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Why facility managers have to develop their skillset?

In order to be successful in what they do, they constantly have to improve and upgrade their skills. The manager, who is constantly improving, increases cooperation in the entrepreneurial-managerial function and improves performance in the culture of work, business psychology, and the philosophy of success. If they want to succeed in the facility management industry, they need to be able to respond to every challenge and risk.

Just imagine the situation where the manager doesn’t know anything about managing the security system and because of that someone’s life may be at risk. Facility admin roles and responsibilities are not only important to the manager himself but also for the whole environment.

Facility manager’s soft skills

Communication

Communication is necessary for establishing and implementing company goals, developing plans for their realization, organizing human and other resources in the most successful and effective way, then for selecting, developing, and evaluating members of the organization, as well as for guiding, directing, motivating and creating a climate in which people are willing to contribute to goals. The control of achieving goals itself is based on the process of communication.

Therefore, the manager must know the communication process, the basic elements of the process, the dependence of these elements and the principles of functioning, different types of communication with the advantages and disadvantages of each, as well as communication barriers and ways to eliminate them.

Leadership and strategy

An experienced leader, using different leadership styles, enables the organization and people to develop, grow, improve and serve in accordance with the requirements of the market, but also with the values ​​in companies. On the other hand, a successfully defined and well-implemented strategy is a sure path to the success of any business unit or the entire organization. Most companies that succeed in properly implementing a well-defined strategy have a high chance of being market leaders.

In addition to leadership, in order for an organization to be efficient and effective over a long period of time, it is important that everyone in the company understands the strategy and strategic directions and the strategy of a company that successfully performs business at lower hierarchical levels. Good leadership and a properly defined and applied strategy are the guarantees of success of any modern organization.

Strategic thinking involves choosing between different business models and sometimes moving to a new model to achieve the mission and goals of the strategy. If you understand your company’s core strategy, you can consider how you can contribute more directly. This could mean a greater focus on innovation, competition, or some other key concept.

The more you practice strategic thinking, the more value you will become for your company. A good strategy can lead a company through difficult situations, and can even contribute to changing the business model for the good of the entire company.

Facility manager’s hard skills

Risk Management

First of all, it is necessary to clarify what risk is and why it is so important, given that all revisions of standards have introduced the concept of risk and the concept of “Risk-Based Thinking”. Risk management is a relatively new discipline of management. Until recently, no risk was taken into account, but there was a change in the awareness that proactive thinking is needed. Therefore, risk management is necessary.

In order to successfully manage risks, it is necessary that risk-based thinking be fully integrated into all management systems and decision-making processes. Risks are an integral part of any entrepreneurial activity. Risks denote any future (financial and non-financial) events and possible events inside and outside the organization, which may affect the extent to which corporate goals are achieved (negatively or positively).

Managers should identify all existing and potential risks, which must be reduced to the least possible measure, to accept and solve them in order to take advantage of the possibilities that arise from that. Defined measures and actions are to help in the effective and efficient management of risks that lead to the avoidance of “acute problems”. When it comes to identification, it is important to identify sources of risk when it comes to the introduction of quality system management, such as:

• financial risks
• cultural risks
• infrastructure risks
• legal risks
• market risks
• operational risks.

Technical Skills

Technical skills create the ability to use procedures and techniques from specialized areas such as engineering, informatics, economics, marketing, finance, etc. The manager must know the various technical elements of the business in which he works. He must also master the terminology, methods, and techniques specific to the activity in which he works, such as materials, tools, and equipment, used software, documentation, technological processes, etc.

Facility information and technology management can’t go without each other if you want to manage facilities perfectly. This won’t only make you work less, but will also help you to be more productive.

Analysis and security checking

The analysis of the objects in the building is very important for hard facility managers. It is necessary to see clearly whether the facility has everything that is prescribed by law and whether all of it works properly. the performance and quality of security systems must always be perfect so as not to jeopardize the safety of the people who are in the building at that moment.

Facility manager’s key roles and responsibilities

In such a framework, professional discipline is raised to a higher level, FM managers have a great responsibility to provide, maintain and develop many services. They start with a property strategy, manage the space and communication infrastructure for building maintenance, as well as administer and contracts. Every good facility manager must know how occupancy and human factors will affect the facility. Conducting various operations and maintenance of objects in a facility are the key roles.

The biggest challenge seems to remain how to gain a course as key internet stakeholders to bring any sustainability strategy to life, and which managerial job is perceived as a “better philanthropic story” or “something that has nothing to do with the legal business. Facility manager responsibilities are not that simple but can be facilitated with tools and software.

How to become a Perfect Facility Manager

Here are some tips which will help you to be better at your facility manager role:

Professionalism in your role

Professionalism involves correct and integrated behavior and maintaining your personal satisfaction despite challenges. Try to adhere to the highest standards in these areas, creating examples for your team members. When professionalism is presented, some examples include the ability to take initiative, provide exceptional support with a positive attitude, and display strong moral values ​​in all situations.

Innovative approach

Competition exists in all areas and all industries, so the ability to use and apply innovative thinking is necessary to survive in the marketplace. A manager who is ready for innovation leads the team and the company on the right path to success. Some examples of innovation include developing new and improved solutions for employees, redesigning or implementing new systems to improve functionality and productivity, identifying gaps, and generating fresh ideas.

Ability to motivate others

This skill of the individual is very important and useful for the company itself. Motivation increases employee satisfaction and productivity while providing a good example to the expectations of all team members within the organization. If you have excellent motivational skills, you can spot areas that need improvement and approach those areas in a constructive way. This could help your team members build self-confidence and encourage productive change, rather than discourage them.

Effective facility management, combining resources and activities is vital to the success of any organization. At the corporate level, FM contributes to the delivery of strategic and operational goals. On a daily basis, it efficiently manages facilities, provides a safe and efficient work environment, which is essential for performing any job, regardless of its size and scope.

What is facility management?

Facility Management is essentially the management of the facility and combines all the auxiliary processes of managing business facilities, which the owner of the facility entrusts to an external associate.

Facility management can be divided into Soft facility management and Hard facility management depending on the various factors they deal with.

Hard facilities management is focused around objects implemented in a facility that can’t be removed and is regulated by law, such as safety systems, gas, and plumbing, electricity, etc.

Soft facilities management isn’t regulated by law and it can always be removed or added. It’s more focused on human resources than the building itself. The perfect example is cleaning services, decorations, vending machines, parking lots, and more.

What services does Facility Management cover?

Commercial facility management

Representing the interests of building owners towards tenants and state institutions in the commercial and legal segment. This includes real estate management, and lease management.

Technical facility management

Maintenance of systems and equipment at the facility in accordance with the manufacturer’s standards, technical requirements and deadlines, procurement and stockpiling of consumables, and obtaining technical documentation prescribed by law.

Infrastructural facility management

Facility cleaning and maintenance, reception, and security service.

Why facility management is so important?

An excellent facility management can, among other things:

  1. Effectively manage the assets of an organization
  2. It enhances the skill of people in the FM sector and provides recognizable career options
  3. Enable a new work style and process
  4. It improves and projects the identity, that is, the image of the working company
  5. As an aid to integration processes related to change, it delivers ongoing business after a merger or acquisition
  6. Facility management is an integral part of any strategic plan for the future and prosperity of a successful company.
  7. Facility management encompasses multi-disciplinary activities within the built environment and has an impact on people and jobs.

Importance of ongoing facility management

The facility management sector is now large and complex, it forms a mixture of in-house departments, specialized contractors, a large multi-service company, which supplies a full range of design, construction, finance, and management. Facility management integrates planning and management of a wide range of services to achieve better and more economical quality. It is becoming an integral part of a major project to manage, replace and upgrade infrastructure as well as public services.

It is a skill that continues to expand, and manages an ever-widening range of fixed assets, provides services, and makes people more trained.

Tool and software for facility management

Understanding the building as a living organism, which involves a variety of processes and information, leads to a holistic approach to the tasks of building management. Cost management and their reduction are directly related to the successful coordination of a number of processes that serve to maintain technological, aesthetic, and use-values, and thus maintain or increase the value of construction works and the facilities themselves. Building and property maintenance are part of your daily work.

In order to maintain customer satisfaction in the long run and successfully run your business, you may need to incorporate a mobile software solution tailored to the needs of the services you provide into your work. Building management software or CMMS (Computerized Maintenance Management System) in the real estate sector must be able to handle large amounts of data. Only by collecting data is it possible to optimize the use of resources such as manpower, time, and money to make buildings energy efficient.

Skeddahttps://www.skedda.com/Great occupancy and space management with many more options
ML Work Ordershttps://www.masterlibrary.com/ml-work-orders.htmlProvides a very large selection of facility managing options
Procorehttps://support.procore.com/Managing constructions, financials, and resources
stayhome.aihttps://stayhome.ai/Offers many management solutions and the best scheduling
Streamlinehttp://www.streamlinesoftware.net/product-downloads/Good solution for managing facilities, and streamline work orders
Quick Basehttps://www.quickbase.com/Better efficiency and workload management
iLab Core Facility Managementhttps://www.agilent.com/en/service/laboratory-services/lab-operations-management/core-facilities-managementEnsuring your budget is maximized, and perfect resource scheduling
Visiohttps://www.microsoft.com/en-us/microsoft-365/visio/flowchart-softwareProvides many starting files and different shapes while supporting remote workers
Primavera Unifierhttps://www.oracle.com/industries/construction-engineering/unifier-asset-lifecycle-management/Many custom options will help you to increase efficiency and visibility
MRI Softwarehttps://www.mrisoftware.com/Lease administration and accounting software that supports facility management
OfficeSpace Softwarehttps://www.officespacesoftware.com/Building maintenance and management software that will help you with scheduling

You no longer need anything but a smartphone or tablet to record construction-based data into digital files that you can access and manage in seconds. After loading drafts of your objects in pdf, jpg, or png format into the interface, you can record all actions chronologically. Well-implemented software will be a great help when it comes to capital project management. It will help you to make capital projects and planning everything else.

With the help of tickets, you will learn to create direct notes, assign them to responsible associates, monitor the progress of projects and all data, and monitor the status of order execution in real-time. This mode of operation will allow you to meet the requirements of sustainability

You can create data in the form of photos, voice or written notes, as well as notes on deadlines, executors, priorities, and completion status of certain objects and spatial contents. You can access the data anytime, anywhere via your own mobile device. These solutions will save you working hours and additional costs.

Communication with project participants is fast, intuitive, and easy. Anyone who owns a smartphone and is working on a project will be informed about their tasks and will be able to access them, document them, and check the status in the protocol after completing them.

Special solutions for facility management

Facilities management solutions will be a great help when it comes to building facility management. By going further and using these listed solutions, it will be a lot easier to maintain the facility.

Air Conditioning

Air conditioners and their importance are great, they are no longer a matter of comfort but also protection of people from unfavorable external and internal influences. They have been known commercially for over 50 years. Only in recent years have they become economically justified and acceptable to the general population, especially bearing in mind that we are facing constant climate change and an increasing number of extremely warm days during the summer. Although the first association when thinking about the importance of air conditioning is related to achieving the desired temperature in the room, there are many other advantages.

Cleaning services

Maintaining the hygiene of business premises – the task of every employer is to provide a clean and healthy working environment for their employees. Not only will clean rooms help increase productivity and improve mental health, but they will also help ensure their physical health. If your employees work in the immediate vicinity, and one person becomes ill, when the hygiene of the space is not maintained, it will not be long before everyone is infected. Trying to clean the office space will eventually become an impossible task, which is why you may want to consider hiring a professional cleaning company. There are many benefits to using a cleaning service whether you are in a large office space or simply a smaller startup.

Cleaning office space provides one of the biggest benefits, as mentioned, in improving the mental health of your employees. Research shows that the surveyed workers agreed to feel much more productive in a clean and organized work environment. As a result of cleaning the business premises, employees are more likely to feel inclined to take care of their space and their work, which means less lost or incorrect documentation.

First impressions in business can be difficult, especially if you are a smaller company looking for more customers or clients. That is why it is important to understand how important aesthetics and proper maintenance of the hygiene of your company’s business premises are. The moment a potential buyer or client comes to your premises, they will take everything into account and that includes the cleanliness and organization of your office space. Also, if you are hiring a young team of new workers, you would like them to enter an environment in which they could develop. Professional facility cleaning service is extremely important for small and medium enterprises.

You will also find that productivity increases not only with a better mental state but also with the time saved when employees do not have to worry about maintaining the hygiene of the business premises, washing the floors, dusting.

Another question you may find when you ask your employees to deal with the hygiene of the facility and the cleaning of business premises in addition to their primary occupation is that they may not clean well and will not have the appropriate equipment. In the end, they are not hired to clean, so they will not do such a good job as a professional hygienist. You will definitely notice the difference with a professional cleaning and hygiene maintenance service. Not only will everything look immaculately clean, but it will also use products that are safe for your workspace and environment. Careful cleaning of business premises will leave a positive effect on both employees and visitors to the business facility.

Security

Security alarms

The advantage is that security alarms greatly contribute to the carefreeness of employees. They can notify you immediately if an intruder enters the facility. Most security systems have motion detection sensors, which can be especially useful if you place them where you can enter the accommodation. Some systems have motion sensors that are specifically designed for doors and windows, and others have additional sensors that you can place wherever you want. State-of-the-art security systems give you the ability to adjust the range and sensitivity of the motion detector, giving you additional control over the level of security of the facility.

Keep in mind that advanced security systems can be very complex. The most modern system in the facility can attract guests, but there is a possibility that it will confuse them, ie lead to false alarms. A few questions to ask before installing a security system: What happens when the alarm goes off? Will the police or a private security company be notified? How will you, as the owner of the facility, be notified? What happens if you are not available?

Although security systems are sometimes complicated to set up, they are the right solution for some partners. However, always check how much this system will cost you and how it works before you invest in it.

Security cameras

Before installing a camera in a building, study the video surveillance laws that apply in your area. Installing a camera in rooms where privacy is expected (such as a bathroom or bedroom) is illegal in most countries.

Some owners choose to install cameras because they think it will help them with the implementation of house rules. For example, if you do not allow the stay of additional unregistered people, smoking within the facility or its vicinity, or the stay of pets, the camera at the front door can deter people from violating these rules.

Technology as a support

Many tools and technological devices knocked on the door and brought about a revolution by solving some problems that have plagued us for a long time. All big companies investing enormous sums of money in researching this area and its application.

Thanks to the development of technology, many managers have a much easier job and no longer have to do everything the traditional way. By implementing the latest technologies and using software, performance and quality of work are promoted. A good selection of devices and tools will make it easier for both employers and employees.

Energy efficiency

Awareness of the necessary changes in the way of life, production, and consumption is increasing, and the protection of the human environment and natural resources has long been a priority of the world community. Energy efficiency has not only entered the recommendations, directives, and laws on construction but has become one of the main measures of quality and value of buildings and has been established as a standard.

Technical devices are energy efficient if they have a high degree of efficiency – small losses when converting one form of energy into another. The ultimate goal is to reduce energy consumption to a minimum, while not compromising the level of comfort but maintaining or even increasing the level of comfort.

The most common measures taken to reduce energy losses and increase energy efficiency are:

  1. Insulation of space that is heated or cooled,
  2. Replacement of worn-out or inefficient carpentry,
  3. Replacement or installation of efficient heating, air conditioning, and ventilation system
  4. Installation of measuring and regulating device
  5. Replacement of non-renewable energy sources with renewable ones,
  6. Replacing energy inefficient consumers with more efficient ones.

Human resources and enterprises are treated as one of the most important resources for creating value and competitive advantage for modern enterprises. Outstanding human resources are derived from other intellectual resources of the enterprise, and the needs of material resources depend on them. Employees create and implement ideas by exchanging them with gardeners, consumers, and other constituents. Also, they create and patent inventions, brands, processes, databases, information systems, training programs, and organizational culture. All of this contributes to increasing the value of the company.

These “creators of value” – people and their intellect, today economy of knowledge and information society are becoming a strategic resource of the company. Therefore, with their new, competitive words, the biggest challenge is to advance and develop human potential, in order to make better use of this resource and build other resources of the company. Achieving that, from the crucial importance of the quality of management of human resources, that is, adequate management of their performance.

What is Performance Management?

Performance management is a natural management process that contributes to the effective management of individuals and teams in order to achieve a high level of organizational performance. As such, performance management establishes a common understanding of what needs to be achieved in terms of work goals but is also an approach in leading people and developing employee competencies that ensure that defined goals are achieved. Performance management is a year-round communication process between a manager/supervisor and an employee. At the heart of performance management is a communication process that includes clarifying expectations, setting goals, identifying goals, providing feedback, and evaluating results.

Performance management is not just a tool in human resource management but is used in a much broader organizational context. It is, by its nature, a normal management process.

What is an Effective Performance Management?

Effective performance measurement systems inevitably become a condition for the survival of companies in today’s dynamic and highly turbulent environment. An effective performance measurement system allows a company to measure and control performance in accordance with a defined strategy. When designing a performance measurement system in a modern environment, both financial and non-financial indicators are taken into account, reflecting the effects of key activities that add value to a company. The introduction of a variety of strategically aligned performance indicators should improve organizational outcomes by increasing the amount of decision-relevant information available to managers, facilitating strategically consistent decision-making.

Because it clearly defines the goals in terms of the level of competencies and performance of employees, the performance management system affects the improvement of employee performance, as well as the performance of teams and the entire organization. Because it clearly defines the necessary steps for the promotion of employees and provides objective feedback on their development as well as the opportunity to express their opinions, the performance management system also serves as a tool for motivating and developing employees.

Types of Performance Management

Management by Objectives

Is it worth the effort?

The success of companies that are sincerely committed to the introduction of the MBO system has shown that the efforts made can be repaid many times over. Specifically, they returned with a 56% increase in production. This is the conclusion, as far back as the early ’90s, after reviewing the results of a thirty-year study of the impact of MBOs on business. Companies that could thank this system for their success are greats like Xerox, Intel, and others.

What about those companies that are not sincerely committed? Well, they could boast of “increasing” production by only 6%! Serious commitment is needed, and that tells us that the introduction and maintenance of a management system with the help of goals is demanding, but profitable!

What does it look like in practice and what are the “hidden traps” of management with goals?

The system involves setting a goal at the organizational level and then cascading it down to the individuals. It is recommended to include individuals in setting their own goals. The results are then monitored, evaluated, and finally awarded prizes.

The benefits of using the system should be obvious; individuals and teams have a clearer focus on their work, they can relate their work to the company’s goals and thus they can understand their own contribution and importance.

However, despite these advantages, over time, some “by-products” of management through goals began to appear in the work. Namely, individuals faced with the goal began to shift the focus from the quality of work and to focus on “achieving numbers”. This was stated in a witty way by one of the executives in a conversation with his manager: “Boss, just say which numbers need to be moved, and my people will do it.”

What about the model in modern times?

The model became its own victim after many years of application; it has become commonplace, something that is taken for granted (although, that does not mean that it is really implemented!). The model gained new energy by evolving into several concepts. One of the most important is “The Balanced Scorecard”.

The Balanced Scorecard

What problems did this system try to solve and how did it do it?

“What you measure, you will get.” This is a saying that is often heard in business. And many times, it has proven to be right because if you set goals and reward employees for achieving them, they will do everything in their power to achieve them. Is this completely true? To a certain extent. It happens in practice that people, as well as companies, will do everything in their power to achieve the reward (not the goal).

Where did it come from? The psychological theory of goal setting shows us that people increase their efforts with increasing goal weight. This is good for the goal, but it also means that “everything else” falls out of focus. Bearing in mind that financial indicators are the easiest to measure and that they are very important to companies (and individuals), it happens that the focus falls entirely on them.

This is a problem that the balanced scorecard model has tried to solve by focusing on the whole organization, monitoring indicators, and improving performance in an integrated way.

The model appeared in practice during the ’80s, and in the early 90s, authors Kaplan and Norton presented it in the Harvard Business Review. The article attracted a lot of attention, so after a few years, a very influential book “Balanced Scoreboard” by the same authors was published.

What does a Balanced Scorecard look like in practice? What is the main drawback?

This system works “from top to bottom”. As with the previous model, the first step involves defining the company’s goals and strategy. The key difference is that in this model there are predefined performance areas for which critical success factors, goals, and measurement methods are defined. These goals and methods of measurement are then “lowered” down through the organization, plans and initiatives are made, and implementation is monitored.

Thus, predefined performance areas that include intangible perspectives (see footnote) ensure balanced performance and long-term development of the company. This is a key innovation and contribution of the system.

The biggest drawback can be seen even from this very short description – the system is complex, requires a lot of time, work, and dedication. Finally, it can happen that companies develop so many goals, indicators, and measurement methods that the system starts to “swallow itself”.

Well, is all that effort worth it?

Yes! The biggest benefit of implementing this system is that employees have clear goals and indicators of success, a clear connection with the strategy and purpose of the company, and activities are focused on “balanced” areas. In the long run, this leads to well-motivated employees who contribute to the success and stability of the company by achieving their goals.
Objectives & Key Results (OKR)

Another significant model that emerges from Drucker’s “Goal Management” is the model known by the ’70s OKR. It was created by Andy Grou in the ’70s at Intel, under the name “iMBOs” – “Intel’s Management by Objectives”. Another Intel employee, John Doer, called the model “OKR” and introduced it to a small IT startup in 1999. That startup was Google. And OKR has gone down in history.

The founders of Google attributed numerous merits to OKR and influenced the promotion and popularization of the model. Is it just a new trend, short fashion? Unlikely, especially considering that the model was then taken over and based on its success by Twitter, LinkedIn, DropBox, Uber, and many other companies.

What is the charm of OKR and how does it work in general?

Andy Grou in his book “High Output Management” says: “A successful MBO system should answer only two questions:
– Where do I want to go? (Answer given by Objective)
– How do I catch the right pace to get there? (The answer gives us the Key Results). “

And a new management system was created based on several key concepts: focus, measurability (numbers), transparency, and culture.

The model connects all levels of the organization and ensures the flow between them. OCDs from one level spill over into OCDs at another level; in this way, achieving goals at one level directly leads to achieving goals at the next. Another advantage of using OCD is shorter cycles for goal setting (usually each quarter). This makes the whole organization much more flexible.

The key difference compared to other models? Well, while other models say that “we will get what we measure”, OKR tells us that we need to “measure only what is important”.

SMART (Strategic Measurement and Reporting Technique) – Performance Pyramid

SMART is a model that later became known as the Performance pyramid or just the SMART pyramid. This model divides the company into four levels: mission and vision at the top of the pyramid, market and financial indicators at the second level, customer satisfaction, flexibility and productivity at the third level, and quality, delivery, time, and process costs at the last level of the pyramid.

In the SMART system, performance indicators are cascaded from top to bottom in a four-tier structure: organization ↔ business processes ↔ departments, groups, and work teams ↔ individuals, including both externally and internally oriented performance measures. This cascading structure visualizes the view that indicators at all lower levels reflect the corporate vision, but also participate in its realization.

Another prerequisite for successful performance management is its connection with business process management, which the authors nicely illustrate on the example of the importance of deliveries to customers and connecting it with process performance.

The SMART model, and then the Pyramid of Performance based on it, reflect the attitude of their authors that traditional performance measurement systems focused on financial aspects did not meet the needs of managers in a significantly changing business environment and were developed to address the weaknesses of these systems. strategic goals with different dimensions of performance. The attractiveness of this approach is primarily reflected in the connection of business strategy with everyday business operations.

At the lower level of the pyramid, the goal is to improve the quality and performance of delivery and reduce cycle times and costs. At this level, it will be used through non-financial indicators to measure the efficiency of operations. The four levels of the pyramid fit harmoniously into each other on a unique path to achieving goals. For example, reducing cycle times and/or costs will increase productivity, and thus profitability and cash flow.

The strength of the performance pyramid model lies in the fact that it connects a hierarchical view of measuring business performance with business processes. It also explicitly distinguishes between metrics that are relevant to external participants — such as customer satisfaction, quality, and delivery — and metrics that reflect internal performance, such as productivity, cycle time, and cost.

The Prism of Performance

This model adopts a view of measuring performance that focuses on stakeholders and clearly distinguishes stakeholder satisfaction from the contribution that the stakeholder makes to the organization. The prism of performance means that measuring performance plays a key role because it allows the manager to indicate which processes are important and which modes of the organization are important and to encourage the organization’s staff to maintain and proactively develop those processes and fashions.

But even the best-designed process requires a staff of appropriate abilities, knowledge, and skills, requires appropriate policies and procedures, physical infrastructure, and appropriate technology. Organizational modes can be understood as a combination of staff, practices, technology, and infrastructure that together represent an organization’s ability to create value to its stakeholders through distinct parts of its functioning, and a significant type of those parts are processes.

At the core of the performance, prism is five distinct but connected performance perspectives. The prism of performance connects the contribution of stakeholders through the processes, strategies, and fashion of the organization with the satisfaction of stakeholders; stakeholder satisfaction is a function of determinants – stakeholder contributions orchestrated through the strategies, processes, and fashion of the organization

Given that companies need to meet the requirements, needs, desires, expectations of stakeholder groups, their satisfaction is at the top of the prism. In contrast, at the bottom (base) of the prism is the contribution of stakeholders, as a dimension (perspective) that reflects the wishes and requirements of the company in relation to stakeholders. The three sides of the prism are: strategies, processes, and fashion (capabilities) of companies in the use of resources, or their transformation in connection with which companies have different relationships with different stakeholder groups. These five interrelated perspectives identify five vital questions that an organization should answer when determining a set of performance measures: 

Stakeholder satisfaction – who are our key stakeholders, what do they want and what do they need?

Answering these questions at some organizational level provides a concise overview of the organization’s performance, but with additional details for each of the aspects. Consideration of each aspect of the performance prism allows this model to be used at any organizational level, integrated both through functions and through the hierarchy of the organization

Elements of Performance Management

The basic elements of performance management are agreement, measurement, feedback, positive corrections, and dialogue. Measurement is seen as a process in which results are measured and compared with expected goals. The focus is on goals, standards, and measures or performance indicators.

The process of performance management is based on the set requirements, goals, and performance improvements, as well as the employee development plan.

The process of employee development includes formal education, work experience, interpersonal relationships, and assessment of abilities, all in preparation for future jobs.

Performance Management Process

Planning the performance of human resources includes determining the goals of the individual, describing expectations, planning improving skills (skills), planning staff training, setting performance standards. Performance planning implies the identification of the desired performance of an individual as a member of a team. The performance of an individual represents its characteristics in terms of competence, skills, practical knowledge, and experience, as well as the performance that comes from its city, and the specific effects or contribution to the achieved success.

Performance Management Process is divided into a few phases:

  1. Planning Phase – goal setting and alignment
  2. Monitoring Phase – providing informal feedback
  3. Reviewing Phase – formal performance evaluation
  4. Performance Improvement Phase – training and development of employees
  5. Rewarding Phase – linking results to recognitions and awards

In order for the impact assessment to be effective, several conditions need to be met:

· Relevance – This condition implies that there is a clear link between the performance standard and the organization’s objectives, as well as the link between the key elements of the work identified in the job analysis and the dimensions being assessed. The job requirements described in the job analysis are translated into terms of what is acceptable and what is unacceptable work performance, and based on such standards, the performance of individual employees is assessed.

· Sensitivity – It is necessary that the method of assessment used can distinguish between efficient and inefficient employees. If these differences are not included in the assessment, the performance analysis will not meet its goal.

· Reliability – Consistency of assessments of one employee by different assessors is a guarantee of reliability of assessment. Otherwise, it can be assumed that the evaluators did not have access to all the data, or that they did not evaluate them in the same way.

· Acceptance by management – Assessment by management is often done spontaneously and without reliance on data. In such circumstances, it is difficult to provide support for the performance evaluation system, as well as the adequate use of the obtained data.

· Practicality – The tools used in data analysis must be such that managers and employees can understand and use them without problems

The performance improvement phase is a permanent performance improvement and is a necessary phase of the performance management process. The results of the measurements can show that the achieved result does not reach the set plan, standard, but shows a significant deviation from the planned, which implies that the performance is inadequate and that initiatives and actions are necessary.

It is understood that the plans and standards were realistically set, that the planning premises did not change in the meantime, that the conditions and resources were provided. For an organization that has inadequate performance, it is necessary to design a system for improving performance, to undertake activities that would improve performance, and raise the target level. The performance improvement system must be comprehensive, covering all levels of the organization, all strategic business units, all processes, work teams, and jobs. In order for a performance improvement system to have its purpose, it needs to be implemented effectively and efficiently.

What are the Advantages of a Performance Management?

The purpose of an employee performance management system is to contribute to the high performance of individuals and teams. High performance means achieving and exceeding goals in order to achieve high productivity, quality, customer relationship, profit, and value for owners. Performance management, also as an approach and systematic activity, provides employees who do not achieve the set goals, ways to improve their skills.

We believe that employee development, appropriate knowledge, and professional development are the basis of effective management. Such human resource management encourages dedication and job satisfaction, which enables higher productivity. By constantly developing appropriate skills and competencies, employees can exceed not only their own but also the company’s goals.

These are the top 3 Advantages of Performance Management:

Better Motivation

The performance that companies expect from employees depends on their abilities, motivation, and the support they have. Understanding employee motivation factors are very important because motivation is directly related to performance, both personal and organizational. In order to achieve the maximum degree of employee motivation, managers must know the needs and motives of the people they manage and know-how to ensure their satisfaction.

Performance evaluation can have a motivating effect on employees in several ways, such as:

• The employee evaluation process indicates the elements that are most important to the company;

• Since many employees want to achieve work excellence and be recognized as professionals in the company and beyond, this activity, by pointing out weakness and encouraging the development of strengths, helps them to achieve this;

• Evaluation results help hard-working, professional, and ambitious employees to be promoted and move to higher levels in the organization or to be rewarded;

• Companies use performance evaluation to identify talents in the organization and organize programs for their further professional development.

Setting criteria for the advancement of each employee

Without people and their potentials, there is no organization and its success. Although all the resources of the organization are important, human resources are the most important. A high level of different abilities, knowledge, skills, competencies, creativity, innovation, behavior is required. Top management treats human potential as a strategic advantage and the most important value of an organization. Managing people, as the most important resources of a company, is a very complex and multidimensional process.

It is not easy to manage people, their behavior, and their potentials. What a smart head can do, not even a thousand state-of-the-art machines can. Its behavior can be influenced, but it is not always easy to predict. Especially since each person is a story for himself and in many ways unique and unrepeatable. Therefore, managing people and their potential is a more complex, responsible, and sensitive process than managing the technical, financial, and other resources of the organization.

Thanks to Performance Management, it is much easier to manage human resources and thus see which of the employees is the most suitable for promotion. The right choice of people to get a promotion will help the company grow in the market.

Indicates whether there is a need for training

If employees do not know how to do their job properly due to lack of knowledge, managers will know this based on their performance and thus will be able to introduce training.

The goal of training and development of employees is to raise the competencies of employees to such a level that will enable jobs to be performed more efficiently, and employees to be more satisfied. This contributes to the improvement of the company’s competitive position and greater consumer satisfaction. Satisfied employees lead to satisfied consumers, and satisfied consumers lead to satisfied owners.

Practically, training and development refer to the planning and implementation of various educational programs, professional development programs, academic training, skills development, teamwork improvement, knowledge exchange, personal development, work with a mentor, implementation of professional practice, and so on.

What are the Disadvantages of a Performance Management?


Performance appraisal problems arise from mixing several different intentions into one process. The fact is that it is easier to spot a problem when you re-examine history but it is not difficult to see why the performance management process is increasingly seen as outdated and why companies are now turning to new ideas.

When all these elements are added up, it is easy to see where things went wrong. Instead of using performance management to truly “improve performance” through measurement, feedback, and positive reinforcement, it has become just an “evaluation system” that encouraged internal competition for more money, prestige, or power; all motivation comes from fear (of bad judgment).

As managers focused more and more on improving the performance management process (many HR professionals are employed for just that) it became less and less connected to its original purpose, there was less feedback, companies did not measure improvements in employees but progress in relation to a goal (which when used incorrectly encourages various behaviors that are not beneficial to the company).

Instead of teaching managers how to improve the performance of their employees, firms burdened them with what they saw as an administrative task of little business importance while at the same time forcing them to perform performance reviews with large stakes that caused embarrassing situations that could and to question someone’s career.

In short, firms neglected their original purpose, discouraged employees and managers, and created an atmosphere of fear related to the process. Also, a large number of managers you will talk to will tell you that this process is actually used for hiring, firing, promotion, or determining the amount of salary. Because of all this, it is not at all unusual for employees to be intimidated by this process

It is very important to be aware that going back to work will not be going back “where we left off” and that things will not be the same. The vast majority of businesses will undergo a transformation. We are experiencing a transitioning back to work after COVID-19 and it is important to be aware of this and to develop realistic expectations of ourselves and others. It is OK if it is difficult for us and if there are any feelings that were present at the beginning of the pandemic. It is important to monitor ourselves, our reactions and give ourselves time to adjust. On the other hand, some positive things will certainly remain more frequent work from home, more online communication, and the use of new tools for work. It can be a reminder and a motivator that a crisis if we adapt successfully, can bring long-term positive changes.

For managers, all those proposals that were current during the crisis are still in force, and which include – transparent communication, understanding for different reactions of employees, and motivating employees through real optimism. It is especially important for managers to understand the different, sometimes surprising reactions of their employees (as well as their own reactions) and to be aware of that transition period. Here are 10 tips on how to transition employees back to work after COVID-19:

Tip 1: No handshakes, fewer meetings

The handshakes are out until further notice. At the same time, the management of the companies will start thinking about practical measures. Tom Frieden asked himself: “Can we design a door that doesn’t have to be opened by touch? Should we regularly measure people’s temperature when entering the workspace?”.

Disinfectants will become part of the usual routine. We can also expect a reduction in the number of people in one space, as well as the fact that office computers and telephones are no longer shared. It is certain that they will insist on the use of masks.

Supermarkets are already limiting the number of people who can enter them at a time, setting up plastic barriers between buyers and sellers, and demanding respect for distance – all of which could come to life in cafes as well.

Employers could encourage work from home or arrange for workers to come to work at different times. A reduced number of meetings is also an option. Frieden says that could be one of the positive effects of the Covid-19 virus, because in his opinion there were too many business meetings.

Tip 2: More sick leave

U.S. epidemiologist Brandon Brown says he will be encouraged in the future, not discouraged, to stay home when employees are sick. America has a notorious work culture, among other things because there is no compulsory sick leave at the federal level.

The consequence is that people come to work despite illness. According to a survey from 2019, conducted on 2,800 workers, exactly one-third of them always come to work, regardless of whether they are ill or not. Teleworking will become commonplace for many, especially because it has been shown to be effective. Due to the forced stay at home, we realized that physical meetings are not always necessary. Now and after the pandemic, the virtual ones should prevail.

Tip 3: Apply hybrid schedule

No, you do not need to fire half of your workers. There is a better alternative. Give your people real flexibility, so they should be at office only when it is necessary. Companies started to shift towards partly remote work even before pandemic. Nowadays business requires new ways of workforce management in general. Therefore, new processes must be implemented to meet the current needs of the global market. Hybrid employees are generally more satisfied with working conditions and ready to show their best performance. Nevertheless, office buildings are still useful and some workers actually prefer (or need) to be onsite. And hybrid work turns out to be an optimal solution in this case. It matches both types and gives a chance to have the best from them.

However, when applying hybrid schedule at some point you will think about downsizing office space, providing places only for employees who are currently onsite. First, renting smaller room saves money. Second, you barely need empty work places for those who are not present. And even if that is not your point, you still need to manage the flow of your workflow avoiding overcrowded office. There are many tools helping with this task. And most of them are automated and only assist managers, who just communicate with employees on the schedule if necessary. It is possible because staff assigns their shifts on their own account. For example, this function is used by stayhome.ai, AI-driven platform for hybrid office management.

Its founder Alexandr Tsimerman states: “Real flexibility is giving people the possibility to work with a plan which they created by themselves. We do believe that it is a great idea. It gives value not only to employees but to the company, too. On average with the help of Stayhome our clients have reduced per-employee costs by 24% and optimized office usage by 163%”.

Maybe, lockdown caused by Covid-19 is about time to try hybrid work schedule. Your reasons might be different but outcomes tend to be positive. And it still can work at your advantage even after all the restrictions are over.

Tip 4: Communicate optimally

Employees in companies will have a number of questions about what the business will look like, how stable the company is, what the long-term perspective is, and many more. Communicate openly and ask managers, colleagues, HR. Share your thoughts with them and focus on acting in those domains in which you have influence. Be prepared that you will not always get a concrete answer because that is not always achievable in this situation, but the conversation and exchange that we have, for us, in the psychological sense, is useful and supportive. If you have difficulty coping with the situation of return, seek support – contact HR, one of the colleagues who can help you.

The Buffer survey stated that 20 % of respondents mentioned communication and cooperation as the biggest challenges of teleworking. When working from home it is easy to fall into the trap of too little or too much communication. Both can be the result of feelings of isolation. There are other reasons: too little communication is often due to incompetence of employees and managers in technological forms of communication, insufficiently good working conditions from home or simply, although rarely, using the ability of either manager or employee to be absent. Excessive communication is sometimes an expression of a well-meaning desire to keep the team together. Sometimes it is a person’s aspiration to prove himself or a managerial aspiration to supervise or even, control, employees.

Communication has a strong impact on motivation and performance, so you try to recognize these pitfalls in time and to communicate optimally for the work process, as well as for good interpersonal relationships.

Take an interest in the work of employees: communicating does not only mean setting a goal or explaining it but carefully following what the employee has to say. Perhaps working in new circumstances poses challenges that require different support. Listen more carefully than usual, because the situation faced by an employee whose working day you do not attend directly, may be such that it requires you to move away from the usual way of solving problems. Make an effort to provide support to an employee who does not know enough about modern communication technologies, to use them competently.

After an online meeting or telephone conversation, summarize the key points of the communication and forward them in the form of an e-mail to the employees to ensure an equal understanding of what has been agreed. This is a recommended practice, but in teleworking, it is necessary even with smaller agreements. Misunderstanding or frequent changes of instructions have a very negative effect on motivation. Identify the channels and dynamics of mandatory communication and let every employee in the team be familiar with it.

Pay special attention to monitoring progress and informing employees about the business flow, use knowledge from project management and scoreboards so that all employees in the team are informed in time and have the right information. Visualize the data and create if you don’t already have one, and if the company thinks it’s safe, an online place where documents relevant to the workflow are located, and that everyone on the team can access.

Tip 5: Keep up the remote work

Working from home is a possibility only for some people – if you work as a waiter, it is simply not feasible. For anyone who can and wants to work from home, the benefits are more than evident. If you don’t have to work in an office, you don’t even have to spend time on transportation, which is a huge advantage, especially in big cities.

According to a Colliers survey, 82 percent of employees expressed a desire to work from home one or more days a week even after the COVID-19 crisis. Flexible working hours and a more relaxed atmosphere are also some reasons why employees opted for this option.

We live in a time when everyday life brings with it a lot of stress, pressure, and expectations. No matter what your job is, there will be days when you will be nervous and irritable. We are annoyed by traffic jams, sometimes we are annoyed by colleagues, sometimes the salary is late. When we work from home, we can avoid some things, but that does not mean that we are completely relieved of stress.

Tip 6: Shorter daily meetings, so we don’t get lazy

In these days of high voltage, it is expected that the employer or management will organize new work processes within the express deadline, primarily so that communication within teams or among associates would be as close as possible to what they see every day. But you can also take the initiative and suggest what to do.

Shorter information meetings once or twice a day for 15 minutes can really help a good flow of information and information about the next tasks and the progress of current ones, but above all, they can contribute to not getting lazy because we don’t have someone to report to. Yes, even very self-disciplined people know how to stumble here.

Today, at least there are many great platforms for group video calls and (or) instant messaging, and the nuances are in question, and according to team needs, it remains to decide between Zoom, Skype, Cisco, Webex, GoogleHangouts, Microsoft Teams, Slack.

If it is really necessary to be constantly in communication, a longer audio call proved to be an effective practice. This specifically means that you have a headset and a constantly on tone (video can sometimes only interfere with both concentration and call quality) and when a colleague needs to say something to everyone, turn on the microphone and do so. This can be faster and clearer than the exchange of group messages, which in other teams often creates noise in communication.

Tip 7: Recognize the efforts of employees

Everyone wants to feel valued. The extra effort put into a job if it is not recognized, appreciated, and rewarded can leave an employee with a sense of being cheated and underestimated. Always give gratitude to your associates for the achieved result. Do not adorn yourself with other people’s feathers, but acknowledge the merits of successful work to everyone.

According to the statistics of the Employment Bureau in America, from 2016, the average time of stayingin one job is four and a half years. With the arrival of the younger generation of millennials, that time has become even shorter. Millennials do not expect to stay in one job for more than three years.

Such statistics are by no means good for employees either, and it is even worse for employers who have to look for and then train workers. A work environment that supports honesty, open communication, and fair relationships will have no difficulty in retaining a good worker.

Praise is one of the most important management tools we have for us. Praising human work enables the recognition and motivation not only of an individual who praises praise, but also cultivates a climate of respect.

But in general, perhaps because managers are problem-oriented or because our culture encourages criticism rather than praise, praise is not widely used. If you want to be a good employer, look for opportunities to compliment your staff. This will save you time in the long run because happier employees who feel value create fewer problems along the way.

Tip 8: Organize adequate working space

Some employees need space for team and video meetings, others need to have a separate office, some teams need open space, some employees need a desk only part of the day a week… The company’s workspace needs to be transformed in relation to individual employee needs.

We can get this by offering employees a system of interconnected zones and settings that provide users with many spaces adapted to their different ways of working. It is necessary to offer solutions that encourage people to sit, stand or move using new technologies, as well as experiences that increase human interaction through the organization of space. We must not forget that during the day it is equally important for the employee to be part of the team, but also himself, so it is important to design a combination of different spaces and give him the opportunity to choose, but also control to decide which zone suits him at what moment.

Also, new technologies should be taken into account during the process of designing and equipping different zones. Some jobs require people to spend the most time at the table, for which fixed technology is a viable solution. Others, whose jobs require increased collaboration, greater interaction, and information exchange, must be provided with mobile technology or technology that allows them to access information throughout the workspace. Given the changes in how people work today, it is necessary to consider how best to harmonize jobs and the various opportunities that new technologies provide.

By creating spaces, you create a work environment that contributes to the productivity and motivation of employees, as well as their well-being, providing them with zones with different levels of privacy – assigned jobs, private offices (accessible to all when no one is in them), silent rooms, common areas and one employee to sit and work, such as touchdown spaces, training rooms, collaboration spaces, project team zones, leisure and leisure zones, where challenges are also addressed in an informal atmosphere. Be aware of their needs, tools, knowledge, and experience on how to best adapt the space, where employees will enjoy and spend time happily, solve challenges, make and strengthen mutual relationships through the various contents that are provided to them.

Tip 9: Make employees actively engaged

Actively engaged employees, a sight that can be desired in any company. Directors in today’s companies like to see their employees actively engaged in their workplace because they are aware that employees who do their job with enthusiasm pull the whole organization forward with their energy, ideas, innovations. In times of sudden, unpredictable market movements, a modern company must be able to adapt to changes almost as soon as they occur because otherwise, the pressure of global competition can push them out of the market at high speed. In order for a modern company to be ready to face such market changes or even change market conditions with its innovations and stand out from the competition, it is necessary to have as many qualities, actively engaged employees in its ranks as possible.

Contrary to this group of employees, there is also a part of the workforce that considers their coming to work exclusively an obligation and work as much as is enough to justify their presence at the workplace. To the leader of a modern organization, such employees can act as a burden for the entire company, because by not engaging in the workplace, they can work exactly against the interests of the company in which they are employed.

In addition to these two groups of employees, there is also a group of employees who do not belong to either group but are somewhere between active engagement at work and complete mental absence. This group of employees is of special interest to today’s managers because it is easier to encourage people from this group and convert them into a group of actively engaged workers.

Most of the actively engaged employees are located within organizations that encourage two-way communication, allow access to up-to-date information about the organization, and allow people to freely express their ideas. This data suggests that the key principle in designing business space must be the creation of space for various purposes. Space for individual and group work, places for stationary and mobile employees, as well as clearly specifying the level of autonomy that would enable employees to make decisions on the most efficient way to perform their work tasks.

Tip 10: New culture of leadership and motivation

It is precisely in economically uncertain times that greater confidence in employee engagement is needed than ever before. It must penetrate to the middle management level. The management staff is now given the task to motivate and give space for getting used to. This transition will not be easy for everyone, among other things, because private apartments still partially lack a permanent place to work, so people use, for example, their kitchen table to work from home. But even if there are technical conditions today, private and family life is not always possible.

Clearly distinguish, for example, when a child can no longer be in kindergarten and when he or she has to be brought home. The employer should offer employees more flexibility to do so.

When their job is always reduced to the same job or when the job is at one point, it starts to suffocate the employees. The same job, the same position, without any indication or chance for advancement, can demotivate even the most ambitious.

But you can turn it around! If you offer them the opportunity to advance, your employees will be motivated to work harder and be more productive.

Here’s a simple tip – instead of hiring someone new, just promote someone who is already employed by the company. This will raise the motivation and productivity of all employees in your company.

However, promotion does not always mean a raise and a new position. Promotion can also be in the form of training and courses. Motivate your employees by offering them the opportunity to develop their skills and improve their knowledge. And as a result, they will be much more enthusiastic about working for you.

Conclusions

Modern theories emphasize autonomy and perfection in what we do as important motivating factors. If you give the employee a clear, challenging, and achievable goal and optimal working conditions (in this case at least technological), support him in mastering the necessary knowledge and skills, and show that you appreciate his commitment, there is a good chance that this approach will result in the greater engagement at work. Although supervision and sometimes control is a necessary part of the business process, control does not help internal motivation in intellectual and creative jobs. Micromanagement, on the other hand, will certainly reduce motivation and performance, because it disturbs the worker, disrupts the work process, and does not contribute to the goal. Some managers approach micromanagement more often just when employees work from home, because, as a result of their distrust of people, they have trouble understanding the concept of autonomy and intrinsic motivation.

Although the crisis situation is characterized by heightened uncertainty, we should not forget that we have been living in a rapidly changing and uncertain environment for many years. Remember one difficult and challenging situation for you, and what it was that you did and that helped you overcome it. You will become aware of your strengths that you already have (which we often forget) and which will help you in this situation as well. Acceptance of uncertainties is practiced and developed. Let’s start with small steps, for example through a new experience for you (food, music, people …) and practice regularly. The result will not be missed, and every new change and adaptation will be faster and more effective for us.

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