Performance Management and Strategic Planning

Performance Management and Strategic Planning

Latrice Jones

Argosy University

Performance Management and Strategic Planning

Introduction

Coca-Cola is one of the world’s largest beverage companies. Along with coca-cola, the company markets other four of the world’s top five soft drinks brands. The company contains various subsidiaries. In addition, it is made up of more than 7000 local employees, more than 500 managers, more than 60 manufacturing locations, 27 company-owned bottling operations, some network of 29 contract packers and also more than 17 franchisee-owned bottling operations, and all these facilitates the manufacture process of some range of company products. In addition, the company has some supporting distribution networks that consist of more than 700, 000 retail outlets and also 8000 distributors. In essence, the performance management at Coca-Cola links directly to rewards and recognition and also career development. It follows the steps of performance management from planning to coaching and feedback. In this paper, we focus on the relationship between the Coca-Cola’s mission and vision statements and goals and strategies at the corporate level, including the strategic plan of the organization.

The Relationship between the Organization's Mission and Vision Statements and Goals and Strategies

Coca-Cola contains three main mission statements, and this entails to refresh the world, to inspire moments of happiness and optimism and to create value and make some difference. On the other hand, the vision of Coca-Cola involves five main statements. First are the people: be a great place to work that people are inspired to be the best. Second is portfolio: bring to the world some portfolio of quality beverage brands that anticipate and also satisfy people’s needs and desires, Partners: nurture some winning network of suppliers and customers, Planet: be a responsible citizen that ensure a difference by assisting build and support sustainable communities, Profit: maximize long-term return to shareowners while mindful of the overall responsibilities, and Productivity: be a highly effective, fast-moving and lean organization. The vision statements are quite in-depth and detailed, clear and direct unlike the mission statements, which is abstract and broad. The two statements, however, communicates what their goals are for the future and also where the company is currently, and also it portray what the company aims to achieve. The mission goes beyond the manufacturing of beverage products and centers on the impact the company wants to make on the global customers who consume its products (Coca Cola Company, 2015).

Coca-Cola main goals involve to be globally known as a business that carries out business responsibility ethically and also to accelerate sustainable growth to operate in the future world. On the other hand, Coca-Cola has strategies that involve targeting different areas across the globe with various products, gaining their brand name and popularity. Customers closely work with partners such as grocery stores, movie theaters, street vendors among others, and this is to create and use localized strategies developed in partnership with the company. They also narrow down competition with other beverage companies. In addition, they employ the strategy of reviewing and evaluating their performance and business plans, and that they make decisions in realigning their business models to match the goals of the company, and this is by using strategies and tactics in the performance analysis. The goals, vision, mission and strategies relates in all departmental levels through values of the company, which involves quality, integrity, passion, diversity, leadership and accountability.

Whether the Coca-Cola’s Strategic Plan Includes a Performance Management

The Coca-Cola Company incorporates performance management in their strategic plan. One of the performance management components involves employee evaluation. This involves performance measurement in stages that involves annual performance review, plan performance of the year, reward and recognition and mid-term review. The dimensions of performance involve business plan achievement, people development weightage 20 percent and competencies weightage 60 percent. The objective of performance review is to assess progress on business results, self or people development and competencies, and also to credit and compliment good progress. Employee evaluation recognizes top performers and also reviews the status of bottom performers under performance improvement planning. A good example involves the fact that, top performers are entitled to differentiated compensation, appreciation certificates or letters, advanced learning and development opportunities, sponsorship to conferences among others.

How and why a strategic plan should determine various choices regarding performance management system design

Strategic planning entails defining the organization’s present and future identity. As such, the strategic plan is to serve as some blueprint that allows organizations to allocate resources in some way that provides the organization with some competitive advantage. In addition, it defines the organization’s identity, analyses the environment, provides some focus, creates a culture of cooperation, generates new options and it serves as a guide to the daily activities of the organization members. On the other hand, the performance management relies on the strategic plan to be quite vital. The behaviors, development plans and results of every employee have to be aligned with the vision, goals, strategies and missions of the organization and unit.

The organization’s strategic plan directly affects the various choices in designing the performance management system. This is because the different missions and visions result to different types of systems, for instance emphasizing behaviors as opposed to the outcomes. As such, top management has to know that the performance management system is the fundamental tool to execute an organization’s strategic plan, and the knowledge might lead to top management supporting the system.

Suggestions for Improvement or Development of the Performance Management

Performance management does not involve only rating employee performance in an annual performance appraisal. Any effective performance management process focuses on aligning the organization’s workforce, as well as improving employee performance, supporting employee development and also driving some better business outcomes. Improving performance management also involves celebrating both the financial and non-financial achievements. This will make employees to feel validated and valued as part of the organization. Incentives also improve performance management, and such should be matched to accountability and results. Another improvement involves coaching, which is an ongoing process that the management directs, motivates and also rewards employee behavior. Observing and documenting performance about development goals can also improve performance management (Paladino, 2011).

References:

Coca Cola Company. (2015). Mission, Vision and Values. Online Resource. Retrieved from http://www.coca-colacompany.com/our-company/mission-vision-values

Paladino, B. (2011). Innovative corporate performance management: Five key principles to accelerate results. Hoboken, N.J: Wiley.

Walker, S., & Greenhall, M. (2011). Practical and effective performance management: How excellent leaders manage their staff and teams for top performance : lots of exercises and free downloadable workbook. Lancashire: Universe of Learning.