Performance Management Plan
Performance Management Plan
Elliot Villanueva
HRM/531
Monday, June, 16, 2014
Performance Management Plan
Once again, the company Landslide Limousine has asked for assistance with their performance management plan. The objective is to create this plan for a limousine company that has 25 employees based in Austin, Texas with an expected -$50,000 for the first year and an increase of 5% for the next two years. With a turnover rate of 10% as a predicted expectation of how the company would fair, that can happen for a new business. The -$50,000 for the first year of any business is a realistic possibility because you have to spend money advertising, training and hiring people for the driver positions, vehicle detailing, and office staff, weeding out people that do not work out for the company, buying equipment and vehicles.
Costs that occur
One has to put in perspective the fuel costs for these vehicles and per mile charges, for the cost to run sedans would be less costly than stretch limousines which would use more fuel but can hold more people as in a large group event. Another factor to consider would be hourly vs. transfer rate. A transfer rate is an even fee for a pre-determined route, whereas an hourly rate is charged based on an indeterminate amount of chartered time and mileage. This gamut of both hourly and transfer rates among several types of vehicles produces a healthy circulation of revenue bases. In perspective, larger vehicles such as buses or SUV’s would bring in more revenue; they would also incur more expenses in upkeep (Beber, 2008).
Region of company
The location of Landslide Limousines is in the second most successful region (the Northeast being number one) in the country (Beber, 2008). Once the business is in effect, if the proper people are in place, Landslide Limousine should be a major competitor in the chauffeured transportation business. The 5% increase over the next two years should be an attainable goal to reach to get the kinks out of the system. As the company takes a step in the profitable direction, they should consider more than 25 employees, the reason being that there would have to be drivers that are available to