Performance Management Plan
N’Jheri N. Price
Bradley Stonefield, the business owner of Landslide Limousines; a luxury car service in Austin, Texas started his business with 25 employees and expected $50,000 in annual profits. He intends to gain an increase of 5% over the next few years. His expected turnover rate is relatively low for the size of his organization (10%). However, in order for Mr. Stonefield to attain a level of success he wishes for his new business, and perhaps significantly lower his turnover rate, he must establish a set of guidelines to facilitate his efforts. This guide is a performance management plan.
The performance management plan is a guide that will enable a high
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During strategic planning, most organizational goals will be established. Performance management translates goals such as quantity, quality, timeliness or cost to results. (Management, 2014). Alignment is a condition in which important aspects of an organization such as its people, strategy, customers, and processes work together to aid in the primary purpose of the business. Aligning performance management framework to the organizational business strategy will drive efficiency and effectiveness. To achieve alignment employees, managers, and owners must be on the same page by understanding the organization in the same way. Performance plans are usually a formal process in which guidelines and standards can be set. Performance management framework is imperative to any business. Consider four factors of a performance framework: strategy, people, processes, and customers. In order to align performance management plans to the organizational business strategy, consider the follows five steps of strategic management processes: goal setting, analysis, formulation, implementation, and evaluation and control. Evaluate current performance process to determine the type of feedback you will need to provide to your employees. The decision to enhance what you already have or to develop a new system once evaluations