Smithfield Foods Performance Management (PMS) - Free Paper Example

Introduction

Performance management systems that often consist of employee development and performance appraisal are critical facets of human resource management. On one hand, they are often faced with challenges in different organizations with employees or managers expressing their dissatisfaction with the process. On the other hand, they serve different goals including improving employee performance, enhancing job satisfaction, and promoting the achievement of organizational goals (Tomic et al., 2016). Notably, performance management is one of the critical tools and responsibilities that managers have while overseeing a company’s operations. It requires proper design and implementation to ensure that it produces the intended results (Tomic et al., 2016). In most cases, managers fail to provide timely feedback and have honest and constructive discussions with employees because they fear breaking some relationships with people whom they depend on for processes to be completed (Tweedie et al., 2018). In such cases, employees may perceive their managers as incompetent or unskilled in discussing performance.

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Multinationals like Smithfield Foods operate in a highly competitive market, which forces them to optimize their resources fully. The company realizes that its workforce forms an essential facet of its success; therefore, it aims to leverage its employees’ potential to produce quality consumables for its target market. According to Ali et al. (2019), an effective performance management system must have a primary objective. The purpose of performance management systems can be for promotional decisions, aid in pay decisions, or enforce employee development (Ali et al., 2019). Noticeably, there is no one-fit-all model of performance management, and those that try to achieve many functions often fail. Organizations must define the purpose of their PMS based on their business needs, systems integration, or organizational culture. Smithfield Foods PMS's primary objectives are to monitor employee progress, and career development, and evaluate the achievement of organizational goals.

Organizational Background and Summary of Previous Assignment

Smithfield Foods Inc. is a multinational food company and the leading hog and pork processing company globally. The company’s mission is to produce food rightfully and responsibly (“About us,” 2020). The company’s business strategy is built upon responsibility, innovation, and operational excellence. The company produces packaged hog and pork meat for its consumers in Europe and the United States. Some of its brands include Farmland, Eckrich, Morliny, and Krakus (“About us,” 2020). The company’s strengths lie in its extensive operations base in China, the US, Europe, and South America and political ties that favor its business operations in America. Nevertheless, the increasing number of COVID-19 cases in most of its operation areas in the US threatens it with legal lawsuits for violating employee safety measures as outlined by the World Health Organization (WHO). Luckily, when the economy normalizes after the relaxation of COVID-19 restrictions, the company can utilize the open market created to increase its sales volume (Altman, 2020).

Similar to other multinationals, Smithfield Foods envisions providing its employees with a comfortable environment that enhances productivity and supports career development. The company envisions developing its employees’ potential to the fullest through robust training programs to drive innovation, enhance efficiency, and increase job retention (“About us,” 2020). Its PMS is implemented fairly, and timely, and has a continuous communication and feedback process to facilitate its success. Notably, features of its PMS include goal alignment, performance planning, training, and career development, ongoing feedback, performance reviews, and appraisals. The system allows it to retain top talent that contributes positively to its success.

Smithfield Food’s Performance Management System

Smithfield Food’s PMS consists of performance planning, ongoing feedback, Employee input, performance evaluation, and performance review. Notably, continuous continuation is an indispensable facet of the organization’s PMS system.

Organizational Goal Setting

Organizational goal setting is essential since it allows a company to have a sense of direction. Business ventures have well-defined goals that guide their operations and strategies. For an organization to implement an effective PMS it must ensure that its overall goals are well communicated to all employees. Smithfield Foods operates in the highly competitive global food industry, which forces it to have vivid and Smart goals (“Smithfield Foods,” 2018). The company’s executives ensure that the goals are communicated to all its subsidiaries every fiscal year to ensure that everyone exerts efforts in the same direction (“About us,” 2020). Each year, the company releases its annual sustainability report that outlines its key goals such as the humane treatment of animals, environmental stewardship, production of safe and high-quality foods, and sustainability of local communities (“About us,” 2020). In 2019, the company outlined that it progressing well towards achieving s its core milestones.

Performance Planning

Proper goal setting for employees at each level kick starts an effective performance management process. According to Tomic et al. (2016), performance planning increases employees' productivity since they are aware of what is expected of them. In most organizations, performance planning is done at the beginning of every year, where companies set clear targets and objectives for their employees. Tomic et al. (2016), add that it is indispensable to engage employees in reviewing their performance expectations, behaviors required for the process, and results they anticipate to achieve. Smithfield Foods conducts performance planning at the end of every fiscal year. The situation allows its employees to have a glimpse of what is required of them in the next performance cycle. Notably, its performance planning process is connected to its five overarching milestones.

The company outlines employee performance expectations in every factory processing level. The situation creates a base for performance evaluation. Additionally, new hires are oriented to their jobs to ensure that they are conversant with what is required of them. The enterprise may also engage in team performance planning, where managers outline specific targets and objectives for various groups. Teamwork is gaining momentum in businesses today as many processes become interconnected (Tomic et al., 2016). For instance, Smithfield Foods’ operations are divided into corporate offices, hog production, plants, distribution centers, and direct store delivery. All the units have specific objectives that are linked to the company's overall goals. Managers at each of the operation levels design individual and team performance expectations to ensure that their units produce exemplary results.

Moreover, at this early stage, Smithfield Foods does not only outline employee performance expectations but also outlines behaviors it anticipates. Unlike other meat processing companies, Smithfield’s goals and missions are unique; therefore, they not only require employee productivity but also a commitment to the environment, sustainability, ethics, and stakeholder health and safety ("About us," 2020). The situation mandates the company to outline a set of behaviors and practices that promote the goals. For instance, the firm obligates its workers to engage in practices that do not endanger their safety and that of others for it to maintain low injury and claim rates. According to Ali et al. (2019), behaviors explain how an employee conducts themselves to get the job done. Notably, some employees produce exemplary results but are incompatible with working with others, creating the need for discussing behavioral expectations with employees. Smithfield Foods outlines all the behavioral standards required to achieve different tasks at various employee levels. The company also makes sure that employees understand how the standards relate to their jobs.

Training and Personal Development

Additionally, at the beginning of every performance review cycle, the company conducts activities such as personal development plans and training to help employees match their skills to anticipated performance. According to Ricci (2016), training and setting employee development plans help them in achieving their performance and career goals. Training is a multifaceted activity that is paramount for every effective PMS. Through training, workers acquire the skills required to perform specific tasks efficiently. Additionally, training develops a worker's career, which improves their engagement and motivation towards their work, enhancing productivity. Managers also require rigorous training to enable them to roll out a successful PMS. Managers without ample skills such as communication, coaching, and interpersonal relationships often portray minimal satisfaction with PMS or are unable to produce the required results. A study conducted by Tomik et al., (2016) on the use of PMS in food industries in Serbia showed that 38.5% of companies do not undertake frequent performance reviews yearly due to challenges in communication and feedback processes. The research also revealed that 39% of the companies lacked transparent communication while 50.5% were not sure that communication ever existed. Tomik et al. (2016) also identified that only one-third of the food industries recognized the need for training managers. The situation portrays the indispensable need for managerial training to facilitate the implementation of a PMS. Incompetent managers are likely to demotivate employees or fail to provide feedback leading to process failure.

Smithfield Foods recognizes the need to train all its employees as an essential factor in talent retention, company success, and driving innovation (About us, 2018). The company has a portfolio of talent development programs such as the Emerging Leaders, Smithfield Leads, and Manufacturing Excellence plans, which are offered online and in-person to workers across the organization. The Emerging Leaders program aids in preparing new hires for their new roles and new responsibilities. Additionally, the Smithfield Leads programs—12-month duration—aim at strengthening and developing top managers and supervisors through executive briefings, classroom training, and team projects (“Smithfield Foods,” 2018). Notably, the company stated that it had produced about 200 Smithfield Leads graduates with about a 78% retention rate by 2018 (About us, 2018). Moreover, Manufacturing Excellence: Understanding yields, labor, and quality aids frontline managers in comprehending business operations such as cost efficiencies, processing techniques, and meat science.

The company’s training program is intense in such a way that the company trained over 4300 workers in the United States across all its business units. Additionally, in 2018, the company trained over 30, 000 employees on preventing workplace harassment (“Smithfield Foods,” 2018). Noticeably, the company also partners with Smithfield University to offer its employees programs such as leadership training, public speaking, computer literacy, and sales knowledge (“Smithfield Foods,” 2018). The courses are accessed online through the company’s intranet. Smithfield Foods also has mentorship and a Career Development program that allows new recent graduate hires to learn different aspects of the company and work in the one that best suits them (“Smithfield Foods,” 2018).