How Sainsburys Has Used Performance Management to Increase their Quality of Service

Capacity flexibility means having the ability to rapidly increase or decrease production levels, or to shift production capacity quickly from one product or service to another.

Sainsbury’s goal is to reflect they commitment to meeting customers’ needs; however, they want to shop food, clothing, general merchandise and services also they vision is to be trusted retailer where people love to work and shop. They strategy plan is to know they consumers better than anyone else, be there for them whenever they need them also offering great products and services at fair prices. They colleagues make the difference; they value makes them different.

An open system as Harrison and Shirom (1999) explains is product by which a whole entity operates based on individually functioning parts simultaneously in order to achieve the system’s goals. According to Katz and Kahn (1971), there are essentially nine working components of an open system. These nine characteristics are typically common to various types of open systems and can be thusly applicable to my current organization as follows.

Sainsbury is engaged in grocery and related retailing. It is separated three segments: Retailing (Supermarkets and Convenience); Financial services (Sainsbury's Bank joint venture), and Property investments (The British Land Company PLC joint venture and Land Securities PLC joint venture). In 2012, this company has operated over 1000 stores comprising 572 supermarkets and 440 convenience stores (Sainsbury company information, 2013). In the current competitive food retail market Sainsbury has focused on its clear strength: providing shoppers with an easy alternative to the larger out-of-town supermarkets whilst maintaining a commitment to fresh quality foods (Sainsbury,

The environment is a complex, socially constructed system; ethical considerations are integral to risk assessment and management; and organizations respond to risk through their actions, not just by making decisions. These themes motivate new directions for opportunities within the organization (Esade & McKelvey, 2010).

With more than one and a half century of history and serving the customers in the United Kingdom with its supermarkets services, Sainsbury has come a long way in establishing a robust market. Hence, it is a trustable brand recognized all over the world (Cityam, 2014). When Tesco had surpassed Sainsbury in the race, it was the costs linked to IT services and supply chain which came under scrutiny and among other expenditures, efforts were stepped up for truncating these costs also termed as “major operational costs”. If one goes by the reasoning given Martin Atherton, who is an in the lead man of business related research firm named Data Monitor, he says that it has not longer remained s competition of business competing against another business

Capacity is very important but least understood concept in manufacturing and business world (Klammer,1996). Different categories of people in business and manufacturing measure capacity differently. For example, some financial managers might measure plant capacity in terms of the equipment installed in the plant while operational supervisors might measure capacity in terms of worker efficiency. Klein & Summers ,(1996) defined an organization’s productive capacity as “the total level of output or production that it could produce in a given time period”. Capacity utilization is the percentage of the firm’s total possible production capacity that is being used. Therefore, an organization should be most efficient if it is running at 100% capacity utilization. An organization’s full capacity is the minimum point on total cost function, a full input point on the aggregate production function and a bottleneck point in a general equilibrium system. Full capacity should be defined as a realizable level of output that can be attained under normal input conditions without prolonging accepted working

Performance management is a continuous process in which employees and managers work together to monitor, plan, and review their employees’ overall performance and their contribution to the organization. Additionally, globalization is bringing about an increase in competition in the workplace, therefore there is a need for an organization to regularly evaluate the performance of their employees to ensure that the organization has the proper skill sets in their employees in order to have a successful business (Bac, 2007). The objective of performance management is to improve and promote employee effectiveness. Furthermore, employee performance management involves various activities: planning to be done and setting expectations, monitoring performance continually, developing employees’ capacity to perform, rating performance periodically, and rewarding good performance (Leonard & Trusty, 2013). A supervisor, on the other hand, is a person charged with the responsibility of overseeing tasks at the workplace are ensure that objectives are carried out according to the instructions given. A supervisor has manager-like roles and is responsible for actions and productivity of a small group of employees. There are philosophers who refer to supervisors as workers, while other professionals refer to this position to be a manager. A

Marr, B., (2009), Delivering Success: How Tesco is Managing, Measuring and Maximizing its Performance, Management Case Study, The Advanced Performance Institute.

processes, machinery capabilities, space utilization, holding inventory storage and their accounting systems among others (Bartlett, 1991, p. 5).

Production & Operations Management Session 3-2 More on Processes 1 Outline  Multi-product, multi-flow process analysis – So far: 1 product, 1 flow – Differing process times, yield issues, machine breakdown  Big Takeaway: – Product-mix becomes critical in multiple flows – Implications in capital investment, scaling business, and risk management  Calculating capacity when you have – Multiple flows • With the same processing time at each resource • With different processing times at a single resource – Yield issues – Machine Breakdown 2 Measure: Implied Utilization  Implied Utilization captures the mismatch between the capacity requested from a resource by demand and the capacity currently available at

The core concept of this composition is to address, and analyse the issues and benefits that encompass the idea of performance management. Performance management has been selected due to its ever-growing and ever-updating presence amongst the work force and organisational culture. Likewise, performance management is important for the sustainability of an organisation through the monitoring of employee growth, and the findings in this study will assist in clarifying why the organisation as a whole benefits from the use of a policy in performance management. In conjunction with this, McDonalds has been selected due to its ubiquitous, and familiar nature. It will consistently be used as an example to provide a discourse for the evaluations within this study. Founded in 1940, McDonalds is a global restaurant-based organisation that specialises in fast food. It is the world’s largest franchise chain that has a mixed specialisation in both speed of output, yet also consistent quality in all its stores.

Theory Y and also theory of The Open System View. The paper will initially introduce to the

The most crucial part of doing business in today’s world is to understand how to make a positive contributions to the quality of life while earning a profit. This can be achieved by considering the new values and concepts of thinking while running a business organisation. (Halal, 1968; Handy 1989; Maslow 1962; Schumacher, 1973.1977; Senge 1990; Senge et al. 2008). According to these authors, the organisations should have a clearer goal in considering the contribution to the quality of life in a larger community and innovate more structures, processes and outputs designed to attain the social, ecological and economic needs of the consumers, employees etc. Edward (2005) has named this development as the ‘sustainable organisation management’. The transition from the Industrial Revolution to the Sustainable Revolution is presently more on ideas and thoughts but less on the solutions.

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