Performance Management Plan
Performance Management Plan
Emerson Oliveira
HRM/531
May 14, 2014
Mary Jo Payne
Performance Management Plan
Clapton Commercial Construction is a mid-size company on the construction segment, currently located in Detroit, Michigan and looking to expand their business to Arizona. The economically depressed city of Detroit, considered one of the most prosperous cities in the entire nation, has had some improvements lately, with the automobile companies, bringing jobs back to town and slightly increased the demand for commercial construction. Although it is noticeable the city’s evolutions that are gradually occurring, the recession effect still prevails impacting Clapton Commercial Construction’s ability to being profitable, resulting in net revenue decline in -3% for the second year. Considering this unfavorable scenario, the organization decided to expand the business to a more dynamic market of Arizona as its overall business strategy. Atwood and Allen Consulting was designate to develop a performance management plan to provide recommendations to Clapton Commercial Construction in effectively managing organizational and individual performance.
Clapton Commercial Construction currently has 650 employees in its Detroit’s headquarter, and plans on adding 20% in the new location in Arizona, totaling 130 employees to be hired. Staff turnover rate based on historical data is 20%, forecasted by management to remain within the same rate after the expansion. The annual net revenue is $10,000,000 with no growth expectations for the first year, but aiming to maintain the same current -3% annual rate.
The current business scenario of high turnover rate and decreased revenue indicates the need of reviewing the organization’s strategic goals to improve company’s revenue, and application of an effective performance management plan in order to meet objectives and optimize business results.
Alignment of the Performance Management Framework to the
Emerson Oliveira
HRM/531
May 14, 2014
Mary Jo Payne
Performance Management Plan
Clapton Commercial Construction is a mid-size company on the construction segment, currently located in Detroit, Michigan and looking to expand their business to Arizona. The economically depressed city of Detroit, considered one of the most prosperous cities in the entire nation, has had some improvements lately, with the automobile companies, bringing jobs back to town and slightly increased the demand for commercial construction. Although it is noticeable the city’s evolutions that are gradually occurring, the recession effect still prevails impacting Clapton Commercial Construction’s ability to being profitable, resulting in net revenue decline in -3% for the second year. Considering this unfavorable scenario, the organization decided to expand the business to a more dynamic market of Arizona as its overall business strategy. Atwood and Allen Consulting was designate to develop a performance management plan to provide recommendations to Clapton Commercial Construction in effectively managing organizational and individual performance.
Clapton Commercial Construction currently has 650 employees in its Detroit’s headquarter, and plans on adding 20% in the new location in Arizona, totaling 130 employees to be hired. Staff turnover rate based on historical data is 20%, forecasted by management to remain within the same rate after the expansion. The annual net revenue is $10,000,000 with no growth expectations for the first year, but aiming to maintain the same current -3% annual rate.
The current business scenario of high turnover rate and decreased revenue indicates the need of reviewing the organization’s strategic goals to improve company’s revenue, and application of an effective performance management plan in order to meet objectives and optimize business results.
Alignment of the Performance Management Framework to the
References: Burke Construction Group - Vision Mission Values. (n.d.). Retrieved from http://www.burkecgi.com/company/vision-mission-values Cascio, W.F. (2013). Managing Human Resources: Productivity, Quality of Work Life, Profits (9th ed.) Boston, MA: McGraw-Hill/Irwin COD - The High Performance Philosophy. (2012). Retrieved from http://www.centerod.com/high-performance-philosophy/ DOL. (2002). OSHA - Occupational Safety and Health Administration. Retrieved from https://www.osha.gov/Publications/osha3071.html Gray, R. (2011). Aligning performance management with business strategy. Retrieved from http://www.hrmagazine.co.uk/hr/features/1020252/aligning-performance-management-business-strategy Michigan State University: Human Resources. (2013). Addressing Performance Problems. Retrieved from http://www.hr.msu.edu/performance/supportstaff/AddrProbs.htm OPM. (n.d.). Performance Management. Retrieved from http://www.opm.gov/services-for-agencies/performance-management/organizational-performance-management/ Robbins, S. P., & Coulter, M. (2012). Management (11th ed.). Upper Saddle River, NJ: Prentice Hall.