Author Name: Adam Oliver
Institution Name: Jorge H. Steele
This entry was posted in Thecasestudysolutions.com on by Case Study Help
Introduction
Employees are the backbone of an organization. It means that their involvement is more than essential for the sake of an organization, as their involvement makes it possible for the companies to attain their financial and non-financial objectives. The importance of employee’s management and the management of their productivity has increased tremendously well from past few years due to its connection with the long run efficiency of the company. It is essential for the companies to manage the well-being of their employees and develop certain opportunities for them that can uplift their morale and satisfaction level (Aguinis, Joo and Gottfredson, 2011). The subject of Human Resources Management (HRM) is of great importance for the companies throughout the world, as it helps them to direct the performance of their employees accordingly, and assist them in satisfying their needs. According to Buckingham and Goodall, (2015), satisfied employees are more efficient and productive than unsatisfied employees. There are numerous notions that enlists in the factor of satisfaction and non-satisfaction of the employees. Rewards are known as the most important notion that has a strong and direct connection with the satisfaction level of the employees. Performance Management (PM) is an important factor that comes under the list of Rewards and its management (Carter et al., 2011). Theoretically, PM is all about managing the performance of the employees and direct it according to the requirement of the company. PM also enables an organization to satisfy the needs of their employees and maximize their devotion and loyalty level as well. The main aim of this assignment is relating to PM as well. There is a case has been given of “Gap” that needed to be analysed and incorporated in the case study analysis. The assignment apparently divided into three main headings which are introduction, Analysis & Discussion and Conclusion. However, the relating answers of the case will be discussed under the Analysis & Discussion Heading.
Analysis & Discussion
Identification and Analysis of the Problem
According to de Leeuwenhoek and van den Berg, (2011), the main goal of every organization is divided into two different forms. Firstly, it is more towards the achievement of the financial target. Secondly, it is more connected with complying with the strategic objectives. It is essential for the companies to take timely actions into the consideration through which they can easily sustain their position in the market. Gap INC is one of the largest Clothing Brands with its active hub in the region of the United States. The company has envisaged a real downturn in their productivity due to the non-satisfaction factor in their employees. The case study assignment of Gap INC has identified numerous issues that needed to be analyses closely in order to allude something positive to the company to overcome the same problem.
One of the most critical problems that highlighted in the mba case study is the non-practicality of the Performance Management System. The performance management system that incorporated by Gap INC was the traditional one, which are currently using by most of the organizations of the world such as Rating system (Forrester, 2011). It means that the managers are the one who give a thorough understanding about the skills and other major factors pertaining to an employee. Performance management system that requires the response of the managers has been referred as Annual Performance Review (APR), in which the supervisor ranks the employees of the company based on their performance and their contribution. Apart from the per year appraisal, the insinuations of the managers are also essential to quality the employees for the bonuses. Gap INC has separated the bonuses for the employees, and it based specifically on the performance and contribution of the employees in achieving the main target of the company.
The second problem that identified in the context of Gap INC is the restriction of the appraisal towards the performance only. The current rating system used in Gap INC is restricted to analyse the factor of qualification of the employees of the company towards the appraisal or financial effectiveness. However, it is not the case always. Gap INC is a world class clothing brand that always needs creativity, cutting edge technology and innovation in their product, because they are well-aware with the fact that the competition in the industry is increase that can be released only if they can overcome on the increasing competition (Gruman and Saks, 2011). The problem of increasing competition could be overcome easily with the help of this method. Due to the severity of this problem, the issue of effectiveness and innovation are likely to be removed completely from the employees. Employees as well as managers of Gap INC were emphasizing more on the increasing productivity of the company, instead of increasing the innovation and creativity of the employees, which is more suitable and indispensable for the company in particular.
The third, but the most critical issue that found in the current performance management system in Gap INC is the non-engagement of the employees in the same scenario. It means that the employees of the company are not being asked about the performance management system and the feedback on the same (Moynihan and Pandey, 2010). It means that the factor of Management Bi Objectives (MBO) and communication is still missing from the context of Gap INC. It is an obvious fact that managers are not the one who have the complete idea and the issues pertaining to the problems of the employees, and their ratings are more based on the increasing productivity, as compared to increasing contribution and increasing effectiveness and innovation.
Alternative Strategies
This particular part of the assignment is likely to identify the alternative strategies that could be used by Gap INC to overcome the aforementioned problems.
• Quarterly Performance Management
• Performance related pay
• Management Bi objectives
• Hot Desking and innovation
These are four alternative strategies that should have been adopted by Gap INC to overcome on the major issue. The manager of the company has introduced a new system with the name of Grow-Perform-Succeed (GPS), but the system was not active and efficient as it should be. However, they have the chance to consider the aforementioned strategies to overcome the problem which was highlighted before.
Critical Evaluation of the Alternative Strategies
There are four different strategies which have been highlighted in the above mentioned discussion. Each of the strategy has its pros and cons that needed to be highlight and evaluated in this particular framework.
Quarterly Performance Management
As per this alternative performance management strategy, the managers should analyses the performance on the quarterly basis as compared to the annual basis. There are numerous companies which are currently using the same aspect, and the chance of using the same is bright for Gap INC as well. It is material for the organizations to timely evaluate the performance of their employees. Hence, instead of waiting for a long span of time such as a year, it is better to visualize the performance of the employees on the basis of the quarterly basis. According to Petrucci, Loques and Mossé, (2010), the biggest benefits of this particular strategy is having a closer look over the performance of the employees, along with having a clear eye over the contribution which they are bringing towards the company. Quarterly performance management would be more efficient and proactive for the companies to improve the performance of the employees, and make then one step ahead towards achievement of the organisational goals. This particular statement completely backed by Pollitt, (2013) from their study, as according to them the higher the improvement in the working of the employees, the higher will the chance for the companies to attain their productivity and goals. However, the major issue which highlights in the context of this particular alternative strategy is time consumption, as analysing the performance like this regularly will cost the company more, and spent a lot of time over the performance measurement and performance appraisal.
Performance Related Pay (PRP)
There is yet another option that exhausts by the organizations for the purpose of managing their employees and their sheer performance. It is referred as Performance Related Pay (PRP). It is a strategy in which the pay of the employee has been designed, derived and designated as per the performance of the employees (Walker, Damanpour and Devece, 2010). It means that the efficient the performance of the employees, the higher will be the pay of the individual. In other words, the individuals can rationalise the pay only, if they are complying with efficient performance and productivity. The main advantage associated with PRP has been designed and presented by Selden and Sowa(2011), as according to them PRP is efficient to enhance the performance and productivity of the employees. When they aware with the fact that their salary and bonuses will be rationalise only with their performance, then they are more likely to strengthen their performance accordingly. On the other hand, Pollitt,(2013) put a disadvantage pertaining to the same strategy, as according to them PRP will devastate the quality of the work from the employees, as employees are more likely to put efforts on their productivity and achieving targets without having quality in their work. This particular strategy would be suitable for the companies which have target based orientation. Hence, this particular outcome might not be efficient for the Gap INC.
Management Bi Objectives (MBO)
Another major performance management tool which is currently in use by most of the companies is Management bi Objectives (MBOs). MBO is a new technique that exhausts by most of the management of the companies, as this particular strategy has a great tendency to increase the communication level among the employees(Walker, Damanpour and Devece, 2010). The technique of MBO gives complete opportunity to the employees of the company to communicate easily with the management of the company. The barriers in the communication does not exist in the same factor. Based on the same outcome, it is found that the management of Gap INC should ask their employees about the same factor, and ask their personal opinion about the performance management system, and its obligations. According to Petrucci, Loques and Mossé,(2010), MBO is relatively a new technique that associated with the positioning of the companies that maximize the potential of the company accordingly. This particular strategy has an advantage of increasing communication and decreasing the factor of conflict among the management and employees that ultimately brings a lot of financial outcomes for the company. Another benefit presented by Pollitt, (2013) is that the strategy will increase the satisfaction level among the employees proactively, and helps the company to uplift its financial and strategic position accordingly. On the other hand, losing of control from the managerial activity for the managers is one of the major cons of this particular strategy.
Hot Desking and Innovation
There is another major factor that has consider by the companies for the purpose of managing their employees in an appropriate manner. Hot desking provides an option to the companies through which they can easily manage their employees proactively and efficiently as well. This particular factor is proactive in the long run as it assess the factor of management of the employees. This particular tool allows the employees of the company to choose their place to work which is comfortable for them. The only thing that requires by the organizations under such evaluation and circumstances is the world without any influence (Moynihan and Pandey, 2010). They require their employees to work with their convenience and ease, and contribute on the productivity of the companies particularly, as it allows them to maintain their valuation in the long run. This particular tool is currently using by most of the organisations of the world to maintain their attentiveness in the market. Even the big companies throughout the world are now using the same technique for the sheer purpose of satisfying their employees. There are two different methods that could be used for the purpose of satisfying the employees (Forrester 2011). The first method is the extrinsic rewarding in which the compensation, perks and benefits are likely to ascertain in the same factor, while on the other hand, intrinsic rewards are more connected with appreciation and feedbacks. Therefore, both of these things are essential for their productivity and efficiency in the long run. Based on its benefits and effectiveness, it is suggested to Gap INC to use the same method for their productivity.
Recommendation and Implementation Plan
The strategy which Gap INC has to undertake out of these four factors is Management Bi Objectives. As mentioned earlier that it is relatively a new technique which are currently in used by the organisations for the purpose of increasing the level of confidence and satisfaction among the employees in the long run. The main rationale behind identifying this this particular recommendations for the end user is due to the current line of issues with Gap INC. The problems that highlighted earlier could be overcome easily and completely through the help of communication. Communication is a key of success that allows the employees and the management to interact with each other. The higher the interaction the higher will be the innovation. Gap INC is currently looking forward to increase the level of innovation, as without this particular aspect, it is not possible for them to maintain their valuation and productivity in the market. The employees of Gap INC are efficient, but they needs more accuracy and effectiveness, because it help them to secure their positioning in the market. The level of competition in the cloth retailing is increasing day by day, and it can be overcome easily with the help of taking timely actions and measures. Apart from recommending, the next important point which is applicable in the same context is implementation plan. It is significant for Gap INC to engage their managerial position employees in the same implication. For example, in order to train and deploy the employees, it is material for the company to ask their Human Resources (HR) manager to put their reference in the same capacity and ask the problem which the employees are facing while working with the company. The implementation plan also requires a specific time in which the company will become able to demonstrate and rationalise the entire change at the right time, as it will enable them to discuss everything in details and in effectiveness. In short, the entire implication will help Gap INC to interact with each other, and also helps them to secure a strong position in the market, especially in the long run. This particular implication will help Gap INC to manage and maintain their Performance Management factor accordingly.
Conclusion
The main aim of this assignment is relating to PM as well. There is a case has been given of “Gap” that needed to be analyses and incorporated in the analysis. From this entire analysis, it is found that the positioning of Gap INC has received some serious jolts that needed to be completed and managed accordingly. From this entire analysis, it is found that the company has to consider the same factor accordingly, as it will help them to further their PM system professionally, especially in the long run.
References
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Buckingham, M. and Goodall, A., 2015. Reinventing performance management. Harvard Business Review, 93(4), pp.40-50.
Carter, B., Danford, A., Howcroft, D., Richardson, H., Smith, A. and Taylor, P., 2011. ‘All they lack is a chain’: lean and the new performance management in the British civil service. New Technology, Work and Employment, 26(2), pp.83-97.
de Leeuw, S. and van den Berg, J.P., 2011. Improving operational performance by influencing shop floor behavior via performance management practices. Journal of Operations Management, 29(3), pp.224-235.
Forrester, G., 2011. Performance management in education: milestone or millstone?. Management in Education, 25(1), pp.5-9.
Gruman, J.A. and Saks, A.M., 2011. Performance management and employee engagement. Human Resource Management Review, 21(2), pp.123-136.
Moynihan, D.P. and Pandey, S.K., 2010. The big question for performance management: Why do managers use performance information?. Journal of public administration research and theory, 20(4), pp.849-866.
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Selden, S. and Sowa, J.E., 2011. Performance management and appraisal in human service organizations: Management and staff perspectives. Public Personnel Management, 40(3), pp.251-264.
Walker, R.M., Damanpour, F. and Devece, C.A., 2010. Management innovation and organizational performance: The mediating effect of performance management. Journal of Public Administration Research and Theory, 21(2), pp.367-386.
