Term Paper: Performance Evaluation CEO From: Non

Pages: 5 (1411 words)  ·  Bibliography Sources: 5  ·  Level: Master's  ·  Topic: Business  ·  Buy This Paper

SAMPLE EXCERPT:

[. . .] In addition to customer satisfaction and financial measures, attention also needs to be paid to the interests of the employees. Whole Foods has the approach of building employee loyalty, the result of which is likely to be that the company should have lower turnover, a higher education level among employees and other positive workforce traits. Some metrics are worth including in the performance management, while others are more informational -- for example ensuring that the stores have linguistic representation of their communities so that in diverse areas the staff are capable of dealing with all customers. More critical metrics like employee turnover are important because they will be tied to efficiency metrics, which in turn are tied to both profits and to customer satisfaction. The balanced scorecard helps managers to understand these linkages. Once these links are established, the company's managers will be oriented towards a set of results that support all of the company's strategic objectives.

Benefits to Whole Foods

The performance evaluation system will benefit company by orienting managers' policies and behaviors towards the company's strategic objectives. In particular, the system will focus managers on the longer-term outcomes, rather than simply on short-term financial outcomes. If the company wants managers to work towards a wider range of organizational goals, those must be part of the performance evaluation system. Thus, Whole Foods needs to take the data that it gathers and apply it to meaningful and balanced measures of managerial performance.

Benefits to Managers

The managers themselves need to be oriented towards specific tasks. The performance valuation should create motivation towards behaviors that the company values. The performance evaluation is therefore an opportunity to guide the managers, and give them clarity about their roles. For the managers, this is beneficial because even the most creative manager needs to know clearly his or her expectations, and that is something a performance management system can achieve (Cornett, 2014).

In addition, managers are likely to be benefit because the resource deployment within the company will reflect the performance measures. Whole Foods, knowing what it wants managers to do, is more likely to provide the resources required to do it. This benefits managers significantly, and they will be better able to go back to senior management with the performance measures and ensure that they are given the help that they need to succeed. In that sense, the performance management system is a communications tool as much as anything else, and serving as the foundation for communication between the senior managers and the front line managers the entire company's system is going to be stronger, with better communication and resource deployment and systems that are more directly aligned with overall corporate objectives.

Conclusion

Performance evaluation systems help to orient managerial behavior. When the company designs such systems, that represents an opportunity for the company to think through what it wants from the front line manager, usually in relation to the entire balanced scorecard and not just to short-term financial measures. Therefore, Whole Foods should institute a performance management system for its managers, because that system will motivate the managers to meet the company's overall strategic objectives, and ensure that there is a good dialogue between the managers and the company with respect to expectations, how strategy should be implemented, all of which will help to enhance organizational performance overall as well as at the level of the individual store. The result should be superior performance, profits, efficiency and growth.

References

BSI. (2014). Balanced scorecard basics. Balanced Scorecard Institute. Retrieved June 14, 2014 from http://balancedscorecard.org/Resources/AbouttheBalancedScorecard/tabid/55/Default.aspx

Cornett, J. (2014). The effects of employee appraisal on motivation. Global Post. Retrieved June 14, 2014 from http://everydaylife.globalpost.com/effects-employee-appraisal-motivation-39381.html

Gjerde, Kathy A. Paulson and Hughes, Susan B. (2007). Tracking performance: when less is more Management Accounting Quarterly. Retrieved from http://www.imanet.org/PDFs/Public/MAQ/2007_Q4/2007MAQ_fall_hughes.pdf.

Landy, F., Barnes, J. & Murphy, K. (1978). Correlates of perceived fairness of performance evaluation. Journal of Applied Psychology. Vol. 63 (6) 751-754.

Mudde, Paul A. And Sopariwala, Parvez R. (2008). .Examining Southwest Airlines' strategic execution: a strategic variance analysis. Management. Accounting Quarterly. Retrieved from http://www.thefreelibrary.com/Examining+Southwest+Airlines'+strategic+execution%3A+a+strategic...-a0190882936 [END OF PREVIEW]

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