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Question: Discuss About The Analysis Develop A Performance Appraisal? Answer: Introducation Starbucks is a leading global retail outlet of coffee and operates in more than 20,000 locations worldwide. The company was founded in Washington and since its inception in the year 1971, the g Analysis Develop A Performance Appraisal lobal coffee chain has gained huge customer base and has been innovative in managing its operations worldwide. However in Australia, Starbucks has faced major difficulty in expanding. The company has very few stores in Australia. Starbucks faces stiff competition from Coffee Club and Gloria Jeans caf in Australia. Starbucks Australia has faced more than $100 million losses in the year 2002 because Australians do not prefer an American brand and have demonstrated buyer loyalty to the local cafes. However, recently the global caf chain is planning for expansion in Australia and would open more stores in major cities including Sydney and Melbourne (Anon 2017).The strategy of the retail business unit will be to open stores in shopping complexes and popular tourist locations. The strategy will be to target the tourists visiting Australia who are already familiar with the popular brand. However, the company will try to win a good customer base comprising of Australian population and will f ocus on Corporate Social Responsibility in Australia. The role of a store manager will be of paramount importance in achieving the business objectives of the retail unit of Starbucks Australia (Salleh et al 2013). Discussion The job of Store Manager of Starbucks Australia will be aligned with the expansion strategy of the company. From the analysis of the internal and external environment of Starbucks Australia, it is evident that the company has failed to establish its brand value among local Australians. Also Starbucks Caf charges a premium price for coffee which is much more than a local independent coffee outlet in Australia. Thus, the major roles and responsibilities of the Store Manager of Starbucks Sydney should help the company to achieve its strategic business objective of earning more profit from tourists as well as trying to establish a strong brand image of the company among local Australians.The job aims to create an indelible experience for tourists visiting the Store as well as the store manager is supposed to build innovative strategies to enhance the brand image among local Australians. The store manager will be responsible for overall operation of the store which will include financial performance of the store, stock handling and maintenance, organizing ATL promotional activities to drive footfalls of customers in the store, supervising the human resource department of the store and ensuring overall safety and security in the store. The job responsibilities will be aligned with overall strategic objective of the retail business unit of the Starbucks Australia. Performance Management Process Performance management of the store Manager of Starbucks will provide an understanding about how he contributes to the strategic goals of the retail head of Starbuck Australia. The performance management will follow a cycle which will involve planning of the key responsibilities of the store manager so that expectations and standards of performance can be created on the basis of the strategic goals of the retail unit. The performance management process will also enable the higher management like the retail head or operations manager to identify gaps in training and development required by the store manager of Starbucks Australia. After this gap is identified, adequate training can be provided to him so that he gathers the necessary skills and abilities to perform his job in more efficient and effective manner. The review of the performance will be the next step of performance management. There are different methods of performance appraisals. In modern organizations 360 degree apprais als is used by the company where performance is reviewed by self, peer, manager, customers and supervisors. This method of performance appraisal can be used to review the performance of store manager of Starbucks so that a holistic review of his performance can be obtained. Once the completion of performance review is completed, the store manager of Starbucks can be rewarded either tangentially like a pay hike, or an increase in bonus or he can be rewarded by praise from supervisors which will induce positive reinforcement in his behavior. Reward can only be provided on good performance, however if performance is not satisfactory, training can be provided to the store manager so that he can gain necessary skills to perform better. If performance level of the store manager of Starbucks Sydney is poor then management can also think of replacement. Performance Appraisal of store manager of Starbucks Sydney can be done using traditional techniques like Graphic Scale Method, Ranking method, Essay Method, Checklist Method. Other modern methods can also be used to rate the performance of the store manager. These are Management by Objectives,360 degree Appraisal. The Graphic Rating scale is used to rate the performance of the store manager. Performance management of the store manager of Starbucks Sydney will have different objectives-The store manager can achieve superior standards of performance through this process, this process will help the store manager to identify the barriers which will prevent him from performing effectively. The Operations head or the Retain head can intervene at this stage by providing the necessary mentoring and coaching. The performance management will also help the store manager of Starbucks Sydney in personal growth and will help in his career development, planning and succession. Performance appraisal can help the company to contemplate on the productivity and efficiency of the store manager of Sydney Australia. The customers visiting the caf and the human resource team at the store can also participate in rating the performance of the manager. The store manager will be responsible for performance management of his team which is the front-line employees in Starbucks Sydney. Performance Management Process of the store Manager of Starbucks will be evaluated by Operations Head and Retail Head of Starbucks Sydney. Performance appraisal is a tool of performance management (Buckingham and Goodall 2015). The standards and expectations of performance of the store manager of Starbucks Sydney is developed based on the job analysis and job description. It is ensured that the performance management process is strategically and contextually congruent. The overall strategic goals of the retail business unit of Starbucks Australia are in alignment with the performance management of the store manager. Also, the culture of Starbucks and the Australian culture are incorporated in the performance management system. Graphic Rating Scale Is Used To Develop The Performance Appraisal Form Performance Dimension Distinguished Excellent Commendable Adequate Poor a)Job Knowledge about in-store retail activities, Customer Relationship Management, Enterprise Resource Planning, overall Operational Management is measured 5 4 3 2 1 b)Human Resource Management- Performance of store manager with respect to recruiting, training and developing and evaluating performance of staffs of the store are rated 5 4 3 2 1 c)Financial Management- Performance of the Store manager in managing expense of store according to the budget allocated and his ability to achieve financial objectives of the store is measured 5 4 3 2 1 d)Communication- Both oral and written communication of the Store Manager is measured, performance related to handling sensitive information and clearly communicating adequate information to staffs of the store are measured 5 4 3 2 1 e)Decision Making/ Problem Solving- Ability to take independent decisions to achieve overall strategic goals of retail business unit is measured 5 4 3 2 1 f)Team Work- Team work with staffs of store and other partners like Supply Chain partner is measured 5 4 3 2 1 g) Customer Relationship Management- Performance related to soliciting feedback from customers and delivering incredible service to them by designing an excellent promotional schedule is measured. 5 4 3 2 1 The Performance Appraisal Form Usage Description Graphic Rating Scale of Performance Appraisal for the store manager is used. The graphic rating scale presents the seven dimensions of performance of the store manager. These dimensions are based on the performance standards and expectations which can be contemplated from the job analysis and job description of the store manager of Starbucks Sydney. Each of the seven performance dimensions are rated on scale of 1 to 5. Scale 1 denotes a poor performance and scale 5 denotes distinguishable performance (Bernardin and Wiatrowski 2013). The Conduction Of Performance Appraisal The performance Appraisal will help in communicating the performance of the store manager of Starbucks Sydney so that he can comprehend how well he his handing his job responsibilities, the key areas of improvement. The performance appraisal will enable the store manger to identify his key strengths and weakness and will help the company to assess any further developmental needs for the store manager. Rewards like compensation and promotion will be given based on performance appraisal. A performance review meeting will be conducted by Operations Head and Retail Head of Starbucks Sydney quarterly so that the store manger receives a feedback on his performance. Key areas of improvement and a future action plan will be developed during the meeting. The Operations head will work together with the Store Manager of Starbucks Sydney and will develop solutions of any performance related problem. Motivation and competencies of the store manager will be reviewed in performance appraisal and if he performs well, a positive feedback will be given. The pay and financial rewards of the Store Manager of Sydney Australia will be reviewed and designed based on Equity Theory where the market standards and other economical factors will be considered while designing financial rewards (Shields et al 2015). How The Performance Appraisal A) Fits With Business Unit Strategy The performance appraisal and the entire performance management process helps in achieving the strategy of the retail business unit of Starbucks Australia. The performance management process focuses on key dimensions of performance which are derived from performance expectations or standards of job analysis of retail store manager. The performance of retail store manager of Starbucks Sydney is aligned with strategic business unit goals of increasing footfalls of customers in the store which include both local and tourists. The location of store in a leading shopping mall of Sydney is a strategy to increase customer footfalls. The performance of the store manager in meeting and exceeding financial goals of the store will help in the expansion process of Starbucks in Australia. The performance appraisal measures the customer centric approach of the store manager by rating his customer relationship management dimension which will enable the strategic business unit to achieve its desired customer base (Rausch, Sheta and Ayesh 2013). How The Performance Appraisal Adds B) Value To The Organization The performance appraisal help in analyzing the performance of store manager, positive feedback and both tangential and non-tangential rewards are given in case the performance of the store manager meets the set standards. Problems related to performance are discussed by seniors with the store manager so that future action plan for improved performance can be set and implemented (De Waal 2013).The performance management adds value to the organization because this process enables the company to review how well the store manager is contributing to the vision and strategic goals of Starbucks retail division in Australia. Performance management follows a holistic approach measuring key dimensions like financial goals and customer relationship management. This process will enable Starbucks to be a customer-centric organization and can have a long term impact on increasing brand value of the company in Australia (Bednall, Sanders and Runhaar 2014). Conclusion The job of store manager of Sydney is of paramount importance to the retail division of Starbucks Sydney. The key job responsibilities of the store manager will enable the retail division to achieve its strategic business unit. The performance management process will help the reporting head of the store manager to review his performance and give him necessary feedback. Performance appraisal which is a tool of performance management rates the store manger on key performance dimensions. The rating will give an overview of the performance of the manager. If he demonstrates expected performance he can be given rewards like praise and financial reward. 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