Designing Performance Evaluation in Maxy Micro Financial Institution - Case Study Example

DESIGNING PERFORMANCE EVALUATION Student name Unit name Submission date Introduction Maxy Micro financial institution was founded in 1983 to provide financial services to the low-income entrepreneurs, underserved, and impoverished communities. The institution offers microcredit, savings accounts, insurance, health care and personal development. To effectively serve its customers the institution has several autonomous sections with their own outlined business unit’s strategies. These sections include marketing section, credit section, human resource section, ICT section among others. To effectively achieve optimum performance from its employees the management established a comprehensive performance management process. These performance management processes, assessment tools, ratings, and development plans help increase the effectiveness of supervisors and employees within and across units[Off99]. Marketing Sections The marketing section is headed by the marketing manager and assisted by the assistant marketing manager and under them are several marketing team leaders and their marketing representatives. Marketing section greatly impact on the financial performance, customer relationship performance and new product performance[Oma07]. Business unit’s strategy The main department’s objects are to focus on the customers’ needs, monitor the competition through studying the competitive landscape, and create a positive image of the company and its products through the use of meaningful messages through ideas, images, and names among other strategies. The department organizes events and sponsor local groups to raise awareness and increase loans, services and deposits. They are also responsible for bringing on board more customers and ensure they retain the existing customers. The marketing department studies the market and the target customers, decides the best way to reach these customers, and works with the rest of the company to help determine the new product needs of the market. Marketing is perhaps the most important activity in a business because it has a direct effect on profitability and sales. Larger businesses will dedicate specific staff and departments for the purpose of marketing. Evaluation of the marketing assistant Roles The Marketing assistant works closely with, and supports the Marketing Director to elevate Maxy’s general public perception, get more people to access the available banking services and proactively device new cheaper methods of getting to the clients and for continued organization development and growth of the firm. He/she is tasked with all the marketing activities and liase closely with the outreach team Key responsibilities To support in the planning of publicizing operation. Things running with vocal and published material on customer needs, troubles, paybacks and feasible events. To be accountable for updating and safeguarding all mailing lists. Help the organization process its marketing strategies as necessary Manages sales sweat with supporting, trades society, book-keeping and practical facility collection. To support with distribution of marketing material. To assist the Marketing Manager in participants progress and addressees study schemes and temporary as the basic example to be accountable for keeping ticket sales records updated for all performances. Together with the outreach team collect marketing data, analyze and generate a report for use in other departments Regularly report to the marketing manager the progress and finding of the marketing Develop the budget and account for the way money is spent in his/her area of jurisdiction Performance management process The suggested Performance management process comprise of five iterative stages as shown in the figure 1(The Performance Management Process Model) below. Figure 1: The Performance Management Process Model Performance Planning: The performance planning form the foundation for performance evaluation is a key part in performance management. This process is closely undertaken by the appraise and the reviewee. At this phase the employees identify key areas which need improvement and set targets to be achieved before a given time period and within the presentation financial plan. Performance Appraisal and Reviewing: The review would be carried twice annual; mid-year and end year review. The mid-year review is meant to check the status of the employee progress and utilizes the mid-year review form in appendix 2 while the end year review is a comprehensive review that sums up the overall employee performance level and uses the employee performance evaluation form in appendix 1. In this phase the appraisee first schemes the self-filled up positions in the self-assessment system and also designates the attainments over a period of time in computable spans. Then the last totals are delivered by the evaluator for the measureable and quantifiable attainments of the operative being assessed after the personal-evaluation. The whole course of evaluation pursues a vigorous contribution of the worker and the evaluator for examining the roots of loopholes in the presentation and a way of overwhelming. Feedback on the Performance followed by personal counseling and performance facilitation: At this stage the employee is given the results of the review and recommendations by the reviewee. The given results are open and transparent and the reviewee identifies the employee training and development needs and try as much as possible to adopt all the necessary steps to ensure the employee attains the expected results through effective personal counseling and guidance, mentoring and representing the employee in training programmes which develop the competencies and improve the overall productivity. Rewarding good performance: During the reward process the employees are publicly recognized for their exemplary work. This give a motivation to the employees and others to work extra heard to get the recognition too. The reward system also helps the employee cope with the past failures gracefully and boost motivation. Performance Improvement Plans: Based on the performance evaluation at this phase new set of targets are set with its deadlines to the employee. The set goal is clearly communicated to the employee and is expected to attain the target within the stipulated time. The targets are set by both the employee and the reviewee. Significance of the performance management plan The performance management plan is a strategic management tool that ensures that employees deliver optimally and operate within the budget. This plan ensures that employees focus on the organization’s mission and vision[Off99]. Companies that define objectives, establish goals, measure progress, reward achievement, and display the results for all to see can boost productivity and gracefully move an organization in a new direction[Chr111]. Figure 2: Interrelationship between the performance management and reward system Executives use performance metrics to define and communicate strategic objectives tailored to every individual and role in the organization. Managers use them to identify underperforming individuals or teams and guide them back on track. Employees use performance metrics to focus on what’s important and help them achieve goals defined in their personal performance plans. References Off99: , (OfficeofPersonnelManagement, 1999), Oma07: , (Merlo & Bell, 2007), Chr111: , (Obisi, 2011), Appendices Appendix 1: Employee Evaluation Form personal employee details Employee name: ………………………………………… employment No:…………………………………………………. title:………………………………………………… Department:……………………………………………. section:…………………………………………………. Period of evaluation:………………………………… PART I – Rating Scale 1 = Unacceptable - Consistently fails to meet job requirements; Speedy enhancement necessary to maintain employment. 2 = Needs Improvement – Occasionally fails to meet job requirements; must make improvement in his/ her performance to meet expectations. 3 = Meets Expectations – perform his/her duties satisfactorily. Mentoring and supervision required 4 = Exceeds Expectations – all the organization’s objectives achieved beyond expectations 5 = Superior – Consistently exceeds set standards on his/her job requirement. PART II - Performance Factors Knowledge, Skills, Abilities – the employee display knowledge and skills on performing his duties and follows the established procedures, materials and tools Unacceptable Superior  1  2  3  4  5 Comments: 1. Quality of Work Unacceptable Superior  1  2  3  4  5 Comments: 2. Quantity of Work – consider the employees multitasking abilities, ability to meet deadlines. Unacceptable Superior  1  2  3  4  5 Comments: 3. Work Habits – To what extent does the employee display a positive, cooperative attitude toward work assignments and requirements? Consider compliance with established work rules and organizational policies. Unacceptable Superior  1  2  3  4  5 Comments: 4. Communication – how does the employee relate with others? Does he/she clearly pass information orally or in writing? Unacceptable Superior  1  2  3  4  5 Comments: PART III - Behavioral Traits 1. Dependability – consider employee punctuality, how he/she take instructions, attendance of meetings and results Unacceptable Superior  1  2  3  4  5 Comments: 2. Cooperation – consider the interpersonal skills and how he perceive other people’s ideas Unacceptable Superior  1  2  3  4  5 Comments: 3. Initiative – consider how the employee serve the clients and the assumption of great responsibility to ensure greater customer satisfaction. Unacceptable Superior  1  2  3  4  5 Comments: 4. Adaptability – how well does the employee fit to new working conditions? Unacceptable Superior  1  2  3  4  5 Comments: 5. Judgment – how well does the employee approach to a problem and timely and appropriate solution. Unacceptable Superior  1  2  3  4  5 Comments: PART IV - To The Employee: I have read, discussed and understood the significance of this process and I full support: Signature: Date: Appendix 2: MID-YEAR PERFORMANCE EVALUATION FORM EMPLOYEE NAME: POSITION: TITLE: DEPARTMENT: OVERSEER: The set Goal(s) for current appraisal period: 1: 2: 3: What development programs have you undergone since the last appraisal period(e.g training and workshops)? What developments plans do you plan to undertake between now and the next appraisal period to assist in achieving the set goals? Have you been able to fully achieve any of your goals yet? If so, explain how you did it. What obstacles have you encountered on the process of achieving your set objectives? Have you made significant improvement in any of the performance areas rated on your performance appraisal? If so, please discuss. Is there anything you wish to discuss more with your supervisor during this review? Signature date Appraisee Read More