Memo Performance Management
TO: Marylee Luther
FROM: Greg Daley
DATE: September 1, 2013
SUBJECT: Performance Management Plan
CC: Traci Goldeman
Hi Marylee, having found our recommendations for the compensation and benefits strategy satisfactory to Clapton Commercial Construction’s needs I will next outline a performance management plan. “Performance management (PM) includes activities which ensure that goals are consistently being met in an effective and efficient manner.” (“Performance Mangement,” 2013, para. 1). According to "My Strategic Plan" (2012), “Performance Management is also known as a process by which organizations align their resources, systems and employees to strategic objectives and priorities”(Glossary). …show more content…
Benchmarking will be invaluable to the success of the Clapton Commercial Construction. Benchmarking is a method to evaluate the performance, and will show the strengths and weaknesses within the company. Benchmarking will ensure the Clapton Commercial Construction can keep job costs, cycle times, and productivity within the industry averages. It will give you the data necessary to see the areas that additional training is necessary. The managers will be responsible to get the employees the proper on the job training to be the most productive while keeping costs down.
The performance appraisal component of the performance management system is where the manager will twice a year evaluate the employee’s performance. The manager will do a mid -year PE to determine areas of improvement needed to achieve or exceed the goals and deadlines set forth. For the employees which fail to meet or exceed expectations based on the performance metric set forth at the beginning of the year can be put on a performance improvement plan (PIP). This plan will set expectations and guidance for the employee to follow to help meet expectations by the end of the year. The final PE of the year will determine if the employee qualifies for a salary increase and bonus and how much it is. If the employee was put on a PIP and improved in the key areas and meet expectations set forth he/she will also be eligible for a salary increase and a bonus.