Explain_How_Employee_Performnce_Is_Monitored

P5 Explain how employee performance is measured and managed. To find out how hard employees are working ,businesses have to measure their performance and so, compare employees. The way this is carried out, depends on the business but usually involves both quantitative and qualitative measurements which have to be seen to be fair and accurate. Performance Management is something that is important to all businesses as it allows senior members of staff to see if staff are working at the right levels. There are different methods of Performance Management ranging from Appraisals to Target Setting. Appraisals are used to highlight the effectiveness of an employee to the business they work for. a good job and also point out where things can improve. At McDonald`s ,particularly in the first few weeks progress is monitored carefully and there will be a formal assessment at the end of the probationary period. Once completed performance is monitored on a regular basis. Objectives can be set for the employee as well to ensure they are always striving to improve their performance in all areas. McDonald`s employees may be set targets after appraisals such as making service quicker and making sure that the high standards of food quality is maintained. Their performance appraisal will be based on personal attributes, teamwork, work standards, hygiene, initiative and customer focus. They will receive a copy of their performance review, so they will be able to see how well they are doing. As long as their performance is satisfactory they will receive a pay increase. Their pay is reviewed at 4 months, 12 months, and every 6 months thereafter. It also important to remember that part of appraisal is to look at employee needs as well as those of the business. At McDonald`s training needs are looked at , not just in relation to the business but for an employee to gain nationally accredited qualifications which can also be transferred to another job . Buddying is a system of appraisal by someone who works on the same level as the person being evaluated and so is less formal and intended to be very supportive. This may not be suitable for McDonalds as there may not be enough staff to implement this and staff turnover is quite high. Setting an employee targets and reviewing those targets set will probably occur on an annual basis allowing Managers to make sure employees are always striving to improve their performance. The Targets set in McDonald`s may be to increase speed of service and reduce complaints,for example. Measuring Output is a means of measuring performance and involves measuring the number of sales that have occurred in a certain period of time. It allows managers to see how the business has performed and whether output has increased or decreased and the reasons for that . Measuring output can also be performed on a personal level and targets can be set to employees. Incentives can be offered to staff to try and make sure that output is at a sufficient level and at McDonald`s these are the awarding of stars. McDonalds runs a five star system and each star shows the employee`s level of service. Once the five stars have been achieved, they can achieve promotion . The star system can mean that staff become competitive and try to earn more stars than fellow employees which is positive for the business. Other rewards for good output and performance include things like McCredits, which are vouchers and they can be used to buy any gift from a special catalogue. These gifts can range from a key ring worth to a washing machine . Another reward that McDonalds offers for good work is paid holiday for up to two months, however this is only offered to employees who have been working for McDonalds for ten years or more. As well as this £60 worth of McCredits are given to employees who have been working for McDonalds between three and five years and are called `long service` rewards. Some other rewards McDonalds gives to their employees for good service are a pay review twice a year and the possibility of a percentage salary increase. McDonald's believes that performance management is crucial to the success of the brand and that all restaurants perform to the standards expected in three key areas: quality, service and cleanliness. These standards are used to maintain the brand in both company-owned and franchised restaurants. All restaurants are supervised by an Area Consultant who will complete the company audit programme in full every six months in addition to weekly visits to check standards and customer experience. If a manager of either a company-owned or franchised restaurant was found to be consistently under-performing then measures would be taken to rectify this situation. This is done through the Performance Management process and retraining. McDonald's also uses Mystery Shoppers to check on performance across the UK, handled by an external agency.+