Performance management is one of the management styles that is increasing in popularity among business people. It mainly involves a process where the company creates a working environment that encourages employees to work on the basis of their abilities. The process involves six steps the first one being goal- setting. The step recognizes the fact that performance management process needs to achieve goals and thus there is the need to discuss with the employees on the expected level of performance for the particular job ( Daft, 2009) . At the end of the stage, the management and employee need to be in agreement about the expectations of the company. For example, the overall expectation that can be agreed on in the case of Los Angeles Tribune is to solve the problems that are currently facing the newspaper.
The Major Problems at Los Angeles Tribune
The three main problems that are facing the newspaper include an increase in the cost of distribution, a decrease in the advertising revenues mainly because of the free online listings that are being offered by online advertising services like Craigslist, and the fact that a large number of its customers are people who are over the age of 40. Therefore, it is vital to analyze the issues by constructing a goal-setting framework.
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Goal-Setting Framework
Increased Distribution Costs
In many cases, poor decision making and logistic planning result in increased distribution costs as a result of damaged goods, excessive expenditures, and missed delivery deadlines. It is the reason why reducing the logistics costs and optimizing the operational efficiency has become vital and need to be a priority in any business that wants to remain financially viable. Considering the increased demands from the customers and changes in the global business climate, it has become vital for companies to rely on smart logistical management practices. Assuming that the distribution costs have increased as a result of poor decision-making and logistic planning then the best strategy would be outsourcing the activity. Outsourcing transportation and storage reduces cost and increases the efficiency level. Trusting the most crucial aspect of work to more skilled and efficient professions helps in avoiding excess costs because the process ensures that there is accuracy in logistical issues such as the size and frequency of transported goods. There is also accuracy in product handling, packaging specifics, and temperature control requirements that further reduce the distribution costs. The success of the strategy can be measured by analyzing the amount of distribution cost where a reduction of the cost is an indication of success. For example, if Los Angeles Tribune outsources the distribution activity to companies that have the expertise to do so and same extra expenses that are brought by inefficiencies.
Decrease in Advertising Revenue
Los Angeles Tribune deals in the production of newspapers which mean that its revenue is highly dependent on the amount of money that it gets from its advertising services. However, it has been identified that the revenue has decreased because of the free online listings that are being offered by online advertising services like Craigslist, The goal statement in this issue is improving a number of revenues through an increase in the number of advertisements. It is worth noting that even with the introduction of online marketing, many businesses still consider newspaper advertising to be more effective in terms of finding new customers. The tactic which the company can use so that it can increase the revenues from advertising is introducing a coupon into the print advertisement or discounting the costs of advertising. The company can also advertise its advertisement services so that consumers can understand the importance of print advertisement such as the ability to provide more information. A newspaper advertisement cannot be sophisticated like an online advertisement but is a no-frills approach. The measure of success is by analyzing the increase in the revenues.
Large Number of Customers who are above
The newspaper is dealing with a large number of customers who are avered the age of. The goal statement in this situation is meeting the needs of people all ages. The strategy that can be used by the company is conducting a market research to find out what why the newspaper is only being bought by older people. Assuming that the situation is as a result of the company’s inability to include contents that are attractive to people who are below the age of 40 then it will need to research on new contents that it can include. The most effective option is usually to include a section or a magazine that has contents which target the group. The best measurement for success includes the feedback that it would get from the people. In addition, the success of the strategy will be determined by an increase in the demand for the products by people who are below the age of 40. For example, if the company includes a section that has gossip about celebrities then the group will be attracted to buy the newspaper.
Conclusion
Performance management has become vital in companies in making sure that the expected performance has been achieved. The process involves six steps, the first one is setting the goals of the problems or the targets have been identified. Setting goals as in the case of Los Angeles, Tribune acts as a guide to make sure that the objectives are achieved.
Reference
Daft, R. L., & Marcic, D. (2009). Understanding management . Mason, OH: South-Western Cengage Learning.
