Improving Organisational Performance - Essay Example

? Improving Organizational Performance Task: Improving Organizational Performance Introduction Overall Purpose of Assignment Contemporarily, numerous affiliations find themselves with augmented competencies from the external and the interior business world. These challenges that are overtly competitive include rampant technological advancements, augmented emphasis on the increase of innovation and changes in the organization, high demand for effective clientele service and better quality, globalization concerns and the inherent risk of management of a diversely inclined workforce. Hence, affiliations ought to, abruptly, inculcate the transformation of the entire HR activities into more appealing HPW systems rather than lag in the same old HR system. These upgrading results into a potential competitive benefit meeting most challenges associated to low performance systems. It also augments the level of workforce performance and involvement in the welfare of the organization’s performance. In reference to (Datta, Guthrie & Wright 2005), affiliations that embrace the application of HPW systems or rather upgraded HR practices that respect and encourage workforce performance, motivation and competencies experience augmented labor output and overall affiliation performance outcome. For success to be evident, affiliations ought to differentiate via service distinction, as they drive the content of their work systems: with the business strategies of the organization considered. (Liao, Topak, Lepak & Hong 2009 p.372) emphasized that the strategically directed approaches suggests that for the given argument to be effectively evident, affiliation work systems and structures ought to establish a horizontal fit within HR practices. This is in such a way that these practices match and complement well, achieving a resultant vertical fit, to align the affiliation strategies with the work systems. HPW systems are a comprehensive fusion of HR activities inclusive of compensation policy, participation of the workforce, and raining to drive in skills. These working systems augur perfectly with the affiliation work structures and occurrences meant to augment, by a vast scale, the resultant competencies, adaptability, flexibility and commitment of workforces(Bohlander & Snell 2010). Additionally, the working systems focus primarily on systemizing and synchronizing the various sections of the affiliation to aid it achieve its goals and objectives within a specified time. In the entire study, I shall critically explore and discuss the HPW systems in Coca-cola and Renault companies. Coca-Cola Company Introduction In Coca-Cola, performance management entails yearly appraisal of workforces’ job performance and the processes of communicating working expectations, providing respective feedback on work performance on a recurrent basis that inculcates en-year rating. Through this rating practice, the affiliation is able to promote, compensate and make other employment decisions. Contemporarily, Coca-Cola has substantially implemented a consummately ingenious Pm system for the corporate workforces in the review cycle for 2002. For instance, the company has inculcated a unique performance management system for the US workforces whose aim is to ensure a fairly documented work performance assessment that is based on work related measurements. Instantly, the system requires a worker to meet their manager at the start of every new cycle to define their performance objectives. This aids the company to have complete control over their workforces’ performance behaviors. Renault Company Introduction Renault is an automobile company that has a distinct declaration to respect workforces’ basic rights and helping them to progress in their working environment through application of ingenious performance management practices. In order to cultivate a spirit of honesty and complete transparency, Renault has established a good conduct code that guides its workforces to ensure that they deliver their best in terms of work output, committing the entire affiliation to behave responsibly. Renault dedicates most of its resources towards performance management as it is pertinent to business and profitability. Renault has a group management system and a social policy that aids them in bringing their workforces closer and offering them standard training. They also have a system for awarding exemplary performance (Renault 2012). Business Case Why PM/HPW is important (Generally) Efficient performance management is pertinent to an affiliation’s affluence. To support this point, it is clear that competitive and ingenious PW results into the workforce unity, which means that they realize that they ought to be working towards similar objectives and goals. Managerial figures in affiliations that possess beneficial PM capabilities help the workforces take their roles seriously. A keen observation of the quality of an organization performance output gives performance managers an opportunity to evaluate and generate a respective report that they use to eradicate potential weaknesses. Through this activity, the organization is able to defeat its drawbacks gradually. PM gives industrious workforces off-time and bonuses due to their dedication and relentless efforts. This helps affiliations appreciate exemplary performance and challenge the others. Why Organizations Need to Consider this Area (Benefits) Affiliations, thus, need to observe effective performance management as it forms a valid basis for performance evaluation and a credible reason to reward hard-working employees in the organization. Additionally, it communicates and constantly reminds the workforce of the organization’s value, purpose and vision. Affiliations, also, need to observe performance management, since; it defines the tenets of operation and what the workforce ought to deliver as the outcome. In addition, it provides a basis for devising individual development and enforcing development plans. Similarly, it encourages the workforces to converse on problematic areas and give feedback on the enhancements that should ensue to counteract the respective drawbacks. Moreover, performance management aids the affiliation in appreciating achievement, motivating and enhancing engagement to work. High Competition in Business Sector Effective performance management in affiliations elicits favorable results, as expected. ‘Use of strategy in operations gives all workforces of the affiliation towards a common purpose and goal. Alignment to core goals in different business elicits the characteristic competition among businesses. Secondly, emphasis on quality in the company output additionally aids in giving the workforces a definite inclination towards giving quality services and products, hence immense competition when numerous businesses take these initiatives. Additionally, emphasis on technological advancements in the diverse work fields, also, upgrades the working environment and eases working procedures, eliciting eventual augmented competition among affiliations in the business world. Also, an increased research and development initiative by the affiliation management elicits a better working environment and awareness among the expert workers who play a key role in producing appealing output. Highly Skilled (Specialist Staff) Performance management requires the PM Managers to follow up their workforces, monitoring their performance in every way, to ensure that their qualifications meet their output for the betterment of the company. They ensure that the equipment required in the working processes is utilized correctly and expertly. This induces a strict working environment where every workforce should be overtly careful and observant of their working quality. Training is pertinent in any affiliation. PM ensures that every workforce receives quality training as they exhaust their skills. This is a major practice inn PM that plays a core role to ensure profitability in business. Recent Organizational Change Organizational change is an additional concern that most performance managers value. This is not any kind of change but a change inclined towards increasing profitability through activities that make the business organization fairer and more accepted and appreciated by the entire workforce. The promotion of new departmental heads and appointment of newer workforces to head the various departments may elicit favorable or unfavorable response by the workers. The [managers have numerous skills at their disposal, ensuring the contentment of all workforces and addressing major concerns related to the recent change in the organization of work patterns and allocation. Efficient PM, therefore, aims at realizing profitability for the business and comfort for the workforces, with organization change being a pertinent action. Challenges Analysis of Key ‘Challenges to HPW/PM in Coca-cola Company (Weaknesses) Evaluation of Performance Implementation of effective PM systems poses great challenges that are neither insurmountable nor easy to solve. The areas that these challenges affect, therefore, require immense attention and work lest the systems fall. First, evaluation of performance in various dimensions or rather competencies is one of the most hard aspects of PM. Apparently, workforces tend to be reluctant when addressing and delivering feedback on their and others’ behaviors and work patterns. This is due to more subjectivity and less quantifiable nature than objectives. Keeping Leaders Focused Keeping leaders alert becomes a challenging concern to deal with. Due to the hectic nature of leadership associated with disappointments from their subjects and tiredness due to the heavy responsibilities that come parallel with it causes some key leaders to collapse and give up leading effectively. This is a major challenge as the PM personnel ought to struggle to convince all leaders in an affiliation frequently and keep their hope alive. Financial Limitations Additionally, limitations in the financial systems results in the management not being able to meet major needs, in terms of performance management. Apparently, most of the funds are not in a budget, in operational analysis. Additionally, the financial systems do not usually have the ability to sort data for the support of performance reports in numerous affiliations. Thus, lack of allocation of funds to performance management practices poses core challenge to PM systems. Organizational Fears Most of the departments and agencies, which are part of an affiliation, can be rather apprehensive regarding implementation and endorsement of characteristic performance management systems. These fears emanate from the determination of how these results could be interpreted and implemented. Additionally, the departments may be fearful about what picture of their practices the results may induce to the entire affiliation. Looking Up To Software as the Solution In numerous cases most organizational departments may rely excessively on software utilization as a condition to enhance performance management. This is irrespective of the fact that the software programs never change behavioral patterns. In addition, the software developed for the private sector has transitioned, in recent times, to aid in government requirements. Irregular Review and Utilization In case data is not used for making decisions, it reduces value to the affiliation and does not aid the organization to better its various sectors and weaknesses. This results into the eventual questioning of the reason as to why it is collected and further reported. When agencies fail to develop policies on the utilization of performance results for fiscal and operational decision making, it results in failure and wastage of time and resources. Ways in which Approaches Might be Improved To improve on the approaches involved in the betterment of performance management, the affiliation ought to consider hiring of skilled, committed and innovative workforces who can deliver their best potential, allocation of time and resources in training them to perfection, allocation of funds in the organization’s budget for operational analysis costs and regular review and utilization of data and reports. Analysis of Key ‘Challenges to HPW/PM in Renault Company (Weaknesses) Elected Official Fears The elected officials in the affiliation may get a hard time understanding how the performance data may be interpreted or analyzed by the general public. These fears are cumulative and pose a major threat to performance output on the part of these officials and extend to failure to meet expectations by the public. Fear that performance reports may affect political viewpoints regarding the organization poses a core drawback to collection of performance reports and further utilization. Performance management is too hard Performance management can pose as an extremely daunting and overwhelming endeavor for most personnel in the affiliation. The concerned, therefore, perceive it as a complex practice that requires extra capabilities and time-consuming. With the available resource constraints induced by the culture of the organization, it results in laming of support and implementation. Strategic Process Planning Overload Apparently, performance management practices have varied contemporarily, towards planning and process from the common inclination to results and performance. Due to this factor, most managers believe that this process sis not worthwhile: terming it insignificant and not impacting on organizational success. This overload elicits dissatisfaction and disapproval to the PM systems. False Perceptions and Undermining PM Contemporarily, PM has shifted over time, causing managers to assume its importance in business and job performance management. Thais results din less interest and dedication to invest in performance management by most affiliations, purporting that it is not integral in the job and performance enhancements. Diminishing of energy and time to perform this activity leaves the affiliation tumbling eventually. Inappropriate Management Inappropriate management is yet an additional issue affecting performance management. In contemporary times, most managers concerned with performance management do not spend quality time, resources and energy towards ensuring effective job performance. Assuming that the affiliation workforces have adjusted to favorable job performance practices over time leaves a loophole when they do not uphold it. Eventually, dismal repercussion in job performance may be evident. Ways in which Approaches Might be Improved To realize fruitful performances, objective assessments ought to take a course in an affiliation; with central coordination of activities being a pertinent activity in the course of business and working. In addition, honesty and transparency by the leaders of this affiliation is pertinent. Additionally, the organization should devise a clear direction that every workforce ought to respect. Moreover, incentivizing participation by the workforce with minimal punishment of poor workforce being minimal is pertinent. Proposals Proposals on how to deal with the challenges in Coca-cola Company Specific Ideas/Recommendation Various factors bear a critical role in sustaining a PM system in any organization. First, a skilled staff that is knowledgeable, committed and dedicated to work is the right one for a prospective and affluent affiliation. Leaders in the affiliation ought to ardently support and sustain PM in the entire affiliation. Building of model personnel, who are known to the rest of the workforces, is an advantageous initiative that gives a perfect example of how effective performance is. Performance management results data is important in devising the way ahead for an affiliation. Thus, a financial budget for the organization should include performance management funds. How the Recommendations Add Value The above recommendations would add value in diverse ways to the affiliation that expects affluence and profitability in its endeavors. When skilled staff is available, all activities and processes carry on well for profitability purposes. Application of funds to the enhancement of performance management practices results into betterment of job performance for individual and general workforces. Devising a plan for the affiliation goals gives the workforces a direction to follow and introduces order and dedication to obtaining favorable results. Problems with Implementation Cultural Barriers Implementation of the above noted recommendations would be easy only if the workforces are ready to realize success and know the proper direction and procedure of implementation. If the organization has any drawbacks in various areas, the implementation may be extremely perturbing. For instance, cultural perceptions in the workplace, such as dismissal of practices as new leaders would bring about a challenge with the utilization. Management Barriers Most managerial bodies in affiliations consist of like-minded personnel who have their own culture that is distinct and difficult to fend off when the utilization of the above recommendation takes course, not aligning with their preconceived perceptions regarding their application. Thus, the managerial body may end up not properly applying the recommended initiative, hence, laming performance management practices. Cost/Resource Implications Resources may be pantry or meager in affiliations inmost cases. They might be in different forms from financial to equipment required for taking and recording performance data for the entire workforces. This lack of resources or extortionate costs of those resources may result in the concerned organizations not considering obtaining them. This results into weakening of performance management systems. Proposals on how to deal with the challenges in Renault Company Specific Ideas/Recommendations To overcome challenges associated with performance management practices for this organization, the affiliation ought to dedicate their expert staff and procure adequate resources to curtail dismal effects that come with lack of effective PM. In addition to this, the organization can introduce initiatives to increment improvements through utilization of the reports generated over time. Creation of performance improvement policies would aid the affiliation to experience more profit and output. Additionally, defining clear goals for the workforce to strive and accomplish would elicit favorable results in performance patters and work output for the affiliation. How the Recommendations Add Value These initiatives would aid the affiliation to realize better job performance patterns and hoist the affiliation’s interest in fending for the performance management systems, which translates to profitability for the organization and satisfaction for the workforces. For instance, incrementing improvements over time builds on the affiliation’s performance aver time. Moreover, definition of a clear direction would result into better performance and strategic operation. In addition, procurement of ardent staff translates to a better united body of workers. Problems with Implementation Cultural Barriers Cultural inclinations such as despise for organizational change and transfer of workers from one department to another brings about critical discontent [and disapproval of the procedures, though they aim at enhancing the working quality of the workforces. This cultural barrier is quite controllable, however, though perturbing to the personnel concerned. Management Barriers The management can lack funds to finance the performance management docket in the organization. This is due to continued failure despite the Pm systems practice to undercut them. This eventually, results to non-concern by the management, even to fix the recommendation practices in the company list of priorities. The management, thus, may prove to be a barrier to the affiliation affluence. Cost/Resource Implications Resource implications prove themselves in almost every affiliation. With regard to the performance increment initiative that is quite recommendable, it is evident the huge amount of finances it may require. Therefore, the affiliation may not find a consummate amount of funds to allocate. This results in management failures due to lack or cost of resources, which are pertinent to the profitability of the affiliation and contentment of the employees and leaders in general. Conclusion Summary of Assignment With regard to the lucrative nature of contemporary businesses, it is pertinent for every other organization to dedicate most of its energy, time and resources in, the implementation of initiative that guarantee workforces a conducive operating environment and initiatives that result into profitability for the affiliation. Apparently, to realize a favorable environment, the management of the organization ought to be prospective in observing the practices that may cause the affiliation to realize affluence and comfort ability and contentment of the employees. Thus, performance management ought to be a critically appreciated process in any organization. Therefore, the affiliation should develop systems that are competent in monitoring the performance of the various organizations and workforces to minimize failure and promote affluence in terms of profitability to a large extent. In the entire process, critical factors to ensure success should be respected. This includes a few such as the definition of clear goals for the affiliation, employment and proper training of workforces and monitoring of job performance. Without proper performance, the organization can easily tumble. This shows the importance performance management to every organization. Key Learning Points To ensure success in ventures by all organizations, effective performance management ought to be a pertinent part of the affiliations’ operations. In order to maximize profitability and employee satisfaction and minimize losses and dissatisfaction, the organization should dedicate most effort in establishing the performance management practices in the entire organization. Some critical success factors involved with ensuring effective and efficient performance management include procurement of skillful, dedicated and motivated workforces. This ensures that the skill is utilized properly for the betterment of working patterns. Secondly, effective leadership in affiliations gives the workforces a direction that is definite and productive. Failure to this leadership results in perilous repercussions in terms of losses and loss of direction. Additionally, enthusiasm and commitment are pertinent to boost the self esteem of the workforces and their urge to operate in the event of challenges. Budgeting for performance management systems is an additional initiative that should be utilized with respect. Eventually, auditing of data sources before utilization into the improvement increment initiatives is overtly pertinent for success in the business world. Wider Implications Impactions of the performance management practices into any affiliation may be favorable or unfavorable to the general organizations’ activities and components. When performance management becomes a critical aspect of every organization, a lot of attention may be directed towards utilizing the recommended practices in order to realize affluence in general. In case of cultures among the workforces and management, coupled with constraints in resources, the affiliation receives dismal results in terms of reception and utilization, which most probably elicits losses and dissatisfaction tot the workforces and management, and the public who receive the services and products. On the other dimension, profitability is evident when the affiliations do not have such outstanding cultures that do not appreciate initiatives induced by performance management practices. Positive reception and successful application with consideration to critical success factors results in-to affluence, customer, managerial, workforce and generally, affiliation satisfaction, profitably. 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