Performance Management has now become one of the most crucial factors in the concepts and approaches of contemporary business, especially the ones dealing in customer-satisfaction and service-delivery (Buckingham and Goodall 2015). The satisfaction of the consumers is the backbone of such enterprises and the fact that customer demands and expectations are highly dynamic makes it even more important to monitor and check the organization’s processes, externally as well as internally, in order to achieve maximum value in the business process. Performance of a business organization is dependent on a variety of factors including economic performance, organizational harmony, employee retention, recruitment process, development needs and disciplinary procedures
The ACA Travel Agency’s recent issues regarding customer-dissatisfaction caused by organizational disharmony spotted the need for a performance appraisal system that would—firstly, investigate the work operations of the organization to identify the particular quality issues the Company has been suffering from, and secondly, recommending appropriate strategies that would mitigate the identified issues and help the organization develop stronger relationships with their customers and other stakeholders. The main aim of the Performance Management System is to add more value and integrity to the organization’s service-delivery system by improving organizational communication and cross-functional involvement in decision-making processes (Ramlawati and Putra 2018). Referring to the incident of recent technical chaos at Sydney Airport, which was followed by ACA’s failure to cater to consumer expectations and demands due to poor quality employee performance and communication, this research encompasses a detailed investigation and recommends applicable policy amendments to avoid any such occurrences in the future.
As the Manager of ACA Travel Agency, the recent issue of customer-dissatisfaction was investigated and analyzed to identify the need for a performance appraisal session with the consultant of the Company, Jane, who was also responsible for lack of judgment and priority—leading to the particular issue (Iqbal, Akbar and Budhwar 2015). Jane’s performance did not meet the standard criteria for the Company and incurred significant loss in terms of customer-loyalty. Therefore, the execution of the performance appraisal system would incorporate hypothetical discussions with both the stakeholders (employee and client), in order to strike a negotiation. Not only will this enhance the stakeholders’ understanding of organizational expectations and approaches, but also prevent further similar issues.
a) The key performance issues of the consultant, as identified from the given scenario are as follows (Le Fevre and Robinson 2015):
1. Inefficient decision-making
2. Poor prioritization
3. Poor organizational communication
4. Inefficient time-management
b) Jane’s failure to follow the written procedure, in the client – Mr. Smith’s forward booking, led to a serious organizational failure as Clarendon College, who is a major client of the Company, has sent complaints regarding the Company staff’s poor assistance and service-delivery, which caused them and Mr. Smith a significant amount of loss.
c) As the Manager of the ACA Airlines Company, it is a huge humiliation from one of the most important clients, and might experience a major setback in their business relationship.
d) A variety of factors are at stake here, including finances, customer-loyalty, organizational ethics, organizational communication and morale commitments.
e) As a manager, I acknowledge my poor decision-making in times of emergency and poor prioritizing of occurrences and aim to put more effort to enhance leadership skills amongst the organizational staffs.
f) In order to resolve issues between the Company and the client, discussion sessions needs to be arranged for negotiations with the clients and apologizing for past failures of commitment.
g) This is to kindly request you to respond with your feedback regarding the issues identified through the discussion session. Your feedback to the issues will be highly valuable for transparent organizational communication.
h) Some of the possible solutions to resolve the identified issues are:
1. Improving decision-making skills
2. Striving for better prioritization of issues
4. Understanding organizational activities and stakes
i) In order to make the amendments sustainable at the Company, The ACA Airlines must employ additional trainers to train the staff on various leadership qualities and keep a check over the proper implementation of strategies (Baghurst and Stincelli 2014).
In order to clearly communicate with the concerned employee, an appraisal session with Jane, the consultant was arranged. The details of the session are as follows:
Manager: “Dear Jane, are you aware of the recent organizational failure that was caused due to your lack of efficiency?” Jane: “Yes, Ma’am.”
Manager: “Your carelessness and inefficiency in practical field incurred a heavy loss on part of our relationship with a special-client, Clarendon College. Is this a good time to talk about a few ways that can improve your quality of service-output—which would be beneficial both for your job performance and our Company’s steady growth?”
Jane: “Yes Ma’am, I’m eager to rectify my practices and be more effective to the organization; and I sincerely apologize for my past failures to meet job requirement.” Manager: “In your handling of the case of Clarendon College’s Mr. Smith, you have exposed a few serious professional shortcomings with your misjudgment on the gravity of the situation and failing to execute the expected responsibilities. It exposed signs of poor time-management and prioritizing skills as you failed to act on the necessary tasks in the face of work-pressure. I would encourage you to put more effort to better time-management strategies and be clearly informed regarding the organizational proceedings, as it might influence your awareness of the areas you need to prioritize in this dynamic market environment.”
Jane: “I promise to incorporate the necessary changes in my work-practice.”
Manager: “This is also to inform you that from now onwards each individual and team-based responsibility will be monitored and evaluated against agreed expectations or criteria. In order to improve the over-all performance of the organization, the performance of each organization level will be measured as per Key Performance Indicators, which must be closely adhered to while on practical field. The KPI’s would include: skills to achieve target in given period of time; skills to manage work pressure at peak hours; skills to better judgment of situation and decision-making; skills to prioritize actions in regards to Company vision and objectives; and skills to maintain strong communication grounds with the rest of the team (Podgórski 2015).”
Jane: “Thank you for making me aware of my responsibilities. I can now better understand my position and responsibility in the Company and assure you to put more effort by strictly adhering to Company’s KPI policies.”
Clarendon College is a valuable client of the ACA Airlines Company and is also the employee of Mr. Smith, the customer in concern. The organization’s failure to cater to his requirements in the hour of need had a detrimental effect on their relationship and loyalty. The organizational failure cost him several important meetings with Clarendon College, which is why they experienced the eventual impacts were faced by the Company’s special-client. Therefore, arranging for a negotiation was mandatory in order to sustain the relationship (Maréchal and Thöni 2018). The essential aim is to decide upon an applicable course of action that would be of best interest for both the parties, while making efforts to minimize the impacts of the organizational failure.
As the manager of ACA Airlines Company, a negotiation with client Mr. Smith was initiated and conducted, discussed as below:
Manager: “Good afternoon, Mr. Smith. Firstly, I’m ashamed to acknowledge our organization’s utter failure in assisting their most valued customers and deeply apologize for the harassment and poor assistance from the part of our on-ground staff. We are aware of the loss you and Clarendon College has had to face due to it, and would like to contribute in any way possible to control the long-lasting damages. Since you are our most valued and preferred customer, we would hate to lose this relationship with you; rather, we want to make amends to the organizational shortcomings so that we can cater to your needs better. Will it be a good time to talk about this?”
Mr. Smith: “Yes, it was extremely frustrating how your staff refused to believe my concerns; she should have known there would be such inconveniences, especially after the news of technical chaos at Sydney Airport.”
Manager: “We are extremely ashamed of this inconvenience and absolutely agree about our organizational efficiency. As a representative of the entire team, I assure you that we are focusing on improving our performance and effectiveness, individually and as a team. We came to know that you missed a number of important meetings due to this hassle and would want to offer you a little bit of contribution that might not be able to recover your loss but will contribute in making something productive together. Firstly, we would like to offer you complete free airline transportation for two whole days, dedicated to the meetings that you have missed. Secondly, we would like to offer annual scholarships to two students from every department of your college, who belong to the below poverty level. Thirdly, we would like to fund the Clarendon College’s first ever Aviation Training Department for the future pilots and air-hostesses of our Company.”
Mr. Smith: “That’s very reassuring to hear; but unfortunately, the meetings pre-decided as the rest of the members would not be free for the next few months. Nonetheless, the deals regarding the scholarship and funding sound extremely hopeful and I would like to have a discussion with the college authorities before I can finalize my comments on this.”
Manager: “Thank you very much, Mr. Smith for spending your valuable time with us once more. We would be waiting for your response. Have a great day.”
As per the negotiation session with Mr. Smith, a minutes’ report has been developed, highlighting the important points that were mentioned in the discussion.
• Acknowledge of organizational failure and highly inefficient service-delivery, on the part of the entire team, by the Manager of ACA Airlines Company. Acknowledgement of harassment and poor assistance by one of the staffs of ASA Airlines Company. Deep apologies communicated by the Manager on behalf of the entire organization.
• Acknowledgement of Clarendon College and Mr. Smith as highly valued customers of the organization. Manager takes responsibility for the harassment and mis-treatment faced by the client by one of his staffs. Manager asks permission from Mr. Smith to continue their discussion on the chosen topic.
• The Manager mentions about the high value of the relationship shared between the ACA Company and Clarendon College. The Manager admits that the organization doesn’t want to lose a customer as valuable as Clarendon College and Mr. Smith. The Manager offered to contribute in any way possible to the College in order to make up for the incurred loss.
• Mr. Smith directly communicates regarding his feelings of frustration and helplessness caused during the organizational chaos. He pointed out the fact that all staffs should be clearly communicated regarding recent changes in organization or its external environment. • The Manager agrees with Mr. Smith’s grievances and offers three deals as a contribution for incurring heavy losses and faulty service-delivery.
• On the behalf of the Company, the Manager offers free airline services for two whole days, dedicated to the meetings of Mr. Smith and Clarendon College.
• The Company offers to open an annual scholarship fund, open to two below-poverty-line students from all departments.
• The Company offers to initiate and fund an Aviation Department in the College, for students who are interested in airlines business. • Mr. Smith responded with affirmative hope. He stated that he needs to discuss the deals with the College authorities before he can confirm about his statement.
• The negotiations meeting ended on a positive note.
Successive to the negotiation between the manager and Mr. Smith, an official e-mail was drafted for all the stakeholders of the organization, updating them about the recent developments from the meeting. “Dear valued members/stakeholders of the ACA Airlines Company, ‘the latest negotiation session with our valued client Mr. Smith ended on a positive note. We have successfully communicated our heartfelt regrets and desire to contribute to their processes in any way possible. Mr. Smith was extremely upset with the kind of treatment he received at a crucial moment of emergency. It is extremely necessary that we check our actions and responsibilities in a way that would bring development to the organization. Each individual and team-based responsibility would be monitored from now on to assess and evaluate the individual performances of the employees. Mr. Smith has assured us to discuss the matters with Clarendon College and then he would finalize his decision.”
Dear Mr Smith, This mail is regarding Our previous conversation on the contract that we prepared. I would like you to go through all the details that were presented in the contract to ensure that no information goes unnoticed by you, that could cause a serious issue in understanding the idea that we wish to present in front of you for justifying and developing our services more. The contract that we have prepared have completed every aspect of our requirement making is a Win-Win situation for both of us.
With regard, I would like you to go through the contact details again and ensure that it is all as per our previous discussion so that we could draught it for the final signature purpose.
The agreement that we previously presented consisted of you LOL that must be with the get it in order to make sure that our relationship in future does not stumble upon a small problem. I would like to propose a change regarding the objective of Management Concern. The contract regarding the forward booking of flight needs to be evaluated more towards time gap specification. A certain time limit is to be created in order to make it a Win-Win situation for both customers as well as agency. The situation needs to be evaluated more because they agree on objectivity in negative tense from the customer point of view that caused the travel agency to lose extra money without being able to earn profit out of it. I would like to propose change in the insurance policy that we consider preparing for the passengers travelling abroad through the flight. I hope all these information will be regarded as a new amendment to the previous agreement and will be considered as a contract after the dual signature.
To conclude, taking effective measures to retain the effectiveness and efficiency of the production resources is extremely necessary for an organization. Issues like organizational miscommunication, inefficient time-management, and faulty administration lead to larger organizational chaos and subsequent loss in customer base or Company finance. This research critically analyzed the incident of Mr. Smith and his harassment at the hands of an ACA Airlines employee, which led to subsequent loss on both the sides. In order to control the deteriorating quality of service-delivery and improve organizational coherence, the Manager conducted a performance appraisal session with the employee in concern. On the other hand, the Manager also conducted a negotiations session with the client representative, as they did not want to lose their valued relationship. Finally, the organization chose Performance Management with the help of Key Performance Indicators as the best way to enhance over-all organizational efficiency and effectiveness.
Baghurst, T. and Stincelli, E., 2014. A grounded theory exploration of informal leadership qualities as perceived by employees and managers in small organizations. International Journal of Business Management and Economic Research, 5(1), pp.1-8. Retrieved from: [https://s3.amazonaws.com/academia.edu.documents/43081397/Stincelli_Published_Article.pdf?AWSAccessKeyId=AKIAIWOWYYGZ2Y53UL3A&Expires=1538857995&Signature=ZFomtItmsvntyAcpQ9OdhQcKoK4%3D&response-content-disposition=inline%3B%20filename%3DA_Grounded_Theory_Exploration_of_Informa.pdf]
Buckingham, M. and Goodall, A., 2015. Reinventing performance management. Harvard Business Review, 93(4), pp.40-50. Retrieved from: [http://web.vdw.co.za/sara/file%20storage/Documents/2015/Reinventing%20Performance%20Management%20-%20HBR%20APR%2015.pdf]
Iqbal, M.Z., Akbar, S. and Budhwar, P., 2015. Effectiveness of performance appraisal: An integrated framework. International Journal of Management Reviews, 17(4), pp.510-533. [DOI: https://doi.org/10.1111/ijmr.12050]
Le Fevre, D.M. and Robinson, V.M., 2015. The interpersonal challenges of instructional leadership: Principals’ effectiveness in conversations about performance issues. Educational Administration Quarterly, 51(1), pp.58-95. [DOI: https://doi.org/10.1177%2F0013161X13518218]
Maréchal, M.A. and Thöni, C., 2018.Hidden persuaders: do small gifts lubricate business negotiations?. Management Science. [DOI: doi/abs/10.1287/mnsc.2018.3113]
Podgórski, D., 2015. Measuring operational performance of OSH management system–A demonstration of AHP-based selection of leading key performance indicators. Safety science, 73, pp.146-166. [DOI: https://doi.org/10.1016/j.ssci.2014.11.018]
Ramlawati, R. and Putra, A.H.P.K., 2018. Total Quality Management as the Key of the Company to Gain the Competitiveness, Performance Achievement and Consumer Satisfaction. International Review of Management and Marketing, 8(5), pp.60-69. Retrieved from: [https://www.researchgate.net/profile/Aditya_Halim_Perdana_Kusuma/publication/327339728
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