Performance Management in Enterprise Rent-A-Car

Introduction

Stimulating employees to work effectively with the necessary level of dedication is one of the most significant areas of activity for managers whose business is based on using the workforce. Implementing the necessary strategies to increase motivation, creating sustainable systems of control over diligence, and similar organizational tasks form a range of impacts that leaders of companies promote.

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One of the objectively important areas of subordinates’ work is their productivity that is not a static phenomenon and is largely influenced by external impacts. In order to demonstrate the current algorithm for implementing a plan to increase employee productivity as part of human resource development (HRD), Enterprise Rent-A-Car will be utilized.

This organization has branches in different countries, and its international activity is one of the topical reasons explaining the need to create a stable system of control over subordinates’ performance and their interest in achieving high production results. Promoting an HRD plan based on increasing productivity indicators can enable the company to enhance its operating results and bring the management closer to employees by introducing relevant solutions and developing the principles of interacting with employees.

Overview of the Subject Company

Enterprise Rent-A-Car is selected as one of the successful participants in the rental car market. A large staff is one of the features of the organization because, as Busse, Swinkels, and Merkley (2017) note, the corporation has been operating since 1957, and in 2010, there were more than 6,000 locations providing rental cars in the USA (p. 1). In addition, the company has many branches in the world, including European countries, and such success is the result of competitive promotion over several decades. During its work, Enterprise Rent-A-Car has developed not only car rental strategies but also advanced car sales systems, commercial project management practices, and mechanisms for working with cars of different sizes and purposes.

The company has evolved from a small firm into a large international network that provides services in different parts of the world and generates profit through advanced competitive strategies and high-quality management. The activity of Enterprise Rent-A-Car proves that the creation of a sustainable business is possible in the conditions of the monopolization of the market and competent work in the area that is narrow-profile and requires a professional approach to organizing sales procedures.

In view of the extensive activities of the company in question and its work in the international market, addressing issues related to personnel management is crucial. According to Mangan (2019), more than 100,000 employees are involved in the global holding, and this figure is a good reason to develop and implement a sustainable HR policy. Despite the fact that the corporate profits are growing steadily, such a parameter as productivity is of high importance in the context of achieving goals. In this regard, working on this criterion is of great importance in the framework of personnel management and, in particular, maintaining the high motivation of subordinates to implement the work plan.

Enterprise Rent-A-Car interacts with different market segments and, as Mangan (2019) remarks, collaborates with the authorities at the local and national levels. In this regard, maintaining a high quality of services is mandatory, and performance management as one of the aspects of monitoring subordinates’ activities is a relevant area for optimizing and implementing ideas planned as basic strategic development steps. Introduction the appropriate methods of interaction with employees may help maintain the high positions that Enterprise Rent-A-Car occupies now.

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Assessment of the HRD Opportunity

Since an intervention based on improving performance management is planned as the chosen HRD opportunity, it is essential to consider the features of this practice and its role in the proposed company. Addressing issues related to monitoring subordinates’ productivity is mandatory and should be maintained in any business enterprise. In case a certain organization carries out activities not only within a separate location, for instance, at the national or international level, evaluating contributes to analyzing the existing approaches to personnel management and introducing relevant changes.

According to Harris, Wang, and Wang (2015), in the field of transport in which Enterprise Rent-A-Car operates, the security and stability of the entire algorithm of interaction between managers and employees are often ensured by utilizing digital resources, for instance, smart reporting systems. At the same time, work in a given direction allows not only improving the quality of the services provided by the company but also implementing a number of other crucial interventions. In Figure 1, possible implications of introducing performance management optimization practices are shown where such aspects are addressed as talent management, staff benefits, and some other possibilities (“Performance management framework,” 2019).

A performance management framework.
Figure 1. A performance management framework.

As a result, when following the chosen performance management strategy, leaders have the opportunity to realize the company’s final plans and missions through subordinates’ productivity enhanced due to dedication and sufficient diligence. Sabir (2017) notes employees’ high motivation as one of the main drivers of successful innovations and argues that personnel management is a multi-stage process where controlling operational results is one of the stages in addition to such aspects as conflict management, integration, the promotion of cultural and ethical standards, and others.

Nevertheless, while considering the activities of Enterprise Rent-A-Car, one can note that the market success of the corporation is largely due to its high pace of work and promotion in new markets, which is achieved through employees’ participation and their skilled labor. Accordingly, the introduction of an appropriate strategy for involving subordinates and stimulating their productive activities may have a positive effect not only on production results but also on the quality of interaction between leaders and employees. Therefore, creating a sustainable strategy for optimizing the current operating mode in order to increase the staff motivation of Enterprise Rent-A-Car may have many valuable implications from different perspectives.

When evaluating the significance of the proposed HRD strategy in relation to Enterprise Rent-A-Car, one can note that a performance management system based on the use of modern control principles can reveal barriers that hinder market promotion. As Harris et al. (2019) state, technological developments aimed at improving operational productivity have important analytical functions that examine all the performance criteria and identify the weakest areas. Enterprise Rent-A-Car executives can utilize this information to their advantage, making necessary reorganization changes and implementing those strategies that will be aimed at overcoming the problems and gaps identified.

Through a comprehensive performance assessment, corporate leaders are able to obtain a comprehensive picture of the success of individual departments and the contribution of employees. Thus, productivity management may have undeniable advantages for such a large organization as Enterprise Rent-A-Car. In addition to improving the quality of immediate duties performed by subordinates, such aspects can be improved as professional motivation and the level of the corporate culture. These factors are crucial criteria, and addressing them along with the designated area may help the company to increase its assets and expand the sphere of influence.

Design of the HRD Plan

The work plan aimed at enhancing productivity management in Enterprise Rent-A-Car implies developing a special program involving digital analytical equipment to evaluate the current productivity of subordinates and assess possible optimization methods. In Figure 2, the stages of such activity are displayed, and judging by the scheme, for each of the phases, careful monitoring and evaluation are necessary to implement the program as efficiently as possible (“A training cycle based on an HRD plan,” 2018). As a basic strategy, increasing staff motivation is considered one of the most effective tools to strengthen employees’ dedication to the company and enhance their responsibility for the assigned tasks as per the corporation’s missions.

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A training cycle based on an HRD plan.
Figure 2. A training cycle based on an HRD plan.

Since performance management correlates with resource management, an appropriate asset allocation strategy needs to be developed. Lazov (2017) notes that for car rental enterprises, resource management is one of the key areas that should be maintained because such aspects as service security, a stable customer base, and other factors of a successful business depend on how advanced a resource base is. Accordingly, one of the first phases of work to strengthen productivity management in Enterprise Rent-A-Car is to modernize the system of control over the consumption of material resources and evaluation activities, involving the analysis of possible optimization methods.

Following the analysis of the system of resource expenditure and distributions, determining subordinates’ motivation is necessary in order to reveal the degree of employee satisfaction with the current working conditions in the company. As Verbeeten and Speklé (2015) note, the task of team leaders is to determine which particular incentives are the most effective in the context of influencing the dedication of colleagues and their willingness to make every effort to achieve their goals. This stage is one of the most important because those stimuli offered as motivators make it possible to influence subordinates to the greatest extent, unlike other methods of impact.

As an auxiliary tool, introducing a digital analytical system can be a valuable step for determining performance parameters and comparing indicators. This stage is not extremely important because, according to Verbeeten and Speklé (2015), the task of managers is to find not the mechanisms of influence but the professional power of convincing subordinates to work better and more efficiently. Nevertheless, a special program may be helpful as auxiliary equipment that allows calculating all the necessary results of operational activities accurately, excluding the human factor during the calculations and, thereby, minimizing potential errors.

The two subsequent and final stages are evaluative and are intended exclusively for managers. It is not enough to simply propose changes and give subordinates an opportunity to work in new conditions; therefore, control over the updated regime is mandatory. At this stage, managers should ensure that all the changes are implemented correctly, and all subordinates are ready to realize their professional potential. The last stage is related to the assessment that needs to be done after relevant reorganizational amendments. In order to understand whether employees have managed to increase their productivity indicators, managers should analyze recent and past data and draw conclusions based on comparisons.

In case productivity becomes higher, the proposed intervention program proves its effectiveness and may be introduced as a valuable intervention strategy. Lazov (2017) states that the competitive environment of car rental companies requires a stable system of profit-making, which, in turn, is possible only if effective HR strategies are introduced, which encourage subordinates to work productively. Therefore, the proposed plan based on stimulating the interest and motivation of Enterprise Rent-A-Car’s employees touches on the main impact methods and includes the following intervention steps:

  1. Conducting resource management activities.
  2. Determining subordinates’ motivation and satisfaction.
  3. Introducing a digital analytical system monitoring performance results.
  4. Controlling employees’ work in the updated model of operation.
  5. Assessing and analyzing the sustainability of changes.

Implementation Strategy

The implementation of a performance improvement strategy based on the aforementioned steps and operating principles should be phased. According to Werner (2017), in the service industry, employees use the power of digital technology to track productivity and control progress based on real-time data. Such a mechanism of engaging innovative tools is an effective method that contributes to eliminating errors caused by incorrect interpretation and implementing the necessary interventions as efficiently as possible. In addition, Werner (2017) notes that performance management provides for the introduction of special appraisal systems that serve as the drivers of changes and are the integral attributes of activities that require incentives for higher production results.

Therefore, a key strategy for introducing amendments aimed at increasing productivity is associated with the use of motivational incentives designed to increase the productivity of ongoing tasks in Enterprise Rent-A-Car. In Figure 3, the basic elements influencing employees’ motivation are identified, and in accordance with these drivers, one can assume that the individual role of subordinates in an organization is significant and directly affects the degree of dedication and responsibility (“Drivers of motivation,” 2016).

Drivers of motivation.
Figure 3. Drivers of motivation.

In order to implement the proposed change plan successfully, it is crucial to create the necessary conditions for subordinates’ work and not only require increased productivity but also stimulate production achievements. Since the company in question provides car rental services, the corporation management should provide employees with an opportunity to hone their skills in the chosen field since the criterion of mastery is one of the motivational drivers.

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Organizing advanced training courses, engaging foreign colleagues to exchange experiences, and other educational steps can increase the competence of subordinates in their field of activity, thereby enhancing their confidence in their individual importance for the company. Tens of thousands of Enterprise Rent-A-Car’s employees all over the world should understand why they are specialists in the corporation and what benefits they bring to achieve the set goals.

As Boltze and Tuan (2016) argue, economic productivity is enhanced by the competent implementation of tasks with the minimum amount of resources. Therefore, one of the tasks of educational activities is to train personnel to allocate available resources efficiently, and the experience of colleagues from different branches may be combined to draw up an optimal strategy.

The autonomy and purpose as the components of a motivational strategy also need to be addressed in the intervention program. In this context, Boltze and Tuan (2016) propose to pay attention to an individual value system and implement the tactics of changes not only to increase employee productivity but also to strengthen their motivation by encouraging. Such a method may involve various incentives, and both material initiatives implying bonuses and financial rewards and other advantages may be affected, for instance, career advancement. If Enterprise Rent-A-Car’s employees are aware of their roles and understand the importance of the functions they perform, this will have a positive effect on productivity.

Therefore, the performance management strategy intersects with employee engagement and is the practice that means establishing close contact between leaders and subordinates. Thus, the implementation strategy based on increasing the motivation of the company’s personnel can help achieve positive results, and using the accompanying methods of influence, for instance, introducing a digital control mechanism, may contribute to more productive work.

Delivery

Based on the presented intervention strategy, the delivery of changes to Enterprise Rent-A-Car will occur in stages, and the entire program involves the close contact of the management with subordinates. To begin with, resource management tactics need to be introduced in order to examine possible gaps in the availability of assets and, if possible, minimize costs. According to West and Blackman (2015), meeting leadership requirements for cost reduction may be achieved through the preparation of a plan and preliminary analytical calculations involving the evaluation of the fund’s distribution to address specific tasks. Within the framework of the company in question, this procedure can be carried out by using a smart program for calculating profits and expenses for basic operations performed by employees.

The implementation of the stage of increasing employees’ motivation and satisfaction is also one of the phases. The system of bonuses accrued for effective and professional work is the practice that may be implemented in Enterprise Rent-A-Car as part of the local corporate culture. As Richards, Yeoh, Chong, and Popovič (2019) note, targeting this mission are one of the most significant initiatives that employees value, and staff engagement can take place either individually or in groups.

The senior management receives reports from department leaders who, in turn, establish a mechanism of productive interaction with colleagues and stimulate them to increase production outcomes. Such components as autonomy, mastery, and purpose are affected through the provision of training opportunities, the manifestations of initiatives, and the prospects for professional growth, for instance, by involving subordinates in the joint decision-making process.

The stage of introducing a digital analytical system monitoring performance results may be realized by developing and implementing the necessary software that controls all the operational activities of employees and displays changes in their labor indicators. Richards et al. (2019) argue that such programs can not only simplify the decision-making process but also stimulate workers’ productivity due to the error-free interpretation of their activity.

This means that subordinates will not be able to evade responsibility for immediate duties, and bonuses accrued for effective activities for the good of the company will be calculated based on the results presented in the digital program. The management should prepare a team of employees who will be responsible for maintaining such an application and monitor its smooth operation. All the reports received during the analysis will be evaluated on the basis of comparison, and in accordance with the results of this assessment, conclusions will be made regarding the impact of relevant motivational strategies on employee productivity.

Finally, the last two stages of work, which need to be implemented after introducing relevant initiatives, are the monitoring of the program’s effectiveness and its evaluation using the necessary assessment tools. The only prospect that may prove the efficiency of the project is an improvement in subordinates’ performance compared with the results before the intervention. As a control tool, West and Blackman (2015) suggest using the aforementioned digital tools, reflecting subtotals.

The Enterprise Rent-A-Car management should meet with department heads and receive regular reports on the activities done and the results of the updated work schedule. In case the proposed changes justify their relevance, this will become an additional incentive for developing additional optimization strategies, for instance, promoting recruitment programs and methods for retaining talented employees to increase the company’s competitiveness in the market. All of these solutions may be the result of the successful change program aimed at increasing performance.

Method of Evaluation

The method of evaluating the implemented changes aimed at improving performance management in Enterprise Rent-A-Car, the comparative principle of the correlation of the results will be applied. As an effective tool that may help assess the quality of the proposed optimization solutions as part of employee productivity improvement activities, Nguyen, Mia, Winata, and Chong (2017) suggest utilizing a special management control system (MCS). According to the authors, the value of this program lies in the fact that it allows the management to realize two essential goals – “decision-influencing and decision-facilitating” (Nguyen et al., 2017, p. 202).

Both aspects are of high importance in the framework of work involving control over the updated activity because leaders get an opportunity to not only evaluate the success of specific interventions but also coordinate all operational processes, thereby preventing a decrease in productivity. The comparison method is the main methodology since performance parameters are a dynamic variable, and the correlation of the results of subordinates’ work at different stages contributes to determining the advantages and disadvantages of the proposed intervention objectively.

In addition to the aforementioned advantages, using MCS as a key assessment methodology allows evaluating the proposed changes in their quality not only practically but also theoretically. According to Punt, Butterworth, de Moor, De Oliveira, and Haddon (2016), such a program makes it possible to create proportional correlations and serves as an effective decision-making tool, which eliminates the need for managers to take risks and apply unverified intervention steps. In addition, as the author’s remark, employees themselves can monitor their production results, which is a valuable incentive and driver for improving personal performance (Punt et al., 2016).

The staff servicing such a system can set up a mode of displaying subtotals, which is convenient for the management and helps improve perception, thereby allowing leaders to focus on the whole picture and assess the current changes comprehensively. As a result, for car rental companies and, in particular, Enterprise Rent-A-Car, such a mechanism can be useful as a universal algorithm for comparing employee productivity based on the assessment of their initial and final indicators, for instance, the number of grateful customers, the total amount of activities performed, and other activities.

The proposed assessment method is a convenient and uncomplicated technique that allows detecting any gaps in terms of the intervention and eliminating them timely. In general, the practice aimed at strengthening performance management in Enterprise Rent-A-Car with an emphasis on employee motivation and introducing specialized software is valuable and useful, but some ambiguous nuances and limitations may arise. In Table 1, possible advantages and constraints for the proposed strategy are presented.

Table 1. Advantages and Limitations of the HRD Plan.

Advantages Limitations
  • Convenient control
  • High data-processing speed
  • Involving personnel in decision making
  • Stimulating initiatives
  • Calculation accuracy
  • High level of subordinates’ autonomy
  • Limited range of tasks
  • High competition in the team
  • Striving for bonuses but not work results

Given these limitations, the Enterprise Rent-A-Car management should do everything possible to prevent crucial problems. Close interaction with subordinates may help convey the significance of common goals and the importance of the participation of each employee in their achievement. To minimize competition, an objective bonus system should be proposed so that colleagues could not conflict over premiums. A limited range of tasks is not a significant limitation, and in the case of the competent implementation of the strategy, specific aspects of work, for instance, labor efficiency, may increase.

Conclusion

Implementing the plan aimed at improving the quality of performance management in Enterprise Rent-A-Car can optimize the company’s operational processes and improve the interaction of the management with subordinates. The corporation has branches in different countries, and its large number of workers is the reason for developing strategies to enhance productivity. As the effective mechanisms of influence, motivational incentives need to be presented, as well as the system of the digital assessment of employees’ activities. The intervention plan can go through several stages and end with the evaluation of the proposed changes.

This HRD strategy has different advantages, but some restrictions may appear. The management of Enterprise Rent-A-Car needs to constantly monitor subordinates’ work in order to prevent conflicts caused by competition and ensure a favorable working environment.

References

Boltze, M., & Tuan, V. A. (2016). Approaches to achieving sustainability in traffic management. Procedia Engineering, 142, 205-212. Web.

Busse, M., Swinkels, J., & Merkley, G. (2017). Enterprise Rent-A-Car. Kellogg School of Management Cases, 1-15. Web.

Drivers of motivation. (2016). Web.

Harris, I., Wang, Y., & Wang, H. (2015). ICT in multimodal transport and technological trends: Unleashing potential for the future. International Journal of Production Economics, 159, 88-103. Web.

Lazov, I. (2017). Profit management of car rental companies. European Journal of Operational Research, 258(1), 307-314. Web.

Mangan, M. (2019). Public transportation, private enterprise. Institute of Transportation Engineers. ITE Journal, 89(6), 18-19.

Nguyen, T. T., Mia, L., Winata, L., & Chong, V. K. (2017). Effect of transformational-leadership style and management control system on managerial performance. Journal of Business Research, 70, 202-213. Web.

Performance management framework. (2019). Web.

Punt, A. E., Butterworth, D. S., de Moor, C. L., De Oliveira, J. A., & Haddon, M. (2016). Management strategy evaluation: Best practices. Fish and Fisheries, 17(2), 303-334. Web.

Richards, G., Yeoh, W., Chong, A. Y. L., & Popovič, A. (2019). Business intelligence effectiveness and corporate performance management: An empirical analysis. Journal of Computer Information Systems, 59(2), 188-196. Web.

Sabir, A. (2017). Motivation: Outstanding way to promote productivity in employees. American Journal of Management Science and Engineering, 2(3), 35-40. Web.

A training cycle based on an HRD plan. (2018). Web.

Verbeeten, F. H., & Speklé, R. F. (2015). Management control, results-oriented culture and public sector performance: Empirical evidence on new public management. Organization Studies, 36(7), 953-978. Web.

Werner, J. M. (2017). Human resource development, talent management (7th ed.). Mason, OH: Cengage Learning.

West, D., & Blackman, D. (2015). Performance management in the public sector. Australian Journal of Public Administration, 74(1), 73-81. Web.

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