Choosing a Performance Measurement Approach at Paychex, Inc.
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CASE STUDY Choosing a Performance Measurement Approach at Paychex, Inc.
The following job description is for an account executive at Paychex, Inc. (www.paychex.com). Paychex, Inc., is a leading national provider of payroll, human resources, and benefits outsourcing solutions for small- to medium-sized businesses. Paychex is headquartered in Rochester, New York, but the company has more than 100 offices and serves hundreds of thousands of clients nationwide. Because account executives often make sales calls individually, their managers do not always directly observe their performance. Furthermore, managers are also responsible for sales in their markets and for staying up-to-date on payroll laws. However, account executives are responsible for training new account executives and networking in the industries in which they sell products. For example, if an account manager is responsible for retail companies, then that account executive is expected to attend retail trade shows and professional meetings to identify potential clients and to stay current with the issues facing the retail industry.
ACCOUNT EXECUTIVE JOB RESPONSIBILITIES
•• Performing client needs analysis to ensure that the major market services product can meet a client’s requirements and expectations.
•• Establishing clients on the host processing system.
•• Acting as primary contact for the client during the conversion process.
•• Supporting clients during the first few payrolls.
•• Completing the required documentation to turn the client over to customer service for ongoing support.
•• Scheduling and making client calls and, when necessary, supporting sales representatives in presales efforts.
•• Keeping abreast of the major market services system and software changes, major changes and trends in the PC industry, and changes in wage and tax law.
Then answer the following questions:
1)What approach do you think Paychex should use to measure performance? Give reasons for your answer.
2)Is it important to consider developing good relationships within the industry?
3)Should we consider an absolute or comparative system?
4)Consider that the results of doing so may not pay off immediately or translate directly into sales. That could be a problem on your performance review!
Also,
1) The answer must raise appropriate critical questions.
2) Do include all your references, as per the Harvard Referencing System,
3) Please don’t use Wikipedia web site.
4) I need examples from peer reviewed articles or researches.
5) Turnitin.com copy percentage must be 10% or less.
Appreciate each single moment you spend in writing my paper
Best regards
SAMPLE ANSWER
Performance measurement plays an important role in an organization as it provides a tool for both supervisors and managers to gauge employee performance. Furthermore, Performance measurement is paramount to enable managers to find out if employees can meet organization goals. Performance measurement can be defined as a practice of analyzing, collecting and reporting individual performance in a company (Bititci et al., 2012 pg 208). It involves analyzing company’s processes to find if the business processes output are consistent with the objectives of the company.
However, this paper focuses on coming up with the most appropriate Performance Measurement Approach that can be used by Paychex Inc managers to assess account executives. Furthermore, this article discusses the ideology that developing good relationships within the industry is of dire importance for the success of Paychex, Inc.
Be as it may, account executives at Paychex, Inc work at different offices nationwide apart from working at the headquarters office which is situated at Rochester. They incur minimum supervision from their managers. They perform different duties such as training of new account executives, establishing clients on the host processing system, supporting new clients during the initial stages in receiving payrolls and performing the client need analysis. Furthermore, it is their duty to perform administrative functions such as documentation, scheduling and receiving client calls among many other duties. Due to the nature of account executive duties, it is best for managers to assess account executive performance using the Result Based Approach.
The result Based Performance approach is the best for this case given the nature of job executives who work at Paychex, Inc. That is, account executives work with minimal supervision from the managers. Hence, the managers should analyze results of their duties in the organization to assess their performance.
Result Based Approach is efficient for measuring the performance of employees who work with little or no supervision. Managers can begin by identifying account executive goals and list the resources required for the account executives to achieve this goal. The employee performance is gauged by the number of goals he/she has accomplished within the stipulated time frame. To achieve this goal, managers can employ Management by Objectives technique as one of the tools to measure performance using Result Based Approach. Managers at Paychex can come up with corporate goals, set and align account executive goals, monitor their performance and measure their performance based on their outcome (Searcy, 2012 pg 247). Also, managers should reward account executives who perform best to encourage them to perform even better at work.
Results based approach is advantageous because; takes less time, the cost of performance measurement is low, and the information collected are objective oriented (Zairi, 2012 pg 94). This approach is appropriate for assessing executive because: they are skilled in the necessary behavior. Behaviors defining account executives and the results of their jobs are related. It is expected that account executives should always exhibit a consistent improvement in their results over time. Managers also expect account executives to do their duties in the right way and ethically.
Having a good relationship between an organization and external business environment plays an important role in creating an enabling environment for business. The success of a company in business activities depends on developing a good and strong relationship with other companies within the industry. Good organization relationship with the external environment helps an organization to fill gaps within the market and, therefore, enable an organization to focus on producing core products and services.
Paychex Inc can enjoy the following by having a good relationship with other organization within the industry. Having a good relationship with other key players within the industry can enable an organization to access resources such as raw material, capital, intellectual property, buildings and many others (Rice, 2013 pg 64). A good relationship with other organizations within the industry can help the organization to expand into the international market. This expansion would not have been easy without having a good relationship within the industry. A good relationship with clients enables a company to develop products that fit customer needs. Therefore, the company will be able to develop better products that are tailored towards the customer needs and hence fit the entire market. Companies often work under the umbrella of industrial associations to help in increasing credibility. On the same note, industrial associations help companies to spread risks and rewards as well as increase the rate of adoption of new technology and innovations (Rice, 2013 pg 92).
Furthermore, good relationship in the internal environment can help a company to improve teamwork, employee morale and, therefore, increase the company productivity. Teamwork often results in better performance by employees. A dynamic team of well-motivated employees plays an important role in improving the organization’s reputation and improve the organization sustainability.
For Paychex, Inc it is best for them to employ absolute standards appraisal method as compared to a comparative system. Absolute standard systems employ appraisal methods such as Behaviorally Anchored Rating Scale (BARS), Management by Objectives (MBO) and Critical Incidents. Behaviorally Anchored Rating Scales (BARS) compares individual performance in the workplace against specific examples of traits that are anchored to numerical ratings. The best appraisal tool for evaluating account executive is Management by Objectives (MBO). MBO measures actual performance and achievement against the defined objectives (Carmen, 2014 pg 438). Therefore, Management by Objectives is ideal because it aligns organizations objectives with the quantitative measures such as profits and defects in units produced as well as the number of sales. Management by Objectives is beneficial because it improves employee commitment and motivation. In our case, it also ensures better communication between the managers and account executives. However, it as a weakness as it emphasizes more on attaining set objectives rather than having a systematic plan of attaining such objectives (Austin, 2013 pg 67).
The issue of results not paying off immediately or translate directly into sales may not be a challenge on performance review. This is because result based approach does not focus only on the short run results but the long run. MBO focuses on the set objective and working towards the attainment of long-run goals rather than short-run (Bititci et al., 2012 pg 307).
To conclude, the best performance measurement approach that can be adopted to measure the performance of account executive is the results-based approach. This is because it is less costly, objective oriented and takes less time to measure performance. Be as it may, organizations should have good relationships within the industry it operates. This feature enables an organization to network and acquire items that would not have been otherwise easy. As a final point, Paychex should employ absolute standard method of performance appraisal such as Management by Objectives (MBO)
References
Austin, R. D. (2013). Measuring and managing performance in organizations. Addison-Wesley. http://ptgmedia.pearsoncmg.com/images/9780133492071/samplepages/0133492079.pdf
Searcy, C. (2012). Corporate sustainability performance measurement systems: a review and research agenda. Journal of business ethics, 107(3), 239-253.
Bititci, U., Garengo, P., Dörfler, V., & Nudurupati, S. (2012). Performance measurement: Challenges for tomorrow*. International Journal of Management Reviews, 14(3), 305-327.
Zairi, M. (2012). Measuring performance for business results. Springer Science & Business Media.
Carmen, A. (2014). Management by Objectives. Ovidius University Annals, Economic Sciences Series, 14(1), 433-436.
Rice, A. L. (2013). The enterprise and its environment: A system theory of management organization (Vol. 10). Routledge.
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