Human Resource Management, Performance Management - Assignment Example

HUMAN RESOURCE MANAGEMENT Performance Management Introduction Now a day’s organizations are showing a great degree of pledge towards supporting of the reward practices which comes with different Human Resource practices and the objectives of the organization for retaining, attracting, and also motivating the employees. Effective reward practices assists in attracting the outcomes driven by the professionals who can succeed and thrive in environments reliant of performance. Therefore, it is a vital motivator and may lead towards productivity enhancement of employees if applied perfectly. An efficient reward system is linked with system of performance development, which relies on the performance related pay and also offers sufficient role in encouraging the performance of teams, groups, and individuals. Variable pay also plays an important part in boosting performance basically of star performers rather than fixed pay packages. Not many award practices may take the shape of bonuses, gain sharing, team based motivation, ESOP’s, profit sharing, and also equity based incentive rewards. 1 An effective management of award system may be advantageous for the performance of employees in many ways. First of all it will instill an ownership sense amongst all the employees and may also give long term focus with continual enhancement, lessens service operating costs, highlights team work, and reduces the dissatisfaction among employees and improved employee interest in company’s financial position. Only some organizations award their employees for achieving new skills which may adjoin value to the performance of employees and therefore facilitate the process of cross training, job rotation, and self managed work teams. Some organizations also recognize the additional performance by giving recognition rewards and also huge merit rewards for the employee commitment and achieving long term advantageous outcomes.2 Performance management is a systematic process through which any organization involves its people as individuals and also as members of group, in enhancing the effectiveness of organization in achievement of the firm’s goals and mission. The performance of employee management includes consistently monitoring the performance, planning setting and work expectations, developing performance capacity, and also occasionally rating the performance in a summary fashion. It also considers rewards for good performance. In 1955, there were revisions made by the Government for performance appraisal and also for rewards regulations to bolster the sound management principles. A lot of care was taken to make sure that the requirements these regulations would establish would not be part of and would not counter with the types of activities and also actions which are practiced in efficient and effective organizations as a matter of concern.3 The performance management refers to activities which make sure that objectives are continually met in an efficient and effective manner. It focuses on organizational performance, performance of an employee and a department, or even the procedures to build a service or product, and also many areas. It is also a procedure through which firms align the resources, employees, and systems to strategic priorities and objectives. 4 Main Body Performance management has many benefits for the organization such as direct financial gain in which costs are reduced in a firm, it grows the sales, and halts the overruns of a project, brings together the organization as per the objectives laid down by CEO, and diminishes the time that operational or strategic changes require by communicating these alterations via a novel set of goals. It also improves the management control by giving response to management needs, and assists in audit and is also in compliance with the legislative needs. 5 In an efficient organization, advance planning of work is done. Planning refers to setting the expectations for performance and also objectives for individuals and groups to channel their hard work towards accomplishing the organizational goals and objectives. To keep employees involved in the process of planning will assist them to understand the objectives and aims of the organization, what needs to be carried out, why it needs to get carried out, and how should it be well done. The requirements for regulatory purposes for planning the performance of employees also include the establishment of standards and elements of the performance appraisal plans for employees. The standards and elements of performance should be understandable, measurable, equitable, verifiable, and accomplishable. Via critical elements, employees in an organization are held responsible as individuals for their responsibilities and work assignments. The plans for employee performance should be flexible as they can get adjusted for the moderating course of program goals and also for changing requirements of work. When effectively used, these plans are essentially useful in working documents, and not just mere paperwork what is usually filed in a drawer and only seen when records are required.6 Effective organizations monitor their projects and assignments with consistency. Good monitoring means continually measuring the performance and giving ongoing feedback to work groups and employees on their development towards realizing their goals. The requirements for regulatory agencies for monitoring the performance include the conducting progress with reviews for employees. Here the performance is evaluated against certain standards and elements. Continual monitoring gives the opportunity to check on how nicely the employees are meeting the pre determined elements and standards and to make alterations to unrealistic or difficult standards. By monitoring with consistency, undesirable performance is easily identified at any given time and subsequently appraisal period starts and help is provided to ascertain the performance rather to wait till the period ends and rating levels are designated. 7 Effective organizations need employee development programs as these programs should be addressed and evaluated. Developing in this example refers to enhancing the capability to perform via training, by giving assignments that come up with new skills or higher levels of accountability, or other different methods. Giving employees training and development opportunities encourages proven nice performance, reinforces job-related activities, and abilities, and assists employees to keep up with the moderations of workplace, as introduction of innovative new technology. To carry out the performance management process gives an excellent chance to identify the development needs of employees. During the monitoring and planning of work, deficiencies in the performance become obvious and can be considered. Areas for enhancing good performance also clearly stands out and prescribed action can be taken to assist the successful employees to enhance further.8 Rating is carried out in an organization from specific time to time. It assists in summarizing the performance of employees. This is very useful in looking and comparing the performance over time and among many employees. Organizations must know who their excellent performers are. As far as formal performance is concerned, rating refers to evaluating the employees as individuals or group of employees against the standards and elements in the performance plan of employees and then by conveying a summary record rating. The rating of record is then given to employees according to the processes present in the appraisal program of an organization. It relies on the work which is performed in the whole appraisal period. The rating of record has a manner on many other personnel actions, as in compromising within the grade pay increases and influencing the additional maintenance service credit with a less force. Even thought the performance of group has an impact on the employee summary rating, but a rating of record is given to an individual employee and not a group of employees.9 Effective organizations reward their employees. Rewarding refers to recognizing the efforts of employees, both individually and also as group members. For performance and also to recognize the contributions employees have made in accomplishing the mission of agency. A basic aim of effective management is behavioral control by the use of consequences and outcomes. The outcomes and results can be formal and also informal and also optimistic and pessimistic. Good performance is known for not waiting for formal awards to be given. Realizing the potential of employees and recognizing them is a continuous process, which is daily experience of organization. Good performance does not necessarily need regulatory autonomy. Nevertheless, rewards regulations give a huge range of forms that take on formal rewards such as time off, cash, and non monetary reforms. The regulations also need a variety of these contributions that can be awarded, from good suggestions to achievements by groups. 10 Let’s look at performance management from the three models of HRM. These are Control-based model, Resource based Model and Integrative Models. Control-based model is based on management to control and monitor the performance of employee. The resource based model is based on employer-employee relationship and exchange, and also in change of their behaviors and attitudes in quality of manager in the subordinate relationship. Integrative Model combines the qualities of both resource based model and control based models.11 The first approach to Human Resource Management Model is dependent on nature of the work place control and also more precisely on the behavior of manager to monitor and direct the performance of employee and their role in the organization. In alliance to this perspective, the HR strategy and management structures are the techniques and instruments to carry out all the work aspects to safeguard the high level of productivity of labor and subsequently profitability level. This emphasis on controlling and monitoring the behavior of employee is on the basis of differentiating the HR strategies. The beginning of this framework is the analysis done by Marx on capitalist labor process and is known as change of labor power into the labor work. In simple terms, at the time of recruitment organizations have a capacity or potential to work. To make sure that each worker exercises her or his full capability, managers must take into consideration the space, tasks, time, and movement when the workers function. 12 However the workers have different interests in time of work pace, job security, and rewards, and also keep in trade unions (formal) and the restrictions of disruption or output (informal) behaviors to offset the management job controls. The counter management of the behavior which calls for the managers to discipline and control the organization’s interior. The substitute of the HR strategies has held the managers to provide the employees with predictable and measurable behavior. The early system of individual control by the employers ruling over the direct autonomy was reinstated by an intricate structural control forms such as bureaucratic control and the technical control.13 The second approach to HR strategy is based on reward-effort exchange system on the nature of it and the degree which implies the view of managers on human resource management and an asset as compared to the variable cost. High performance via workers is also underscored when the technological advancement and other issues are available to most firms. This sum of people’s expertise and knowledge and also social relationships has the potential to give non-alternative capacities that are a basis of competitive advantage. The different perspectives are part of competitive advantage. This ‘mobilization’ of the consent of employees via strategies learning and competitive advantage is vital for any firm. The workplace learning is also important and this model must be examined in detail. The organizations performing on resource-based models have differentiated that enables them to take over their competitors. 14 The continued competitive advantage with the added emphasis is accomplished not via external market analysis of the firm but also via meticulous capabilities and skills analysis by which such characteristics are enhanced that competitors mostly copy. The SWOT analysis is based on exploiting the strengths internally and also neutralizing the weaknesses posed internally. The resource-based approach also exploits the differentiated competencies of work organization and is divided into tangible (technological, physical, human, and financial) and also intangible resources (reputation, brand-name, and know-how) resources. These competencies must be valuable and unique. By capacities, we mean the collective skills by the firm to organize the coordination of resources and also the comprehension which drives a distinctive competency. 15 The integrative model combines the Control-based model and Resource-based Model into an integrative model. One model concentrates on the strategy relying on the managerial control and the other one on efforts for rewards and exchange. This model argues that none of these dichotomous approaches, either the resource-based model or control based gives a framework which will be able to include the flow and ebb of direction and intensity of this HR strategy which builds a model that takes into account the two dimensions of this strategy including the development and acquisition and also locus of control. 16 The development and acquisition are concerned with the area in which HR strategy takes into account the internal human capital as compared to the external recruitment of this human capital. Similarly, the organizations can also think about making huge investments in the process of training or towards buying their workers from the labor market externally. This is called market or buys area of the HR strategy. The locus of control deals with degree upon which the HR strategy emphasizes on by monitoring the employees conformity with the standards relied on process as an alternative to creating a psychological contract that builds the social relationships, also heartens the mutual trust and also respect, and controls this focus on the ends (outcomes) themselves. This area of thinking can be dated back to Walton (1987) ideas that made a clear division between control strategies and commitment. 17 Conclusion Effective organizations make sure that both their employees and managers practice good performance in the organization. This is done by performance management obviously all their livelihood, carrying out each and every key element in the procedure too. Goals are set for the organization and routine work is planned. Progress towards these objectives is measured continually and employees receive daily feedback. High standards are set for the employees but care has to be taken in developing the skills to reach all of these goals. The formal and informal awards recognize the results and behavior that achieve the mission. All the components of performance management also work together and bolster each other to accomplish effective, natural performance management. 18 Awards are an important source of motivation for employees but only if it is given under right circumstances. Hardly any strategies which enhance the effectiveness of these awards are linking performance with rewards, implementing the team rewards for mutually independent jobs, making sure that awards are relevant, checking for inappropriate consequences of the administration of any award practice, and also making sure that these rewards are noticed by employees. In addition to the monetary rewards, the modern employees also need non monetary incentives which can come in shape of better career opportunities, recognition, and also in development of skills programs. Many project based organizations and IT firms give a lot of importance to the non-monetary awards for maximizing the satisfaction of employees. 19 Bibliography BRATTON, JOHN. Strategic human resource management. Retrieved on January 14, 2012 from: http://management-class.co.uk/human_resource_centre/bgcha02.pdf DÁVILA, A., EPSTEIN, M. J., & MANZONI, J. F. (2012). Performance measurement and management control: global issues. Bingley, UK, Emerald. LUCIA, A. D., & LEPSINGER, R. (1999). The art and science of competency models: pinpointing critical success factors in organizations. San Francisco, Calif, Jossey-Bass/Pfeiffer. SHIELDS, J. (2007). Managing employee performance and reward: concepts, practices, strategies. Cambridge, Cambridge University Press. U.S OFFICE OF PERSONNEL MANAGEMENT. 1900 E Street, NW, Washington, DC 20415 | (202) 606-1800 | TTY (202) 606-2532. OverView. Retrieved on January 14, 2013 from:http://www.opm.gov/perform/overview.asp Read More