How the Organisation Can Effectively Manage Staff Performance - Research Paper Example

How the organisation can effectively manage staff performance Place Introduction Every business defines its main purpose in receiving profitability by offering others their products and services. However, it is impossible to reach the success and thus prosperity without the employee’s contribution. Poor performance is a serious obstacle of the organization success, while good planned and managed work of each employee will definitely bring the company success. In order to create a well-rounded approach in managing and coaching one’s workforce, it is essential for the company to establish the expertise of a human resources that are aimed to support companys activities by hiring the appropriate people for the right positions, developing them and promote to retain as much talents as possible within certain organization. The process of building the excellent workforce, beginning with the employees job description, new hire orientation and initial discussions and ending personal development plan, is performed by the human resource management, a function that facilitates the most effective use of people to achieve company’s goals and objectives (Mayhew, n.d.). The human resources management is important for each organization as it manages the recruitment of employees and interviewing of the prospective candidate. When the employees join the new team, the HRM tracks their training and development needs, constantly training the skills and developing capabilities of the staff members. The HRM tracks the employees’ achievements and by means of human resource manager makes sure that the appraisals were handed out to the most talented employees of the certain company. The process when employee decided to leave the company is also managed by the human resources, because it enables the company to be aware of the needs and the problems that the employee faced within the organization and evaluate the performance of the company, improving it if necessary. The role of HRM is great for every organization, as it enable the management of the company to evaluate the level of satisfaction of the personnel, improve the organizational performance and thus enhance productivity of its employees. It also facilitates in creating talented workforce, then attracts and retains the best employees. Moreover, HRM helps the business and its staff to understand the perspectives of the activities they conduct, it supports in training people for challenging roles, develops right attitudes regarding a certain job position and promote work spirit among employees by recognizing their accomplishments and achievements (Foot & Hook, 2011). Nature and context of human resource management Over the last years, the general picture on the average employee’s role within the company has changed greatly. For years, organizations were trying to enhance their productivity by pushing employees harder and even made it obligatory to work longer with the less payment. However, in the recent years, when different psychological experiments and investigations unveiled the gaps in such work environment, there appeared the need to revise the old visions as to the workforce and thus create a positive work environment by investing in human capital. It enabled many organizations to create long-term success for their businesses and retain employees for a longer period. Because of the short-term gains were made to cut employee benefits and increase demands from employees, businesses seriously suffered, as their long-term goals were devastating (Storey, 2007). It has been estimated, investing in a healthy and positive work environment for employees ensures their company to maximize the benefit and results (Bart, 2001). Creating a positive workplace culture requires changes to the daily routines of all the organization. Managers are required to express empathy for the staff and provide positive feedback and coaching sessions for employees’ improvement. Such steps will give confidence to employees ensuring that their job is done well and work was noticeable by the management and team. For human resources personnel such positive work environment culture gives the opportunity to communicate with managers and employees and understand their needs and problems, and also to improve and diminish gaps in the business environment (Torrington, Hall, Taylor & Atkinson 2014). Accomplishments and contributions that employees perform give the human resources possibility to praise the most notable employees, give feedbacks on their work and thus discover new resources for ideas and innovation (Thompson, 2012). Speaking about the concrete organization, it is important to mention the Swiss company Nestlé that is the world’s leading Food Company with its long history in creating the best food for people. The company states that its main assets are not the numerous office buildings or factories, but the nationalities, religions and ethnic groups who consume Nestlé’s products and services. With its employees to work together, the company unites its all activities into a single corporate culture (The Nestlé People Development Review, n.d.). The company sees its important part of the business in the strategy and culture that enables to develop human capacity. In order to ensure Nestlé to attract the most talented people, staff to work effectively and be able to retain good employees, the company contributes actively to the quality of HRM by proposing policies and their constant application and implementation for all the members of Nestlé community. In the person of company, the HR managers advise and offer solutions that bring positive impact of the organization’s efficiency. While the HR manager proposes best practices for colleagues, this partnership is the main objective in people management. Each HR manager in the company is supported by the HR management that enables to communicate properly and clearly with every staff member and takes into account every professional performance and every specific responsibility. HRM assists in implementing of planning tools, paying attention to the necessary flexibility of unforeseen situations. However, each manager should understand that one is responsible for preparing the employees to further development, because it is a part of one’s accountability. Since the company is more about people and product, it is oriented on the way HR performs its functions. Strategic human resource management Human Resource Management is guided by the the concepts and practices that align its philosophy, planning and practice with the strategic and long term objectives of the certain business. It is focused on the human capital and deals with the macri factors of the organization such as structure, culture and values, commitment and long term issues. Strategic HRM guides managers how to build the basis of strategic advantage by developing the effective organizational structure and culture, proposes employees values and system of thinking, uses appropriate communication strategies in order to prepare the company for changes. Strategic HRM pays attention the code of ethics that certain company possesses, manages the societal influences that affect the business decisions. It also manages the role of HR professional in developing the quality work environment for the employees and enable to balance the work with personal life and community in general (Strategic-HRM, 2014). Nestlé’s business practices are managed by the principles of integrity, honesty, fair dealing and full compliance with the laws. The employees are taught by this commitment and perform their everyday responsibilities with such knowledge. That is how Nestlé’s reputation remains one of the Company’s most essential assets nowadays. Employees are always directed by such principles as to avoid any conduct that may harm Nestlé’s reputation. They should act legally and honestly regarding company and other employees. The strategic human resource management for Nestlé assists the HR managers to meet the needs of their employees and thus achieve company goals and objectives. The proactive management enables organizations to think ahead and act properly if necessary, it also enable management to plan the ways for the company to be able to meet the needs of its each employee. Strategic HRM affects the way businesses conduct their activities and enables them to improve the HR processes, starting from hiring of employees and developing programs for staff assessment (Millmore, 2007). For Nestlé the creation of HR plan is guided by employees’ need in the development and trainings. This is an important aspect of strategic human resource management, because it brings benefit not only to the personal and professional development of a certain employees, but also to the level of one’s commitment toward the company and thus the company itself. Thus, Nestlé offers its employees development programs that give the possibility to obtain basic education or opportunity to upgrade one’s essential skills. Along with these training, there is also the Apprenticeship program that has been important part of Nestlé training since the foundation of the company (The Nestle People Development Review, n.d). Design and flexibility With the rapid development of modern technologies and growing competitiveness among the companies, a critical success factor for businesses today is the ability to adapt their structures and processes to new and existing markets’ needs. Here the essential component of strategic competitive advantage is the organization design. Such components as strategy, culture, structure and execution or the management practices help businesses to achieve sustainability in their outcomes. Companies that sustained at the market have a considerable advantage over time and similar organizations. This was succeeded by using specific ways of managing these practices. When speaking about the structure, the most important for the organizations is the eliminating of bureaucracy, simplifying the environment for employees to work easier, promoting collaboration and exchanging of ideas and information, involving the best talents and establishing those systems that help to share knowledge. There is a common agreement between the CEOs that their main strategy is the organization that enabled to sustain in time and became adaptable to the business environment (McGee, Molloy, 2003). For Nestlé the advantages of its structure are in the ability to react quickly to the new market conditions. Thus, in 1999 in India there was formulated the new recipe that met the needs of the local environment. The company tailors its products according to each regional market it operates in. Its products respond all the legislation requirements of the country it is sold. Being one of the biggest producers of food, it is impossible to conduct such business without proper standardization of practices and products. There is also a good coordination between different divisions that bring more efficiency to the company. Nestlé is also able to launch certain products by using the expert reports of other countries (Management, n.d.). However, the company’s structure is far from perfect and the high administrative cost is the first evidence of it. Besides, lack of effective communication, for example, in Nestle America caused the selling of the same product for different prices. Workforce planning Large corporations use talent forecasting tools in their human resource planning. They want to be sure in the efficient workforce planning and thus workforce management, that is why they create the right recruiting and workforce training strategies in order to get the talent in place for business success (SHRM – AARP Strategic Workforce Planning, 2012). Traditionally, the workforce planning is a burdensome process for many companies and since methodology for finding the right candidates is rapidly changing, the organizations should adapt their business needs as well and use new tools and technology in searching employees. For example, to engage senior executives in workforce planning, the HR managers should focus on understanding the strategic business plan and its broad meaning so to employ the right person for the right position. By establishing compliant and, organization-wide data, the companies create the prerequisite to winning executives’ confidence. Organizations make the process and tools simple and efficient, they develop HR’s capabilities and comfort level, they establish a common language to describe jobs and competencies that are required for them and they also integrate the workforce planning with budget planning. Strategic workforce planning gives the businesses opportunity to separate its workforce data to unveil critical issues, compare different groups and understand trends of the workforce, such as experienced workers and top performers (Strategic Workforce Planning-A New Way to Boost Productivity, 2010). In order to expand the employment and training programs ahead, Nestlé recruited twenty thousand young people across Europe in 2013 (Revill, 2013). The company have also created ten thousand positions for trainees, offering them permanent jobs. Such huge reinforcement of the workforce was called by the data obtained by Nestlé that stated that by year 2024, there will be about ninety- three thousand employees in the retirement due to the baby boomers leave. This called for a certain concern in the company’s management and the organization decided to replace these specialists with the other people now. The other companies are also concerned with such future situation and are already thinking over how to deal with the problem. Recruitment and Selection With the changes in the modern businesses, the processes of recruitment and selection of the right candidate have considerably changed. There is a direct connection between how the companies recruit and select people and their ability to hire and the retain employees. The more companies pay attention to the solid and effective recruiting and selection processes, the more chances they have to hire the right person that would best fit to certain position and organization. These two processes are affected by the size of business. It is stated that the smaller the company, the more likely these processes are done by the hiring manager only. However, with the growth of unemployed population and constant turnover make human resources departments to recruit and hire people all the time, making the process of choosing the right candidate complicated. That company with an efficient recruiting and selection processes is able to retain employees through excellent employee management processes. Such retaining decreases company’s turnover and the need to recruit and hire new employees over and over again. The quality of company’s productivity is improved it hire and retain the best employees. Besides, from the financial point of view, it improves the company’s well0- being, because best people are identified, they are offered a job, they are well trained and retained. Besides, when the company has a strong reputation, it plays at its hand for attracting new employees and the whole process of recruitment becomes easier for all (Mondy & Mondy, 2014). The Nestlé Company is well known organization with many divisions around the world. It is an honor for its employees to be the part of such global business. Notwithstanding the fact that the recruitment and selection processes last sometimes long, the chosen employees are able to share the values with the company and may expect for the long term collaboration. Recommendations In order to increase the positive workplace psychology within Nestlé Company, it is vital to ensure managers to be trained to be empathetic. This peculiarity will enable HR managers to understand their employees’ positions and maintain a managerial behavior at the same time. Work in order to maintain open communication will let HR managers to be tolerate and be able to listen to employees’ suggestions. There are also certain suggestions to the present structure of Nestlé. Certain modifications, such as environmental and social responsibility should be under the governance at divisional level. Besides the company should start a separate training division to achieve the higher level of cross-cultural competency. Purchasing decisions should be centralized which will help in cost effectiveness and standardization. References Bart , C., 2001. Measuring the mission effect in human-intellectual capital, Journal of Intellectual Capital, Vol. 2 No. 3, Available from http://corporatemissionsinc.com/app/webroot/files/15.pdf Dickens, L. 2012, Making Employment Rights Effective: Issues of Enforcement and Compliance, Bloomsbury Publishing Foot, M. and Hook, C. 2011, Introducing Human Resource Management, 6th Edition. Harlow: FT/Prentice Hall Management, n.d., The Nestle official web site, Available from http://www.nestle.com/aboutus/management Mayhew, R. n.d., Importance of Employee Performance in Business Organizations, The Houston Chronicle, Available from http://smallbusiness.chron.com/importance-employee-performance-business-organizations-1967.html McGee, C. & Molloy, K. 2003, Getting Results Through Organization Design, Creating High Performance Organizations, Available from http://www.grovewell.com/pub-org-design.pdf Millmore, M. 2007, Strategic Human Resource Management: Contemporary Issues, Pearson Education Mondy, R, W. & Mondy, J, B. 2014, Human Resource Management- Global Edition, 13th edition, Pearson Revill, J. 2013, Faced With Graying Workforce, Nestlé to Start Major Recruitment Drive, The Wall Street Journal, Available from http://online.wsj.com/articles/SB10001424052702303559504579195853629905432 SHRM – AARP Strategic Workforce Planning, 2012, Society for Human Resource Management, Available from http://www.shrm.org/research/surveyfindings/articles/pages/strategicworkforceplanning.aspx Strategic-HRM, 2014, Society for Human Resource Management, Available from http://www.shrm.org/india/hr-topics-and-strategy/strategic-hrm/pages/default.aspx Strategic Workforce Planning-A New Way to Boost Productivity, 2010, The American Management Association, Available form http://www.amanet.org/training/articles/Strategic-Workforce-Planning-A-New-Way-to-Boost-Productivity.aspx Storey J ed. 2007, Human Resource Management, A critical text, 3rd edition, Thomson Learning Thompson, A. 2012, The Evolving Nature of Human Resource Management and the Shift Toward Positive Psychology, The Employer Branding Today, Available from http://www.employerbrandingtoday.com/blog/2012/08/08/the-evolving-nature-of-human-resource-management-and-the-shift-toward-positive-psychology/ Torrington D, Hall L, Taylor S & Atkinson C. 2014, Human Resource Management, 8th edition, Harlow: FT Prentice Hall The Nestle People Development Review, n.d. Nestle official web site, Available from http://www.nestle.com/asset-library/documents/library/documents/people/people-development-review-en.pdf Read More