Performance Management at Littleton Credit Union Essay

Performance Management at Littleton Credit Union - Essay Example The study will aim at providing performance management techniques which can act as a catalyst in improving the efficiency of the organization. The solutions provided in the study will help the employees of LCU to achieve their targets and objectives in a systematic method. The study will also give an insight into the difficulties faced by the organization in implementation of these techniques. Performance management techniques will help in addressing the financial and non financial challenges faced by LCU. Factors Affecting Performance Management Performance Management (PM) is defined as a systematic approach in improving the individual and team performance in order to achieve organizational goals (Baron and Armstrong, 2005, p.02). It also aims at developing the capacity of the employees and workers and providing guidance to the employees when it is required to deliver superior performance (Cardy and Leonard, 2011). There are several internal and external factors affecting the perfor mance of the company which requires crucial identification by the management of the organization (Thorpe and Beasley, 2004). These factors need to be critically examined by the managers of the organization to evaluate the influencing factors related to the performance of the employees. ... It is observed that the Carla Fredericks would serve for the post of CEO in Little Credit Union (LCU) and has identified certain challenges faced by the company. Providing solutions from the performance management perspective would enable the CEO to address the immediate concerns of the organizations in a systematic manner. Firstly, it was observed Acquiring financial investment from loan sharks for LCU is not an easy process because the loan sharks are doubtful on the organization’s ability to repay the loans. To address this problem it was suggested by the CEO and the other top level managers that LCU should get themselves credited with a credit rating agency to obtain credibility (Partnoy, n.d.). By obtaining credibility LCU the opportunities of obtaining financial resources gets widened. However, it was observed that the credit rating agencies provide credit rating to companies with a good management practices and high turnover. This is not possible in this case because LC U has not been able to yield profits and also attract high potential investors. Secondly, it has been observed that LCU is over staffed; the number of staff is high compared to the population of the town. An organization with a high number of employees does not necessarily mean that the employee productivity would also increase. An overstaffed organization can have negative consequence for example a high number of staff indicates that the management of LCU has been paying extra wages and salaries which has resulted in an increase in their expenditure. LCU management should focus on acquiring the right number of staff with suitable skills for the required position. It would be easier to design the key responsibility areas that would be required in each and every department of the organization and