Performance Management Practices for Business Processes of an Organisation

This article discusses the importance of performance management practices for business processes of an organisation. It explains the balanced scorecard model for performance measurement and how it helps in aligning objectives with the business strategy. The article also discusses the different perspectives of performance and how to select performance indicators. It provides suggestions and recommendations for improving performance management practices using the SMART model. The article concludes with the importance of effective communication channels for improving customer service and competitive market.

BSBMGT617 DEVELOP AND IMPLEMENT A BUSINESS PLAN
ASSESSMENT TASK 3 - PERFORMANCE MANAGEMENT
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In order to achieve efficient as well as effective results, it has become Inevitable to make use of
performance management practices for the business processes of an organisation. By applying
the models of performance measurement, a business organisation such as the Coffeeville can
ensure that the processes are aligned with the business strategy. It can be said that the choice of
performance indicators is dependent on the organisation itself. However search models lakh
guidance in regards to the existing performance indicators and how they can be involved in the
practice as well.
One of the most well known multidimensional models of performance measurement is the
balanced scorecard model that was developed by Kaplan and Norton that takes into account the
four approaches to the performance of an organisation which are namely the financial
perspective, the customer perspective, the internal operations and processes perspective and the
learning perspective. This model helps in translating the business strategy of the organization in
terms of operational indicators of performance. It also helps in aligning the objectives with that
target for the perspectives of performance that have been identified. In order to measure the
performance of the Coffeeville, the balanced scorecard model is preferable.
The balance scorecard model Has been designed in order to find the equilibrium between the
financial as well as the non financial indicators of performance. Also helps in balancing the
interest of the external as well as internal stakeholders. Most importantly this model helps in
analysing and balancing the presentation of past performances as well as prediction of teacher
performance. The balance scorecard model encourages the business organisations to directly
derive the long-term objectives from the overall business strategy and link them to the
operational and short term target. In order to measure the performance the indicators need to be
define periodically in order to continuously measure the objectives. The indicator will be among
any one of the four perspectives of performance.
During the routine performance measurement schedule using the balance Court card model, the
managers can make use of colour coded labels assigned to the actual performance on the short
term goals and objectives of the company. The model in question resumes logical relationship
among the four perspectives of performance that is an increase in employee skill level is
expected to impact the quality of services as well as product which will help in improving
customer perception. The results obtained for the perspectives will be analysed in order to
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identify a strategy that will contribute to increasing the financial performance of the Coffeeville
which in turn will dictate the mission vision as well as organisational strategy of the company.
The performance indicators have been classified into two different categories namely the
performance outcome and the performance driver. The indicators which belong to the financial
as well as the customer's perspective are utilised for measuring the performance. On the other
hand perspectives of the internal operations and processes as well as the learning perspectives
have been considered as typical drivers of performance. However, the balance score card model
does not take into consideration the adaptability of the managers and the organisational culture
which makes it necessary to identify suitable indicators that take into account the various
perspectives of the organisational strategy.
The different perspectives of performance that have been discussed required further designing of
the performance indicators that will help in distinguishing between the different perspectives.
The performance indicators chosen need to be operational which can be used for describing
exactly how the performance is being measured and against which values the results can be
compared against. The qualitative statement that is used for measuring the level of customer
satisfaction is operationalization. In any case a business organisation cannot keep generating
revenue and profit by utilising the existing indicators of performance it is necessary to
investigate the performance indicators that are used in measuring the performance of different
operations and processes.
In order to select a performance indicator it is necessary to put them through a evaluation criteria
which helps in summarising the desirable characteristics that needs to be monitored. The
performance indicators are dependent on the organisation and hence it is quite obvious that
means indicators will be derived from the objective, mission, vision and strategy of the business
organisation which will be aligned with the financial and nonfinancial aspects of the business.
Names of underperformers Area(s) of
underperformance
Expected performance
Chief of operations
(Kitchen) and cooks
● Making list of stock
and inventory
● Providing safe and
hygienic food and
● Delivery of quality
and timely food which
involves less or no
complaints
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beverages
● Resource wastage
● Menu developed as
per the available
resources
● Knowledge regarding
product
● Necessary culinary
knowledge
● Providing excellent
customer service bye
implementing top
level communication
and presentation
quality
Waiters and servers ● Knowledge regarding
product
● Food and beverage
related safety
● Inventory and listing
of stock
● Resource wastage
● Point of sale
● To ensure that the
patterns are well
informed unwell
serviced by providing
menu, receiving
orders, serving food,
observing the policies
and procedures of
customer service and
lastly keeping the
patrons satisfied so
that they don't have
any room for
complaints
Cashier ● Organising skills
● Managing time
appropriately
● Better skills in terms
of literacy and
numeracy
● To manage the
finances by preparing
budget and reports
which are reported
timely to the
management
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● Training for use of
accountancy software
Cafe manager ● Make note of job
descriptions of the
staff members
● Reviewing key
performance
indicators regularly
● Developing Oscar
dual to provide the
necessary training
regarding to product
knowledge of vision,
mission, customer
service and food
safety to the current
staff members
● To identify effective
options of marketing
● To achieve the
planned performance
of the business within
a stipulated time
frame
Logistics and supplier ● Making sure of
availability of
resources
● Managing stock par
level
● Working in liaison
with the restaurant
staff
● To manage and
replenish inventory
stock
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Names of
underperfor
mers
Coaching parameters
Required
skill 1
Required
skill 2
Required
skill 3
Required
skill 4
Required
skill 5
Chief of
operations
(Kitchen)
and cooks
Food safety
knowledge
Appropriate
methods of
cooking and
food
presentation
Planning
menu
Saving
resources
Time
management
Waiters and
servers
Knowledge
about the
product
Efficient
service to the
customer
Training for
using point of
sale software
Saving
resources
Work health
and safety
measures and
food safety
Cashier Time
management
More
organised
Appropriate
financial
education and
skills
Training on
using
accounting
software
Improving
communicati
on skills
Cafe
manager
Developing
job
description
Partaking in
customer
service
Developing
skills for
increasing
sales
Improving
communicati
on skills
Improving
skills for
monitoring
and
implantation
Logistics and
supplier
Improving
skills for staff
management
FIFO training Grooming
communicati
on skills
Individuals Coaching date Does the Requirement Further
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coached current
performance
meet the
Expectations?
for further
training
training
required in
areas
Chief of
operations
(Kitchen) and
cooks
10/02/2019 Yes No ____
Waiters and
servers
12/02/2019 No Yes Safety at
workplace and
food safety
Cashier 14/02/2019 No Yes Accountancy
software
Cafe manager 16/02/2019 Yes No ____
Logistics and
supplier
18/02/2019 Yes No ____
Description Projected outcome Actual outcome
1. Sales
2. Cost of sales
3. Gross profit
1. 900000
2. 270000
3. 630000
1. 650000
2. 227500
3. 422500
Expenses
1. Rent
2. Salaries
3. Utilities
1. 36000
2. 330000
3. 9000
1. 36000
2. 330000
3. 10000
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4. Marketing
5. Others
4. 12000
5. 6000
4. 15000
5. 14000
1. Net profit before tax
2. Income tax (@30%)
1. 237000
2. 71100
1. 17500
2. 12250
Net profit 165900 5250
Going over the budgeted and actual financial records of the Coffeeville it can be said that the
outcome was a failure because of failure in formulating and planning the performance
management process as well as implementation and monitoring of the same. The necessary
changes in order to achieve the Desired goals and objectives it is necessary to take into account
the customer complaints which are further segregated into categories like service delay, wrong
orders, processing delay and quality of food to name a few. This increases the cost for cover and
leads to unsatisfactory service to the customer. It is necessary to interview the staff to get their
perspectives as well. However the format that has been used for developing the performance
report for the Coffeeville cannot be termed user-friendly. It is hence necessary that the company
goals as I was objectives that were identified need to be properly communicated to the current
staff members of the Coffeeville.
In order to overcome the issues that have been identified in the performance management, some
suggestions and recommendations have been provided which conform to the SMART model.
Smart is an abbreviation for specific, measurable, achievable, realistic and time oriented.
Recommend
ation
Specific Measurable Achievable Realistic Time
oriented
Directly
supervising
the
operation
In order to
make sure
that the staff
members are
dedicated in
their
There will be
a significant
change in the
working
ethics when
the
The owners
can take that
time and
appraise
unsupervised
The
recommendat
ion is realistic
if the owners
are able to
completely
The business
owners will
be the first
one to be a
priest of the
situation and
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approach it
might
necessary for
direct
intervention
by the owner.
monitoring is
done by the
owner
themselves..
the activities. dedicate the
time to the
daily
activities and
operations.
this will help
in simplifying
the decision
making
process.
Improving
communicati
on channels
In order to
provide
effective and
efficient
customer
service it is
necessary that
the staff
members are
able to
communicate
freely about
each other
The ability of
the staff
members to
work under
serious
pressure
without
making any
mistakes is a
Testament to
great
communicati
on.
Conducting
staff meetings
and group
discussion
sessions it
can be used
to improve
the channels
of
communicati
ons.
In order to
sustain in the
competitive
market it is
necessary that
all the staff
members
communicate
with each
other
appropriately
so that there
is no loss of
information
Staff
meetings can
be conducted
weekly or
biweekly in
presence of
business
owners that
will help in
understanding
the need for
bringing
changes.
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