Performance Management and Strategic Management Based on the New Model - Assignment Example

? With reference to relevant ICHRM theoretical and research material, critically analyse the role of any two functions from the four given below a) Strategic Management Approach to Human Resource Management b) Performance Management Table of Content: 1-Introduction: 2-Literature Review: Scope of Performance management: Cognitive model of Performance management: Expatriates factors: Strategic Management in the context of Human Resource Management: Strategic management model: 3- Strategic management model: Holistic approach: Mobility Pyramid: Motivational Factor: Roles definition: 4-Observations and findings: 5-Conclusion: Questionnaire: References: Introduction: Since the middle of 20th century, organizational operations have taken a new look and the functions are being performed in modified manner(Swanepoel 2008). Human Resource Management is no exception in this regard and it has embraced the international status of accords by going global. International comparative Human resource management is one of the new disciplines that is around for a while and different operations and functions of organizations are performed based on its specialities. This has enabled further broadening of the scope of H.R.M; however it at the same time requires certain modifications and adaptations since domestic H.R.M varies greatly from the international Human Resource management (Briscoe, et al. 2012). Performance management evaluation is of high value in any organization (Cardy & Leonard 2011), any department within and any function or project that is undertaken, regardless of the domestic or international outlook of H.R.M. The two areas under study and of interest in this paper are performance management and strategic management based on the new model (Orcullo 2008) and concept of ICHRM. This paper looks into how these two terms are incorporated and accommodated in the new international model. While they have been in practice for ages in the domestic domain of H.R.M, yet the International H.R.M is a totally new domain with new variables therefore it seeks the study of these elements which may have a complementing or detrimental impact on these two functions. Methodology: Analytical findings, supported by study of models in form of cognitive models of performance management along with the strategic models and principles have been integrated and inter related to get a clear understanding of these two areas that are of high importance in the International Human Resource Management. The methodology is further supported by the questionnaire which was based on the idea of getting an insight of the people’s knowledge about these two areas, their importance and the areas where possible improvements may be made. Qualitative form of survey and methodology was adopted for the better understanding of the concepts and allowing further knowledge sharing amongst the members. This was done through the study of various relevant concepts and models along with the critical analysis. Philosophy adopted: A philosophy based on innovation, improvement and synergetic strategy was adopted which would allow better implementation of these two areas (strategic management and performance management) in the international domain. The philosophy was based on creating awareness and knowing the level of apprehension of the members which was practically made possible through the questionnaire creation. Based on the responses collected, clear understanding was developed as to what is the present situation. Performance appraisal, encouragement and guiding and directing through practical measures were one of the core tenants of the philosophy adopted. The philosophy so adopted was effective because it allowed inter relating and studying the various elements in an integrated manner and further allowed possible exploration of areas of advancements both in the strategic domain and the performance based models. Approach: Systematic approach was adopted, which was based on study the effectiveness of each of these elements in separate, and following by the impact in collective. Understanding the concepts of importance outside the paradigm of strategic importance and performance management indicators. Literature Review: Performance management pertains to the handling of the manpower and their capabilities (Aguinis 2012). Crafting their skill according to the need and situation is termed as performance management. Ensuring that the right kind of person is deployed in the right kind of area is termed as performance management. This is another similar function which is vital both in the domestic H.R.M functions and International H.R.M functions. It becomes more important in the case of latter since new place requires new people and bringing about your best skills and knowledge of selecting the ones who are most suitable for the task from the local environment where plant or facility may have been initiated. Performance management is connecting (the purpose and activity to one point, bringing about coherence between the two, unifying them as one and for common objective of success and better outcome, all these make up for an effective performance management strategy. References: ( Ten 2011) Scope of Performance management: (Armstrong 2000) in his study try to define the scope and nature of the concept of performance management(pertinent to the international human resource management, and according to them it is not just accomplishing of the tasks, rather an entire system which includes the interaction between the personnel, their dealing with outside world, their undertaking of official activities, how do they go about the challenges, how do they relate to the overall situation and in final point, how does it contribute towards the overall organizational structure. Reference: (Wei 2006) (Dowling, et al. 2008) have used certain variables to define and determine the metric of performance management, and these variables according to him are the goals defined, the steps taken towards them. Cognitive model of Performance management: (DeNisi, 2004) in his study about performance management outline the importance of performance management in the modern global enterprises and the human relations Various other models are being suggested by number of proponents of the field of performance management and the subsequent evaluation. This model looks into the Performance management through the eye of global context, followed by the inter departmental context and the organizational view point, and finally the employee and independent view point of a particular member involved. The global nature of performance management is strictly restricted to the international working on a particular organization; it would involve the activities that are expected of the teams, individuals and human resource department in the international arena only. Expatriates factors: Adopting the services of expatriates in the international domain is one of the strategic decisions that any global organization has to take into account (Pravin 2010), it has its own advantages and disadvantages against the hiring of the resources of the locals in that particular area where the installations are being installed and services are being offered. Their impacts both positive and negative will be covered in the critical analysis part of the paper. Strategic management also requires taking into account the past considerations and trends of the organization, its pattern of risks and innovations if taken before, its success and failure rates in expansions across the areas beyond the borders and beyond the continents. References: (Harris 2006) Strategic Management in the context of Human Resource Management: Strategic management can be represented in a triangular relationship with functions like environment, resources and the top management playing an important role towards the successful execution of strategic management operations. Strategic management model: A model is being defined by (Narayan 2000, p.1) which includes the goals and objectives, evolution of strategic management activity, the implementation and followed by the evaluation stage. All these steps will be equally weighed against the financial constraints and consideration, structural entities, operational consideration and other similar units. Critical analysis: Critical analysis would include knowing and highlight the dos and don’ts of both the performance management domain as well as the strategic management sector. Briscoe & Schuler, 2004 in their study establish that these two components are of high importance and most fragile to tackle when it comes to international scope of human resource management. Holistic approach: Strategic management also involves evaluating the possible impacts of decisions to be taken and taken in past(Thompson & Martin 2010), for example the decision of availing the expatriates has its own advantages and concerns to it(Stahl, et al. 2012), these come in form of their acquaintances to the culture, taste and people in the organization, while the concern is that of their high demands, in terms of salaries and other privileges since any individual working away from home station would demand additional in any case. The case is opposite and of advantage in case of locals who are being hired, their demands would be low(Schmeisser, et al. 2007) and they would be accustomed to the local situation in comparison to the expatriates who are accustomed to the organizational work yet not the local culture and trends. These are some of the concerns that are to be addressed under the umbrella of strategic management with regard to the international expansion of the organizations and their international working. Strategic management also involves and demands establishing a database (Hughes 2005) that keeps record of all the activities that are performed in that particular area away from parent company, this would include the deals, the performance reports, the ventures undertaken, the progress made against the targets set, the cultural determination, enabling people to participate more from the local scene, and other issues with centrally administered components. The data base would be supported by a top quality website, since the entire operations are of global nature in modern day, thereby keeping up with the international demand, and international market is desired. These are some of the areas that are to be looked into while devising strategic management concepts and principles. Mobility Pyramid: Some experts also advocate the usage of mobility pyramid (Schade 2012), which is used for the evaluation of strategic management functions evaluation and the hierarchy against it, in order of global to domestic and individual roles and preferences. Performance management is that metric and that tool which speaks for the organizational success or failure in the most silent yet most dominant and clear way. These two areas have a direct negative or positive impact on the other functions of organization as well.( Vance & Paik, 2006) For example performance management has an impact on the planning process, communication process, budgeting, accounts and auditing, supply chain and other essential units. The same applies to strategic management since strategic management enables and complements the functions stated above. In short these two components are the pivot towards the better performance of rest of the organization. Negligence in these two would mean negligence in remaining structure of the organization (Roney 2004,p.227). Performance management is a separate yet most important domain especially in the new paradigm which is of international and global nature- I-HRM. References: ( Jay 2013) The applicability is universal in nature, such as health care sector, business enterprises, governmental organizations, nongovernmental organizations, Both the functions mentioned are part of both domestic and international Human Resource entity. Critical analysis would allow understanding the difference and similarities between the two in different areas of the two fields. Any parameter that is outside the domestic H.R.M sector is termed as non line of sight component since it is away from the parent company and parent environment. Performance management is a broader domain its own and it is directly associated with the managers and their role. Top management has the responsibility towards ensuring that the prerequisites of performance management are fulfilled. Performance management can be best tackled by defining goals and objectives. Vigorous planning must be brought into force for ensuring that the requirements of performance management are fulfilled. This planning should be in form of practical and theoretical work along with guidance, coaching. Understanding the true spirit, nature and purpose of performance management is the first step to the successful accomplishment of the tasks relevant to the performance management field. Motivational factor: Motivation is one of the essential ingredients of performance management and it must be carried out in parallel with the entire processes undertaken (Varma, et al. 2008). Since mankind does seek motivation and encouragement, thereby it should be accompanied with rest of the process. References: (JOZEF 2013) Roles definition: Critical analysis of performance management would include knowing and understanding the roles and conveying the message and instructions clear enough to the members so as to facilitate them working to their best of abilities. Strategic management is no exception to the list of most essential areas of an organization’s performance and it has also got certain considerations that must be fulfilled in order to make this area a properly working one. For example strategic management is of extreme importance in case of international H.R.M, and may not be as important or single factor that may determine the outcome of the organizational performances. Performance management is a holistic concept and it entails knowing what to do, when to do and how to do. It also includes stacking up the tasks in terms of priority and availability of resources. Hence strategic management is and should be performed with due consideration of all the functions that are aforementioned. Integrity between these two functions as well as the others that are discussed in brief is of immense importance and without the integrity they would fail to complement one another and as a result the overall objectives of organization would not be able to be achieved. Conclusion: Integration of elements and functions is important to the organization regardless of the kind of work undertaken, whether be it a warehouse operation, a marketing campaign, or human resource activity. Organization is a constituent of individual entities and each of these entities serve towards the supporting function towards one another; in this case strategic management and performance management are two basic functions which contribute towards the entire purpose and enable the successful performances of tasks within the organization. These factors perform the role of synergetic element towards each other and enable the organization working towards the desired objectives set at the beginning of the task and project undertaken. Strategic management as well as performance management are top priority of any organization whenever it undertakes certain task (Taticchi 2010). These principles hold true both for the domestic human resource management as well as the international human resource management functions. Hence it can be established that performance management as well as strategic management are the backbone to the proper performance of the organization their importance grows by integral proportions in situations of international and global operations which may be undertaken by a particular organization in its pursuit of going international. Observations and recommendations: a comprehensive study was conducted in form of the study of literature available, the models that are in use, the individual characteristics of each of the function along with the combined impact of these variables in combination with other elements outside strategic and performance management. Observations: The sole reason to success lies in exploring and utilizing these two areas to the maximum level. Failing to do so would directly result in the failure of the organization. Recommendations: In order to ensure that the functions, strategic management and performance management are fully comprehended, practical as well as theoretical knowledge must be imparted, tools and techniques must be introduced, and sufficient material and resources must be provided, along with the effective leadership presence factor. Similarly a technical team must exist in order to assess the areas of strategic importance, striking as the first to market, catching on the innovative ideas, coming up with something unique, delivering the best services are few of the areas that can be conquered if the domain of strategic importance is understood and implemented according to the needs and demands of the field. Incorporating the concept that every member is part of the family and has to contribute is another factor being underscored through the entire process and must be made sure that it is implemented in true spirit. Other salient points that can be recommended include: Adopting the performance management models in true sense Making the strategic processes more effective Creating a synergetic effect from these two areas Introducing new tools, techniques Providing better understanding of the concepts Questionnaire: Likert scale: a: very important b: important: c: can do with alternatives d: not important at all 1: how important is the understanding of the concepts of performance management a, b, c, d, 2: do you think a company can survive on international level without effective strategic management system A: yes B: no 3: training should be regular part of field and members training A: yes B: No 4: do you think the right kind of performance management principles are adopted in your organization? A: yes B: No 5: is the top management always available for help in your organization a, b, c, d, 6: does your company provide some incentives based on good work and output A: yes B:no 7: is an integrated system of management and strategic principles in place in your organization A: yes B:No 8: would you recommend further expansion of your organization on International/ Global Level A: yes B: No 9: Do you feel your organization fulfils all the requirements of the principles of Human Resource Management? A: Yes B: No 10: are different models of performance management being incorporated in your organization? A: yes B: No References: Aguinis, H., 2012. Performance Management. 1st ed. s.l.:Prentice Hall PTR. Armstrong, M., 2000. Strategic Human Resource Management: A Guide to Action.. 2nd ed. Pentonville: Kogan Page Publishers. Briscoe, D., Tarique, I. & Schuler, R., 2012. International Human Resource Management, 4E. 4th ed. New York: CRC Press. Cardy, R. L. & Leonard, B., 2011. 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[Online] Available at: http://www.outsourced.sk/885/essentials-of-an-effective-performance-management-system/ [Accessed 26 April 2013]. Johnson, R., 2009. Strategic International Human Resource Management towards achieving Sustained Competitive Advantage, Otago: Otago Management Graduate Review. Narayan, B., 2000. Strategic Management. 1st ed. New Delhi: APH Publishing,. Orcullo, N. A., 2008. Fundamentals of Strategic Management' 2007 Ed.. 1st ed. Manila: Rex Bookstore, Inc. Pravin, D., 2010. Human Resource Management. New Delhi: Pearson Education. Roney, C. W., 2004. Strategic management methodology: generally accepted principles for practitioners. 1st ed. New York: Greenwood Publishing Group. Stahl, G. K., Morris, S. & Bjorkman, I., 2012. Handbook of Research in International Human Resource Management. Cheshire: Edward Elgar Publishing. Schade, A., 2012. 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[Online] Available at: http://rphrm.curtin.edu.au/2006/issue2/strategic.html [Accessed 26 April 2013]. Varma, A., DeNisi, A. S. & Budhwar, P. S., 2008. Performance management systems: a global perspective. 1st ed. Milton Park: Taylor & Francis. Read More