Running head: BOEING PERFORMANCE MANAGEMENT REPORT
Boeing Performance Management Report
Finding Journal articles more specified, up to date and directed towards the specified areas, the reference material is mostly comprised of Journal articles, material provided on Internet and most importantly on performance management plan of Boeing. Performance management is a developing subject area. Not many current and up to date books are available. Journal articles are more helpful providing to the point and current research material. The material used is basically based on material printed in last five or six years. Material related to the Performance Management mostly depicts diverse direction of thinking by different practitioners, since there are not specified scientific theories.
Mullins (1993) defined motivation is a complex subject and is influenced by many variables. Individuals have a variety of changing, which they attempt to satisfy in a number of different ways. Motivation at work operates in two ways. First, people can motivate themselves by seeking, finding and doing work which leads them to expect that their goals will be achieved. Second, people might be motivated by management through such methods as pay, promotion and praise. These two ways can be described into two types of motivation (Armstrong, 1999):
l Intrinsic motivation- It can be described as the process of motivation by the work itself in so far as it satisfies people’s needs or at least leads them to expect that their goals will be achieved. It is self-generated factors which influence people to behave in a particular way or to move in a particular direction. Intrinsic motivation refers to the intrinsic attractiveness of work itself (Child, 1994; Jackson & Bak, 1998; Tung, 1991).
l Extrinsic motivation- This includes rewards such as increased pay, praise or promotion. It is crude, easy and often effective.
Extrinsic motivation might have an instant and powerful effect; it is more useful to Chinese employees. Money is individual basic need. As Duall (1999) said that when individuals are able to satisfy their perceived needs, they see themselves as being successful. In this view, the desire to achieve personal success is a natural phenomenon, and people are self-motivated to achieve, grow, and develop in positive ways.
Herzberg Motivator Hygiene Theory
Herzberg (1966) proposes that all individuals have two sets of needs hygiene and motivator. Hygiene factor affect job dissatisfaction, these include such things as quality of supervision, pay, company policies, physical working conditions, interpersonal relations and job security. Job satisfaction appeared to be caused by motivator factors, these include promotional opportunities, opportunities foe personal growth, recognition, a sense of achievement and responsibility.
Pay and recognition for a job well done are likely top factors on any employee's list. However, Boeing's mergers and acquisitions brought with them a number of different performance, development, salary and job classification systems. As a result, when changing jobs or simply understanding how pay and performance relate to business goals, navigating the system hasn't been easy for some.
That's why Boeing has been working over the last decade to continually improve pay, performance and development systems and processes. Most recently, Boeing last year implemented a suite of improved tools for performance evaluation, individual development and salary management
Compensation surveys in the United States have consistently reported that pay-for-performance systems are used in the vast majority of private firms.1,2,3,4,5 While the prevalence of pay-for- performance in public organizations is considerably less, public sector use of these systems has been on the increase.6
"Earlier evaluation and pay raise processes I went through were not as satisfying as I'd hoped," said Carl Davis, Senior Industrial Security manager for Shared Services Group in St. Louis. "Now, using the IPA, it's easier to see the overall contribution an employee makes."
Carolyn Hodges, Utterberg's manager, sees employees making the connection between performance and salary, but believes that next year will be even better.
"I think the salary review process will be better next year, particularly with regard to the employee [IPA] ratings," she said. "I think employees are starting to see a clear link between their goals, performance rating and salary adjustment."
Hodges liked using the enhanced salary review system introduced last year. She particularly liked having access to the Pay Visibility Tool, which provides visibility to information from the Performance Evaluation along with other data to assist managers in determining salary recommendations. "In the past, I'd rely on information flowing down to me to make decisions," she said. "This year I got to do it myself, and I liked the visibility."
Reinhardt likes the idea that his manager was responsible for his salary adjustment this year. "I believe my manager should be responsible for my salary review," he said. "He is the best judge of how valuable I am to him, the department and The Boeing Company."
Davis believes the tools introduced last year truly manage salary and performance in a positive correlation. "You can see how performance and salary are related, and you don't have to come up with the outcomes off the top of your head," he said.
It all comes down to the connection between goals, performance and relative value of an employee's contribution.
"My manager and I discussed my performance, and he gave me the opportunity to point out my accomplishments and then told me about my salary revision," Reinhardt said. "I believe my salary revision was based on my performance for this year."
Shift into high gear
Employees and managers alike truly are in control when it comes to career and salary management. The employee-led Performance Development Partnership (PDP) plays a vital role in the journey to business and employee growth—and has the potential to shift a career into high gear.
"Each of us can become a better employee, and the conversation with your manager is what will really make that happen," said IDS' Utterberg. "These are really good tools, and I love what I'm seeing. The things our manager is learning from them is being applied, and we're benefiting as a group."
Hodges manages 17 people—including Utterberg—and all of them did a performance development plan this year. She spent a lot of time talking with them about their goals and objectives and what each of the employee's goals meant to him or her. As a result, Hodges believes she has changed the minds of some of her team members on the usefulness of the PDP.
"I use them as tools to see where my employees want to go, what they want to do, and what they want to become," she said. "I look at them and draw from them to give them assignments to help them get there."
In Davis' view, simply having a development plan is good because those who have plans are more likely to follow through with them. His group, like Hodges', also had 100 percent participation in the PDP this year.
"They all wrote plans. Whether it was a short-term plan or a long-term one didn't matter to me," Davis said. "The plans are purely for the employee—not the organization or the company."
Reinhardt commended his manager and Industrial Security leadership for supporting Boeing's goals by helping employees develop themselves.
"A PDP is an excellent tool for career development because it promotes identifying and tracking goals and objectives," Reinhardt said. "I believe that we need to standardize processes like these and sustain them. That's what will really help employees feel the loyalty and buy in to the connection between their work, their goals, company goals and pay."
Crosby, 1979) presented the following steps in order to undertake TQM effectively.
1. Management Commitment: Top management must become convinced of the need for quality and must clearly communicate this to the entire company be written policy, starting that each person is expected to perform according to the requirement or cause the requirement to be officially changed to what the company and the customers really need.
2. Quality improvement team: From a team composed of department heads to oversee improvements in their departments and in the company as a whole.
3. Quality measurement: Establish measurements appropriate to every activity in order to identify areas in need of improvement.
4. Cost of quality: Estimate the costs of quality in order to identify areas where improvements would be profitable.
5. Quality awareness: Raise quality awareness among employees. They non-conformance.
6. Corrective action: Take corrective action as a result of steps 3 and 4.
7. Zero defects planning: From a committee to plan a program appropriate to the company and its culture.
8. Supervisor training: All levels of management must be trained in how to implement their part of the quality improvement program.
9. Zero defects day: Schedule a day to signal to employees that the company has a new standard.
10. Goal setting: Individuals must establish improvement goals for themselves and their groups.
11. Error causes removal: Employees should be encouraged to inform management of any problems that prevent them from performing error free work.
12. Recognition: Give public, non-financial appreciation to those who meet their quality goals or perform outstandingly.
13. Quality councils: Composed of quality professionals and team chairpersons, quality councils should meet regularly to share experiences, problems, and ideas.
14. Does it all over again: Repeat steps 1 to 13 in order to emphasise the never-ending process of quality improvement. (Ross, p. 6-7)
Arkell, D., (2005). The road to rewards: Boeing's common performance and salary review processes pave the way for your progress, Boeing Frontiers, Volume 04, Issue 7, November, 2005, retrieved as on Oct 03, 2009 from http://www.boeing.com/news/frontiers/archive/2005/november/mainfeature1.html
1 Hay Group, Inc. The Hay report: Compensation and benefits strategies for 1990 and beyond. Philadelphia, PA: Hay Group, Inc, 1989.
2 Hewitt Associates. Compensation trends and practices. Lincolnshire, IL: Hewitt Associates, 1989.
3 Locher, H.A. and K.S. Teel. Appraisal trends. Personnel Journal 67(9): 139-145, 1988.
4 Peck, C.A. Pay and performance: The interaction of compensation and performance appraisal. New York: The Conference Board, 1984.
Ross, J. E., (no date available). Total Quality Management: Text, Cases and Readings, Second Edition, Florida Atlantic University, Boca Raton, Florida, pp. 1-3
5Wyatt Company. The 1987 Wyatt performance management survey. Chicago: The Wyatt Company, 1987.
6 Maroney, B.P. and M.R. Buckely. Does research in performance appraisal influence the practice of performance appraisal? Regretfully not! Public Personnel Management 21: 185-196, 1992.