What Foreign Employers Should Know about Human Resource - Essay Example

? Human Resource Management Mod 5 Case Assignment In the current business environment, the success of any organization largely depends on the ability of the company management to implement an effective as well as efficient performance management system. Such a system enables the organization to attract, develop and retain talented and highly productive employees. Experts in the field of human resource management indicate that winning organizations are able to create a competitive advantage over their rivals through the creation of an effective and efficient performance management system. A competitive advantage is achieved through hiring of talented individuals, placing such individuals in appropriate positions and aligning their individual performance with the objectives of the organization (Carraher, Buchanan & Puia, 2010). As a human resource director of a China-US venture, I would like to address the critical issues that need to be addressed in developing, implementing, and evaluating a performance management system within the organization. Developing a performance management system An effective and efficient human resource system within the organization needs to include a wider scope beyond the human resource profession. This is to ensure that the organization learns more about the evolution of other sciences and their influence on the measurement systems. The foundation of our performance management system should be anchored on three factors including efficiency, effectiveness, and impact (Dessler, 2006). The three factors form the basis within which we will be operating our performance management system. Efficiency entails delivering human resource programs that ensure frugal utilization of organizational resources such as funds and time. We should ensure that our performance management system does utilize the minimum possible amount of resources while promising maximum rewards. In order to ensure effectiveness, the performance management system should impact on employees in terms of improving their overall performance. In the case of impact, we should select the greatest pool of employees in terms of talent and include them in the performance management system to ensure the best results. The second step in the development of a performance management system is the development of performance benchmarks. This stage involves aligning the goals of the organization to the best practices of both the Chinese as well as the American human resource industries. This is to ensure that there is incorporation of standards from the two industries for the sake of the diversified employee workforce. The performance benchmarks should be established in terms of employee satisfaction, organizational performance and customer satisfaction (Carraher, Buchanan & Puia, 2010). The goal of our performance management system should be to perform better than the industry benchmarks hence creating a competitive advantage. The third step is the development of data systems and portals that will collect information on employee performance and relay them to the decision making process for evaluation. Organizational information is one of the greatest assets than organization can have hence the need to develop a comprehensive data system. Our organization will make performance evaluations based on facts hence improving its performance management. The fourth and last step is the development of balance scorecards. The scorecard summarizes all the functions of the performance management system and aligns them to the strategic goals of the organization. It also includes the cost implications of the system. The performance management system will be implemented and evaluated using the balance scorecard so as to ensure that the system remains appropriate to the goals of the organization throughout the two stages. Implementing a performance management system Chinese are the dominant in the organization in addition to the fact that the organization is based in China. This implies that the critical issues considered at the implementation stage are related to the Chinese human resource environment. There are some level of similarities between the Chinese and American human resource industries and this will offer a significant level of common ground for all the employees working for the company. a. Hiring and recruitment Research studies indicate that China has been recording high levels of labor shortages as well as employee turnover. Operating in such an environment implies that an organization needs to be competitive in attracting, hiring, and retaining the best talent in the labor market. I will ensure that the Chinese based US-China venture puts in place a comprehensive recruitment system. The system will involve the use of efficient and effective modern methods of recruitment such as job fairs, newspapers, and employment agencies. Furthermore, it is important to include the use of the internet and employee referrals in employee recruitment. The process of recruitment should include a legal expert in order to address the issue of poaching (Dessler, 2006). The process of selection will involve the use of resume analysis as well as interviews. b. Training and career development A superior training and development program is attracts the best talent in the Chinese and US labor markets. It is therefore important to emphasize on the creation of a sophisticated training program that will ensure that we attract and develop the best talent in the market (Carraher, 2005). This can be achieved through the establishment of career plans for individual employees like Siemens China. The advantage of such a plan is that the company will manage to develop employee’s best skills hence improving the overall performance of the organization. Employees should be attending seminars and workshops so as to sharpen their skills as well as learn new skills that will improve their performance (Carraher, Buchanan & Puia, 2010). This should be conducted on a frequent basis say twice a month so as to enhance the effectiveness of the training and career development program. c. Performance appraisal and compensation Appraising and compensating employees should be based on the performance of employees rather their ranks or positions. It should be based on initially set targets and the organization should ensure that such an evaluation is fair and just. Performance based evaluation system is the most common among all systems of evaluation in China and the company will find a good response from employee with little resistance (Carraher, 2011). In order to reduce chances of encountering resistances from employees, the organization should involve all of its employees in the initial stages of performance based evaluation by engaging in setting goals. Evaluating a performance management system This is the last stage for the organization and involves analyzing the returns to investment of the performance management system. The evaluation should involve the use of the balance scorecard because it contains the comprehensive information on the whole system. Results from the performance management system should be compared to the performance expectations contained in the balance scorecard. Positive results are identified when the results of the performance management system exceed the set targets whereas negative results include lack of achieving the desired outcomes (Carraher, 2003). References Carraher, S.M. (2003). The father of cross-cultural research: An interview with Geert Hofstede. Journal of Applied Management & Entrepreneurship, 8 (2), 97-106. Carraher, S.M. (2005). An Examination of entrepreneurial orientation: A validation study in 68 countries in Africa, Asia, Europe, and North America. International Journal of Family Business, 2 (1), 95-100. Carraher, S.M. (2011). Turnover prediction using attitudes towards benefits, pay, and pay satisfaction among employees and entrepreneurs in Estonia, Latvia, & Lithuania. Baltic Journal of Management 6 (1), 25- 52. Carraher, S.M., Buchanan, J.K., & Puia, G. (2010). Entrepreneurial Need for Achievement in China, Latvia, and the USA. Baltic Journal of Management, 5 (3), 378-396. Dessler, G. (2006). Expanding into China? 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