Employee Performance Management at General Motors

Introduction

Pressure to meet performance targets, to realize higher performance levels, and to ensure that the efforts of the employees support and further the goal of an organization is common in majority of workplaces. Performance management is the process used to manage this pressure. Before exploring the meaning of performance management, it is important to ask and try providing answers to the following questions: “how well are employees applying their current skillsets? And to what extent are the employees achieving the desired outcomes?” The answers to these questions have traditionally been found in the performance evaluation process. In performance evaluation, managers often resort to using hard data to determine how well employees execute their duties. What is performance management therefore? This is what Gruman and Saks (2011) had to say. That employee performance management entails aligning organizational objectives with the employees’ agreed measures, competency requirements, skills, development plans, and the delivery of results. They added that performance management puts a lot of emphasis on improvement, development and learning so as to realize the overall corporate strategy as well as create a high performance workforce. Having stated the basics, it is therefore important to further advance this discussion by exploring the various dimensions as set out by learning outcomes regarding employee performance management at General Motors.

Analysis of the Approach to Managing Employee Performance at General Motors

Prior to discussing the details of the performance management module at General Motors, it is crucial to first mention that performance management is divided into two: “performance management,” and performance measurement. Performance management can be defined as the regulation of activities within an organization so as to realize greater potential for successful implementation of actions enabling the organization to meet its targets and objectives in future. Measurement of performance on its side, involves quantification and comparison of results so as to establish the strengths of an organization, or identify areas of weaknesses and that require improvement (Akinbowale, Lourens & Jinabhai, 2014). Performance management at General Motors can be classified into four broad categories: Setting performance targets to meet strategic objectives, agreement on team performance targets as well as subsequent contributions to meet strategic objectives, monitoring and controlling/regulation of the goals, and employee retention, interaction and communication, and promotion of teamwork (Afande, 2015 and Hoboken, 2019).

Setting Performance Target to meet Strategic Objectives

General Motors uses score card methodology to set performance targets thus ensuring that they are in line with the strategic objectives of the corporation. The organization uses a balance score card for both the short and long term to plan for and measure their financial and non-financial performances. The balance score card is sectioned into four different parts: internal business, financial, learning and growth and customer’s perspectives. Thanks to the balance score card, General Motors are able to implement various changes so as to meet their business goals. The balance score card also enables General Motors to develop a more comprehensive view of their operations as well as matching all operating and investment operations to both shirt and long term strategic objectives (Leonard, 2002). Ajay Pangarkar and Teresa Kirkwood (2008) likened a balance score card to a car’s dashboard as the latter has indicators allowing the driver to obtain real-time information such as fuel level, distance travelled, and speed. Thanks to this information, the driver knows when to apply necessary interventions. In the same fashion, companies such as General Motors know when to bend their operations so as to match their strategic objectives.

High performance work system (HPWS) is another tool used by General Motors to ensure that its performance matches the strategic objectives. HPWS is a term used to collectively refer to open systems, independent work teams, high involvement work systems, high commitment work systems, flexible work systems, and performance-based pay. HPWS is mainly focused on rearranging work so that employees are given an opportunity to contribute to decisions that directly influence the day to day operations of the organization (Leonard, 2002). Use of technology is a vital feature in HPWS. That is according to Hassan Aslam and Shakeel Sarwar (Aslam & Sarwar, 2010), both from The Islamia University of Bahawalpur. Indeed all departmental managers at General Motors rely on information technology systems to determine which employee is performing and which is not performing. This is made easier by the corporation’s adoption of a hierarchical approach to supervision (employees are assigned to supervisors who monitor and report their performances to the top management). Workers at GM also use various technical tools to execute their day to day operations (Leonard, 2002).

The last piece as far as setting performance targets at General Motors is concerned is the examination of the techniques and tools that the management at General Motors uses to set and evaluate individual and team performance targets, and deliver desired outcomes. Regarding the latter, GM uses a balanced score card methodology throughout its departmental operations. Departments are allowed to change the balance score cards so as to match their needs, after which performances are measured during team and departmental meetings at the lower levels, followed by discussion of the outcomes at a strategic level (“Hrm at General Motors,” 2019). Concerning performance evaluation, all employees at GM have personal development planning folders containing performance appraisals, training already offered to the employees as well as future training needs, and even departmental performance data. The score card helps the firm identify improvement. Information contained in employee score cards are also used to set long term strategic objectives (“Hrm at General Motors,” 2019).

Agreement on Team Performance Targets so as to meet Strategic Objectives

Just like in any other firm, there is a need to set performance at GM so as to match the organization’s strategic gains. In this context, the company engages their client base so as to try and establish their shopping preferences. Additionally, teams are encouraged to be helpful, polite, and cordial so as to help the firm meet its performance targets. These targets are always compared with the season on season, year on year, and like for like for weekly targets. All section managers and staff alike are granted access to all the relevant information as far as performance targets are concerned (Leonard, 2002). Targets are then reiterated via an internal communication channel at the firm and used to set preceding performance target levels. It is also important to mention that prior to establishment of performance targets, GM considers several other factors aside from the performance levels in the seasons, years, or even weeks before. These factors include knowledge, understanding, skills, and experience necessary to execute both current and planned organizational activities. Before setting a higher performance target, the company also has to first identify opportunities for expansion and improvement. GM also promotes individual commitment to team performance as well as coaching and mentoring employees so as to help better their performance and consequently promote achievement of organizational objectives (Leonard, 2002).

Monitoring and Controlling of Goals

Strategy implementation aimed at managing and improving performances within organizations needs to be top to bottom in terms of approach. Monitoring and controlling of goals as a strategy to managing performance requires evaluation of team performance and comparison of team performance against agreed objectives. In addition, it is necessary to identify and analyze the organization’s goals and objectives, and the key performance outcomes that provide value for the employees, customers, and the organization as a whole (“Hrm at General Motors,” 2019). To begin with, GM uses a balanced score sheet to focus on alignment and integration of the human activity factor with the operations within the firm. The balanced score card enables General Motors to review its performance objectives and compare them against progress through all the structures of management at the firm. Recurring issues are then identified and addressed, and when need be, used to regulate performance goals at the organization. Furthermore, in an attempt to control performance objectives, General Motors align employee, departmental, and divisional goals with its strategic goals; hence enabling the management to identify shortcomings and areas of strengths and consequently make necessary adjustments (“Hrm at General Motors,” 2019). Communication is vital during the process of strategy implementation.

Employee Training, Retention, Interaction, and Promotion of Teamwork

This is the last approach to managing performance at general Motors. General Motors provides its employees with varying types of training enabling them to gain new skills, make them more competent, and also offers training to equip its employees with skills important in customer support programs. Examples of training that GM employees are likely to benefit from include functional specific skills and techniques, leadership and professional development, foundation skill training, and on-job training (Heathfield, 2018). Employee training is not only helpful in managing performance, but also helps empower employees; thus helping with employee retention. General Motors also strives to retain its skilled employees since losing them may lead to loss of competitive edge. As a result, GM favors internal talent acquisition and also offers competitive wages so as to limit competition. General Motors also creates a good working atmosphere, empowered by free communication and exchange programs in an effort to retain its top talent (“Our management approach to talent acquisition,” 2017). Finally, General Motors promotes teamwork as a strategy to performance management since the organizational believes that the only way of winning is by thinking and acting as one General Motors team. The firm believes that its strengths lie on its ability to unite its workers. Working with employees who are accustomed to the performance and strategic goals of General Motors has over the years been one of their main strategies to managing and improving performance at the firm (Wayland, 2014).

Conclusion

Visionary leadership and innovative performance management measures are fundamental to the achievement of operational success in firms. General Motors just like most firms we are familiar with have their own inimitable approach to managing performance. The strategy recruited by the motor manufacturer involves the following modules: setting performance target to meet strategic objectives, agreement on team performance targets so as to meet strategic objectives, employee training, retention, interaction, and promotion of teamwork, and monitoring and controlling of goals.

References

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Aslam, H.D., & Sarwar, S. (2010). Improving performance management practices in IT firms of Pakistan. Journal of Management Research, 2 (2), 1-15.

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