992. It was published in article Harvard business review by Robert Kaplan and David Norton. This model helps to set team performance target with liking strategic goal of ElectParts.
Balance scorecard come up implementation of the following measures/tools to set the good team performance target.
i) Financial perspective:
Goals:-the ElectParts is in survival condition the aim of the company is, growth to prosperity respectively.
Measure:-not good return on capital
i) Financial perspective
Goals: The goals of the Electparts are drive survival to success/growth, and get prosperity.
Measures: return on capital, cash flow, revenue growth, liquidity, cost reduction, project profitability, Performance reliability, Work (workers) and those who supervise and plan it (managers).
ii) Customer perspective
Goals: the goal of ElectParts from the costumer side customer acquisition, retention, profitability, satisfaction.
Measures: the measures are ElectParts are market share, transaction cost ratios, customer loyalty satisfaction surveys/index, supplier relationships, key accounts.
iii) Internal business process perspective
Goals: the goals of ElectParts are core competencies, critical technologies, business processes, and key skills.
Measures: efficiency measures of ElectParts are working practices and production processes, cycle times, unit Costs, defect rates, time to market.
IV) Learning and innovation perspective
Goals: continuous improvement, new product development.
Measures: productivity of entrepreneurship, new ideas and suggestions from employees, employee
Satisfaction, skill levels, staff attitude, retention and profitability, rate of improvement are the strength of this model of setting team target performance target is it will indicate where problem is. The reason behind this it is very clear between goals and achievements. It align organisational goal with employees goals by communicating organisational goals and measures.
ElectParts setting team performance target on the basis of above tools which are very popular in the business world.
However both tools are not perfect there are strength as well as weaknesses, looking at 7S tools:
There are in inconsistency between some of the elements.
There are same share of all seven elements if there is weak in one element then there is chance to fail to over come team performance target.
Looking at balance scorecard:
This tool is very useful to set the team performance target but some time this model represent the complexity their organisation.
Robert Kaplan and
The Balanced Scorecard
1.3 Assess the value of team performance tools to measure future team performance
Performance management look at not only but more then that it talks about individual prospective as well. The main concern is how to explore the high performance individual as well as team. To perform team from good way it should what is current provenance is and what is its future desire state. To evaluate the current performance the company ElectParts used the SWOT analysis as tools to know about current state of the company.
This SWOT analysis of team we can set the team performance for future. By this evaluation ElectParts going to achieve SMART strategic objective which state in above. To perform well the individuals are well skilled, financially good, good time setting/ tergets. The team is well fit in Apter International's equation i.e.:
Performance = ability Ã- mindset Ã- opportunity
This equation clearly shows that if a component is weaker in team then it can't perform well. However
+http://subjectsearch2.managers.org.uk/e-learning/1130267/index.htm need to look
2.1 Analyse how to determine required performance targets within teams against current performance
Performance management process is a continuous process which is reflects normal good management process. Balanced scorecard wants a balance presentation of both financial and operational measures. There is no single measure that provides a clear performance target or focus into the critical areas of the business. According to balance scorecard the manager address following the following question to set the performance target in term of current business performance. These questions can scan the current performance of ElectParts.
Customer prospective: - what the image of ElectParts within the customer, customer does not see us from good way because our sales are declining.
Internal prospective: - it show that we are also weal in internal performance as well because we have facing high turnover rate of staff.
Innovation and learning prospective: - this company is weak in innovative and learning culture.
Financial prospective: - the company is not good at cash flow it also proves customer performance as well.
According to above four prospective it proved that the performance of company is not good at present. And it needs to require some effort to improve the current scenario, to rectify the situation demand a set of target. So this team going to set integration of work target to improve the current situation of ElectParts. Work target or objectives can be defined at:
Corporate level: - improve level of customer service of ElectParts
Senior management level: - ensuring the corporate level target or objective.
Functional level: - related to corporate objectives and set out the specific target and projects align with department.
Team level: - they are very closed with purpose and accountability of the team, and the contribution it.
Individual level: - they are accountable to the key result area or main task.
This is the two ways process that is up to bottom and bottom to up which is clearly shows by the following picture.
Source:- Michael Armstrong and Angela Baron
2.2 Discuss the need to encourage individual commitment to team performance in achievement of organisational objective
There are various views about individual commitment and team performance to achieve the organisational objectives.
According to American Compensation Association (1996) "An effective performance management system aligns individual performance with the organisation's mission vision and objectives."
According to Hendry, Bradley and Perkins (1997) "Performance management is a systematic approach to improving individual and team performance in order to achieve organisational goals" Looking at these definitions clearly shows that performance management as method, which integrate individual objectives to organisational objectives to gain mission of organisation. But there is word "commitment" the motivated individual commitment is very important to team performance. The team of ElectParts has clear vision towards leadership style which can affect to encourage individual commitment to team performance. There are various leadership styles to give direction the organisation; they are identified by Vroom and Yetton (1973). Some of the leadership are called autocratic/directive, autocratic with group information input, autocratic with group's review and individual consultative style, group consultative style, participatory style, leaderless team. There is no any hard and fast style compulsory to flow so the company is adapting participative style to encourage the individual to commitment team performance. The belief this style can reduce the resistance as well because in this style the leader themselves move with group and facilitate the process.
There is another way to encourage individual that is rewards it can be a tools to contribute team performance.
Empowerment: - design job in such way there would be opportunity for self control and direction, job should not restrict hoe staff achieve goal and attachment the organisational goal.
Motivation expectancy theory
Rewarding individual commitment
Gaining individual and team commitment to action
Participative processes and commitment building
In performance managements there are four components involved that are: Individual, Team, Organisation, and Objectives without any one component we can't imagine the word performance.
2.3 Relate the application of delegation, mentoring and coaching to the achievement of the organisational objectives
The committed team with motivated individual of ElectParts is the stimulating to support employees. The support starts from monitoring, coaching and the remove of the any barriers to develop the excellent performance of the team. After communicating "SMART objective" of the ElectParts, the company ElectParts word coaching used as technique, developing individual knowledge, skills and attitudes. Here ElectParts looking at non directive coaching largely sufficient skill and confident in their role. The aims of coaching in ElectParts are:
What is their performance at present and what they need to learn?
The team of ElectParts delegates new and enlarge area of work should be with necessary guidance.
Monitoring performance in work place.
To achieve objective of ElectParts Company following coaching stages:
Identifying the needed knowledge and skills capabilities where need to improve.
Ensuring the area which needs to learn.
Identifying where need to help individual and team
Maintaining self learning environment
Providing the needed guidance
These above stages involve in day to day life but mentoring talks about more it describe about long-term career development from best prospective of ElectParts.
The company utilizing the idea of the employee who has extensive knowledge within the mentee's business.
The company going to implement mentoring as more of an informal and board-reaching relationship.
These can contribute to the development of the skilled as well as skill individual perfomer which helps to achieve the organisational objectives.
2.4 Evaluate a team performance plan to meet organisational objectives
The performance management plan is the plan which gives the step of desired performance level of the team align with organisational objectives it is easy to make and hard to implement. There is no strict format about team performance plan. The performance management plan of ElectParts talks about understanding key result area of the ElectParts, performance measure, and action require to meet the goals, and the way of achievement of goal.
The main objectives of the team performance plan are aligning the team's objective with ElectParts objectives. Looking at team performance plan:
It indicated the major components of strategy
It indicates how objectives are to be accomplished with objectives of ElectParts.
3.1 Assess the process for monitoring team performance and initiate changes where necessary
Once performance plan have been established it needs to monitor to creak whether the plan is effective or not in other wards it needs to revise that is it in right way? The monitoring may be in collective or individual levels, in other to know progress level of the performance and to take the necessary steep next.
There are various models to monitor the team performance and to take the next step. The ElectPart Company prefer use the model, Plan, Do, Check, and Act this four step model is very effective to monitor the team performance. When looking at monitoring the monitoring team of the ElctParts should ask question i.e. what purpose does measuring and monitoring serve, to whom?
According to figure this monitoring process is continue process it needs to revise in certain time interval.
Looking at the team performance of the ElectParts is doing better towards achieving the team targets in this time interval seems there not need to any change requirement. Some time there is need to change in team performance for it the monitoring team should give feedback. There are two types of feedback i.e. positive feedback and negative feedback.
Positive feedback: - it recognises performance achievement and encourage continued or arguably gather efforts to produce the required results.
Negative feedback: - it recognised where and when performance is falling below expectations and identifies ways to enhance performance.
3.2 Evaluate team performance against agreed objectives of the plan
While comparing the data of achievement with performance objectives the company ElectParts there is no gap between strategic performance of team and strategic objectives goal of the company. But some times there be the gaps can takes place between achievement and object plans of company. If the performance is high then expectation or lower than expectation, there arise the questions that are why positive or negative deviation occurring in performance.
However the following tools show why gap arise in team performance.
System: - is the system of the organisation is proper functioning?
Competencies: - do we have required level of competencies within the organisation?
Structure: - are we organised appropriately and do it sufficient to deliver results?
Style: - do the management styles support and encourage the team performance toward success?
Strategy: - is our strategy is appropriate in present market scenario?
Staff: - do we have sufficient and required skilled staff to achieve organisational goal?
The organisation should give their eyes towards above 7S framework to align team performance and agreed with organisational goal.
3.3 Evaluate the impact of the team performance in contributing to meeting strategic objectives
The impact of Poor team performance is the inability of the management to create an effective team atmosphere for the team to work, imposition of top-down decisions to the team, members of executive team being treated being incapable of sharing the decision-making responsibility, unproductive team meetings leading to confusion rather than clarity because of consensus about decisions was rarely reached. The team had interpersonal conflicts not only between a small sub group of team members but also with the MD and some key management team. Team morale, motivation and productivity had been dropping which had resulted in the high team turnover. The management lacked the fundamentals in diagnosing team problems as well as those team building skills that could have been used to solve the team's problems before they spiralled out of control.
The reasons of poor team performance are many:
â€¢ The team may not have clear goals or performance metrics,
â€¢ The team may be composed of the wrong people with the wrong set of skills for the task at hand,
â€¢ The team's dynamics may not foster creativity and good decision making,
â€¢ The team may not know how to solve its own problems and improve performance
Our experience is that poor team performance is largely due to a team's inability to systematically engage in team-building activities- team process for evaluating team performance and engaging in problem -solving activities that lead to improved team performance.
As a Team leader/ Manager I would like to recommend the MD of the ElectParts Co Ltd to focus more on the High- performing teams. High-performing teams are those with members whose skills, attitudes, and competencies enable them to achieve team goals. In high performing teams, team members set goals. Make decisions, communicate, manage conflict, and solve problems in a supportive, trusting atmosphere in order to accomplish their objectives.
High performing terms effectively manage team composition by:
â€¢ Establishing processes to select individuals for the team who are both skilled and motivated,
â€¢ Establishing processes that develop the technical and interpersonal skills of team members as well as their commitment to achieving team goals
â€¢ Cutting loose individuals who lack skills or motivation
â€¢ Managing the team differently depending on the skills and motivation of the team differently depending on the skills and motivation of team members
â€¢ Ensuring that the team is right sized which usually means making sure the team is not too or small to accomplish the task.
: Building Engaged Team Performance: Align YoDodd Starbird, Roland Cavanagh, Roland R. Cavanagh ( ). Building Engaged Team Performance. : . .
: W. Gibb Dyer, Jeffrey H. Dyer (2007). Team building: proven strategies for improving team performance . 4th ed. USA: Jossey-Bass. .
4.1 Determine influencing and persuading methodologies to gain the commitment of individuals to a course of action
To impose the change in team the leader use various types of influencing methods to prevail and gain commitment of individuals to a courses of action. The EleactParts Company used politics to encourage individual in commitment of their work place. The company making alignment organisational interest with individual for minimise resistance. The company is reading their personal situation to influence them and treating them as their condition to gain their commitment in work place. The company is trying to taking benefit form their intrapersonal skill by giving some incentives to them. Side by side the company has been inducement or reward used to stimulate and motivate to gain commitment of individuals in course of action. The company motivating by payment system such as giving more pay to hard worker. The team encourage them by giving jobs where they fit it helps to gain commitment on their job. Such as what motivates them; and or how they want other to perceive them. Another way to gaining commitment of individual is task inducement approach in this approach wide range of different conditions task inducement can be a very effective means to stimulate motivation. Social cultural inducement approach also can help to gain individual support to meet organisational goal according to this approach, leaders and individuals are perceived to attune to society and the cultural environment within which they interact. The individual then assume the attributes and perform according to these expectations. Alternatively, perceptions of what constitutes acceptable behaviour or performance reinforce both the individual's performance and their expectations of leaders and managers.
4.2 Discuss the impact of individual dynamics, interests and organisational politics on securing the commitment of individuals to a course of action
Politics on organisation performance the ElectParts touch in the core of elements of impact of individuals dynamics. The company looking politics in organisation from three variables
Personal and personality variables: In this section ElectParts focus on the individuals dynamics i.e. age gender, Machiavellianism, self monitoring
Job/work variables: In this section the company focus on job autonomy, job variety, feed back, advancement opportunities, interaction with others
Organisational variables: In this section the company looking at centralization and formalization, hierarchical labels span of control.
Overtime variables were also added to three main group including job satisfaction, organisational commitment. Organisational politics leads to the establishment of a contingent approach toward the effect of organisational politics on employee performances. This relationship is expected to involve several elements. Two are quite new in regard to organisational politics.
Individual competency i.e. proactively seeking opportunities for beneficial align, integrating different interest and approaches of individuals. The company understanding people and situation and addressing those uses behaviour appropriate to this situation. The ElectParts is utilizing interpersonal skills as well as personal skill appropriately and build relationship with individual.
The key factors for success of team performance in Electparts Co Ltd, emphasizes for alignment strategic objectives of ElectParts with individual as well as team. In other hand the company giving eye towards customer, suppler, and investor.