Introduction:
No enterprise will be successful in this competitive era without a solid, integrated strategic plan directed by a clear vision and supported by a strong performance management system.
Performance management is the system through which organizations set work goals, determine performance standards, assign and evaluate work, provide performance feedback, determine training and development needs and distribute rewards. (Briscoe and Claus, 2008)
This study is based on Eletropart Co which is electronic manufacturer and distributor. It encompasses parts for PC market although company is relatively small with only 43 employees. The company is generating satisfactory level of profit however, the performance level of company is getting low and there is high turn over of employee.
Hence, for the improvement of performance level, this study is going to set performance targets of team to meet strategic objectives and agree team performance to contribute to meeting strategic objective of Electropart Company. This study is also going to monitor actions and activities defined to improve team performance. Furthermore, this study will apply influencing persuading skills, to the dynamics and politics of personal interactions. Finally this study will end with summary and findings and make recommendations for further improvement of performance level.
Vision statement:
Elecparts Company will strive to be best-in-class as a distributor of quality PC products and services and a responsible corporate citizen.
Mission statement:
Elecparts Company is committed to providing the highest quality products, competitively priced, with services exceeding our customer's expectations. We will continue to invest in facilities, systems and highly trained technical personnel providing added-value to our business relationships.
Strategic objectives:
Sustaining the stable level of costs based on strong skills of continuous improvement in operations, development and distribution of high quality PC solution.
Personnel development, creating proper environment for professional growth of highly skilled professionals, competitive staff remuneration and social benefits in accordance with scope and quality of their work.
Further improvements in corporate governance through restructuring of assets and optimization of management processes.
Values: our success depends upon people: the people who shop with us and the people who work with us. This expresses our values:
No one tries harder for customers: Understand customers, be first to meet their needs and act responsibility for our communities.
Treat people as we like to be treated: Work as team, trust and respect each other listen, support and say thank you and share knowledge and experience.
Key results area:
Training KRAs
Information technology is a cornerstone of our quality of life. There will be a continuing need for products and services to harness its use.
Assess the links between team performance and strategic objectives of ElectParts:
Each and every organization stands with certain strategic aims and objective which they want to accomplish and it is the reason of that organization's existence which directs the organizations.
Team performance focus on setting and achieving goals at employee level, and identifying and fixing barriers related to achieving those goals.
That's where strategic planning comes in. Strategic planning (and also tactical planning), are methods a company, and its individual work-units define their goals and objectives. In turn, those goals and objectives are used to determine and analyze the goals and objectives of each employee in a work unit. This is called cascading of goals.
When done properly, setting employee goals should rely on the goals of the particular work-unit, which gets its goals from the planning done by the next bigger work unit, and so on.
That's why the setting of individual goals and objectives should be done once the goals and objectives of the work-unit are established
1.2 Evaluate tools and techniques available to set team performance targets
Team performance targets are the success measures of organization's performance management system which defined by performance indicators. In other words, performance targets concern with desire level of performance which organization wants to meet.
There are various tools and techniques in use to set team performance target of an organization. Such as the McKinsey 7S Framework, the Balanced Scorecard, the EFQM Excellence Model, Six Sigma Model etc. However, this study is going to discuss the McKinsey 7S Framework, the Balanced Scorecard to set the performance targets of ElecPart Comapny.
1. The McKinsey 7S Framework
This framework is a management model that describes 7 interdependent factors to organize a corporation in and holistic and effective way which are categorised as soft and hard elements according to easy and hard to influence. Together these factors determine the way in which company performs. The main focus of this framework is to align team performance with strategic objective of the company.
Figure: The McKinsey 7s Framework
Source: www.ktnrchobby.com
7 element of this model:
Strategy: the direction and scope of the company over the long term.
Structure: The way the organization's units relate to each other: centralized, functional divisions (top-down); decentralized (the trend in larger organizations); matrix, network, holding, etc
System: The procedures, processes and routines that characterize how important work is to be done: financial systems; hiring, promotion and performance appraisal systems; information systems.
Skills: The capabilities and competencies that exist within the company what does it best.
Share value: The value and belief of the organization. Ultimately they guide employees towards valued behavior.
Style: the leadership approach of top management and the company's overall operating approach.
Hence, this framework is crucial to set the performance target because it covers the all the elements which need to set effective performance target of a team and it is very clear about the combination of the elements to achieve target as well. Furthermore, these 7 independent elements are crucial to analyze to current situation and get the targeted performance.
However, there are inconsistencies between some of elements. If strategic leader fail to pay attention to one of element this may affect all elements as well.
2. Balance Scorecard
The Balanced Scorecard can help to set performance target by providing a focus that unifies all parts of the business. It provides a methodology that turns the eyes of team to a single direction. The Balanced Scorecard can therefore be a very effective tool to set performance target, breaking down the barriers between team islands, improving an overall team performance and thereby improving organisational performance. This method keeps close eye on the four different prospective to set effective team performance targets.
Figure: Balance Scorecard
Source: www.12manage.com
Financial prospective: includes measures return on capital, cash flow, revenue growth, liquidity, cost reduction, project profitability, performance reliability, Work (workers) and those who supervise and plan it (managers).
Customer prospective: includes measures market share, transaction cost ratios, customer loyalty satisfaction surveys/index, supplier relationships and key accounts.
Internal business process prospective: includes efficiency measures of working practices and production processes, cycle times, unit costs, defect rates, time to market.
Learning and growth prospective: includes measures productivity of entrepreneurship, new ideas and suggestions from employees, employee satisfaction, skill levels, staff attitude, retention and profitability, rate of improvement.
This model is crucial to set performance targets because it shows the inter-relationships goals and linked activities which create an understanding of what is going on elsewhere in the organization and shows team how they are contributing. Furthermore, it provides the accurate and timely information is fed into the system. However, in some cases this model creates the complexity in implementation process.
1.3 Assess the value of team performance tools to measure future team performance:
2.1 Analyse how to determine required performance targets within teams against current performance.
2.2 Discuss the need to encourage individual commitment to team performance in achievement of organisational objective
2.3 Relate the application of delegation, mentoring and coaching to the achievement of the organisational objectives
2.4 Evaluate a team performance plan to meet organisational objectives
