How would a results approach to measuring performance build relationships?
Please read the following then answer the question in the end:
Performance management is central in the workplace as it provides a benchmark for managers and supervisors to measure employee performance. Performance management is also imperative to enable managers determine if employees can meet organizations objectives. Performance measurement is a practice or collecting, analyzing and reporting individual performance in an organization. It encompasses studying company’s processes to determine if the business processes output are in line with the company’s objectives (Bititciet al., 2012 pg 306).
The purpose of this paper is to come up with the most appropriate Performance Measurement Approach to be employed by Paychex, Inc in assessing account executives. On the same note, the paper discusses the notion that developing good relationships within the industry is paramount for the success of Paychex, Inc.
Account executives at Paychex, Inc work on their own with little supervision from Their managers. Apart from the headquarter office at Rochester, account executives work at different offices nationwide. Their duties vary ranging from training new account executives, performing client needs analysis, establishing clients on the host processing system, and supporting clients during the initial stages in receiving payrolls. On the same note, account executives perform administrative functions such as documentation, scheduling and making client calls among other duties. Therefore, due to the nature of their duties, the best Performance Measurement Approach that can be employed by managers to assess executive account performance is the result based approach.
The pros for this approach is that it requires less time, lower cost, and the information collected are objective oriented. The tool that will be employed in performance result based approach is Management by Objectives (MBO). The managers at Paychex can set corporate objectives, set and align account executive objectives, monitor their performance, evaluate their performance based on their results (Jääskeläinen et al., 2012 pg 54). On the same note, the managers should reward performing account executives as a way of motivating them to perform even better.
The result based performance approach is ideal for this case because of the nature of account executive jobs. That is, they work with minimal supervision from their managers. The managers should, therefore, use the results of their duties to assess their performance.
Companies in the digital era are becoming more conscious of the importance of good relationships within the organization and the external business environment. Be as it may, the success of an organization may depend on having a good strong relationship with external organizations within the industry. Good organization relationship with the external environment helps fill gaps within the market and hence enable a company to focus on producing core product and services.
Having a good relationship with other organization within the industry can help Paychex Inc in the following ways: A good relationship within the industry can help the organization to access international markets. That would not have been easy without good relationships. Relationships with customers enable a company to develop products that fit customer needs. And as such, develop better products that fit the entire market. Having good networks with other stakeholders within the industry can enable a company to access resources such as capital, intellectual property buildings, and many others (Justus Chris, 2011 nd). Organizations work under association’s umbrella to help in increasing credibility, to spread risks and rewards as well as increase standards in the adoption of new technology.
On the other hand, good relationships in the workplace can help in improving teamwork, employee morale and as such increase productivity of the organization. Having a good team of well-motivated employees is also paramount when it comes to improving the organization’s reputation.
For Paychex, the best performance appraisal method is absolute standards methods such as Critical Incidents, Behaviorally Anchored Rating Scale (BARS) and Management by Objectives (MBO). The best for evaluating account executives will be Management by Objectives. This system is ideal because it aligns organizations objectives with the quantitative measures such as profits, defects in units produced as well as the number of sales (Lunenburg, 2012 pg 3).
In conclusion, Paychex, Inc can use results-based approach to measuring the performance of account executives. Result based approach is ideal because it is less costly, objective oriented and less costly. By and large, organizations must have good relationships within the industry as it helps in networking and enabling a company acquire other items that would not have been otherwise easy. Finally, the best appraisal system Paychex can employ is the absolute standard method using MBO tools.
I am somewhat conflicted in your reply. You suggest results approach to measures, yet you note the need for building relationships. How would a results approach to measuring performance build relationships and is this consistent with their strategic plan?
A results approach to measuring performance
How would a results approach to measuring performance build relationships?
A results-based approach to measuring performance to a large extent results in the creation of effective working relationships. This is especially so where team work is desired in achieving set objectives. Kuzu and Özilhan (2014, p. 1371) notes within any organization, people and departments need to complement each other in order to promote the overall goal of the organization. In order to achieve good results and thus score well in terms of performance, employees must be willing to create better relationships with their colleagues and thereby reap from mutual benefits that may arise from these relationships including knowledge sharing and other inter-departmental links (Kuzu and Özilhan, 2014, p. 1371-1372). It would be impossible for an individual to perform exceptionally by themselves and colleagues play an important role in determining the final outcome.
The result based approach requires that the management constantly follows up on employee performance in order to determine whether set objectives are being met. Through such interaction, important matters including any challenges facing employees in their bid to achieve results can be discussed (Eisenbeiss, Knippenberg and Fahrbach, 2015, p. 635). Furthermore, result-based approach tends to alienate employees from their supervisors because managers are mostly interested with the results and managers must therefore proactively seek to maintain a good relationship with employees in order to promote performance outcomes.
In terms of external stakeholder relationships, the same quest to achieve impressive results applies as in the case of internal relationships. Kumar, Heide and Wathne (2011, p. 1) note that creating a good relationship with external stakeholders including customers, suppliers and peer organizations is beneficial for any profit-oriented business. A good relationship with customers for example ensures that an organization is the preferred choice among competitors and thereby this maintains its profitability level. It also ensures that products are tailored to meet customer needs. This is in line with Paychex Inc’s strategic plan which aims to give the best for its numerous customers in order to maintain its market. Good relationships with organizations in the same industry on the other hand ensures that employees can learn from each other and bring in additional expertise; which may play a significant role in enhancing performance (Kumar, Heide and Wathne, 2011, p. 3 – 4). In order to get better results and promote their performance, employees at Paychex Inc are likely to build better relationships. In line with Paychex’s strategic plan, Paychex relies on multiple partnerships to fuel its business and external relationships are thereby vital in promoting performance.
Kuzu, Ö, & Özilhan, D 2014, ‘The Effect of Employee Relationships and Knowledge Sharing on Employees’ Performance: An Empirical Research on Service Industry’, Procedia – Social And Behavioral Sciences, 109, 2nd World Conference on Business, Economics and Management, pp. 1370-1374, ScienceDirect, EBSCOhost, viewed 22 June 2015. Retrieved from http://eds.a.ebscohost.com/eds/detail/detail?sid=71999945-a415-4e36-b2fe-1dc29dcb7c5a%40sessionmgr4002&vid=0&hid=4113&bdata=JnNpdGU9ZWRzLWxpdmU%3d#db=edselp&AN=S1877042813052786
Eisenbeiss, S, Knippenberg, D, & Fahrbach, C 2015, ‘Doing Well by Doing Good? Analyzing the Relationship Between CEO Ethical Leadership and Firm Performance’, Journal Of Business Ethics, 3, p. 635-651, Academic OneFile, EBSCOhost, viewed 22 June 2015. Retrieved from http://eds.a.ebscohost.com/eds/pdfviewer/pdfviewer?sid=f7ed0ba7-c131-4c19-8bd3-4bd8e6e9c7f6%40sessionmgr4003&vid=0&hid=4113
Kumar, A, Heide, J, & Wathne, K 2011, ‘Performance Implications of Mismatched Governance Regimes Across External and Internal Relationships’, Journal Of Marketing, 75, 2, pp. 1-17, Business Source Complete, EBSCOhost, viewed 22 June 2015. Retrieved from http://eds.a.ebscohost.com/ehost/pdfviewer/pdfviewer?sid=4ff108b1-789e-445f-818e-487da462cb6e%40sessionmgr4003&vid=0&hid=4213
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