PERFORMANCE MANAGEMENT:
Management must ensure there is cooperation and integration between all 8
business functions.
CONTINUOUS quality monitoring. Improvement of quality should be
encouraged within the business. (Do things properly and correctly)
Aim: do everything right the FIRST time.
Total Quality Management = every section in the business is involved.
ADVANTAGES/ IMPORTANCE OF QUALITY CONTROL
Encourage workers to deliver quality products that can be linked to their
remuneration (if they do it correctly the first time, it is easier to pay the
workers= BONUS)
Leads to improvement in morale (confidence, enthusiasm, discipline) and
reduce staff turnover (number of employers replaced by new employees).
Quality is aligned with HR – they are in charge of the training of employees,
therefore, aligned with quality. For example: employees can get a 10%
increase if they do it correctly the first time.
Distributors will receive less complaints.
Problems relating to quality= opportunity for improvement (it’s a challenge, not
a problem)
Often linked to production department.
SA relies on tourism – when dealing with a service, the customers’ perception
of quality is very important. Eg: petrol station – the service delivery of a car
wash. 1st impression: the willingness of staff to assist.
Customers expect reliability – staff to make good on promises. They need to
give of and produce the same quality every time. Customers rely on this.
Customer service – being caring and attentive.
Do not neglect the physical/ tangible element.
The quality of the food is AS important as the service in a restaurant/ petrol
station.
Quality of service needs to not ONLY meet the expectations of customers, but
EXCEED their expectations.
Core values of the business: excellence through (1) innovation, (2) teamwork
and (3) respect and integrity. Good corporate governance = DIISFART
(looking after stakeholders. Being transparent and accountable)
IMPACT OF PERFORMANCE ON THE BUSINESS SUCCESS (Quality)
Due to changes in the market, business requires shorter response times to
bridge any performance gap. (market environment is ever-changing and
dynamic)
Performance gap: difference between what was INTENDED to be achieved
and ACTUAL performance.
Desired performance (-) actual performance = PERFORMANCE GAP
Best scenario= actual performance is GREATER than desired performance.
Therefore, there is NO performance gap.
, Good scenario: both the desired AND actual performance are equal
Worst scenario: actual performance is LESS than desired performance. Then
there is a performance GAP.
To evaluate the overall business performance, we look at the individual
departments.
Causes of the Gap:
Changes in the INTERNAL environment. If there are weaknesses, then the
business UNDER performs.
Changes in the EXTERNAL environment. Risks faced by the business.
Both factors must be managed properly.
MANAGING PERFORMANCE THROUGH DEPARTMENTS:
General Management:
- Strategic planning – a management tool. (POLC)
- Poor planning = fail to provide the business with a sense of DIRECTION.
- No support and employees not buying into the plan = Failure.
- Focus on the CURRENT as well as FUTURE. Both need to be dealt with
carefully.
- Plans = accurate, objective, consider everything.
- Planning = realistic and economical (inexpensive)
- Need an effective method of communication to inform supervisors of the plan.
- Timing = NB when planning and executing.
- KISS
- Need a HOW component when planning.
Human Resources:
- Training, coaching.
- Help other function managers to create an atmosphere of continuous quality
improvement. (Through upskilling the employees and training them). It is not
once off. They are skills for life.
- 1st step: organize training programs to tell all departments that quality control
is the PRIORITY of ALL departments. (TQM)
- HR must develop and implement a structure (arrangement/ formation) that
promote the GOALS of the business.
- Different departments actions have a ripple effect on the OVERALL
performance of the business. (if one department messes up, it affects all the
others)
- Feedback must be efficient (well organized way) – performance appraisals.
Rewarding people accordingly. 10% for working well constantly. 5% for
working well, some of the time.
- Important for employees to receive feedback too. Communication is both
ways.
- ‘360-degree feedback’. Tell everyone about everything. Eg: ‘’you need more
EQ. change how you do this. I don’t like how you do that…’’ Usually
anonymous.
Management must ensure there is cooperation and integration between all 8
business functions.
CONTINUOUS quality monitoring. Improvement of quality should be
encouraged within the business. (Do things properly and correctly)
Aim: do everything right the FIRST time.
Total Quality Management = every section in the business is involved.
ADVANTAGES/ IMPORTANCE OF QUALITY CONTROL
Encourage workers to deliver quality products that can be linked to their
remuneration (if they do it correctly the first time, it is easier to pay the
workers= BONUS)
Leads to improvement in morale (confidence, enthusiasm, discipline) and
reduce staff turnover (number of employers replaced by new employees).
Quality is aligned with HR – they are in charge of the training of employees,
therefore, aligned with quality. For example: employees can get a 10%
increase if they do it correctly the first time.
Distributors will receive less complaints.
Problems relating to quality= opportunity for improvement (it’s a challenge, not
a problem)
Often linked to production department.
SA relies on tourism – when dealing with a service, the customers’ perception
of quality is very important. Eg: petrol station – the service delivery of a car
wash. 1st impression: the willingness of staff to assist.
Customers expect reliability – staff to make good on promises. They need to
give of and produce the same quality every time. Customers rely on this.
Customer service – being caring and attentive.
Do not neglect the physical/ tangible element.
The quality of the food is AS important as the service in a restaurant/ petrol
station.
Quality of service needs to not ONLY meet the expectations of customers, but
EXCEED their expectations.
Core values of the business: excellence through (1) innovation, (2) teamwork
and (3) respect and integrity. Good corporate governance = DIISFART
(looking after stakeholders. Being transparent and accountable)
IMPACT OF PERFORMANCE ON THE BUSINESS SUCCESS (Quality)
Due to changes in the market, business requires shorter response times to
bridge any performance gap. (market environment is ever-changing and
dynamic)
Performance gap: difference between what was INTENDED to be achieved
and ACTUAL performance.
Desired performance (-) actual performance = PERFORMANCE GAP
Best scenario= actual performance is GREATER than desired performance.
Therefore, there is NO performance gap.
, Good scenario: both the desired AND actual performance are equal
Worst scenario: actual performance is LESS than desired performance. Then
there is a performance GAP.
To evaluate the overall business performance, we look at the individual
departments.
Causes of the Gap:
Changes in the INTERNAL environment. If there are weaknesses, then the
business UNDER performs.
Changes in the EXTERNAL environment. Risks faced by the business.
Both factors must be managed properly.
MANAGING PERFORMANCE THROUGH DEPARTMENTS:
General Management:
- Strategic planning – a management tool. (POLC)
- Poor planning = fail to provide the business with a sense of DIRECTION.
- No support and employees not buying into the plan = Failure.
- Focus on the CURRENT as well as FUTURE. Both need to be dealt with
carefully.
- Plans = accurate, objective, consider everything.
- Planning = realistic and economical (inexpensive)
- Need an effective method of communication to inform supervisors of the plan.
- Timing = NB when planning and executing.
- KISS
- Need a HOW component when planning.
Human Resources:
- Training, coaching.
- Help other function managers to create an atmosphere of continuous quality
improvement. (Through upskilling the employees and training them). It is not
once off. They are skills for life.
- 1st step: organize training programs to tell all departments that quality control
is the PRIORITY of ALL departments. (TQM)
- HR must develop and implement a structure (arrangement/ formation) that
promote the GOALS of the business.
- Different departments actions have a ripple effect on the OVERALL
performance of the business. (if one department messes up, it affects all the
others)
- Feedback must be efficient (well organized way) – performance appraisals.
Rewarding people accordingly. 10% for working well constantly. 5% for
working well, some of the time.
- Important for employees to receive feedback too. Communication is both
ways.
- ‘360-degree feedback’. Tell everyone about everything. Eg: ‘’you need more
EQ. change how you do this. I don’t like how you do that…’’ Usually
anonymous.
