WRITTEN REPORT LA011198 Essay Example

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Executive summary

comprehensive understanding of job potential, their will be standard criticism about performance, recommendation and steps for humanizing performance and the rewards for high-quality performance. It also sets out to develop a service level agreement between star industries and the service provider. The service been provide is that of developing and maintain a performance management system for Star industries which will be used to evaluate employee performance. This report sets out to propose a performance management system for star industries. For the system to be fully functional it must go through a number of stages. The performance management system will permit employees to have a


Executive summary 1

Background information 3

Introduction 4

Service level agreement 4

Conclusion 6

Bibliography 8

Appendix 1: Service level agreement 9

Background information

Star industries can be termed as a manufacturer, wholesaler and retailer of high quality windows and doors for inhabited and business premises. Star has been in trade for over 30 years, having been recognized in Western Australia in early 1960. After 10 years of victorious operation in WA, and rising business in the eastern states, STAR decided to launch a developing plant in NSW to enhance service this market. Over a period of time, the trade became more oriented on the eastern Australian market and STAR resolute to relocating the business head office to Sydney (Star industries intranet).

It was founded by John Jackson, a designer with a flair for design and who felt that there was a breach in the market for superior quality, well premeditated window and door products in the Australian bazaar. He later sold the corporation to a group of investors in the 1980s and the corporation remains a private corporation with 11 shareholders. The company’s focal point is on high class design and it distinguishes itself from the inferior quality manufacturers and importers who have a low price policy by means of the policy of higher-quality, higher-price market. The business desire is that its products will be the first option for the clientele, designers and builders building high quality homes and business premises. Star has two manufacturing site, one in Sydney and the other one in Perth and its exhibit axis are situated in all capital cities in Australia.

The corporation provides high quality point of sale products so as to pressure the consumers, architects and the designers.


. (Aguinis 2008)A performance management system can be termed as an institute wide administration program that offers management with a prearranged approach to, communicating the industry policy, establishing a shared thought of what is to be attained and how it will be attained, facilitating administration of self and others and lastly to gauge and inspire ones presentation and that of others

According to Armstrong and Baron (1998) performance management is a tactical and incorporated move to mounting the success of organizations by humanizing the performance of the people who work in them and by increasing the competences of teams and individual providers. Performance management makes sure that workers are centering their hard work in ways that will have a say to attaining the associations vision and mission. It entails setting the prospects for worker performance, preserving a dialogue between administrators and employees to keep performance on track and determining actual performance in relation to performance potential.

Performance management therefore involves the description of the performance that is being run (design), the procedure of performance management (implementation) and the management of the consequences of the performance (integration). In essence a performance management system consists of performance principles, performance actions, reporting of progress and quality expansion.

Service level agreement

An agreement is commonly termed as a conferred and usually officially enforceable indulgent between two or more lawfully capable parties. In modern day business world most organizations are entering into agreement with their service providers. This is because the most organizations want to concentrate more on their core business thus deciding to outsource some activities.

Before implementing or adopting a system into an organization a proposal has to be made and relevant bodies must discuss it to check whether it is worth implementing the proposed system. Proposing involves putting onward for deliberation, dialogue or acceptance. In the case of star industries, I would propose a periodic performance management for all the staff in the organization. After a thorough discussion between the relevant authorities within the organization the system is approved and so it can be developed and implemented in the organization. After the adoption of the proposed system an agreement was made between star industries and the external provider of the service. The periodic performance management will ensure that there is a sustained worker growth; it will also allow the organization to recognize underperformers and they are can be eradicated.

Since the organization is not capable of developing the software, system development is outsourced to another company this is because of the many advantages of outsourcing which include: reserves on cost, the business is able to focus more on it core activities and their is staffing flexibility in that some employees are employed on a temporary basis and when their services to the company are over they leave the company (Linder 2004).

The company outsourcing the task is the customer whereas the other company is the service provider. The company that is star industries must make a service level agreement with the contractor company (service provider) so as to make sure that there is a universal understanding about the services, precedence’s, responsibilities, assurances and guarantee. For the agreement to be efficient several parties are to be involved. In this case since the employees are the ones to be accesses by the system they should play a major role in deciding whether the system should be implemented in the organization. The management is also involved since they are the ones to use the system in evaluating employee performance. Each area of the service been provided should have the level of service defined. The SLA specifies the levels of accessibility, serviceability, performance and functions. The level of service can be also stated as aim and minimum. These allow consumers to be knowledgeable about what to expect, while also providing a quantifiable target value that shows the business performance. Fines are also imposed incase of disobedience of the SLA. In essence the agreement more often than not recounts the services the consumer receives and not how the service provider conveys the service (Hiles 2002).

SLAs usually include segments to address: a description of services to be provided, performance quantity, problem management, consumer duties, guarantees, disaster recovery, and annihilation of agreement. The process of developing a service level agreement consists of seven steps which are: assembling of background information, certification of expectations, preparation of the SLA, spawning buy-in, completing pre-implementation tasks and putting into practice and running the SLA. The service level agreement between star industries and the contractor company is well demonstrated in appendix 1.


Upon a cautious and systematic review of performance management system it is evident that if star company implemented a performance management system the organization would be able to sustain productivity and performance by connecting employee pay to proficiency and contribution. It will also offer chances for concentrated personal growth and career growth. The system also conveys all the employees of a business under a distinct strategic roof.

Star industries needs to keep on reviewing their performance management so as to be able to make employees understand what is expected of them and encourage them to reach full work potential within sensible time frames. A periodic review of the performance management will also allow managers and administrators develop, put into practice and preserve realistic performance standards in their work areas and they will have a chance to manage poor performance within the organization.

It is therefore obvious that a SLA agreement should be made between the parties. Through a well developed and articulate SLA the customer will know what to expect in terms of class and warrants the consumer a credit or refund, in case certain restrictions agreed upon in the agreements were promised and were not met. SLAs also separate the roles of the supplier and consumer, with such consideration that the consumer knows who to call to for maintenance if in case he/she requires assistance (Sturm & Morris 2000).


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, Prentice hall, New Jersey. Performance Management (2nd Edition)Aguinis, H 2008,

, The institute for personnel development, London.performance management- the new realitiesArmstrong, M & and Baron, A 1998,

Rothstein Associates, USA.
The Complete Guide to IT Service Level Agreements: Aligning It Service to Business Needs, 3rd Edition,Hiles, A 2002,

(Author) Herman AguinisLinder, C 2004,

Outsourcing for Radical Change — A Bold Approach to Enterprise Transformation, Amacom, New York.

http://toolboxes.flexiblelearning.net.au/demosites/series5/506/shared/intranet/about.htmStar industries intranet, viewed on 14 September 2011,

SAMS, United States., Foundations of Service Level ManagementSturm, R & Morris, W 2000,

Appendix 1: Service level agreement

Service Level Agreement

A performance management system

Star industries

A service provider

1.1 statement of intent

The aim of this agreement is to offer a basis for close collaboration among star industries and the contactor company for the performance management services to be provide bythe contractor company to star industries,thus making sure a timely and well-organized support service is presented to star industries end users.

This agreement is reliant upon each party knowing and satisfying their tasks and creating an surroundings favourable to the attainment and preservation of targeted service levels. The SLA will:

  • Outline services accessible and operational suppositions between the communal service centres and its customer.

  • enumerate and gauge service level potential

  • Outline the possible method used to gauge the superiority of service offered.

  • Define shared necessities and expectations for vital processes and overall performance.

  • reinforce contact between services providers and its consumers

  • Provide a vehicle of solving conflicts.

1.2 Representatives

The Star industries selected a group of people to represent them which the service provider also did the same. The representatives are responsible for observing and preservation of the service level agreement.

1.3 Hours of operation

The archetypal hours of business for the service provider is 8.00- 4.00 Monday-Friday, with the exemption of permitted public holidays. Working hours may be accustomed due to system/ power outages, disaster situations and in case of emergencies

1.4 Working assumptions

The service giver will be fully financed by star industries and all invoices sent to a designated address.

1.5 Service constraints

Workload: boost in workload may result in impermanent lessening of service level delivery.

Dependencies: achievement of service level commitment is reliant upon consumers’ conformity with the rules and procedures of the service provider.

1.6 Terms of agreement

This agreement commences on 17th September 2011 with the common understanding that amendment may be mandatory over time. Any and all amendments will be made in the spirit of the innovative conformity and must be evaluated by representatives of star industries and the service provider. A formal evaluation of this agreement generally will happen on a semi- annual basis.

1.7 Periodic quality reviews

The representative form star industries and those from the service provider will carry out intermittent evaluations of the service provider performance against agreed-upon service level potential. The program of this analysis should include:

  • Service delivery since the last review

  • Major variations from the service levels

  • disagreements or worries about services delivery

  • intended changes to advance service success

  • compromise to alterations to the agreement if any

  • Semi -annual customer contentment surveys.

The service provider will frequently assess customer fulfilment and will use the outcome as a basis for modifications of the agreement.

1.8 Communication mechanism

The communication method which will be used so as employees are kept up to date with the standards and requirements of the service level agreement is the use of memos.

1.9 Service level agreement maintenance

This agreement will be evaluated on a constant basis and restructured as needed. Amendments may become essential due to varying service needs, alteration to existing services, accumulation of services, major variations from approved upon service levels or unexpected events.

1.10 Issue resolution

If either the service provider or star industry identifies a substantive violation of responsibility, or other problem that may necessitate declaration aforementioned to the next periodic review both will slot in a joint effort of consideration and modification of the issue. In the event that this counteractive effort fails, both parties can raise it worries and obligatory measures will be taken.