Introduction
As a newly hired HR consultant, I have been put in charge of designing and implementing a performance management system for the position of Grocer’s Associate, which will help support the organization in their expansion and performance. Performance management identifies, measures, and develops the individual performance of employees and builds the overall performance of the team. The performance management process is filled with a variety of steps and processes that lead to success. Performance management is an ongoing process that never ends (2013). Leadership must relay the ongoing process of performance management to employees, helping contribute to their buy in and vision focused duties and responsibilities. Performance management is an ongoing process and an integral part of an organization. It begins with consideration of an organization’s vision, mission, and strategic goals; it links to planning, execution, assessment, and review (2016). If Nature’s Grocer is going to grow and continue to remain effective in their competitive market, understanding the implications the newly reformed performance management plan will have is a critical aspect to sustainable success. The organization’s mission and strategic opportunity must be analyzed and examined for potentially areas of improvement. Job descriptions, definitions of performance, and measurement of performance will give the organization and the employee a clear understanding of how and why success will be measured. The appraisal process is a performance management initiative that will provide written and verbal feedback of the job description, performance measurements and definition of success. A development plan will enhance growth, and the total rewards package will give employees reward and engagement for obtaining and successfully accomplishing the tasks required by the job description. The performance management implementation will be ready for successful implementation once these critical areas of focus have been discussed and determined.
Performance Management Implementation
The organization’s mission requires a careful analysis of the organization’s competitive situation, the organization’s current position and destination, the development of the organization’s strategic goals, the design of a plan of action and implementation, and the allocation of resources that will increase the likelihood of achieving the stated goals (2013). The mission statement is a basic statement that shows what the organization is all about. Potential customers, current customers, competition and others alike should be able to read the mission statement of the organization and determine what they offer. A mission statement is a one to two sentence explanation, simply presenting why the organization is in existence. The mission statement that Nature’s Grocer has developed is as follows:
Mission
Our mission is to support the health and well-being of our customers, our employees, our communities, and our planet by providing high quality natural foods at affordable prices.
This statement offers a simple solution as to why Nature’s Grocer exists. I find this mission statement effective because of the concise, clear point it makes. Nature’s Grocer is seeking to serve customers, employees, the community, and the planet at an affordable rate by offering a healthy solution to eating. Gary Yukl (2012) stated, “The essence of leadership in organizations is influencing and facilitating individual and collective efforts to accomplish shared objectives.” Leadership will lead through the usage of their mission statement to influence and facilitate personal and professional growth in effort to accomplish shared objectives.
The strategic opportunity follows the mission statement. When the organization knows why it exists, strategic development of a performance management system and other related business initiatives can be developed strategically to ensure profitability. Strategic planning is a process that involves describing the organization’s destination, assessing barriers that stand in the way of that destination, and selecting approaches for moving forward (2013). Nature’s Grocer has identified objectives they would like to reach. Nature’s Grocer has desires to expand the Mount Vernon, Iowa store and to improve the performance management system in order to handle the expansion of employees. The first step in developing a strategic plan is conducting an environmental analysis. The environmental analysis stage looks at the big picture. Nature’s Grocer has looked at the big picture by developing future goals and understanding the need for an enhanced performance management system to obtain these goals. This analysis includes the internal and external elements, along with threats and opportunities. Nature’s Grocer must understand what opportunities they have in their expansion, but what threats that may pose. Nature’s Grocer has pinpointed expansion as the opportunity, with the threat coming from a performance management system that in unable to handle the increase of 35 employees. Goals and strategies are important factors in obtaining a high organizational performance. All of these initiatives should operate via the strategic plan. Communication of these elements is critical to organization performance because communication is key to alignment. These components combine to create a strategic mission and vision. Without one, the mission will falter. If communication doesn’t occur, the vision will falter. All of these elements are interconnected.
The job description is the first relation employees will have with Nature’s Grocer. This is a key component to attracting quality talent. A knowledge of the job in question goes hand in hand with knowledge of the organization’s mission and strategic system. The job description that Nature’s Grocer has established gives a brief summary of the position before exhibiting what tasks, knowledge and skills, abilities, and what the working attire and conditions will look like. The job description gives emphasis and value to different aspects of the job. Placing too much or too little value on certain aspects of job performance can lead to poor performance management (Aguinis, 2013).
While the job description includes knowledge, skills, and abilities related to the job, measurements of performance haven’t been discussed. If the performance management system is going to improve, measurements of performance are critical for Nature’s Grocer to implement in order for newly acquired staff to know how they will be evaluated in their new role. The job description must have transparency for the organization and the employee. An effective job analysis is an essential tool for executives to be able to use as a roadmap in making informed decisions in the areas of staffing, performance, succession planning, development, etc. (David, 2011).
Defining performance is what allows employees to define where they stand in the organizational initiatives and make improvements. Performance management systems usually include measures of both behaviors and results. The behaviors include what an employee does and the results pertain to the outcomes of an employee’s behavior (2013). Performance is about behavior, and two characteristics must be understood to compliment behaviors. Evaluative behaviors can be judged as negative, neutral, or positive for individual and organization effectiveness. Multidimensional means there are many different kinds of behaviors that have the capacity to advance organizational goals (2013). Leaders must relay to and teach employees how declarative knowledge, procedural knowledge, and motivation contributes to their performance. Declarative knowledge includes information about facts and goals. Procedural knowledge is a combination of knowing what to do and how to do it. Motivation is more commonly understood, and relates to why employees make the decisions they choose to make. Performance factors ultimately include the abilities and previous experiences of the employee, human resources practices, and the work environment. Nature’s Grocer will need to join me in analyzing employee knowledge, skills, and abilities in an effort to define performance. This will be done through assessment surveys, one on one coaching and conversations, observational research and customer feedback.
Once performance has been defined, measurement of performance comes next. Performance standards are in need of careful definition for consistency across Nature’s Grocer performance management system. Important factors to remember when measuring performance is that employees work in an organization context, engaging in certain behaviors that produce specific results. This means the same employee may behave differently if placed in a different situation. Although an employee may be struggling to product results, that outcome may change if and when that same employee is placed in a different situation. Nature’s Grocer leadership must maintain the reality that employees have differing strengths and weaknesses. With that knowledge, measurement methods can be more effectively used and maintained. The behavior, results, and traits approach will all be used in measurement of performance and success at Nature’s Grocer. A combination of approaches will help limit the potential for bias in measurement. The behavioral approach will emphasize what employees do in the workplace, while the results approach will be looking at numbers and outcomes. The traits approach emphasizes individual abilities and personality traits. The results approach may help Nature’s Grocer understand the numbers behind an employee, but will leave out important factors of how the work is done and what traits are consistent with sustainable success.
The appraisal process is an area where Nature’s Grocer can continue to improve and dominate competition. Accountabilities, objectives, and standards will be laid out for transparent understanding. Nature’s Grocer has a paper system in place, which will be switched to electronic. This will give management the opportunity to easily store, retain, and share information. Nature’s Grocer has developed a periodic performance evaluation form that consists of six different categories and a number scale from one to five. After the tallies have been set, there is a section for comments. This system aligns with a mechanical strategy, taking the scores and gathering an overall total.
I’m looking to implement a more interactive system where employees can take more accountability in their appraisals. This new system will align with a judgmental approach, where every aspect of employment is taken into consideration. Doucette (2017) explains that without a proper analysis employees can be placed incorrectly and that would waste valuable employee and organizational time and resources.
I will maintain a score based mechanical system as part of the evaluation. Employees should be given the opportunity to set individual goals that will aid them in their development and contribute to the overall success of Nature’s Grocer. Goals give employees a sense of responsibility in the work they do. Goals can be based on the behavioral, results, and traits approaches discussed previously. Employees will be given opportunities to share successes, and management will share what they feel like are success stories for the employee, themselves, and the organization. Management will be following up with employees on a bi-weekly basis as expansion continues to go on within the Mount Vernon store. During expansion, reshaping the culture and making sure old and new employees is a critical component to success in the present and in the future. Appraisals are opportunities for coach and employee to meet in a more intimate setting to further engagement and motivation. The performance appraisal form is an important piece of any performance management system. Appraisal forms are instruments used to document and evaluate performance (2013).
Development plans are another important aspect of performance management systems that increase employee engagement and accountability. They also help organizations develop a positive culture. “Companies that recognized the importance of culture would always win over consumers” (Monaghan, G., 2007).
Development plans at Nature’s Grocer can be developed for each individual job, whether entry level or a leadership position. The matter what the position is or entails, there is always room for improvement. Development plans can be designed around the performance dimensions being evaluated. Development plans help leadership identify employee strengths and weaknesses. This portion of the plan brings about increased employee satisfaction in the plan. Understanding strengths and weaknesses gives employees a stable position and understanding of where they stand with their long-term career aspirations and find out what the next steps are in reaching those goals.
A rewards system includes the tangible and intangible aspects that are included in an employment relationship. Tangible returns include cash compensation and benefits. The intangible aspects of the job include recognition, status, challenging work, learning opportunities, and job security. When organizations develop effective award systems, both tangible and intangible results will be offered. Nature’s Grocer is a privately owned company within a smaller populated community. A fully developed rewards system may seem out of reach for a smaller organization, but I want to implement a sophisticated system that will appeal to and retain high quality talent. Employees must be paid well with short-term and long-term incentives. Work-life balance will be important for individuals in the small, college town setting. Tuition reimbursement will be offered as a way to bring in high quality collegiate talent and help retain them upon graduation.
Conclusion
As the newly appointed HR consultant, analyzing and making changes to the current performance management system is of top priority considering the expansion and changes coming to Nature’s Grocer. A communication plan will be developed to ensure high levels of transparent communication. A communication plan is a vital part of this, helping to generate a realistic view of the performance management system and showing employees not only its value to the organization but also the value of it to their own organizational development (2017). Organizations that are able to empower employees in their personal and professional development are a step ahead of their competition, and this is the goal for Nature’s Grocer.
MANAGING PERFORMANCE AT NATURE’S GROCER
References
Colorado State University-Global Campus. (2016) HRM520, Module 2: The Performance Management Process. [Online lecture notes]
Aguinis, H. (2013). Performance management (3rd ed.). Upper Saddle River, NJ: Prentice Hall. ISBN-13: 9780132556385
David, C. (11, October 1). How conducting a job analysis improves your business’s efficiency, growth and innovation. Retrieved March 12, 2017, from http://www.sbnonline.com/article/how-conducting-a-job-analysis-improves-your-businesss-efficiency-growth-and-innovation/
Doucette, C. (2017). What Happens If an Organization Doesn’t Conduct a Job Analysis? Retrieved from http://smallbusiness.chron.com/happens-organization-doesnt-conduct-job-analysis-15562.html
Yukl, G. (2012). Effective leadership behavior: What we know and what questions need more attention. Academy Of Management Perspectives, 26(4), 66-85.
Monaghan, G. (2007, May 25). A firm’s culture ‘holds the power’. Irish Times.
Erez, E., Schilpzand, P., Leavitt, K., Woolum, A. H., & Judge, T.A. (2015). Inherently Relational: Interactions Between Peers’ and Individuals’ Personalities Impact Reward Giving and Appraisal of Individual Performance. Academy of Management Journal, 58(6), 1761-1784.