The Performance Management Cycle

Management is the process of getting things done through and with people in formally organized groups. Its the art of creating an environment in which people can perform as individuals and yet cooperate towards attainment of group goals (Harold Koontz, 1980).

1.2 Performance Management

This is the management approach used by an organization in ensuring that a planned task is accomplished by the manpower within. The conceptual foundation of performance management relies on a view that performance is more than ability and motivation. Its centered towards enabling the employees understand what is expected and the order of priority within their organization.

1.2.1 Performance Management System

In order for the management of Interact Telecommunication Company to achieve business mission, values, its set goals, it has to clear check on the constraints which has contributed to business down turn within the company, perhaps there might a weakness in administrative strategies that was applied. Throughly exploiting what happens, it will sound applicable for the company to review it is strategy which will enable it overcome the barriers. This process will involves identifying the current strategic business objectives which will enable it survive within this period of recession

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1.2.2 Performance Management Cycle

According to Bevan and Thompson (1992), which analyzed objectives oriented organizational cycles? This cycles show a typical system which identify the strategic business objectives that is required within the current recession period and focus towards employee performance and rewarding

Source: Adopted from Individual performance management (page 263)

1.3 Key Aspects of Managing Performance

For efficient management system, Interact need to consider the following three key aspects, which are recommendent in managing performance of employees in many business organization.

These three key aspects include:

1. Planning

2. Delivery

3. Monitoring

1.3.1 Planning

Planning is an intellectual process, which involves conscious determination of course of action, basing of decisions on facts, purposes and considered estimates. Interacts being a multinational company has to take decision which relates with the current market vulnability.The said estimates should be prepared and not by imagination, but this will base on the current situation of recession and employees turnover and de-motivation. The company has set policies, procedures, rules, budgets in the achievement of its business objectives. Interact business has to use performance appraisal as part of guiding and managing development. Job analysis parameter such as level of employees attendance, consistence with deadline and personal Integrity have to be considered.

1.3.2 Delivery or Implementation

The company has provided an enabling environment that will facilitate goal achievement .Interact management has organized the resource and off-job training this will facilitate the efficient performance and ensure business survival (Mabey and Salaman, 1995).It was observed that product renovation, development of products is still a problem in the interact business. So timely availability of resource and presence of trained manpower will assists in the achievement of good performance

1.3.3 Monitoring and Evaluation of Staffs Performance

This involves an ongoing process that involves the review of the set objectives in comparisons with the attained goals.Virtualy various procedures has to be taken into consideration. The organization need to review it implementation strategy, level of attainment and constraints facing the organization failure to achieve its short-term objectives. The best monitoring model to be applied is the objective based monitoring. The critical steps in this approach is for the interact setting its objectives, specifying standards criteria and review individual performance of the employee and giving advice for lower performer and rewards for goal achiever

A good system of monitoring and evaluating staffs performance is through performance appraisal. It is the process of obtaining, analyzing, and recording information about the relative worth of an employee to the organization. Performance appraisal is an analysis of an employee’s recent successes and failures, personal strengths and weaknesses, and suitability for promotion or further training

1.4 Conclusion

Employee involvement in decision making and goal setting process is the cornerstone of company success. Interact business despite the facts that it’s operating in a difficult business situation, its lacks of employees involvement in major decision making process is a detrimental factor that has contributed to its poor performance particularly at this period of recession. So very important to involve employees in its overall business environment i.e. labour has to be involved in the planning process. Delivery has to be connected with giving incentives and rewarding employees and constant monitoring of the business activities.

1.5 Recommendation

This report recommends the following that need to be done in order to facilitate quality and improve performance for Interact business.

i) Ensure effective communication with employee. This can be on individual or group, but at this current crisis situation discussion with all company employees is highly recommendent .It is expected to yield positive results

ii) Interact company has to set clear organization short-term and long-term objectives, this has to be governed by clear procedures, rules and regulation which will enhance timely implementation of the company mission and vision.

iii) Interact has to set budget for training, research and development of products. This will help the company overcome market vulnebility in a short-term and in the future.

iv) Organizing sufficient resources which will aim at helping and empowering labour to work successfully.

TASK TWO

2.0 Introduction

There is an old expression which says ”no one is an island”.This means that none of us can live our lives without being affected by-or affecting -other people. So it is with businesses no manager can operate a business by completely by ignoring its environment, avoiding developing people and or avoiding motivating it is employees.

2.1 Model for People development

Business model is a fundamental truth that explains relationship between two or more sets of variables under a given situation. It is a basic element of management theory which helps in predicting what would happen if the model were applied (F.w.Taylor, 1986).

According to Armstrong (2006, 577), systematic training model consists of what he calls four simple stages. These are identifying training needs, plan training programmes, implementing training programme and lastly monitoring and evaluating the training programme.

2.2 Steps underlying the models

This report from consultant has focused on the following steps which underlies people development model. This model involves a number of steps, which includes developing people, understanding the environment, interaction, moral and training

2.2.1 Identifying training need

A model developed by Armstrong (Figure 1) suggests that training and development should be established only when it is felt that it would assist in the solution of specific operational problems, for instances there is urgency of training for Interact company to assists the company in matching with changes in telecommunication technology. From there the training needs are developed by an organization and are obtained through organizational analysis, task or role analysis and manpower analysis.

2.2.2 Planning or Arranging Training Programme

Adding on Gupta’s suggestions above, Ghosh (2005, 217) has the view that there should be an appointed person in an organization in charge for training. He further asserts that in a big complex business organization like instances Interact, the responsibility for planning, organizing and evaluating the training programmes should be vested in the training officers. An effective training programme should entail five questions, what, where, when, how and who. In designing the program, Cole (2002, 346) extend these questions as:

i)What are the Interact company trying to achieve in this programme?

ii)What are they expecting from participants to achieve?

iii)What content is required to achieve these aims?

iv)What learning methods should we employ?

2.2.3 Implementing the Training and Development Programme

This is the action phase of training where a trainer should clearly tell, show, illustrate and question in order to put over the new knowledge and operations (Gupta 2008, 9.13). At this stage it is necessary to explain to the learner why she/he is being taught in order to develop his interest in training. The trainers’ actual behaviour during training is very important.

2.2.4 Monitoring and Evaluation of the Training Programme

Evaluation of training effectiveness is the process of obtaining information on the effects of a training programme and assessing the value of training in the light of that information (Armstrong 2006,616).Four criteria can be used to evaluate the success of the training programme. These are Reactions, Learning, Behaviour and Results. Under Reaction criteria, a training programme is evaluated in terms of employee’s reaction to objectives, contents and methods of training

2.3 Conclusion

This report briefly concludes identifying training need, planning or arranging training programme, implementing the training and development programme,and monitoring and evaluation of the training programme are significant factor and key steps for Interact success and survival.

2.4 Recommendation

i) The study suggest the Interact business has to set training and learning policies which will enables the company’s manpower overcome market and business dynamics.

ii) The company has to promote a feeling of belonging and loyalty to the organization, by ensuring that employees forming a positive impression regarding the firm tasks.

iii) Training should be tasks-oriented and up-to-date with the knowledge and skills and to learn what they have forgotten.

TASK THREE

3.0 Leadership

According to Theo Haimann,”Leadership is the process by which an executive imaginatively directs, guides and influences the work of others in choosing and attaining specified goals by mediating between the individual and the organization in such a manner that both will obtain maximum satisfaction.

3.1 Significance of good Leadership to Interact Business

Leadership is an indispensable activity which every manager has to perform for directing the people working under him, a manager must be able to lead the group working under him or her for inspiring group efforts for the accomplishment of organisational goals. good manager achieves maximum cooperation from the group members by providing two-way communication and motivating them. A good manager coordinates the activities of group members by reconciling their individual goals with the organization goals. Unlike what is seen in Interact business, leaders or management has left employees and their union representatives displaced this has decreased employees morale towards works

A manager, who possesses the leadership qualities, is an important modifier of behaviour of people working under him i.e. by providing direction to the efforts of the people working under him towards business goals. Generally it was observed that managers are quite a distance from employees, something which indicate poor leadership exerted by Interact managers towards employees wellbeing.

3.2 Leadership Styles

Behavioural pattern which a leader adopts is known as they styles of leadership. In most occasions different leadership styles exist among leaders in different times and in different circumstances. There are three main types of leadership; namely autocratic, democratic and laissez-faire.

3.2.1 Autocratic Leadership

In this type of leadership manager gives orders which he insists must be obeyed .Management determine policies for the group without consulting them, no detailed information or plan for the future of business wellbeing is given. Management normally insists that everything must be done according to procedure or policy even they are poor, If it is not covered by the book, the manager refers to the next level above him or her. This manager is really more of a police officer than a leader. He or she enforces the rules, as it revealed that workers who don’t perform to the expectation of Interact management are fired(are given redundancy).The effects of this policy is that, it has contributed to employees developing negative perception towards work, and this is why there has been an increase in staffs turnover and rate of absenteeism.

This style can be effective when; employees are performing routine tasks over and over, and employees need to understand certain standards or procedures. It is also significance when employees are working with dangerous or delicate equipment that requires a definite set of procedures to operate. It also sound effective where safety or security training is being conducted or performing tasks that require handling cash.

Generally this leadership has been criticized by many scholars. It is ineffective when; work habits form that are hard to break, especially if they are no longer useful, employees lose their interest in their jobs and in their fellow workers and do only what is expected of them and no more.

3.3 General Situation of Interact Leadership

With reference with the above literature interact business and management are total practicing autocratic leadership. Management is primarily concerned with performance of assigned task, they only focus and believe in results, keeping people constantly busy. Interact management and leadership does not allow workers to participate in decision making process. The management does not give employees a helping hand in solving the problems facing employees.

3.3.1 Impacts of Autocratic Leadership in Interacts Business

According to Henzerberg (1970) and Massie and Douglas (1973) say that, the major factor of dissatisfaction are related to hygiene factors. Inadequate provision of hygiene factors in the work place leads to job dissatisfaction. They include salary, work conditions, interpersonal relations with the supervisors, peers, and subordinates, job security and Interact company policy. When those factors greatly divert from expected conditions, there is a great tendency of employees to move out of the present work place. For example employees’ attrition has increased in the recent years than it was in the past due to poor leadership and big gab which exists between management and normal employees.

The impacts of what was observed in the Interact business there has been increased rate of staff’s turnover due to unprevailing circumstances listed exerted due to poor leadership.This has resulted to inefficiency and poor performance of Interact business, the company is now facing great depressions in the market and internally unstable.

3.4 Alternative Measures to Overcome Poor Leadership by Management

Therefore, in order to reduce dissatisfaction among employees, the Interact management has to provide Henzberg’s hygiene factors to reduce dissatisfaction .however; provision of hygiene factors alone cannot bring out satissafaction because they are not motivators, but help to remove unpleasantness .in order to stimulate motivation and satissafaction,they must be coupled with Henzberg’s motivation factors. Motivation factors at work place are generally related to psychological satisfaction based on self-esteem and self-actualization. Examples of motivating factors include achievement, recognition, possibility of growth/advancement, responsibility and work itself.

In supporting this, Management Resource (2002) reminds that, for people to stay in the business organization, motivators should include training and professional development.

Participation in decision making: Involvement of subordinate by superiors to make decision in planning in a given organization. Which has to be in conformity with rules and standard?

Growth opportunities: desired outcome whose alliance is important for your advancement.

Rewarding: Produces a generalized obligation to help the organization achieve its goals, an effective commitment to the organization, and an enhanced expectancy that superior performance will be noticed and rewarded. It is important to note that, without adequate support of the organization to its workers, it may lead to workers turnover and poor work performance.

Proper training to employees: can raise high job morale and develop positive attitudes among employees. As a consequence of job satisfaction and increased morale employee’s earning and job security are attained and hence reduces employee grievance. Yet, training enlarges opportunities for internal promotion to well-trained personnel. Furthermore, training assures personal growth as it enlarges the knowledge and skills of a person. Training prevents obsolescence of knowledge and skills (Gupta 2008, 9.7).

3.5 Conclusions

Moreover, peer relationships and relationship with supervisors also contributes to motivation or dissatisfaction with work. These are attributes for job satisfaction related to human relations. They include teamwork, rewarding individual contribution and equal contribution from members and shared decision making

CHAPTER FOUR

4.0 Introduction

In response to the tasks outline, Interact employees have complained about their concerns regarding the perception that they need to work harder and longer in order to retain their jobs. The presence of this factor has resulted to increased rate of absenteeism, stress and staff turnover. This section has emphasized that Interact management has to increase staffs morale towards works, through undertaking several staffs motivation principles and theories into practices.

4.1 Employees and Motivation

Motivation is the individual, internal process that energizes, directs, and sustains behavior. It is a personal “force” that causes one to behave in a particular way .Most often, motivation is the term used to explain people’s behavior. Successful managers are said to be highly motivated. A team leader who avoids work is said to be unmotivated. Motivation is linked with morale; morale is the employee’s feeling toward the job, superiors, and the firm itself. High morale results mainly from the satisfaction of needs on the job or as a result of the job. High morale leads to dedication and loyalty as well as to the desire to do a job well. Low morale can lead to shoddy work, absenteeism, and high rates of turnover as what is seen in Interact business.

The following are important elements which must be emphasized towards motivating employees in Interacts business or firm

4.1.1 Working conditions

The environment in which people work has a tremendous effect on their level of pride for themselves and for the work they are doing. Do everything you can to keep your equipment and facilities up to date. Even a nice chair can make a world of difference to an individual’s psyche. Also, if possible, avoid overcrowding and allow each employee his or her own personal space, whether it be a desk, a locker, or even just a drawer. If you’ve placed your employees in close quarters with little or no personal space, don’t be surprised that there is tension among them.

4.1.2 Recognition of individual attributes

Individuals at all levels of the organization want to be recognized for their achievements on the job. Their successes don’t have to be monumental before they deserve recognition, but your praise should be sincere. If you notice employees doing something well, take the time to acknowledge their good work immediately. Publicly thank them for handling a situation particularly well. Write them a kind note of praise. Or give them a bonus, if appropriate

4.2 Motivation theory and their application in Interact Business

The job of a manager in the workplace is to get things done through employees. To do this the manager should be able to motivate employees. But that’s easier said than done! Motivation practice and theory are difficult subjects, touching on several disciplines. In spite of enormous research, basic as well as applied, the subject of motivation is not clearly understood and more often than not poorly practiced. To understand motivation one must understand human nature itself. And there lies the problem! Human nature can be very simple, yet very complex too. An understanding and appreciation of this is a prerequisite to effective employee motivation in the workplace and therefore effective management and leadership.

4.2.1 Why Apply Employee Motivation Principles

Quite apart from the benefit and moral value of an altruistic approach to treating colleagues as human beings and respecting human dignity in all its forms, research and observations show that well motivated employees are more productive and creative. The inverse also holds true. The schematic below indicates the potential contribution the practical application of the principles this paper has on reducing work content in the organization.

4.2.2 Motivation is the key to Performance Improvement

There is an old saying you can take a horse to the water but you cannot force it to drink; it will drink only if it’s thirsty – so with people. They will do what they want to do or otherwise motivated to do. Whether it is to excel on the workshop floor or in the ‘ivory tower’ they must be motivated or driven to it, either by themselves or through external stimulus. Are they born with the self-motivation or drive? Yes and no. If no, they can be motivated, for motivation is a skill which can and must be learnt.

This is essential for any business to survive and succeed. Performance is considered to be a function of ability and motivation, thus: Job performance =f (ability) (motivation).

Ability in turn depends on education, experience and training and its improvement is a slow and long process. On the other hand motivation can be improved quickly. There are many options and an uninitiated manager may not even know where to start. As a guideline, there are broadly seven strategies for motivation.

Effective discipline and punishment, treating people fairly, Satisfying employees needs Setting work related goals , Restructuring jobs ,base rewards on job performance, these are the basic strategies that Interact company have to concentrate.

TASK FIVE

5.0 Introduction

An absence refers to any time an employee is not on the job during scheduled working hours, except for granted leave of absence or holiday time. Scientifically speaking, absenteeism as a disease that appears whenever a company fails to inoculate itself with good management practices.

5.1 Types of Absenteeism

Generally, there are two types of absenteeism: approved and unapproved. Each organization must determine (within the law and appropriate regulations) what falls into each category, how much time will be allowed for each area of approved leave, and how to deal with unapproved absences.

The amount of time allotted to each type of leave varies from organization to organization. No law requires employers to provide sick leave. It is a benefit provided by the employer to seek and retain employees with particular skills. Individual companies must determine the acceptable number of approved leave days in each area. Unapproved leave is time not covered by company policy, and taken without management’s prior approval. How management deals with such absences varies from organization to organization.

5.2 Impacts of Absenteeism in Interact Business

It is easy to deal with or manage leave such as vacation and holidays since management often establishes when this time may be taken. Leaves that have not been scheduled by the organization’s management (bereavement, medical, worker’s compensation leave, jury duty, military leave, personal leave, employee illness, child/parent care and tardiness) are more of a problem. Obviously some of these absences are infrequent and cause minor disruptions.

However, some can create substantial disruptions since critical work may not get done. The extent of those disruptions depends on the employer’s ability to quickly “cover” for the absent employee by ensuring that any critical work is performed by another employee.

Acceptable attendance is being present and on time for work every scheduled day. It means being dependable (Bielous, 1993). Managers and employees have different views about how much absenteeism is normal or appropriate for someone in the subordinate’s occupation. In fact, the subordinate estimate (of acceptable absences) is close to twice that of the managerial estimate (John’s, 1994).

Research is consistent (Bielous, 1993) in finding that most organizations do not keep accurate accounts of employee absences and in emphasizing the need to do so. This means that disruptive absence frequently will be tolerated by managers until it reaches a painfully obvious level, at which point a crackdown will occur (Johns, 1994).

5.3 How to Overcome Disruptive Absenteeism in Interact Business

It is advised for Interact business to consider the following measures, so as to overcome absenteeism in business.

5.3.1 Using Punitive and Rewarding system

The research tends to have opposing data. Studies in the 1970s and 1980s often indicated that reward systems may be more effective than punishment (Bunning, 1988). For example, a large manufacturing firm showed an increase in attendance by offering non-monetary privileges to employees with good attendance. However, Markowich (1993) reported that cash incentives for perfect attendance did not motivate employees who abuse sick time. Rewarding good attenders with cash bonuses generally has been ineffective. Sick-time abusers value time away from work more than money, so they are not motivated to modify their behavior (Markowich, 1993).

5.3.2 Set the maximum level of the unacceptable levels of absence

Consider setting trigger points where employees know that if they are absent more than a certain number of times within a given period, action will be taken, for example counselling interviews. Don’t have a culture where absence is accepted without explanation, where staff feel they are entitled to take so many days sick leave and where managers set bad examples.

5.3.3. Keep records of absences

It has been proved that people are less likely to be absent in companies where absence is recorded, monitored and managed. Document absences and check the extent of the problem. Analyse patterns of short-term absence, for example by age and grade; focus on individuals whose attendance records need special attention; and evaluate trends in types of illness or accident which might indicate problems within the organisation. Feed the information back to line managers so that they know how effectively they are dealing with the problem.

Encourage managers to keep absence levels under control by publishing comparative records or league tables of the performance of different parts of the organisation. Consider publishing these figures so that employees are aware how much time the organisation is losing through absenteeism.

5.3.4. Establish formal reporting procedures

Require employees to notify either their line manager or personnel department of their absence by 10am on the first day and to give some indication of the reason for the absence and how long it is likely to last. Make it clearly known what other notifications are needed to cover the employee’s absence, including self-certification forms and doctors’ medical certificates.

5.3.5 Hold return to work interviews

Establish the reason for absence and whether the illness is likely to recur. If appropriate, the line manager should refer the employee to the company’s doctor or occupational health service. The line manager should also take the opportunity to update the employee on developments that may have occurred during their absence. This approach will not worry those who have been genuinely sick, but may deter others from taking avoidable absence. Try to find out if there are underlying causes of absenteeism such as personal difficulties or problems of motivation. This should not be a substitute, however, for daily contact with employees; managers should be generally aware of their employees’ attitudes and any problems they may be having.

5.3.6 Train line managers on how to deal with Absenteeism

Explain to line managers why they are key figures in absence control and provide support and training for them. It is important to recognise that the policy will succeed or fail by their efforts.

5.3.7 Maintain a safe and healthy workplace

Ensure that you follow the legal requirements on health and safety at work. Consider encouraging people in healthy lifestyles by introducing policies that embrace no-smoking, no-alcohol, healthy eating options in the staff restaurant, access to exercise facilities, occupational health services and employee assistance programmes. Encourage people to take their annual leave and do not allow them to habitually work late and skip lunch. It is important, however, to consult employees in health promotion activities and not to be prescriptive.

5.3.8 Motivate and gain commitment from staff

Find out what motivates staff and affects their commitment to the organisation. Think in terms of the way they are managed, the content of their job, their role within the organisation, and their employment and working conditions. Remember that poor management can contribute to high absenteeism. Ask if there are benefits which would help improve attendance, for example flexible working hours, loans for transport, or support in caring for children or elderly relatives. Research has shown that motivated and committed staff are less likely to be absent, particularly in the case of minor ailments.

5.3.9 Consider offering incentives for good attendee

Consider offering attendance bonuses or rewards, or docking the pay of staff who take sick leave. Beware, however, of the longer term implications of such a move which might force genuinely ill people to come to work, perhaps thus creating other problems. Avoid placing too much stress on the economic relationship between employer and employee to the detriment of other motivational policies.

5.3.10 Evaluate the absence control policy

Monitor the success of control efforts by seeing if absence levels are falling, whether the policy is more successful in some areas of the organisation than others and why, and by offering more support and training to line managers.

5.4 Conclusion

This report has concluded that poor working environment and staffs management is the main cause of increased level of absenteeism at work