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Case Study: Performance Management

The Challenge

Our client, a prestigious recreational facility, had rapidly grown to over 150 employees to meet business demands. During this growth, staff and management positions were created without a comprehensive strategic planning process.

As a result, formal job descriptions did not exist, preventing the staff from being managed against performance guidelines. Nor was there a standard pay scale, which produced salary inequities within the company. Furthermore, reporting relationships within the management structure were unclear. Most of the senior staff, including the Food & Beverage Director, the Front Desk Manager and the Chief Housekeeper reported to the General Manager. However, the office of the Groundsman, was managed by a separate Vice President.

Over time, this division of labor caused competition for resources among the staffs of the two senior executives. There was little long-term planning, poor inter-departmental cooperation and a lack of teamwork. Morale issues arose among the employees and the turnover rate increased at all levels. Within two years, the company was forced to conduct three costly searches to replace its general manager.

The Process

  • Drafted a comprehensive organization chart, which allowed the client to rationalize reporting relationships throughout the company
  • Performed an Area Wage and Salary Survey in order to standardize pay scales within the organization
  • Developed specific job descriptions for all positions
  • Communicated the new job descriptions to the organization, so that each employee was informed of the performance expectations of his or her position
  • Trained all managers and supervisors in conducting performance reviews with consistency, objectivity and thoroughness in a non-discriminatory manner

The Result

With reporting relationships rationalized and salary guidelines standardized, interdepartmental competition lessened and teamwork increased. Productivity and morale rose as the employees became familiar with their clarified job descriptions. Managers and supervisors across the company conducted equitable and thorough performance reviews. The turnover rate decreased, as well as the need for expensive searches.