Question

A large multi-national airline has many responsibility centres.

1. The South American division, which is responsible for operations in South America and has the authority to purchase new aircraft and add/cut routes.
2. The Pilot Training group, which is responsible for training new pilots
3. The reservations group, which is responsible for making reservations
4. The maintenance division, which is responsible for aircraft maintenance, and from time-to-time will also do maintenance for other airlines
5. The fuel group, which is responsible for fueling aircraft

Required:

Briefly identify how should each of these be evaluated

Answer 1

Performance improvement methodology and techniques

Out of the performance improvement planning process come specific
performance improvement interventions, tactics and techniques. Note that these
interventions happen at five checkpoints. Upstream systems, inputs, process,outputs and downstream systems. Quality management efforts must be defined
relative to these five checkpoints. In effect, transformation and continuous
improvement efforts are commitments to a practice of managing all five-quality
checkpoints. The management team then develops, through the performance
improvement planning process, a balanced attack to improve total system
performance, not just system subcomponents.
After interventions are made to the system, measure, assess and analyze
performance at the five checkpoints to determine whether the expected impact
actually occurred. Based on these data, make an evaluation relative to the
business strategy, the environment (both internal and external), the vision, the
plan and the improvement actions themselves. Note that the process of
evaluation is separate from the process of measurement. In addition,
measurement supports improvement as its primary objective. The
organizational system or unit of analysis being measured must be precisely
defined in order to avoid confusion. A number of measurement and evaluation
techniques may be used in this regard.
If the organization has an effective, high-performance management process in
the areas of planning, measurement and evaluation, control and improvement, it
will achieve its vision of the future and its desired outcomes over the long term.
An integrated approach to continuous improvement is essential to this
achievement.
DSMC/ATI Performance Improvement Model
The DSMC/ATI Performance Improvement Model, shown in the diagram is
primarily a model for creating an improvement project. It has seven steps and
begins with establishing a cultural environment and results in implementing acontinuous cycle of improvement projects aimed at improving organizational
performance.
Step 1 :Establish the Transformation Improvement Process Management and
Cultural Environment
The transformation improvement process is a total organizational approach
toward continuous improvement of products and services. It requires
management to exercise the leadership to establish the conditions for the process
to flourish. Management must create a new, more flexible environment and
culture, which will encourage and accept change. The new culture is developed
and operated so that all the people, working together, can use their talents to
contribute to the organization‘s objective of excellence. Management must
accept the primary responsibility itself and understand the prolonged gestation
period before the new systems become alive and productive.continuous cycle of improvement projects aimed at improving organizational
performance.
Step 1 :Establish the Transformation Improvement Process Management and
Cultural Environment
The transformation improvement process is a total organizational approach
toward continuous improvement of products and services. It requires
management to exercise the leadership to establish the conditions for the process
to flourish. Management must create a new, more flexible environment and
culture, which will encourage and accept change. The new culture is developed
and operated so that all the people, working together, can use their talents to
contribute to the organization‘s objective of excellence. Management must
accept the primary responsibility itself and understand the prolonged gestation period before the new system becomes alive and productive.

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How to Design a Performance Evaluation for a Multinational Organization

by David Ingram

Performance evaluations provide a way for managers and individual contributors to work together to increase employee performance through training, mentorship and collaborative goal setting. Performance reviews introduce new challenges when rolled out in a multinational company with employees from diverse cultural backgrounds. Fairness is the key to an effective multinational performance evaluation program, but using a one-size-fits-all approach across cultures does not always result in true fairness. Setting global standards that transcend cultural nuances, utilizing local leaders to perform reviews and localizing the actual procedures of evaluations are a few tactics that can increase the fairness and effectiveness of multinational evaluation procedures.

Challenges of Multinational Performance Reviews

Different cultures value and prioritize different things. This is the root of most of the challenges introduced in multinational performance evaluations. Some cultures may value collaboration, for example, while others value independent performance. Some may value innovation, while others value adherence to the status quo. In a multinational company, different departments may be located in different countries, automatically creating a difference in the output of employees in different regions. All of these things can lead to confusion, inconsistency and unfairness in a performance evaluation based around the values of the country that houses the company's headquarters. According to a research report by global consulting firm Protiviti, retaining top talent is a major challenge of multinational companies, making effective employee development and performance evaluation critical to long-term success.

Set Global Standards

Identify and select performance evaluation criteria that can apply with equal relevance in all regions or departments. Seek the values and strategic goals that all regions have in common and base your criteria around these values. In a manufacturing organization, for example, safety is likely to be a priority around the world, making adherence to safety standards an ideal candidate for performance review criteria. At the same time, leave room for local managers and employees to set personal performance goals related to each person's individual journey of development.

Utilize Local Leaders

Assign local managers the responsibility of conducting evaluations and hosting face-to-face performance reviews. When it comes to making personal connections with employees and establishing the trust and rapport necessary for an effective review, local leaders can make a significant difference. For a review to be truly effective, employees must feel comfortable and safe to admit their own weaknesses and mistakes while setting goals for improving their performance. Local leaders understand local employees' culture and share similar life experiences. They share native languages and colloquial mannerisms. All of these things can put people at ease.

Localize Evaluation Procedures

Allow local managers in each region to customize the ways in which performance reviews are conducted. Using the global criteria and metrics that you have established, local managers can craft review procedures according to local customs and norms. The ways in which performance information is gathered, review conversations are conducted and employee-development goals are set can be most effective when the processes are familiar to both the reviewers and those being reviewed. A manager in the United States may decide to use 360-degree performance surveys to gauge individual performance, for example, while his counterpart in Japan uses a top-down evaluation approach, both of which are more familiar to employees in their respective regions.