Description of the case
The report will be based on the analysis of the case study related to the Flight Centre Australia related to the issues and criticisms which were faced by the company due to mismanagement of employees. The most important part of the case study is based on a major issue which had taken place in the organization due to low payment provided to the employees. The fares that were charged from the customers were found to be high and on the other hand, the salary levels of employees were quite low (Abc.net.au 2018). The analysis in the report will thereby be based on the ways by which the performance of employees can be managed by the organization in an effective manner. The ways of improving the coaching, delegation and performance management based activities will be analysed in the report.
Flight Centre Travel Group has acquired the position of the biggest retail based travel organization in Australia. The organization was established in the year 1982 and the headquarter is located in Brisbane, Australia. Flight Centre Travel Group has established more than 2000 outlets and different kinds of business under different corporate and retail based brands. The company has thereby started its wholly owned operations in different countries like, New Zealand, Canada, South Africa, United Kingdom, South Africa, China, Singapore, Mexico and United Arab Emirates (Flightcentre.com.au 2018).
The case study which has been considered in the report is related to the Flight Centre Australia which has been quite unfair to the employees in terms of wages which have been provided to them. The organization on the other hand charges extra amounts from the customers for the services that are offered to them. The work culture that has been developed within the organization is also not effective for the employees and their work processes. The investigation was mainly based on opinions which were provided by the staff of the organization (Abc.net.au 2018).
As discussed by Buckingham and Goodall (2015), a major accusation that was raised against the company was based on the extra amounts which were added to the total booking amounts that were made by the customers. The total price of the booking was thereby revealed to the customer after adding extra amounts with the amounts that were depicted before. This revelation based on addition of extra prices was made by a process staff of the company. The wages that were offered to the employees of Flight Centre Australia were also not satisfactory and beyond the minimum wage levels which have been set in Australia. The report will be based on the analysis of these issues and recommendations based on the ways by which these can be solved with the help of proper performance management.
According to Campion, Campion and Campion (2015), performance management system is able to play a major role in the ways by which the individual and the organizational goals can be attained by the employees. The performance management based system in the organizations are able to monitor and track the performance based levels of the individual employees, the organization and the different departments. The systems of performance management are thereby based on the ways by which the job based and organizational competencies can be obtained for the successful performance in the job. The different important parts of the performance management system based process include, list of accomplishments, objectives and goals, results from the 360-Degree feedback based processes, ratings provided by supervisors and the development plans of individuals.
Need for the improvement of performance management, delegation and coaching in the business
As argued by Cappelli and Tavis (2016), the performance management based activities that have been developed by Flight Centre Australia are based on the challenging environment which is developed within the organization. The case study has stated that the workplace fun based activities which have been conducted by the management of the organization are related to the alcohol based parties which are arranged for them in order to motivate the employees. The motivation is provided to employees is based on the “Buzz Nights” which are introduced by the company every month in order to increase the levels of fun.
The Global Gathering which is arranged by the company can be attended by the top performers of the company. The pay levels which are however provided to the employees have proved to be unsatisfactory for the employees. The parties and other activities were provided to the employees as a compensation for the long hours of work. This was considered to be an important part of the culture that has been established in the organization (Cardy and Leonard 2014).
According to DeNisi and Smith (2014), the improvement of performance management system of the organization will be based on providing the appropriate levels of compensation to the employees based on their work levels. The lack of proper monetary motivation can be considered to be an important issue faced by the organization in the current environment. The lack of effective levels of pay has been able to affect the ways by which the management is able to motivate the employees. The employees had to thereby start the marking up process in order to increase the levels of income made in organization.
As argued by Ferron Vilchez and Darnall (2016), the commissions which are thereby offered to the employees have acted as an important part of the income levels of employees of the organization. The improvement of the delegation and coaching based activities will lead to proper performance of the employees of Flight Centre Australia. The proper delegation of the employees of Flight Centre Australia in different activities will play an important role in the improvement of performance management based systems.
The delegation of tasks will be done based on the expertise and competency based levels of the employees. The different steps which are considered to be key parts of the delegation process include, Do, Tell, Teach, Ask and Support. The management of Flight Centre Australia can thereby implement this process in an effective manner in order to develop the performance management systems of the employees (Ishizaka and Pereira 2016).
According to Kroll and Moynihan (2015), the organizations in the modern business environment mainly focus on the human resources and employees in an effective manner. The performance management systems are thereby considered to be highly important for the organizations in order to become much more focussed, competitive and effective in nature. The different issues which are faced by the modern organizations based performance management include,
- Managing the performance of employees.
- Criteria based on the good system of performance management.
- The role played by feedback.
- The management process and the method of performance assessment.
- Functions of the performance assessment.
- Measuring the performance.
- Importance of the self-assessment process.
- Rewarding the performance.
- The huge number of low cost solutions (McDonnell, Gunnigle and Murphy 2018).
As discussed by Mone and London (2018), the organizations operating in different sectors aim at changing their approach towards the performance management based activities. The changes which are made in the performance management systems of the organizations are quite evident in nature and are evolutionary as well. The performance management based systems of the modern companies thereby need to highly flexible and agile in their operations within the organizations.
Current issues and trends which affect performance management of organizations
According to Nguyen et al. (2017), the existing practices which are implemented in the organizations need to be changed according to changes which take place in needs of people. The changes need to be implemented within the organizations in order to foster the culture of high performance in an effective manner. The eight different trends which exist in the performance management systems of the organizations are as follows,
- The process of performance management is always expected to evolve in an effective manner as the focus has started shifting from the annual evaluation of performance levels to the continuous monitoring of the performance of employees. This has a major effect on the performance management based systems of different organizations.
- The system of performance management has been linked to the corporate values and culture of different modern organizations. This has played a key role in developing the best levels of performance of the employees (Shields et al. 2015).
- The approaches which are implemented for various parts of the workforce are different for various types of jobs.
- The process of performance rating needs to be abandoned as it has not proved to be quite useful for the proper management of the employees and their performance as well (McDonnell, Gunnigle and Murphy 2018).
- The rewards which are provided to the employees need to be differentiated based on their levels of performance. The objectives in this case are considered to be questionable and the objectives are also delivered effectively with the help of proper collaboration of the teams (Tantardini and Kroll 2015).
- The management needs to develop a system which is based on continuous feedback and the frequency, quality and focus of the interactions between employees can be tracked easily.
- The technological opportunities can thereby be used for the purpose of allowing personalized and immediate feedback of the employees.
- The managers need to become effective leaders and lead the teams in an effective manner with the help of proper mentors or coaches (Taylor 2014).
The major part of the trends that are followed in the performance management system is based on the levels of communication and the capabilities of the organization. The challenges and trends which are a part of the performance management system are related to the changes which take place in the external environment in which organizations operate (Tantardini and Kroll 2015).
Key result area 1 – The first key result area of the recommendation based on improvement of performance management is based on the proper implementation of continuous feedback system within the organizational operations.
Key result area 2 – The second key result area of the performance management system is based on the changes which can take place in the wages which are offered to the employees of Flight Centre Australia based on capability of employees.
Key result area 3 – The third key result area of the performance management system of Flight Centre Australia is based on the proper development of a system of rewards which will be provided to top performing employees.
Key result area 4 – The fourth key result area of the performance management system of Flight Centre Australia is based on monitoring the performance based levels of the employees in an effective manner.
Conclusion
The report can be concluded by stating that the performance management based system of Flight Centre Australia can be improved in order to develop the wages which are offered to the employees. The rates of turnover in the organization can also be reduced with the help of effective pay based levels and proper incentives as well. The development of a proper performance management system is thereby highly important for the effective operations of an organization like the Flight Centre Australia. The work environment and culture of the company can also be developed in an effective manner with the help proper management of the performance based levels of the employees. The organization thereby needs to improve the system of performance management on a continuous basis in order to develop an environment in which the employees can provide the best levels of performance.
References
Abc.net.au 2018. Flight Centre accused of ‘ripping off’ customers, underpaying staff in ‘cult’ workplace. [online] ABC News. Available at: https://www.abc.net.au/news/2018-08-22/flight-centre-accused-of-ripping-off-customers-underpaying-staff/10051474 [Accessed 9 Oct. 2018].
Buckingham, M. and Goodall, A., 2015. Reinventing performance management. Harvard Business Review, 93(4), pp.40-50.
Campion, M.C., Campion, E.D. and Campion, M.A., 2015. Improvements in performance management through the use of 360 feedback. Industrial and Organizational Psychology, 8(1), pp.85-93.
Cappelli, P. and Tavis, A., 2016. The performance management revolution. Harvard Business Review, 94(10), pp.58-67.
Cardy, R. and Leonard, B., 2014. Performance Management: Concepts, Skills and Exercises: Concepts, Skills and Exercises. Routledge.
DeNisi, A. and Smith, C.E., 2014. Performance appraisal, performance management, and firm-level performance: A review, a proposed model, and new directions for future research. The Academy of Management Annals, 8(1), pp.127-179.
Ferron Vilchez, V. and Darnall, N., 2016. Two are better than one: The link between management systems and business performance. Business Strategy and the Environment, 25(4), pp.221-240.
Flightcentre.com.au 2018. Cheap Flights, Hotels, Tours, Cruises and Holidays – Flight Centre. [online] Flight Centre. Available at: https://www.flightcentre.com.au/ [Accessed 9 Oct. 2018].
Ishizaka, A. and Pereira, V.E., 2016. Portraying an employee performance management system based on multi-criteria decision analysis and visual techniques. International Journal of Manpower, 37(4), pp.628-659.
Kroll, A. and Moynihan, D.P., 2015. Does training matter? Evidence from performance management reforms. Public Administration Review, 75(3), pp.411-420.
McDonnell, A., Gunnigle, P. and Murphy, K.R., 2018. Performance management. In Human Resource Management (pp. 262-279). Routledge.
Mone, E.M. and London, M., 2018. Employee engagement through effective performance management: A practical guide for managers. Routledge.
Nguyen, T.T., Mia, L., Winata, L. and Chong, V.K., 2017. Effect of transformational-leadership style and management control system on managerial performance. Journal of Business Research, 70, pp.202-213.
Shields, J., Brown, M., Kaine, S., Dolle-Samuel, C., North-Samardzic, A., McLean, P., Johns, R., O’Leary, P., Robinson, J. and Plimmer, G., 2015. Managing employee performance & reward: Concepts, practices, strategies. Cambridge University Press.
Tantardini, M. and Kroll, A., 2015. The role of organizational social capital in performance management. Public Performance & Management Review, 39(1), pp.83-99.
Taylor, J., 2014. Organizational culture and the paradox of performance management. Public Performance & Management Review, 38(1), pp.7-22.
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