People Management - Challenges and Choices - Assignment Example

People Management - Challenges and Choices Delivering High Performance Working Assessment One Background In this section, the researcher shall provide a brief introduction on how the entire paper shall be constructed and the objectives of the paper itself. The researcher has decided to tackle the topic: ‘People Management: Challenges and Choices: Delivering High Performance Working,’ which shall aim to discuss this particular facet of human resource management in an organisation. According to Rabin (2003), organisations must always be aware to new ways of gaining an edge against another organisation that may or may not be a rival. One of the ways to gain such a competitive edge would be to have an efficient and productive human resource pool since the performance of its members have a major bearing upon the company’s overall performance. Thus, managers have to be constantly involved in the human resource management process, being involved in ensuring that the organisational performance of their employees comes up to their expectations. This following subsections shall cover the researcher’s objectives in conducting the assignment, as well as a brief subsection covering the main focus of the entire study. Since performance management is not a new topic, the researcher shall also provide some information regarding what he already knows about the subject. In the process, the researcher shall also present possible arguments that may be considered. Findings The Assignment This paper shall cover issues on the management of performance that human resource managers when it comes to handling the organisation’s members, all of whom contribute to the entire organisation. Thus, the researcher shall investigate the different factors that contribute to effective performance management and evaluation. Since the development and the success of the company lies in its human resource pool, it is mandatory for the management team of the organisation to make sure that their employees perform exceptionally well. The Focus of the Study In the following section of this paper, the researcher has decided to tackle the following topics on performance management. These are: 1) the rationale for performance management and evaluation; 2) performance management phases; 3) perspectives on managing performance; 4) the positive side of performance evaluation; 5) limitations of performance appraisal systems; 6) the impact of rewards on motivation of employees; and 6) the negative side of performance evaluation. What the Researcher Already Knows About the Topic The researcher feels that human resources are the most important assets that an organisation has when it comes to competing against other organisations, that may or may not similar objectives. This is mainly due to the human capital provided by every member of the organisation, all of which contribute to the knowledge base of the company, and ultimately contributes to the company’s value and success. Thus, it follows then that members of an organisation’s management team must be very careful when it comes to management of performance of employees. Since it is the employee who has a main contribution in helping to achieve the organisation’s objectives, managing the company’s performance have to be among one of the company’s main priorities. Possible Arguments for this Study Various organisations have their own strategies with regards to handling their own human resource departments and its members, in terms of performance management. Through gathering a variety of information about this issue from various sources, the researcher hopes to be able to pinpoint the strengths and the weaknesses of performance management practices, and whether this can contribute to further improving the system as a whole. In addition, the researcher would also like to find out the differences, should there be any, regarding the organisational behaviours exhibited by companies. Resources Used The researcher has decided to utilize a journal and book sources for this paper. Summary In this section, the researcher has discussed the main issues that shall be encountered in this paper, particularly in Assessment Two. Performance management is indeed a field that requires special attention due to the changing business environment and the changing behaviours of all the individuals who make up an organisation. The researcher agrees that managing the performance of the human resource pool of an organisation is indeed one of the most effective ways to boost employees and organisational performance. In order to make sure that a company benefit from effective performance management, it is essential that all facets of this field be investigated. Bibliography Armstrong, M 2002, Employee Reward. London: CIPD. Arvey, RD & Murphy, KR 1998, ‘Performance evaluation in work setting’, annual Review in psychology, vol. 49, pp. 141-168. Bratton, J & Gold, J 2007, Human resource management. Palgrave McMillian Burr, R & Cordery, JL 2001, ‘Self management efficacy as a mediator of the relation between job design and employee motivation’, Journal of Organisation and Labour Studies, vol.14, no. 1, pp 27-44. Caruth, DL & Handlogten, GD 2001, Managing compensation, Quarun Books. Collin, CJ, Hanges, PJ & Locke, EA 2004, ‘The relationship of achievement motivation to entrepreneurship behaviour, Journal of Psychology, vol.17, no. 1, pp 95-117. Deci, EL & Ryan, RM 2000, ‘Self determination theory and the facilitation of intrinsic motivation, Social development and well being’, Journal of American Psychologist, vol.55, no1, pp 68-78. Denisi, A.S 2006, ‘Performance appraisal, performance management and improving individual performance, Management and Organisation Review, vol.2, no. 2, pp. 253-277. Gbadamosi, G 2006, ‘Performance appraisal: discount and core self-evaluation in a non western context, Academy of International Business, vol.1, no. 2, pp. 10-16. Grote, D & Grote, RC 1996, The complete guide to performance appraisal. AMACOM. American Management Association. Javitch, D 2006, ‘Appraising employee performance’, Journal of management Service, vol. 50, no. 3, pp. 19-20. Latham, GP & Pinder, CC 2005, ‘Work motivation theory and research at the dawn of the twenty-first century, Annual Review of psychology, vol. 56, pp. 485-516. Lonsdale, A 1998, ‘Performance appraisal’, Australian Journal of Education, vol.42, no.4, p. 63. Norton, DP 2000 ‘Having trouble with you strategy? Then map it’. Harvard Business Review, pp. 167-176. Rabin, D 2003, Productivity and motivation. CRC Press. Shields, J 2007, Managing employee performance and reward: Concepts, practices , strategies. London: Cambridge: Cambridge University Press. Shore, T & Tashchian, A 2007, ‘Effects of feedback accountability and self-rating information on employee appraisals: A replication and extension’, Psychological Reports, vol. 100, no. 32, pp. 1091-1100. Taylor, S, Levy, O, Boyacigiller, NA., & Beechler, T 2008, ‘Employee commitment in MNC’s: Impact of organisational culture, HRM and top management orientation’, The International Journal of Human Resource Management, vol.19, no. 4, pp. 501-527. Zusho, A 2008, ‘Cultural variation in the motivational standards of self esteem and self-criticism’, International Journal of Psychology, vol. 34, no. 5, pp. 904-911. Assessment Two The Rationale for Performance Management and Evaluation The past decades saw proof to the effectiveness of enterprises in establishing their workforce. One of the tools which they have used to carry this out is performance evaluation. This is meaningfully linked to all the facets of human resources and is imperative in delivering high performance, according to Bratton and Gold (2007). One of the areas to which performance evaluation is linked is recruitment and selection. Enterprises use performance evaluation data to be able to match employees to jobs where they are likely to excel in. Moreover, the data in performance appraisal is critical in assessing who will perform a particular job, and how many of these employees will be necessary. Moreover, performance data is also used in reengineering efforts. If an enterprise intends to make its manpower complement leaner, performance data may be used for retention of its better performing employees. Another area which is linked to performance evaluation is pay (Bratton & Gold 2007). Performance data may be used to accord equitable pay to the workforce. Ideally, better performing employees should receive higher pay increases and bonuses. Performance evaluation may also be used to be able to have an objective basis for terminating employees. Those employees who have performed below the organisation’s expectations may be culled out through an objective manner through performance data. Moreover, transfers may also be enacted through performance evaluation data. It may be able to indicate which employees are better suited for certain positions in the organisation. Yet another avenue where performance data is valuable is promotions. Performance data will be able to support or justify upward movement, and whether he so deserves such movement. Receipt of counseling services is also another purpose for which performance appraisal is useful. Performance data will serve as feedback to the counselor on the strengths and improvement areas of the incumbent, and he shall in turn be able to coach him in these areas. Finally, performance data also serves as input for corporate planning, suggesting to organisations strategic thrusts that they may pursue in the future (Bratton & Gold 2007). Arvey & Murphy (1998) asserts that performance evaluation has evolved as an effectual, informal means through with the enterprise is able to touchbase with its employees. Companies are conveying something that is translated by those they employ, and from which the latter may be able to expect some outcome. For example, an employee who performs well and achieves all his objectives shall expect that he will be given a handsome reward. Rabin (2003) says that the evaluation of performance of individual employees is conventionally carried out through an assessment of his competencies. This is rational since performance may only be rated only when there is something tangible that may be observed and rated. The evaluation of performance is administered by enterprises because they uphold the belief that appropriate evaluation of performance may lead to more effectual management of such performance Performance Management Phases Performance management, as a process, may be further subdivided into five distinct phases. Grote and Grote (1996) share that the first phase is tagged as performance planning. Conventionally, this is done to be able to gear up for the next year. It entails setting objectives which the employee commits to delivering. The enterprise shall anchor performance ratings on the achievement of the objectives stated in the plan. The responsibilities for doing specific tasks is also carried out during the performance planning phase. The next phase is called the performance execution phase, which pertains to the delivery of the work of the individual employee. This is the phase where the person applies his competence and knowledge in achieving the objectives set forth in the planning stage. The third phase is called the performance evaluation phase, where the organisation uses some system to be able to evaluate how the employee has fared. The individual is compared versus some organisational standard and against the performance of similar others. Utilizing performance data is a requisite at this point. The next phase is called the performance review, where performance data from prior years are evaluated. This is a gauge of the advancement of employees and how his potentials might still be enhanced. The final phase is called renewal and contracting. Following all the foregoing stages, the overall performance of the individual shall be evaluated. Moreover, his alternatives for growth and development in the enterprise shall be 4revisited. This may mean an upward movement, termination of his services, a lateral transfer, among others. Perspectives on Managing Performance Bratton & Gold (2007) further say that management has strongly lent support to performance management and has seen it as an imperative means of providing employees with growth and development. Thus, the authors say that if an enterprise wishes to have a better hold of strategy development and execution, it should also have a very strong performance management system. Grote & Grote (1996) go on to say that management has established the performance management structure to have direct access and control over its employees; Shore & Armen (2007), however, challenge this and says that management simply uses the performance management system to be able to have a better hold of organisational processes. They further say that it is necessary for a company and its employees to share a common vision, and to have a similar perspective as regards strategic thrusts. While people at the upper level of management easily understand what these are, there has to be a mechanism through which managers, supervisors and rank-and-file employees understand the same vision and are able to operationalize it at their respective levels. The performance management system increases the likelihood of exceptional organisational performance by providing a platform through which objectives are cascaded from management to rank and file employees, while ensuring that these are clearly understood and thus shall be properly executed. The net effect is the achievement of all enterprise objectives. Performance evaluation is also an effectual way of communicating with employees in so far as job expectations are concerned. Given these performance expectations which are laid down during the performance planning phase, employees can also raise their concerns on dependencies and resources which they will be needing for the achievement of their performance objectives. Encouraging high performing employees is one side that is considered by performance management; however, poor performers are likewise considered by the system as well. Those incumbents who fall below performance expectations, break regulations or policy, and the like are sanctioned. All these incidents are ideally documented in the performance evaluation form. The corresponding disciplinary action is then given to the employee. In this aspect, performance evaluation is an adjunct to labour relations (Javitch, 2006). Norton (2000) suggests that organisations have a strategy map which is subdivided into strategies down the line, including a timeline of deployment. The performance management system allows for dynamic changes in these plans, and ideally is able to give strategic agility to those who are affected by the change. These strategies of the business are constantly changing and there has to be some mechanism which can capture the changes and allow the immediate cascade of these to people down the line, who are basically in charge of executing them. Shore & Armen (2007) go on to say that performance management not only ensures the achievement of objectives, but it also is a venue and a concrete basis for rewarding, motivating, and developing employees. It is a firm and solid basis for giving out rewards, thus increasing the chances that the rewards will be perceived as equitable. Javitch (2006), still in connection with the reward system of an organisation, says that performance management shall help determine who among employees shall receive a reward. In effect, employees shall have high morale and will encourage high performing employees to contribute even more to the achievement of the company’s goals. The performance management and reward system is very crucial since it has to be a credible basis for granting rewards. Otherwise, employees will feel that their efforts are futile, if there is a strong sense of inequity felt with regards to the distribution of rewards Yet another linkage of performance management and evaluation is career planning. For example, a particular employee may have exceptional competence in a particular job but is currently assigned to another post within the organisation. Ideally, this mismatch is documented in the performance appraisal of the employee, and HR helps in ensuring that the person is laterally transferred to the more appropriate job. This is a concrete application of performance evaluation data. Apart from career planning, performance evaluation data also helps the HR Department in designing individual development plans to employees, particularly through training. However, other development options may also be considered apart from classroom training. For instance, published material like books may be used by the employee to help close certain competency gaps. Moreover, employees may also be trained through the provision of multi-media materials such as films; or through on-the-job interventions which may involve mentoring and coaching (Denisi, 2006; Javitch, 2006). The Positive Side of Performance Evaluation Because performance evaluation is utilized to evaluate the performance of employees, this is a means through which they pick up and learn from their previous errors or areas for improvement. This is also a vehicle for continuous improvement since it allows employees to enhance their skills and competencies through better performance. Ultimately, the bottomline is a culture which is open to change, learning, and enhancing oneself (Lonsdale, 1998). It the enterprise so prefers that employees who perform exceptionally well be rewarded for their performance, the organisation will be able to successfully build a performance-based culture. The employees shall always struggle to churn out their best performance. Thus, performance evaluation may be a tool for positively driving employees; however, it may only be motivational if the employee receives high scores, and if good performance is matched with equitable rewards (Gbadamosi, 2006). Limitations of Performance Appraisal Systems Norton (2000) goes on to say that an employee who has displayed loyalty to an enterprise may not receive rewards since his performance was rated low; on the other hand, an employee who is indifferent to the company may perform exceptionally and may receive monetary rewards for it. To further drive home the point of the inadequacy of performance appraisal systems, this same employee who has received rewards may transfer to another company a week later. Moreover, Bratton & Gold (2007) assert that it is feasible for individual employees to yield very high ratings on the appraisal exercise and yet the enterprise as a whole has not come up to par with performance expectations. Moreover, they suggest that ineffectual management has contributed to such a situation, and the individual has simply carried out faithfully all instructions given to him. However, since such compliance has been initiated by an ineffective decision, the expected outcomes are not reaped. Shields (2007) suggests that the aim of managing rewards are as follows: 1) the intent to attract competent people at the opportune time so they can accomplish certain tasks or perform certain jobs; 2) the need to make the most competent employees stay through acknowledgement and rewarding of their efforts to support the enterprise; 3) the initiative to give employees the motivation so they will continue to contribute optimally in pushing the business forward. Moreover, he says that there is a very strong link between performance management on one end, and reward management on the other. It is meant to ensure that high potentials and exceptional contributors stay with the organisation and continually support it. The Impact of Rewards on Motivation of Employees Latham & Pinder (2005) say that undoubtedly, rewards have a crucial influence on the motivation of the members of the workforce. These rewards are perceived as a prize for their efforts in achieving the objectives of the company. Moreover, it is part of human nature to have some reason for working, whether this be intrinsic or extrinsic. This area of human resource management on giving rewards has been established as an effectual driver of motivation; the caliber of the work churned out is reliant on the reward expectations of the individual. It has been a point of contention on which of intrinsic or extrinsic rewards are actually more gratifying. These shall be described in greater detail in the following paragraphs Caruth & Handlogten (2001) say that intrinsic rewards are depicted as intangible psychological prizes that an individual garners from doing an exceptional job and that causes him to feel some strong sense of fulfillment. The person feels some immediate form of gratification that comes from being successful at what he done. Deci & Ryan (2000) say this is particularly true when the accomplishment of such task or achievement was wrought with much difficulty or adversity which the individual was able to surpass. This gives the person some feeling of conquest and the capacity to attain something worthwhile despite the obstacles. In effect, the employee shall have high regard of himself and will enhance his sense of self-esteem. Intangible, intrinsic rewards cannot be granted by the organisation per se, but is something that originates from the employee himself, anchored on the idea that he is capable of achieving something great. Zusho (2008) & Taylor, Levy, Boyacigiller, & Beechler (2008) say further that intrinsic rewards are related to cultural setting. Those who are Western in orientation have a preference for extrinsic rewards, believing in pay and benefits as primary drivers of motivation. On the other hand, intrinsically driven individuals are not overly keen about money, rather, they get motivation from doing the job well. The more critical consideration for such individuals is the self-esteem they derive from doing something worthwhile. Extrinsic rewards traditionally pay greater importance to the employees’ need. By convention, it comes in many forms, but all of which have some money value (Bratton & Gold 2007). These are usually given to acknowledge an employee’s contribution to employees who merit it, and also as a means of attracting prospective hires. Individuals who choose extrinsic rewards frequently utilize these as a symbol of their achievement, and to convey that they are substantially contributing to the organisation’s goals. For someone who is extrinsically motivated, money means a lot and they focus on what the enterprise can give to those who deliver outcomes. They show no emotional attachment to the job and the company and are detached from their colleagues (Collin, Hanges, & Locke, 2004). The Negative Side of Performance Evaluation There is also a negative side to evaluating performance. According to Grote & Grote (1996), the evaluation of employees’ performance has not been met with agreement from all sectors. Among its critics, they say that the benefits far outweigh the repercussions. The competence and knowledge of the rater is one of the issues raised; that is, are they trained to discriminate between poor and exemplary performance. On the other hand, the evaluation and management of performance is merely a way of putting some control and it is not a means for delving into the reasons for performance below expectations. This is a critical issue since those incumbents who are not rated highly may tend to perceive highly rated employees as enemies or competitors. This in effect shall promote a culture of rivalry and competition within the organisation. Burr & Cordery (2001) mention that performance feedback may be an implicit venue for criticizing employees. They say that regardless of the performance of the employee, the enterprise may still opt to find shortcomings in one’s work; indicate how things may be improved; and put forth ways on how one can be more exceptional at work. Those employees who feel that they are already veteran professionals frequently disagree with the feedback given to them. Summary From the foregoing linkages of performance management and evaluation, one can see the following purposes of performance evaluation: for enhancing the motivation and morale of employees; determining and building an equitable pay and reward system; providing a basis for administering disciplinary actions; for planning employees’ careers; and for proposing interventions for training and development. References Armstrong, M 2002, Employee Reward. London: CIPD. Arvey, RD & Murphy, KR 1998, ‘Performance evaluation in work setting’, annual Review in psychology, vol. 49, pp. 141-168. Bratton, J & Gold, J 2007, Human resource management. Palgrave McMillian Burr, R & Cordery, JL 2001, ‘Self management efficacy as a mediator of the relation between job design and employee motivation’, Journal of Organisation and Labour Studies, vol.14, no. 1, pp 27-44. Caruth, DL & Handlogten, GD 2001, Managing compensation, Quarun Books. Collin, CJ, Hanges, PJ & Locke, EA 2004, ‘The relationship of achievement motivation to entrepreneurship behaviour, Journal of Psychology, vol.17, no. 1, pp 95-117. Deci, EL & Ryan, RM 2000, ‘Self determination theory and the facilitation of intrinsic motivation, Social development and well being’, Journal of American Psychologist, vol.55, no1, pp 68-78. Denisi, A.S 2006, ‘Performance appraisal, performance management and improving individual performance, Management and Organisation Review, vol.2, no. 2, pp. 253-277. Gbadamosi, G 2006, ‘Performance appraisal: discount and core self-evaluation in a non western context, Academy of International Business, vol.1, no. 2, pp. 10-16. Grote, D & Grote, RC 1996, The complete guide to performance appraisal. AMACOM. American Management Association. Javitch, D 2006, ‘Appraising employee performance’, Journal of management Service, vol. 50, no. 3, pp. 19-20. Latham, GP & Pinder, CC 2005, ‘Work motivation theory and research at the dawn of the twenty-first century, Annual Review of psychology, vol. 56, pp. 485-516. Lonsdale, A 1998, ‘Performance appraisal’, Australian Journal of Education, vol.42, no.4, p. 63. Norton, DP 2000 ‘Having trouble with you strategy? Then map it’. Harvard Business Review, pp. 167-176. Rabin, D 2003, Productivity and motivation. CRC Press. Shields, J 2007, Managing employee performance and reward: Concepts, practices , strategies. London: Cambridge: Cambridge University Press. Shore, T & Tashchian, A 2007, ‘Effects of feedback accountability and self-rating information on employee appraisals: A replication and extension’, Psychological Reports, vol. 100, no. 32, pp. 1091-1100. Taylor, S, Levy, O, Boyacigiller, NA., & Beechler, T 2008, ‘Employee commitment in MNC’s: Impact of organisational culture, HRM and top management orientation’, The International Journal of Human Resource Management, vol.19, no. 4, pp. 501-527. Zusho, A 2008, ‘Cultural variation in the motivational standards of self esteem and self-criticism’, International Journal of Psychology, vol. 34, no. 5, pp. 904-911. Read More