Company Decision Making and Development Systems
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Company Decision Making and Development Systems

Abstract:In order for companies to be successful, they must regularly make good decisions and work on developing goals. Each company must decide how to best go about these tasks. However, three tools most companies use to make decisions and develop goals include performance appraisals, team assessments, and succession planning systems.

Three areas of importance for decision making and development within the company include performance appraisal systems, team evaluations, and succession planning. There are different performance appraisal systems the company can use for decision making and for employee development. When evaluating teams, important areas to focus on include “financial health”, market success, quality of service, and “personal development”. Succession planning can help an organization effectively use their employee capital resources when position gaps develop. Overall, it’s important for managers to fully show support of the appraisal, evaluation, and succession planning systems. To be effective, these systems need to empower employees to develop their skills. Furthermore, communication between managers and employees is critically important in implementing these systems. Being objective, consistent, and encouraging open communication help ensure effective application of these systems.

Implementation Steps

It’s important for the CEO and board of directors to fully support the implementation of these systems within the entire organization. In addition, managers need to be trained on the importance of these systems. This will clarify how important employee performance appraisals, team performance assessments, and succession planning are to the company. In addition, it’s important to have a plan for implementing these tools within the organization.

The first step in successfully implementing these tools is to establish an action plan. Within this plan, identifying goals for the appraisals, assessments, and succession plans is very important. Gathering feedback from managers is critical to the development of these goals. In addition, a mission statement needs to be developed to communicate the overall goals of the action plan. Overall, the following steps need to be included in the action plan: priority and goal development, task development, task assignment for managers and job analysts, and deadline establishment for task completion (SkillPort, 2011).

Second, experts consisting of managers and job analysts from the variety of departments need to be selected. These people need to provide the relevant information for designing the performance appraisals and assessments. Later in the process, these managers will be involved in designing succession planning training as well.

Third, these managers and job analysts can provide information on the positions in question. An analysis of these position descriptions can be used in developing the performance appraisal and team assessment tools. In addition, these descriptions of positions can be used in developing the training programs for employees that will be considered for future leadership roles. 

Fourth, managers and job analysts need to identify potential future key positions that will need to be filled. Identifying leadership positions that are critical to the function of the company is critical. These positions need to be filled quickly as they become vacant.

Fifth, as the company grows so will some of the positions. In addition, these position responsibilities will evolve as the company grows. These developing work requirements need to be identified and defined. As these are defined, managers can begin to include training for these responsibilities.

Sixth, tools need to be created to assess the performance of current employees and teams. The employee performance appraisal and team performance assessments can be based on the information collected by the managers who defined the job responsibilities. 

Seventh, in administering the performance appraisals and assessments, managers need to identify any employees who may be considered for the succession planning program. It’s important to define the specific requirements for promotion to any key positions. This gives any employees interested in advancement the understanding they need to plan their career. Managers can discuss the promotion requirements with employees during the performance appraisals and assessments. During this process, managers can identify any potential employees who may be interested in advancing to a future key position within the company. Any employees interested in advancing to a key position can discuss ways to train for these positions with their managers. This can be done when managers and employees develop the skill development plans during performance appraisals. At this point, management can work with the employee to develop “individual development plans” for training for future key positions (SkillPort, 2011). 


Finally, developing a plan for implementing the employee performance appraisals, team assessments, and succession planning systems is critically important for the company’s success. The CEO clear down to the management team needs to effectively communicate the importance of these systems to every employee within the organization. In addition, following the steps outlined above provide a logical consistent way to ensure these systems are successfully implemented.

Works Cited

SkillPort. (2011). Implementing a Succession Plan Simulation. Retrieved February 19, 2011, from Western Governors University Welcome to SkillPort:

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