In order to develop an effective plan, Clayton Commercial must examine the following facets. Organ sectional Performance Management Philosophy It is crucial that Clayton Commercial Construction has a defined performance management philosophy. This type of philosophy provides the basis of how they will manage their people to achieve the performance the company needs in order to succeed. There are various philosophies and models to choose from and according to Agar (201 2), “clearly communicating your organization’s performance management philosophy to employees matters much more than the choice of philosophy’ (Para.

. Although the specific philosophy may not matter as much, still recommend choosing one that compliments the company and what they do. Therefore, I recommend a coaching and development assessment philosophy. This model focuses on identifying strengths and weaknesses of an employee and developing them to improve performance. It also increases employee engagement and facilitates positive knowledge transfer where it enhances job performance (Socio, 2013, p. 305).

For the construction industry, this would be more ideal since new industry advancements are frequently made.Alignment to Organizational Strategy Research says that there is a clear relationship between a company’s performance management and its financial performance (Frilled, 2013). Clayton Commercials financial well-being largely depends on their employee productivity being greater than the cost of their salaries.

However, compensation alone is not enough to sustain a high performance level. That is why providing continuous motivation and training is necessary. Continuous motivation and training, however; must be relevant to the organization’s overall strategies for it to be beneficial.Three benefits of aligning performance management to organizational tragedy are; increased operating margins, quicker execution of company strategy, and reduced employee turnover (Success Factors, 2014). When employees understand their goals and see how their contributions and improvements make a difference in the company’s success, they can focus on working more efficiently and become more productive. The increased productivity eventually results In greater profitability. A close alignment of strategy and goals that are visible will enable the management to more effectively allocate their resources to various projects.This allows management to reduce or eliminate effort duplication making for quicker execution, which will increase overall efficiency.

Having clearer goals helps to create a sense of employee ownership in the success of a business and this leads to greater employee satisfaction and a lowered turnover rate. Recommend the use of a balanced scorecard and “SMART” goals to achieve this. A balanced scorecard measures an organization from four perspectives; learning and growth, internal business processes, customer, and financial.

It helps to clarify the vision and strategy and provides feedback on internal and external processes, as well as external outcomes to foster continuous improvement which can lead to better results. “SMART” goals are ones that are specific, measurable, attainable, relevant, and timely. This method of goal-setting has been found to effectively motivate employees to perform at higher levels. Setting “SMART” goals for individuals can also be easily tied into the organization’s overall strategies and goals. Job Analysis Process to Identify Skills In order to determine the necessary skills employees need, a job analysis must be completed.The analysis will describe both the work, and personal requirements of a specific job (Socio, 2013, p. 338).

For example, a ascription of major duties to be performed, any licenses needed to perform the job, and what the physical, environmental, and mental demands of the job should be included. Since Clayton Commercial Construction is expanding into Arizona, many of the positions will not require an additional job analysis to be done. However, recommend a review of each position to determine if there are any significant changes to the job duties.In the event of significant changes to job duties, or if a new position is created, a job analysis will need to be done. According to Desert (2003), there are six steps in conducting a bob analysis (up. 61-62). 1. Decide how to use the information.

How you use it factors in to what data you will collect and how you will do so. 2. All relevant background information needs to be reviewed. This includes organizational charts, process charts, and even other job descriptions. 3.

Representative positions need to be selected. Since Clayton Commercial already employs 650 people and is adding 1 30, there will be too many similar jobs to analyze. . Actually analyze the job using the desired method. For example, a quantitative method like a functional job analysis rates jobs on; data, people, hinges, the degree specific instructions are necessary, how much reasoning and judgment are required, the amount of mathematical ability required, and the verbal and language facilities required to perform the task (Desert, 2003, p.

71). 5. Verify the analysis information. This should be done with a worker who performs the job and his or her supervisor and helps to ensure the information is complete and correct. 6. Develop the job description and job specification.

These are the products off completed job analysis and can either be in separate documents or in the same one. It is also important to tot that the state laws may vary from Michigan to Arizona regarding construction and it is likely that the local building codes will be different due to the geographical differences. Given this, another recommendation is to have current employees that are qualified job experts, along with one to two supervisors, review the job duties to ensure the knowledge, skills, abilities, and personal characteristics are consistent with construction standards, local codes, and state laws and regulations (Outage, 2011).Methods for Measuring Skills An integral part of the performance management process is the use of performance appraisals. Appraisals are generally used to improve an employee’s work performance and to provide information when making work-related decisions (Socio, 2013, p.

336). There are various methods a company can choose from when looking for an appropriate employee appraisal format. However, it is important to be cognizant of a couple of things. The first is that weaknesses occur in every system over time.So, it is essential for an effective appraisal system to be closely monitored while getting feedback on a continual basis (Islam & Squib, 2006). The second is that overall organizational performance is enhanced when continuous placement is emphasized in a simple and effective appraisal system (Islam & Squib, 2006). When it comes to rating formats, there are two types: behavior-oriented and results-oriented. The focus of behavior-oriented methods is on employee behaviors, whereas results-oriented methods emphasize what an employee produces (Socio, 201 3, p.

342).Common behavior-oriented rating methods include: narrative essays, simple or alternation rankings, forced distributions, behavioral checklists, graphic rating scales, and behaviorally anchored rating scales (BARS). Management by objectives (MOB) and work planning and review are two examples of results- oriented rating methods. My recommendation is to use either a behavioral checklist, such as the Liker method of summed ratings, or a graphic rating scale for employee veal cautions.

Both are easy to use methods, facilitate employee comparisons, and are not too time-consuming to develop.This is important because the Clayton Commercial currently has 650 employees and is planning on adding 130 more employees with the expansion. An additional advantage to the behavioral checklist is that it directly links the job analysis and the performance appraisal. Aspects that the HRS department needs to be ware of is that there is a potential of differing interpretations between raters with a behavioral checklist and a graphic rating scale may not clearly define the dimensions (Socio, 201 3, p. 348). This can be mitigated by rater training and taking the time to clearly define the scale points, respectively.Skills Gaps Addressing the problem of skills gaps can usually be separated into two categories: those that use employer surveys and those that use labor supply and demand indicators.

In the surveys, organizations hiring workers were asked about the skills needed for the jobs they have, as well as what the employers’ perceptions of employability skills gaps across the various industries. The surveys are not ideal because the individual completing the survey may not have any direct knowledge of the skills required for success in a given job and it is based on perceptions.Using labor supply and demand indicators involves research regarding skill gaps where the county skill supply is subtracted from an industry skill demand and education level serves as a proxy for skill level (A Better Measure of Skills Gaps, 201 1, p. 5). A 2011 policy report from ACT states that a, “hybrid approach of using both survey and abort market supply/demand data is recognized as a “best practice” of addressing skills gaps for many state workforce agencies and labor market information offices in the US. ” (p.

6).Given this, I recommend using the hybrid approach focusing on the specific county or counties in Arizona that Clayton Commercial will draw their employment from. Incorporating customized and aggregate data will create more balance and be less subjective when determining the skills gaps in the construction industry. Performance Feedback Although the general goal of performance feedback is to improve individual reference, there is no one right approach.

Organizational approaches vary from the traditional weaknesses-based to the 360-degree when it comes to delivering performance feedback to employees.Many organizations use a “tell-and-sell” approach where they complete an appraisal, show it to the employee, and justify the evaluation (Socio, 2013, p. 360). However, this type of approach typically results in negative reactions of employees. In order to foster improved job performance through performance feedback, there are some activities that supervisors can do before, during, and after a performance review or evaluation.

Before performance reviews a supervisor should get training in performance feedback, frequently communicate with employees, and encourage them to prepare.Frequent communication is supported by research that indicates employees actually prefer receiving informal feedback daily, as well as periodic appraisals (Somber & Giuliani, 2012, p. 197). During a performance review it is important to encourage participation, only judge performance, be specific and an active listener, avoid destructive criticism, and set mutually agreeable goals. After the performance review supervisors should continue the frequent immunization and periodically assess progress made toward the agreed upon goals.Given what I have previously discussed, I recommend a strengths-based approach for delivering performance feedback.

This approach ties into the activities that foster job performance improvements more closely than a weaknesses-based approach. A strengths-based approach also en Hansen employee engagement, increases their desire to improve productivity, heightens actual productivity, and raises the levels of job satisfaction (Gauguin, Cottonseeds, & Joy, 2012, p. 107). There is also an added benefit to this approach regarding employee engagement.Since it is negatively related to turnover, increases in employee engagement means that the turnover rates will decline. Even though Clayton Commercials historical turnover rate is 20%, proper implementation of this performance feedback approach could potentially lower the rate. The process of performance management plays a vital role in helping a company and its employees to focus efforts On achieving both organizational and individual goals.

Six aspects of Clayton Commercials performance management framework were discussed and appropriate recommendations were made for each area.