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Preformance Management

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Performance Management Plan

HRM/531

July 14, 2014
Patrice Cloutuer

Construction Company performance Management Plan

Clayton Commercial Construction Company has requested our recommendations for a performance management plan. We at Atwood and Allen have been working with Marylee Luther for the past several weeks by implementing various recommendations to this construction business to expand to Arizona. Clayton Commercial Company is currently located in Detroit Michigan, has 650 employees, and planning to increase 20% which would open 130 new jobs with their expansion in Arizona, and a turnover rate of 20%. Clayton Construction has a annual net revenue of 10 million dollars and expect their current -3% revenue growth to remain the same. Our recommendations would include the framework that can lead to build a evaluation system, the philosophy of performance management, and the feedback for an effective performance management plan.
Performance Management Plan
Atwood and Allen would recommend a performance management for the construction industry this system must gather related data to improve their goals through performance objectives by goal setting, measuring and assessment. Clayton Construction performance management system should include five elements in their system: Cost, cost growth, cost factors and budget factors; Schedule, schedule growth, duration, schedule factor, and duration factor; Safety, zero recordable and zero lost workdays; Change, change cost factor, and change schedule factor; Rework, rework cost factor, and rework schedule factor. This system would enhance benchmarking or comparing projects.(Kim, Park, & Lee, 2007).
There are five phases of an effective performance management plan that we encourage your company to adhere to. Measuring, sets the objective of performance, define the perspective, set the target of performance and measure the data. Storing phase, loads data into a warehouse, which defines a fact table and measure data, the warehouse has measured data and converted data through extracting and refining stored data. Analyzing phase, is a multidimensional analysis using online analytical processing (OLAP) with data and performance stored in the warehouse. There should be a hierarchical structure. The reporting phase also know as monitoring phase, analysis the information through interaction with system and display it’s report to screen. The final phase is the use phase that is used for problem solving and decision making with the information collected from the analyzed data.
Framework of Performance Management
We recommend that the framework of performance management source system have a business and measurement system. The business system should have technology support system, research, development system and sales system headed by the project management information system. The measuring system should include a performance index, measurement plan and result. The source system should include the goals and perspective. The warehouse known as the data warehouse is what is analyze and measured in management, information is gathered, transformed, and loaded in the business system. Data is created within the cube and obtained by the OLAP tool. The final portion of framework is the application which should provide answers for the questions that was analyzed, it shows the analysis results.
Feedback of Performance Management
Our recommendation is that Clayton Construction Company provide performance appraisals on a yearly basis to all employees. This will improve the employees work performance, provide feedback, help develop training objectives, programs for improvement and identify problems in the organization that can reduce turn over rate of 20% with the expansion of this company. These appraisals can be used a a basis for pay to performance programs, incentive and reward programs that can increase your over all morale of the expanded business.
In conclusion, we recommend that an effective performance management plan for your construction business contain the above mentioned, five phases, measuring, storing, analyzing, reporting and use. We suggest that the performance index, measurements, framework and feedback tools are provided in the beginning of your expansion to Arizona. Atwood and Allan is a consulting firm and release all information in the document as a recommendation. We appreciate your business and look forward to working with you in the future.

References
Cascio, W. (2013). Managing Human Resources [University of Phoenix Custom Edition eBook]. : McGraw-Hill. Retrieved from University of phoenix, HRM/531 website.
Kim, N., Park, M., & Lee, H. (2007). Performance Management Method for Construction Companies. 24th International Symposium on Automation & Robotics in Construction, (), 523-528.

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