The Importance of Performance Management for Corporate Management
Due to the fact that there is a tool for corporate management, managers may use performance management to monitor and appraise their employees’ work (DeNisi & Murphy, 2017). When it comes to performance management, the goal is to establish an environment in which people can perform to the best of their abilities and produce highest-quality work within shortest possible amount of the time as well as with least amount of effort. The Performance management programmes are beneficial to both employees as well as managers because they enable them for communicating more effectively regarding expectations, goals, and career growth and how the work of an individual contributes to the company’s larger vision and mission (Schleicher, et al., 2018). General performance management takes into account the fact that individual’s function within the context of the wider workplace system within which they are embedded. In theory, you want to reach the maximum degree of performance conceivable, but then in practise, this is seen as being impossible to do. The following report will discuss various aspect of performance management in relation to the case mentioned.
Human resource development (HRD) is the process of enhancing an individual’s abilities, knowledge, and characteristics while they are employed. This may be accomplished by the implementation of training interventions, whether informal or formal, or through the application of progressive discipline (Brown, et al., 2019).
It is critical for an employer to assess and identify the requirement for human resource development interventions as well as any areas of concern before any treatments can be developed. This is accomplished by comparing the competences of the present workforce to those necessary in the specified key performance areas, as well as the competencies as well as skills required in those areas. A variety of methodologies, such as questionnaires, interviews, and performance interview or – assessment results, to name a few, may be used to conduct the analysis (Reio & Batista, 2014). Performance management may be a highly successful tool for identifying developing areas, provided that the approach is objective and followed. Whichever approach one chooses to employ when assessing demands, the most important thing to remember is to gather reliable information that is also detailed enough to enable you to make educated judgments. Few things are as unpleasant as making decisions on treatments based on false and inadequate evidence, only to subsequently discover that the true flaws are still present and have become much more noticeable, like a hurting toe or finger on the other side. If done effectively, any time and money being spent on interventions instantly becomes an investment rather than a cost; one begins to see them as something that has the potential to boost the bottom-line rather than something that detracts from it.
Following the identification of developmental areas via performance management, it is critical to establish clear goals for the employee and prioritise treatments. This may be done in accordance with the importance assigned to each main performance area of a particular job. The establishment of specific goals will allow the employer to assess the performance and/or development of employees in relation to the interventions and targets (Eneanya, 2018). The fact that performance management is a daily activity means that the employer would be able to monitor & measure the effect that various interventions have on individual’s performance.
Human Resource Development for Enhancing Employee Abilities
The three most important concepts to remember are why, what, and how. To begin, determine why the employee is not functioning at his or her best. Second, analyse the ramifications of an employee’s failure to perform to expectations on the company’s operations. Can you tell me how many firms are losing money because of tiny flaws that they are completely unaware of? We must determine the influence on the company’s operations (Mohammadi & Sharifzadeh, 2018). Last but not least, determine how you want to increase the employee’s performance. It becomes fast and simple to determine if an intervention is worth time and money when you become aware of flaws and understand the precise effect they have on the organisation.
Based on how employees carry forth their tasks, employees may either be a company’s most valuable asset or its most dangerous liability. In fact, underperforming personnel may have a negative impact on the overall success of your firm. Explore the factors that contribute to poor performance in workers and discover strategies for managing and increasing the output of failing personnel (Laaser, 2016). Employees that are productive are essential for any organization’s ability to remain in operation. Underperformers, on either hand, may have a negative impact on your firm in a variety of ways, including the following:
Reduced productivity: The underperforming worker would not be able to provide the output that is required for their role. It is possible that the task may be late or will not be finished, requiring other members of the team to take up the slack.
Decreased quality of work: Employees who perform their responsibilities at a low level will not provide high-quality outputs, resulting in a negative impression of the organisation among customers and other stakeholders (Elliott, 2016).
A decline in employee morale and cooperation: Poor performance on the part of one individual may lead to anger and dissatisfaction among others, which can hinder teamwork.
Despite the fact that any employer is destined to have periods of changing performance, genuine underperformance must be considered seriously (Birdsall, 2017). Leaders should be able to identify workers who are experiencing difficulties and address the underlying issues. Taking the measures outlined below may assist you in addressing underperformance in the workplace:
Recognize that there is an issue and take appropriate action.
Perception is key in identifying and avoiding situations and behaviours that may indicate performance difficulties. Frustration and apathy are often associated with underperformance, and they present themselves in a variety of ways. The following are some of the tell-tale symptoms of underperformance:
- Dissociation from one’s obligations and one’s tasks
- Worker production and job quality have both been reduced.
- Lateness or absence that occurs on a regular basis
- Discouraged demeanour or unprofessional behaviour are unacceptable.
- Interaction with co-workers has been reduced.
Hold a meeting with the employee and ask questions to determine what is causing the individual to underperform.
It is possible to make the error of assuming that you already understand what is at the bottom of a worker’s lack of effort (Gyory, Cagan & Kotovsky, 2019). For discovering the true causes behind the situation, you must establish an acceptable tone for the discussion and ask the relevant questions.
A growing number of customers are becoming more concerned about nutritional value and convenience; thus, McDonald’s must reward and enhance its employees’ performance in order to improve the quality of customer service and efficiency, which in turn will help to improve the quality of McDonald’s food (Laundon, Cathcart & McDonald, 2019). Because of the importance clients now put on their time and the quality of their dining experience, the level of service at restaurants is one of the most critical factors in their decision-making process.
Identifying the Need for Human Resource Development Interventions
Employer value propositions are consumed by the employee as complete incentives, according to Bussin and Van Rooy. To make matters more complicated, the overall benefits may be broken down into financial as well as non-financial components. In terms of salary, benefits, performance and talent management, financial rewards include money, whereas non-financial rewards include non-monetary incentives including work/life balance, social activities, and work-life integration. Financial incentives have long been thought to be particularly successful in modifying short-term behaviour, while non-monetary rewards have significantly stronger long-term impacts.
Workers are thought to respond positively to different types of incentives and stimuli, and so rewards and incentives motivate employees to modify their present behaviours in order to attain particular goals connected with certain prizes (Kok & McDonald, 2017). Rewards may be classified as either intrinsic or extrinsic depending on their concrete or intangible character. A person’s natural inclinations or fondness for a certain action, which enables him or her to receive pleasure from performing and finishing the activity, are intrinsically rewarding. On the other hand, extrinsic incentives come from outside sources, such as money or accolades, which may be motivating.
It is also necessary for the company’s executives or top management to design a method for fairly and objectively evaluating the performance of their staff. Employees will be discouraged if they believe that their performance is being judged on the basis of personal biases, such as colour, gender, etc. Comparing their awards with those of their peers and the contributions they’ve made to the organisation will also be a consideration for employees. As a result of the unfairness, people may stop making additional attempts. Effective award systems, on the other hand, will enhance a company’s business climate by rewarding and penalising people properly and minimising possibilities for shady activity.
Market Development is the approach that McDonald’s has selected to help the company grow into emerging areas, notably in Asian countries. McDonald’s has set its sights on growing its presence in Asian nations, where the potential for revenue growth is quite high, according to the company. McDonald’s has already achieved unquestionable success in a number of Asian markets, including Tokyo, Beijing, Seoul, India, as well as United Arab Emirates, to mention a few. Other markets around the Asian area have the potential of significant market share, sales, as well as profit for innovative fast-food firm that is quick on its feet and able to establish operations in a new market quickly (Aitalieva & Panasyuk, 2016). Using franchising model, corporation was able to carry out successfully its global growth goal.
Market Development is the approach that McDonald’s has selected to help the company grow into emerging areas, notably in Asian countries. McDonald’s has set its sights on growing its presence in Asian nations, where potential for the revenue growth is quite high, according to the company. In Russia, for instance, meat should be acquired in a specified manner in accordance with local legislation. The standard procedure is modified to fit needs of legal as well as cultural environments within which this operates (Gheribi, 2017). There used to be a McCenter in Russia where all of the raw ingredients for McDonald’s meals could be acquired, but today meat, buns, potatoes, soft drinks, vegetables, milk, as well as other such items are obtained from wholesalers instead of McCenters. It is now more difficult for the fast-food behemoth to maintain consistency in terms of both quality and price across its shops in the Russian market. This has an impact on everything from product quality to profit margins, as well as market share and food costs.
Establishing Clear Employee Goals and Prioritizing Treatments
With such corporate strategies the company has aligned its HRM practices that involve performance and Reward management. By maintaining such practices, the company has allowed its employees to manage their weaknesses and turn them into which is why the management practices completely support the corporate strategies of McDonalds.
Conclusion
To sum that has been stated above, enhancing a person’s talents, expertise, and traits is the goal of human resource development. Training interventions, whether informal or formal, or the use of progressive discipline, may both help achieve this goal. Before any therapy can be devised, employers must analyse and determine the need for human resource development initiatives. Employees who fail to meet expectations may harm your company in a number of ways. Find out what causes employees to perform poorly and how to improve their productivity. Identify the elements that lead to bad performance. Leaders must be able to recognise and assist employees who are having challenges. Fast food giant McDonald’s needs to boost staff morale and productivity in the hopes of improving the quality of the meals it serves its customers. As a result of the many incentives and stimuli that workers react favourably to, they are more likely to change their current behaviour. The McDonald’s Market Development plan is the company’s approach to breaking into the rapidly growing markets of the developing world, notably Asia. The company was able to achieve its worldwide expansion target via the use of the franchising model. In addition to the United States, it has successfully replicated its business model in other countries.
References
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DeNisi, A. S., & Murphy, K. R. (2017). Performance appraisal and performance management: 100 years of progress?. Journal of applied psychology, 102(3), 421.
Elliott, C. (2016). Identifying and managing underperformance in nursing students. British Journal of Nursing, 25(5), 250-255.
Eneanya, A. N. (2018). Performance management system and public service delivery in Nigeria: Impacts, problems, challenges and prospects. Africa’s Public Service Delivery and Performance Review, 6(1), 1-9.
Gheribi, E. (2017). The activities of foodservice companies in the area of corporate social responsibility–on the Example of International Fast Food Chain. Journal of Positive Management, 8(1), 64-77.
Gyory, J. T., Cagan, J., & Kotovsky, K. (2019). Are you better off alone? Mitigating the underperformance of engineering teams during conceptual design through adaptive process management. Research in Engineering Design, 30(1), 85-102.
Kok, S. K., & McDonald, C. (2017). Underpinning excellence in higher education–an investigation into the leadership, governance and management behaviours of high-performing academic departments. Studies in higher education, 42(2), 210-231.
Laaser, K. (2016). ‘If you are having a go at me, I am going to have a go at you’: The changing nature of social relationships of bank work under Performance Management. Work, employment and society, 30(6), 1000-1016.
Laundon, M., Cathcart, A., & McDonald, P. (2019). Just benefits? Employee benefits and organisational justice. Employee Relations: The International Journal.
Mohammadi, M., & Sharifzadeh, F. (2018). Designing a performance management model with a human resources development approach in the public sector.
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