Performance Management Individual Case Study

MGT505 Performance Management

Individual Case Study

 

Performance Management at LMN

 

LMN is a large professional community-based online recruitment platform for helping business clients (employers) headhunt top talents. It is based in China and has overseas subsidiaries. It not only provides job seekers with internet-based tools and solutions (LMN.com and LMN App) to connect with suitable career opportunities, but also more effectively and efficiently connects recruiters and headhunters to a larger pool of possible job candidates, especially those middle- and senior-level professionals and talents. At present, LMN has more than 340,000 verified business clients, 130,000 certified headhunters, and 50 million registered job seekers at the manager rank.

 

With its innovative and unique business model, LMN emphasizes networking among employers, headhunters, and job seekers. In the traditional headhunting business model, headhunting firms search for suitable candidates based on the job descriptions provided by business clients, they then provide job candidates’ information to the business clients for selection. After the selection and job vacancies are filled, the service comes to an end. By contrast, LMN, using its online platforms, empowers the multi-lateral networking among the communities of employers, job seekers, and headhunters. Service does not end when a job vacancy is filled, but continues as the users will go on with their networking on the online platforms. Figure 1 presents comparisons of the traditional and online headhunting business models.

 

LMN has its own headhunters to provide human resource services to business clients, including both recruitment and after-recruitment services such as management of newcomer adaptability, performance, and turnover. Headhunters work in project teams that serve different client accounts. Project team leaders are held accountable for both team financial performance and the management and development of team members. On the one hand, project team leaders work to maintain business relationships with current business clients and develop business with new clients in order to get business deals from them. They lead the teams to complete deals from clients and ensure high client satisfaction. On the other hand, leaders set and clarify expectations, schedule and coordinate work, provide performance feedback and coaching, support the performance development of team members.

 

 

Figure 1. Comparisons of traditional and online headhunting business models.

 

The performance of project team leaders is evaluated primarily by the achievement of team financial performance goals. For example, the team financial performance goal last year was RMB225,000 per capita in revenue. This goal is set based on the consideration of factors including human resource costs (e.g., recruitment, compensation and benefits, and training), costs of business trips, rental costs of office space, lump-sum payment to the company for using the brand, and office equipment and miscellaneous. If a team leader can lead the team to achieve or exceed the team’s financial goal, he/she can obtain 12% of the revenue generated from the deals they receive from business clients as a commission (bonus). If a team leader receives more deals than the team can handle, the team leader can choose to transfer these “excessive” deals to LMS’s business center, which will allocate the deals to other teams. The team leader who transfers the deals can still obtain 8% of the revenue generated from the transferred deals, while the team leaders who obtain the transferred deals obtain 4%. This practice encourages team leaders to get more deals. However, if a team fails to achieve its goal, the percentages of the commission will reduce (for details, see Table 1). Team leaders are also evaluated by their direct supervisors (i.e., department directors) based on their business development skills, customer service skills, and leadership competencies.

 

For team members, the main responsibilities are searching and maintaining relationships with job candidates, collecting and updating job candidates’ information, matching the job candidates with possibly suitable job vacancies, and arranging interviews.

Team members are evaluated only based on the completion of KPIs in terms of (1) daily number of calls they make with job candidates, (2) daily number of job candidates they recommend for job vacancies, (3) number of interviews, and (4) number of offers made by the business clients that the team serves. Targets of KPIs are different for different levels of team members (junior, intermediate, and senior). Table 2 shows details of the KPIs for a typical immediate-level team member. Bonuses for team members will be based on the number of job offers made by business clients, which means successful deal completion. For each offer made, the team member who recommends the job candidate will get an amount of bonus that is equal to 8% of the job candidate’s first-month salary for senior-level jobs. For example, if a job candidate gets an offer with a monthly salary of RMB25,000, the team member will get RMB2,000 as a commission. For a job candidate who is selected by a business client for an on-site interview but is not offered the job in the end, the team member who recommends this job candidate will still get a bonus because selection for an on-site interview is an important indicator of quality and suitability of job-candidate matching.

 

As a high-tech firm, LMN has developed a strong OA (office automatic) system that can accurately and efficiently record these performance data. Once a job candidate is contacted by a headhunter, the OA system will stop other colleagues of LMN from contacting this job candidate. This practice makes sure that the headhunter who first gets in touch with the job candidate will follow through unless the headhunter raises the need for help and backup. This helps develop work ethics and reduces dysfunctional competition and process loss among headhunters in the firm.

 

 

Table 1. The percentages of commission at different completion rates of team financial performance goal.

 

 

Table 2. KPIs (Key Performance Indicators) of A Typical Intermediate-Level Team Member

 

 

 

 

 

 

MGT505 Performance Management

Individual Case Study

 

Performance Management at LMN

 

You are required to write and submit one individually-written case study essay on Performance Management at LMN. Your essay will be around 1,500 words long, and will be submitted via Turnitin on the course web site on Moodle.

 

The deadline for submission is 23.59 hours on 20 Nov 2020. Each case study essay must be individually-written. The essay must be your own original and individual work. All submissions will be rigorously checked for plagiarism. If plagiarism is detected in your essay, you will be subject to Lingnan University’s disciplinary rules and procedures. A typical outcome would be zero marks for the assignment plus a demerit issued by the University’s disciplinary committee. You may submit one or more drafts of your essay before the deadline. However, the Turnitin software has built in a delay of 24 hours before providing a plagiarism analysis for resubmitted items. The last draft received before the deadline will be taken as your final submission.

 

Case Questions:

  1. Identify the stakeholders who are involved in the performance management of team leaders and team members of headhunting project teams in LMN. Explain the benefits and costs of the company’s performance management on these stakeholders.
  2. (1) Explain which approach(es) does the company currently use to evaluate the performance of team leaders and team members of headhunting project teams in LMN.

(2) Analyze the strengths and weaknesses of the measurement approach(es) used in this company.

  1. Provides advice on how to improve performance management in LMN. To answer this question, you must consider factors such as measurement approaches, appraisers, and factors related to implementation. You also need to consider the match of your advice to the company’s business strategy and available organizational resources.

 

Listing References

You are required to list all the sources that you use, in a reference section at the end of

your submission. In the main text, if you refer to an idea from another source, you should identify the author and date of publication, e.g. (Smith, 2015). The references section will not be included in the word count.

 

Marking Rubric

Your essay will be assessed with reference to a scoring rubric, which is appended. Be sure to answer each question and address each criterion in the rubric. This assignment will account for 25% of your total marks for this course. The essay will be marked according to 3 criteria (Your final mark will be converted pro-rata to a mark out of 25).

 

 

 

 

 

MGT505 Performance Management

 

Individual Case Study Rubric (around 1,500 words)

25% of the final score

 

Traits* Very good 8-10 marks Satisfactory 5-7 marks Beginning

0-4 marks

Marks
(i) Demonstrates understanding of the implications for salient stakeholders of adopting a performance management system Demonstrates thoroughly plausible understanding of the costs and benefits for salient stakeholders of adopting a performance management system Demonstrates an understanding of the costs and benefits for some (but not all) of the salient stakeholders of adopting a performance management

system

 

Lacks sufficient understanding of the costs and benefits of adopting a performance management system  
(ii) Justifies choice of measures and/or appraisers Provides clear explanations of chosen measures and/or designated appraisers, along with comprehensive and convincing

justifications

 

Provides reasonably clear explanations of chosen measures and/or designated appraisers, along with adequate justifications Provides insufficiently clear explanations of measures and/or appraisers  
(iii)  Provides advice on how to match the design

of the performance management

system to the business strategy and to available organisational resources

Provides comprehensive and convincing advice on how to match the design of the performance management

system to the business strategy and to available organisational

resources

 

Provides partial but sufficient advice on how to match the design

of the performance management

system to the business strategy and to available organisational resources

Fails to provide sufficient advice on how to match the design of the performance management

system to the business strategy and to available organisational resources

 

 

Remarks:

* Each trait is of equal weighting.