PERFORMANCE MANAGEMENT AT STEEL CO. Harvard Case Solution & Analysis

Situation Analysis
The current situation that has been presented is regarding Steel Co. that has been a small manufacturing firm, which has been run by owner-manager with a total number of employees around 65. The firm has been operating in the industry for over 30 years, where most of the employees have been long serving human resource for a long time. The sales team comprises of 8 individual, whereas the remaining once are unskilled employed and semi skilled employees.
The leadership style of the manager has been rather autocratic where he has been the sole and the prime decision maker at the company. As the situation states, in the recent past, the firm has been facing stiff competition and the increasingly difficult trading conditions has made the financial stability decline and the firm has been unable to generate profits it has made in the past.In order to overcome the losses and to retrieve some revenues, the manager imposed pay freeze for the past three years.
Along with this, the employees have been deprived of other perks and privileges too. In the wake of things, the manager handed over his responsibilities to Divisional Director who was made to carry out the operational activities at the company. He was rather different in his approach and actually was more of a team man.
He took four necessary steps to enforce the element of motivation and to improve the commitment of the employees. He even introduced bonus system at work. However, to his surprise, the results were not demotivating for him, the percentage of employee engagement did not improve, nor did the quality. Therefore, a business advisor has been hired to overcome the issues that have been prevalent at Steel Co. As per the Business Adviser, he has agreed upon the fact that managing the performance could be a very powerful mechanism for changing culture at the company Steel Co.
Task – A
As the situation states, the Divisional director put efforts to encourage employee engagement and to also improve the performance of the employees, however none of them worked out. In order to overcome the issue, the performance management tools that would be appropriate for the scenario and to make the employee performance increase the element of performance improved is quite integral. Along with this, the firm even has to look after the element of development where the company should look to constantly improve the working conditions for the employees. Finally, performance management can become effective and efficient once the individuals within the company are rather encouraged to behave in a manner where they can improve the working relations. Therefore, the most integral factors, which can improve the employee performance, are as follows:
Environment:
In the current situation, in order improve the motivation and to bring in success for the company where employees do not work only for salary, but for the sake of the firm, the company should improve the working environment. In the current situation, no health and safety measures have been taken by the firm which has made the employees hesitant to give their best. Therefore, it is quite important to improve the performance of the employees; the company needs to improve the environment. Along with this, the company should install air conditioners and exhaust fan facilities so that the environment, the breathing space is improved for the employees. This is one of the major aspects, which needs to be improved in order to improve the employee performance.

Job description:
It is necessary that the company should hire the right person for the right job. Until the employee has command over his work and his job, he cannot improve his performance therefore, the management of Steel Co. needs to hire the right person for the right job. Once the employee selection is made based on the competency and qualification of the employees the results can become more encouraging. Along with this, the performance of the management can also improve and the training time and the extra emphasis to an employee would be reduced because of hiring and instating right man for the right job. Therefore, the management should bring in the factor of hiring right man for the right job............................

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