A new manager has just been appointed to the Preston store, which employs 50 staff. This new manager reports to you. The store is currently experiencing a number of challenges which you wish the new manager to address.
Among the store’s problems are the following:
1. A growing absence problem among the store’s staff;
2. Deterioration in staff morale, largely due to the unpopularity of the previous manager who left suddenly about a month ago;
3. Sales have been falling since a rival opened up a store on the same site;
4. The lease on the current property expires in July. The company has an option on a store of similar size on the far side of town. The rent on the alternative store would be cheaper, but it is unlikely that all the current employees would be prepared to transfer to the new store and you need to get your manager to investigate this issue;
5. The newly-appointed manager, although highly competent as a team manager has admitted that financial management is not his strong point
6. The company has a formal appraisal process for all staff, but the previous manager is known to have neglected this area;
7. Although many of the in-store employees have long service, there is still a problem in retaining newly-appointed staff. Labor turnover currently stands at 15% although the norm for the retail sector is 10%;
8. The company operates an annual employee opinion survey. In the last survey, employees in the Preston store collectively raised concerns over lack of training. You have allocated $50,000 for employee development for the store;
9. The manager of the smaller Blackpool store is currently on sick leave and you, the regional manager, have agreed that a suitable temporary replacement will be provided from the Preston branch.
Based on the above issues, please draft a performance management approach for the new store manager that includes (1) the highest priority objectives to be included in her job description for the coming year, (2) what key performance indicators will be used to measure her success along the way, and (3) what types of incremental and long-term benefits will accrue to the manager when she is successful in meeting her goals. You may place the objectives, measures and rewards in a chart, if you wish, as long as you describe in detail the chart, the performance management process and any statements to support your approach.
BOOK: THE HR SCORECARD: LINKING PEOPLE, STRATEGY, AND PERFORMANCE
Becker, B. E., Huselid, M. A., & Ulrich, D. (2007). The HR scorecard: Linking people, strategy, and performance. Boston, MA: Harvard Business School Press.
(Becker et al., p).
