Performance Management Plan

Clapton Commercial Construction is a company who is expanding its’ business into Arizona and is based in Detroit, Michigan. They have a net worth of $10,000,000, currently employs 650 people in the Detroit area, and will be increasing their staff by 20 percent in the Arizona area. Based on their historical data, their turnover rate is at 20 percent and are forecasting the same rate after expansion. Clapton Commercial Construction also expects that their current -3% revenue growth stays the same, at least for the first year. After completion of their Compliance Plan, we are now looking to provide them with a Performance Plan to assist with their transition into the Arizona area which will map the performance management framework and align themselves with the organizational business strategy.

According to Berkeley HR, performance management is an ongoing process of communication between a supervisor and an employee that occurs throughout the year, in support of accomplishing the strategic objectives of the organization. The communication process includes clarifying expectations, setting objectives, identifying goals, providing feedback, and reviewing results. (Concepts and Definitions, n.d.) “Overseeing performance and providing feedback is not an isolated event, focused in an annual performance review. It is an ongoing process that takes place throughout the year. The Performance Management process is a cycle, with discussions varying year-to-year based on changing objectives.” (Concepts and Definitions, n.d.) By utilizing performance measures Clapton Commercial Construction make lasting improvements to their organization which will result in well informed decision-making.

Alignment to Business Strategy
According to Lorri Freifeld, “One of the biggest challenges for any company lies in achieving organizational alignment: that desired state in which the entire enterprise is working together to achieve business goals.” (Freifeld, 2013) Due to Clapton Commercial Construction expanding to Arizona, it will be very important for them to follow several steps to work towards achieving organizational alignment. When the expansion takes place, there will be 130 new hires that will need to understand the business’s philosophy and it is the organization’s duty to ensure that they set the framework for these new hires to be productive in this new area. This process will need to include setting achievable goals, commit to regular monitoring, link learning to performance, ensure strong leadership, integrate with formal learning, and use the right software.

This can be accomplished by having the new hires trained by experienced staff from the Detroit area that strongly understand the organizations performance plan to ensure accurate and efficient training as well as the understanding of Clapton Commercial Construction’s business culture. “If leadership is unable to create a clear roadmap that can be communicated and embraced throughout the organization, it will be much more difficult to establish a high performing workforce able to meet those goals. Alignment only will be achieved by ensuring strong leaders are in place at the top and capable of clearly communicating goals and expectations and providing employees with ongoing learning opportunities to expand and enhance their skill sets. Once these factors are put into place, the organization can benefit from an optimized workforce that operates cohesively to overcome challenges and achieve key objectives” (Freifeld, 2013)

Organizational Philosophy
Clapton Commercial Constructions is a company who is successful in Detroit. It is important for them to continue to grow in the Arizona area as well. In order for the growth to continue, Clapton Commercial Construction will need to center its focus on hiring those who can understand the company’s culture. This culture will need to be based on excellece, drive, and commitment from the top most employee to the bottom most employee. This philosphy should include beliefs such ast maintaining a high work ethic, making decisions based upon facts, ensuing business competitivness, being able to adjust to enviromental changes, and judging people on performance and not personality.

These are the five most important basic recommendations to create a culture where employees can uphold a high level of achivement for this organization. (Bower, 2003) “Executives and supervisors at all levels should articulate the company philosophy, relate it to actual situations and problems at hand, and point out to subordinates where their actions square, or fail to square, with the beliefs of the organization. It is through this kind of leadership that a company philosophy for success can be most soundly and securely built.” (Bower, 2003) Job Analysis

Included in the perfomance management plan is a job analysis. This will help determine what the expectations of the job will be including skills and knowledge, how much to compensate, how the employee will be evaluated, and the the basis for the performance reviews. This is one of the most important factors in a perfomance management plan because this is where the organization will be able to monitor and evaluate against the performance measures that have been set. The recommedation is to complete a functional job analysis which is a more comprehensive method. It focuses on several factors such as: things, data, worker instructions, reasoning, people, math and language. This method would be suitable due to construction jobs being based of the output of a project. Though, a job analysis provides the basis for a position, there can still be skill gabs that are identified during the performance evaluation.

“In order to address these gaps a skill gab analysis should also be completed. Developing a skill gap analysis typically involves defining the skills and knowledge required to complete a task and then comparing a person’s current level to that requirement. After identifying the gap between the two, training professionals work with personnel to create a plan to remedy the situation. According to the American Society for Training and Development, the underlying causes of skills gaps typically include changing jobs and lack of education and training. Determining the required skill levels usually includes defining the job responsibilities when companies introduce new technologies or processes.” (Tara Duggan, n.d.) Lastly, delivering effective feedback is very important to this whole process. Being able to communicate feedback in a way that will motivate and insire employee’s is critical to the overall business philosophy. Essentially, an employee’s productivity will ensure the growth of Clapton Commercial Construction in it’s new expanded area.

To ensure that perfomance feedback is delivered in a positive way ensure that feedback is given consistantly because it is powerful in enhancing personal development. Allow the communcation to be a two way street, meaning, allow the employee to have a voice in the process. Make it a positive task instead of a dreadful one by being prepared to discuss positive critques as well as negative. Ensure that feedback is given on several occations instead of just once a year. Additionally, feedback needs to be clear and focused meaining provide specific things that need improvement that will enhance the employee’s performance overall. “When done in the right way and with the right intentions, feedback communication is the avenue to performance greatness. Employees have to know what they are doing well and not so well. For them to really hear your thoughts and suggestions on ways to improve, though, that feedback has to be delivered carefully and frequently.” (Giving Feedback-Keeping Team Member Performance High, and Well-Integrated, n.d.) Conclusion

In conclusion, the recommendations above will assist Clapton Commercial Construction to achieving its’ goal in transitioning to Arizona and building a solid foundation for its’ new employee base. With the recommendations, this should provide key elements to keeping retention low and establish the proper business culture to allow for a successful transition while remaining a steady business in Detroit.

References

Bower, M. (2003, May). Company philosophy: ‘The way we do things around here’. Retrieved

from Insights & Publications:

http://www.mckinsey.com/insights/leading_in_the_21st_century/company_philosophy_the_way

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Concepts and Definitions. (n.d.). Retrieved from Berkeley HR:

http://hrweb.berkeley.edu/guides/managing-hr/managing-successfully/performanc
e-

management/concepts

Freifeld, L. (2013, February 28). Establishing Alignment in Employee Performance
Management. Retrieved from Training the Source for Professional Developement : establishing-

alignment-employee-performance-management

Giving Feedback-Keeping Team Member Performance High, and Well-Integrated. (n.d.).

Retrieved from Mind Tools : http://www.mindtools.com/pages/article/newTMM_98.htm

Tara Duggan, D. M. (n.d.). How to Develop a Skill Gap Analysis. Retrieved from Chron:

http://smallbusiness.chron.com/develop-skill-gap-analysis-39872.html