Strategic Human Resource Management - Essay Example

?Strategic Human Resource Management Introduction and background of the issue Performance management is a very important element of human resources management. In general, performance management is directly linked to organizational growth and development. Performance management not only provides a measure of employee performance, but also a tool for organizational development. Ideally performance management has to include all aspects associated with producing specific or desired performance; these aspects should include performance appraisal, training and development as well as behavior of employees. Most of the times, performance management includes measurement of performance metrics such as productivity, quality, turn around time, schedule adherence or attendance etc. On similar lines, in our organization, performance of front line executives is measured on the basis of productivity and quality achieved. Although organizational values incorporate specific behavior, values and conduct expected from employees, these have minimal impact on their performance outcome. Measuring performance of front line employees on the basis of productivity and quality is more like following scientific management principles of Taylorism and Fordism, which are incongruent with contemporary management and organizational behavior as well as organizational requirements. Currently, performance management should focus on overall efficiency of the organization and a continuous sustainability. The ever-increasing competition in the products’ and services’ markets requires people to be more innovative in creating newer products, features, systems, and mechanisms of working. Innovation in types of services provided as well as improving profitability for organizations is also much required. Now that the number of employees at the front line is the maximum and these groups are directly into carrying out core operations of the organizations, maximum contribution towards innovation can be expected from this group. However, with no direction and returns, they will not be motivated to think out of the box and/or go extra mile to achieve the uncommon or untold tasks. Strong support from leadership at all levels and for all groups of employees is also required to encourage innovation and extended contribution from employees. This would also mean accountability from leadership perspective that can be measurable. Lack of such support and practices will only result in decreasing motivation and commitment from employees, which is the case presently in our organization. Area of improvement and reasons for the change: In order to address this aspect of performance management and employee behavior, it would be best to include a component of employee behavior in performance management that can create accountability for the desired behavior besides encouraging specific behaviors that would be beneficial for the employee development as well as the organizational growth. Performance management is a process employed by organizations to continuously improve their employee performance, enhance employee motivation and look for opportunities to innovate or further improve in order to gain as well as sustain competitiveness. This is a complex and critical process that has been researched immensely and has resulted in different methods. Performance measurement has been a universally adopted method of performance management. Measurement of performance at every level and in every function is a distinct activity, and cannot be combined. Although the organizational goal remains unique and single, different activities need to be performed in order to achieve that goal by different people having distinct skills and capabilities. Because the nature of work performed by these people contributing to achievement of organizational goal is different, they have to be measured differently, that is accurate and appropriate, in order to help in achieving the desired results. Halachmi (2005) asserts that in order to advance performance there is a need to manage performance rather than simply measure any given aspect of it across the board. Management of performance can mean in some cases measurement of effectiveness and efficiency, in others it may mean management of important stakeholders or the organizational relations with them. In other cases, management of organizational culture and motivation may be the key to improve performance. Hence, an integrated framework incorporating different aspects of organizational functioning and their performance assessment needs to be developed. At the individual level, integration of individual behavior into performance appraisal system along with performance metrics measurement would be an excellent approach. This can be done in the form of expected behavioral competencies versus displayed behavior. Expected behavioral competencies should be aligned with the organizational values. Behavioral competencies that can be included in the performance management system could include team working, innovation initiatives, helping other team members, contribution to the training and development of other team members, sharing best practices, vigilance towards potential work-related and other risks, leadership behavior etc. The major challenge in this integration would be measurement of these competencies. Measurement of subjective behavior is highly difficult; yet, without measurement, it would be difficult to assess their performance in the appraisal. For this, assigning metrics or targets for individual competencies would not be possible. Hence, behavior displayed for each competency can be documented along with the outcome of the behavior. Negative outcome or behavior should be documented along with feedback. Based on total number of positive competencies displayed and positive outcomes, individuals can be categorized as excellent, average or poor. This rating can be then clubbed with other performance rating. Consequently, the individual will have two performance appraisal ratings, one for competencies and the other for performance metrics. A second step or an addendum to performance management would be to include a component of behavior into rewards and recognition system. This means individuals that display outstanding contribution towards any of the organizational-values-related competencies/behaviors should be recognized through formal rewards on a periodic basis. These rewards should be team-based and individual rewards in order to promote team work as well as individual contribution. By rewarding and recognizing the right behavior, managers can guide their team members towards accomplishment of strategic goals more effectively and efficiently. It is important to ensure the managers are rewarding the right behaviors that are contingent with organizational values; and not behavior based on managers’ bias (Rhoad, 2008). A third initiative towards comprehensive performance management should be to promote desirable employee competencies and behavior through promotion process. This means consideration for promotions should include performance appraisal ratings besides interview and feedback from their supervisors. Though employee performance is directly linked with promotions, not measuring employee competencies will not ensure right candidates are being promoted to higher roles. For this, team members that have scored ‘excellent’ on their competencies should be considered for promotion even though their performance with respect to productivity and other metrics have been excellent. Team members that are promoted to leadership roles would require more and efficient leadership competencies besides process knowledge. Core leadership competencies include decision making, planning and organizing, communication, team work and collaboration, conflict management, coaching and mentoring, innovation and creativity (Bohm & Mosavi, 2010). Judgment of employees on key organizational value competencies will give better idea to the senior management about the promotion candidate. Moreover, evaluation based on competencies will give better idea about the candidate’s leadership qualities. Benefits of this approach: By including assessment of individual competencies in the performance appraisal system, organizations can inculcate its value system into the value system related to work and culture. Secondly, it will encourage innovation and commitment to innovation from the team members. They will be more committed to putting in extra efforts to achieve beyond their routine tasks. This process will enhance employee morale and motivation to perform better and give extra contribution. For the front line staff members who are less experienced, this process will give them clarity of organization’s expectations. Moreover, competencies such as team work, innovation, training and development etc directly enhance team performance. By recognizing these competencies, leaders can identify potential leadership qualities in their subordinates. Further, leaders can focus on development of individuals that are interested in taking up greater leadership roles within the organization. By doing so, leaders can ensure they are choosing the right people for the job. From the individual perspective, enhanced motivation and commitment will certainly improve their performance. This performance will directly impact customer satisfaction as well as employee job satisfaction. Besides, individuals get an opportunity to use their strengths in different ways within the work sphere without any apprehensions about lack of recognition and fruitless efforts. This will also help in self development and continuous learning. Individuals will start exploring new methods of performing different activities, which reduces monotony. Organizational behavior and culture are influenced by individual behavior and vice versa. However, to make this happen, effective measures should be implemented through organizational systems, vision, and culture. By aligning performance management with organizational values, organizational culture can be promoted. By incorporating component of behavior in performance management through performance appraisals, rewards and recognition and even promotions, organizations can promote right behavior among employees that would in turn benefit the organization. The organizational values and culture encourage innovation, participative leadership, team working, learning and development, and therefore, this method would be a great tool to implement these through organizational systems. Overall, this will help in enhancing organizational performance. References Bohm, A and Mosavi, M. 2010. The core leadership competencies. GRIN Verlag: Germany. Rhoad, T. 2008. Blitz the ladder: A team-based approach to getting ahead in business. Happy About Press: California. (pp: 105-114) Halachmi, A. 2005. Performance measurement and performance management. Emerald Group Publishing. International Journal of Productivity and Performance Management. 54(7): 502-516 Read More