How employee performance is managed and measured at a business
Assignment 4-How employee performance is managed and measured at a business
.0 Introduction
I will write a report regarding an employee working at Tesco, and analyse how Tesco look at their employees and review their performance and see how they manage them. This is so that they can get the best performance out of them, as different people need different ways of managing them. This leads to performance improvement, the measures leading companies use to effectively manage employee development, rewards and recognition, recruitment and selection, and employee satisfaction and morale.
2.0 Findings
2.1. How Tesco manage and measure a performance of an employee
Tesco is a global company and for them to remain one of the best they must man manage their staff, and measure how well they are performing as an employee, this not only benefits the company as sales will be better but also the employee can see what areas they are exceeding at, but also what areas they can improve upon.
Performance Management- There is many approaches that Tesco take upon to the development of a sound performance management system with employees. Tesco believe that an employee must have clear work plan objectives that are aligned with the goals of the company, measurements to assure whether an objective has been achieved, such as has the employee reached their sales total of the day. An assessment of an individual's achievement and an expected distribution of performance levels within Tesco. These would also include employee goal setting.
The value of such a system serves to deliver a variety of value to both Tesco and the employee whose performance is being assessed.
The benefits for the Tesco employee and Tesco-
• Work plans and performance targets can and will drive desired goal attainment
• Periodic performance assessment provides the opportunity to focus and develop talent needed to enhance career opportunity
• Work plans and performance appraisal demonstrate personal interest in individual contribution and may foster a more unified and loyal workforce
• Conscientious workers want to know where they stand and how to improve themselves
• Tesco needs a basis for assessment of relative contribution and reasonable reward
• Work planning, performance assessment and employee coaching form the basis for sound management practice and, if done properly, it will help Tesco to remove low performing members, and help them save money as they won't have any low performing employees.
• Work planning, performance assessment, feedback, coaching and employee training form a strong basis for Tesco to build, maintain or enhance competitive advantage and increase the ...
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• Conscientious workers want to know where they stand and how to improve themselves
• Tesco needs a basis for assessment of relative contribution and reasonable reward
• Work planning, performance assessment and employee coaching form the basis for sound management practice and, if done properly, it will help Tesco to remove low performing members, and help them save money as they won't have any low performing employees.
• Work planning, performance assessment, feedback, coaching and employee training form a strong basis for Tesco to build, maintain or enhance competitive advantage and increase the probability for corporate goal attainment.
A goal setting for the employee is very important as without it they could lose the drive to become better. It also paves the way for the employee a clear goal in order of ambition, as they know what they want to achieve in life. If they did not have a goal set, then they could lose focus and performance in work could go down. They could also not realise if they want a better position within Tesco, as the drive to become better will not be questioned.
If Tesco find that their employee's performance is not good then they have a training programme assigned to them so that they can improve. This would include increases in their sense of ownership in the business. They become better at their job so better able to meet the needs of customers. They could gain new skills and abilities to make them more effective in their role. Tesco has a flexible approach to training, which adapts to individual employee needs
This benefits the company because it is cheaper and managers can oversee progress. This would include-
• coaching employees through problems
• mentoring carried out by an experienced person
• Job rotation or secondment - taking full responsibility for a job on a temporary basis.
The business needs to know if training is producing improvements and giving value. Employees assess themselves by setting objectives and recording outcomes. These measure their improvement in performance after training using SMART objectives. Tesco also uses 360-degree appraisal where all contacts with the employee, for example the manager, assess performance and gives feedback.
It is very important for Tesco to accurately and objectively measure the employee performance for the appraisal process. Measuring the performance covers the evaluation of the main tasks completed and the accomplishments of the employee in a given time period in comparison with the goals set at the beginning of the period. Measuring also passes judgement on the quality of the accomplishments, the compliance with the desired standards, the costs involved and the time taken in achieving the results. Measuring employee performance is the basis for Tesco for the performance appraisal processes and performance management. Accurate and efficient performance measurement not only forms the basis of an accurate performance review but also gives way to judging and measuring employee potential.
For Tesco to be an effective organisation and to achieve its goals, it is very important to monitor or measure it's their and its employee performance on a regular basis. Effective monitoring and measuring also includes providing timely feedback and reviews to employees for their work and performance according to the pre-determined goals and standards and solving the problems faced. Timely recognition of the accomplishments also motivates the employees and help to improve the performance.
Tesco also use SMART objectives for their employees. Example of a Tesco employee using SMART for goals
Specific- The objectives should clearly state exactly WHAT is to be accomplished and for whom, in terms of end results.
Measurable- The objectives should clearly state the LEVEL of accomplishment of end results based on customer needs. This element of an effective objective utilizes quantitative and qualitative measures.
Achievable- The objectives should be the result of true partnership and be mutually agreed upon by all parties involved. This involves a negotiation with the customer around their wants/needs and the individual's capabilities.
Realistic- The objectives should be realist, yet challenging. The objectives are based on facts, analysis, and knowledge. The results, or improvements expected, are possible to achieve and are within areas of authority or control of the individual team, or department accountable for the results.
Time-Related- The end result specified should be accomplished within a certain time period, not merely "in the future". Short-term and long-term objectives are differentiated in specific time measures. Deadlines cans serve as a basis for evaluation of progress toward the objectives.
2.2 How performance can be raised through the development of an employee in Tesco
Any performance review process in Tesco is incomplete without the feedback to the employee. The feedback could be given in the review discussion. Review discussions are semi formal, scheduled between a manager and his employee. The basic purpose of the review discussion is to analyze the performance of the employee in the past to improve the performance of the employee in future. A review discussion in Tesco is an opportunity for the manager to coach, mentor, learn and understand the employee. The manager encourages his/her employees to critically reflect over progress made on the Performance plan and to develop creative, yet feasible alternatives for problem areas. The manager would discuss the problems faced by the employees during the course of action. The solutions tried, and the degree of success achieved in solving the problems faced. Revisit with the employee, his/ her annual plan for the remaining time period and develop revised action plans, if necessary. Review the performance of the each employee individually so that they can be helped any way possible.
Review discussions reassure the employees that each one of them has structured opportunities for one to one interaction with the manager once every two or three months during the year. These opportunities are important as they provide an important chance for performance monitoring or development mentoring. The aim of the performance review discussions is to share perceptions, solve the problem faced during the course of the action, decide on the new goals jointly and provide a feedback to the employee for the past performance i.e. to look at their strengths and weaknesses and also help to chart out a career plan for the employee. The focus of these performance review discussions should not bet o judge the employees' past performance; rather it should be to motivate the employee to improve his future performance and reinforce their good behaviour.
In Tesco they have a different set up to other companies regarding appraisal process for employees. They have self appraisals for their employees, this is where the employee themselves gives the feedback or their views and points regarding their performance. Usually this is done with the help of a self appraisal form where the employee rates them self on various parameters, tells about his training needs, if any, talks about their accomplishments, strengths, weaknesses, and any problems they face.
So when the manager at Tesco has gone through the measuring and managing of the performance of the employee, they will discuss ways they can improve or develop themselves in the organisation.
Tesco has many ways they motivate their staff, they are known like no other company for their motivational methods. They offer their staff an attractive benefits package, including flexible hours and leave, profit-share, an award-winning defined benefit pension, subsidised meals and childcare vouchers. Through their Privilege Card scheme, all staff with over 12 months' service receives a 10% discount on their shopping at Tesco. They are also able to take advantage of discounts at Tesco.com, on our financial products, holidays, gym membership, childcare vouchers and health cover. Each staff member receives a Benefits Book annually to explain all the benefits they can take advantage of, and a personal Benefits Report summarising their total package. This year 160,000 staff shared £63 million in profits.
