Strategies of Talent Development and Performance Management at Panda Express
The intense competition in the business environment has necessitated organizations to strategize on ways of remaining viable and sustainable in the dynamic economy. Various factors that enhance the competitiveness of businesses have been explored in different studies and surveys ( Aguinis, 2013 ). One critical factor that has been repeatedly highlighted as a contributing immensely to the success of organizations is human capital. Human capital is an aspect of businesses that is exclusively mandated to the human resource department. For any organization to gain competitive advantage, it must first deal with known internal factors before proceeding to the unknown external factors. The organization must conduct a comprehensive self-evaluation to determine all the aspects of its operations including processes and procedures ( Arnaboldi, Lapsley, & Steccolini, 2015 ). In-depth analysis of the company will highlight the strengths, weaknesses, positives, and negatives characterizing the organization. Organizations will reinforce the strengths and positives to gain a competitive edge; at the same time, fixing the loopholes reduces the consequences of weaknesses ( Aguinis, 2013 ). It must be noted that failure to seal the fault lines in the organization can be catastrophic in long term or short term, which ultimately may cause the organization to fail.
Panda Express is an organization strives to remain competitive in the market. The management of the company has devised strategies of ensuring that it remains a leader in the sector of operation. The leadership of the Panda Express has had a growing concern on the human capital. From the perspective of the human resource management, two techniques have been used to reinvigorate the organization successfully. The methodology that has been instrumental in revamping the market position of the organization is talent development procedures ( Arnaboldi, Lapsley, & Steccolini, 2015 ). The second methodology is performance management strategies. The methods work in synergy to improve the competitiveness of the organization. The backdrop of these two strategies is the disproportionate blend of talents, skills, knowledge, and experience of the workers.
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Recruitment phase of the organization is strict and thorough as any other organizations in the market. Panda Express believes that for it to grow exponentially, then it must first address the principal drivers of growth in the organization that is the human capital or merely put the workforce. The organization has its goals and objectives that must be achieved in a given timeline. Therefore, the first phase of a long organization journey is the recruitment process. The organization has taken drastic measures to ensure that employees who are absorbed into the system are competent, goal-oriented, competitive, and have adequate skills. The organization agrees with the research that has been conducted in the past regarding the performance of workers ( De Waal, 2013 ). Although many organizations tend to pick the best candidates to join the workforce, the results or performance of the employees has exemplified opposite expectations. The instance is similar to what Panda Express underwent five years ago when its productivity plummeted to an alarming level.
The management of the organization re-evaluated all its practices and strategies with the aim of unraveling the negative forces behind the slow organizational growth. The critical element that was highlighted was the lapses in talent development and performance management strategies. As such, Panda Express formulated strategies of improving talent development and performance management techniques. The performance of the employees is associated with the productivity of the organization. Introduction of the term occupational stressors into the lexicon of organizational performance and management has revolutionized strategic decisions that are taken by the businesses ( Mone & London, 2018 ). The primary driving factor for the low performance of the organization was myriad of occupational stressors that were impeding the employees from realizing full potential. With concrete evidence that Panda Express organizational failures were attributed to occupational stress, one aspect that was highlighted was employees’ dissatisfaction.
Occupational stress leads to discomforts at an individual level hindering the affected person from achieving his or her goal and objectives in the organization. The effects of occupational stress are manifested when person capabilities are exceeded by the intensity and frequency of the situation. Additionally, an individual may lack the resources to mitigate the stressors. The rudimentary step of dealing with the occupational stressors in the organization is by defining all types of stressors and their sources ( Mone & London, 2018 ). In many organizations, the workforce in the ground highlights occupational stressors. It is assumed that the management of the organization understands the importance of facilitating employees’ satisfaction. However, the same organization, perhaps out of ignorance or sheer malice has allowed the employees to suffer leading to poor performance. Panda Express allowed occupational stressors to thrive for long resulting in organizational failure.
The primary reason for the intensification of occupational stress in the organization was a rigid communication system in the organization. In most democratic organizations, employees are granted rights to air their grievances regarding the management of the organization or any other issue of core importance. Panda Express was managed in an autocratic form of governance where the managers would deliberate on the strategies and rolling out the programs to the employees to the employees without considering their opinions on the matter. Poor communication between the managers and the employees exacerbated dissatisfaction leading to deliberate sabotage of the growth programs and strategies ( Gagné, 2013 ). In the end, the demoralized and demotivated workers directed their anger at the organization leading to stunted performance. The realization of worker dissatisfaction led to analysis of the stressors. The first stage was to address the communication strategies in the organization. With the surety on protection from victimization, the employees outlined various occupational stressors that were encumbering their performance and productivity.
The first issue that was raised by the majority of the employees was the poor working conditions. Panda Express is an organization that deals with manufacturing of apparels. This means that the physical surrounding of the workplace should be conducive for the workers. In this case, the rooms had poor ventilation systems, heat, and fumes which worsened the environment. The workers would strain to reach the target. The second issue that was highlighted was long working hours. The efficacy of a worker can only be achieved when he or she works for a specific period. From a legal and health perspective, eight hours of work per day is enough. The worker will be productive and maintain the quality. In Panda Express, the majority of the workers were working up to 12 hours a day leading to strain and burnout. The resultant effect was a reduction in the quality of apparels leading to losses. From this angle, the dwindling performance of the organization in the market is attributed to substandard products. This means that the competitors producing higher quality goods will gain a competitive edge as it attracts the loyal customers of Panda Express who feel disappointed.
The last aspect of occupational stressor in Panda Express was a role. Role in the organization can be from the dimension of ambiguity and conflict. Studies have shown that role ambiguity affects creativity leading to high employee turnover. The functions in the organization were unclearly defined which led to internal conflicts. All the issues raised concerning the occupational stressors in the organization instigated the need to formulate and implement talent development and performance management strategies. The strategies that were enacted have been in action for two years with significant results achieved since the implementation. However, the approaches that Panda Express has taken have both positive and negatives aspects.
Talent Development and Performance Management Approaches: Positive and Negative Aspects
The unraveling of fissures in the human capital in the organization forced the management to start at the basic level in regards to talent development. The organization is diverse implying that different talents and skills are required to make it holistic. As such, the first strategy applied was the provision of the context. The organizational leaders understood better the skills and talents that enhance the success of the entity. For instance, in the Finance and Accounting Department, individuals with the highest level of efficiency and accuracy were required. A miscalculation in the accounting books will result in unprecedented consequences. Therefore, the leadership of the organization provided context for talent development in each of its department. The company which had many individuals working in the different section had to choose the best ten workers based on academic qualification, performance level, work ethics, and experience. The selected workers would enter the next stage of talent development program.
The next strategy of talent development in Panda Express is the preparation of the learner. The underlying principle that drives the program is the quest for new knowledge and skills that will serve the best interest of the business. By choosing the best ten workers in each section to join, the program does not automatically mean that the employees would be interested in the program. The departmental heads are tasked with the duty of preparing the employees to accept the new challenges and tasks ahead of them. The strategy is taken for the sole reason of developing interest and curiosity in the program. The management believes that the efficacy of the talent development program can only be attained if the employees develop a strong interest and curiosity in the program. A study has highlighted that curiosity and interest improve the chances of trainees acquiring desired skills and abilities ( Men, 2014 ). Conversely, lack of interest leads to wastage of resources as the primary goal remains unachieved after periods of training and development.
The third strategy that the organization has taken to develop talent is monitoring of the learning process. Monitoring of the learning process is imperative to determine the progress the learners are making regarding the acquisition of new knowledge and skills. Through monitoring, the organization will evaluate to ascertain whether there is a significant change in skills or knowledge of the learners. Panda Express monitors the learning process by organizing a series of challenges in the different departments. The trainees are presented with simulated events and are required to provide rational and logical solutions to the problems. Employees who exhibit improvement in their critical approach and problem-solving techniques are given a pass and permitted to advance to the subsequent stage of training.
The fourth strategy that is used by the manager in the organization is the follow-up. Once an employee has successfully undergone the training and awarded the certificate of completion, the leaders attempt to examine what the employees learned and how it will help them tackle various challenges that affect the business. The leaders must be convinced that the employees gained immensely from the training failure to which leads to the re-evaluation of the entire training process. The last strategy that managers at Panda Express use talent development program is an evaluation of the progress. Once the employees have graduated from the training, they are given more roles to accomplish. More roles mean more challenges. It is the expectation of the managers and the rest of the employees that individuals who have undergone talent development training will be competent and skillful in finding solutions to problems the organization is facing.
Panda Express has also taken steps and measures to manage employees’ performance. Employees’ performance is enhanced through amelioration of occupational stressor and re-evaluation of employees’ motivating factors within the organization. The first strategy that the management uses is the communication of clear expectation. The management has continually communicated to the workers to remind them of what is expected regarding job output and productivity. Through effective communication, the employees gain an individualized understanding of the objectives leading to higher performance. The second strategy used is periodic performance appraisal. The management appraises the performance of each employee monthly. The primary reason for the monthly performance appraisal to ensure that all the workers understand the goals and objectives of the organization when performing daily tasks. The last strategy that Panda Express uses to improve the performance of the workers is by resorting to methods of motivating the employees. This has been realized through the establishment of a conducive working environment, introducing benefits incentives, and re-examining the salary scales of each employee.
The strategies that have been used by Panda Express to develop talents and manage performance have both positive and negative aspects. The positive aspect of the strategies is that the organization has managed to create new talents that have been contributory in shaping the future performance and competitiveness. Another positive point of performance management strategies is the improvement in the productivity of the employees. The revenues of the organization have continued to increase due to high sales. The organization has extended its market share making it a force to reckon with in the competitive market environment.
Conversely, the strategies have negative aspects. Some of the disgruntled employees have questioned the manner in which their colleagues are selected to join the talent development programs. The employees decry of bias and favoritism among the managers where some workers are given top priority and preferential treatment. The second issue of contention is the remuneration methods. As much as the organization has revised its remuneration methods, junior employees feel that employees in senior positions are offered better packages yet they complete the bulk of the work. This has led to the emergence of cases of workers conflict in the organization. Internal disputes arising due to complain of preferential treatment of other workers leads to degradation in an interpersonal relationship ( Men, 2014 ). The resultant effect is lack of mutual trust, peace, and tranquility. The organization risk falling apart if the issues are not solved expeditiously. The last negative aspect of the strategy is the disruption of employees’ concentration due to regular performance analysis. The outcome of employees’ performance appraisal may divert the attention due to unforeseen consequences of underperforming.
Recommendations
Panda Express can revolutionize its talent development and performance management strategies by adopting new techniques that will alleviate the negative aspects of the existing strategies. The first strategy is to scrutinize the recruitment process for individuals enrolling in talent development programs. The methods that the organization has been using in the past to recruit workers into the program are seemingly skewed. To avoid disgruntlement and dissensions, the management of the organization should make the open. All the employees who are interested in developing their skill, talents, and knowledge are provided with an equal opportunity of achieving the goal ( Vukšić, Bach, & Popovič, 2013 ). As such, cases that have been reported in the organization regarding bias in the selection process will be eliminated.
The second strategy for the organization is making employees’ development a priority. Employees have goals and aspiration in their professional lives. One of the goals is the enhancement of skills, knowledge, and experience. By making employees’ career development and growth a priority, the employees will reach full potential in the business leading to an increase in productivity.
The third strategy is the harmonization of the remuneration packages. Financial benefits and incentives are extrinsic motivators that the management should consider with care. All the employees in the organization should feel that their efforts and contribution is fairly rewarded. Due to the seniority of the positions in the organization, the human resource manager in collaboration with other departments should establish a payment framework that is governed by the principles of equity and fairness.
The fourth strategy is leveraging of talents. The organization should create a top-notch talent program that has well-defined initiatives and milestones ( Vukšić, Bach, & Popovič, 2013 ). Key individuals in the organization should be rotated in different departments to facilitate a better understanding of various aspects of the organization. The last strategy that will be instrumental in managing the performance of Panda Express is the adoption of appropriate technology. Technological disruptions have affected the organization significantly. The management of Panda Express can adopt a technology that promotes performance and talent development.
Implementation of the proposed strategies can be evaluated through a cost-benefit analysis model. The strategies address vital issues that have affected the efficacy of the methods used. By attempting to find long-lasting solutions to the strategic problems facing talent development and performance management in the organization, the cost associated with the negative aspects are reduced. Conclusively, the benefits of the proposed strategies surpass the cost of implementation.
References
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Men, L. R. (2014). Strategic internal communication: Transformational leadership, communication channels, and employee satisfaction. Management Communication Quarterly , 28 (2), 264-284.
Mone, E. M., & London, M. (2018). Employee engagement through effective performance management: A practical guide for managers . Routledge.
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