MGMT3017 Supply Chain Capstone

Concerns of the current process:

Three concerns have been raised about the current process being too bureaucratic and limiting in reflecting employees’ true performance. • Line managers routinely delegate work to employees but do not necessarily offer support in resolving assignments. This would mean that Line managers rating employees on performance will rely on secondary information from individuals that their subordinates actually work with. In practice, this process is managed through a collective calibration where all relevant individuals feedback to the line manager… this means that information about the quality of task completion can sometimes be diluted or inaccurately interpreted. • Informal relationships between line managers and subordinates are said to unfairly influence performance ratings given that good relationships may inflate ratings and poor relationships may decrease the rating. Consequently, employees are likely to avoid confrontation where relationships may be damaged hence affecting performance rating.
• Lastly, performance ratings based on the opinion of one line manager can be inadequate to truly and fairly reflect the range of each employee’s performance. Opinions may be subjective and so the formal process has been scrutinized by employees.
Employee preferences:
Some employees have suggested their views on how they believe line management and the review process should be carried out. Many of their suggestions circulate around the following factors;
• 1-2-1 catch ups should be informal in order to allow relationships to form naturally
• The performance review process should be determined by all individuals that the employee has closely worked with rather than just the Line manager
• Performance-related pay percentages should be fixed as opposed to within a range
• The performance rating bands are too restricting and should be amended Key Priorities for Leeman:
Leeman is keen to address their employee concerns in order to improve their employee turnover rate, however, is rolling out a new line management and review process, Leeman is in search of a solution that balances the need to;
– Attain a less bureaucratic system that satisfies employees
– Attain a system that still allows for the benchmarked % of bonuses to be achieved
– Attain a system that will allow employees to develop continuously
Operational limitations:
Employees satisfaction: Leeman is conscious that whilst the majority of employees hold similar views n the lime management and review process, there are some employees who would be against the proposed intentions to move away from a bureaucratic system. Time restraint: In order to prevent further loss of employees, Leeman will need to roll out the new initiative within 1 year. This 1 year period is inclusive of determining the new process, gaining
necessary approval from board members, informing employees and introducing the new system.