Building High-Performance People and Organizations - Case Study Example

Task 1 – Flow Chart – Performance Management System Task 2 – Essay I. Introduction The success of businesses in the global market is highly depended on their ability to develop effective performance management strategies. In practice, it has been proved that such initiatives can be quite challenging, either because of failures in their design or because of the inability of those involved to respond to the demands of their role. Current paper focuses on the strategies available to managers for promoting employee performance and engagement. Particular emphasis is given on the following fact: different approaches have to be used for employees of different type and for employees with different level of performance. Two firms that have adopted performance management strategies for increasing employee motivation are used as examples for exploring the above issues: Nandos, a well-known restaurant chain, and Ginsters, a firm operating in the food industry. It is made clear that each firm can use different approaches for promoting employee performance and engagement. The effectiveness of these approaches can be affected by a series of factors, which can be common in firms operating in different industries. II. Employee performance and engagement IIa. When, why and what specific strategies may be used by organisations to generate, improve and sustain motivation amongst different types of employees Different views have been developed in the literature in regard to the necessity of strategies for enhancing employee motivation. Griffin and Moorhead (2011) note that employee motivation needs to be a core part of all firms’ human resource management (HRM) strategy since employee motivation is related to employee performance, being able to influence organizational performance. This means that managers should focus on employee motivation on a continuous basis and not only when problems appear in regard to employees’ performance (Griffin and Moorhead 2011). At the same time, employee motivation is a prerequisite for high employee performance (Griffin and Moorhead 2011). In this context, the efforts of organisations to keep the motivation of their employees at high levels can be fully understood (Griffin and Moorhead 2011). At this point it should be noted that the need for keeping employee motivation high within organization is reflected in theories developed in this field. Reference can be made, as an example, to the ‘equity theory of motivation’ (Griffin and Moorhead 2011, p.117), which suggests that ‘people want to be treated fairly’ (Griffin and Moorhead 2011, p.117). It is derived that by supporting employee motivation a firm can secure the high performance of its employees, at the level that the latter would feel that they ‘are treated fairly’ (Griffin and Moorhead 2011, p.117). One of the most critical issues that managers have to face when managing employee motivation is to identify strategies that are feasible for different types of employees. This problem is explored in the study of Griffin (2010). According to the above researcher, the different types of employees require the introduction of different strategies for promoting employee motivation (Griffin 2010). There are two, broad, categories of strategies available for different types of employees: ‘empowerment and participation’ (Griffin 2010, p.524). Empowerment focuses on the provision to employees of the potential ‘to set their own goals and make decisions within their sphere of responsibility’ (Griffin 2010, p.524). Participation is a different process, allowing employees to participate in the decision – making process related to the tasks assigned to them (Griffin 2010, p.524). The term participation in the above case indicates just the potential of employees to state their view for organizational activities in which they participate, meaning that the managers are free to take into account or not the views of employees (Griffin 2010, p.524). Towards the same direction, Marchington and Wilkinson (2005) explain that organisations can promote employee motivation only by promoting strategies that are flexible and can be appropriately alternated for responding to different types of employees. The introduction of a high range of pay schemes for rewarding employees of different type is a common strategy for promoting motivation in organisations that employ individuals of different types (Marchington and Wilkinson 2005, p.322). It is further explained that the choice of strategies that can respond to the needs of employees of different types can be based on one of the theories related to motivation, such as the ‘Maslow theory on the hierarchy of needs’ (Marchington and Wilkinson 2005, p.322) or ‘the MacGregor theory on theory X and theory Y managers’ (Marchington and Wilkinson 2005, p.323). An example of the importance of choosing appropriate employee motivation strategies could be the case of Starbucks (Phillips and Gully 2011). The success of Starbucks in the global market has been related to its ability to keep employee motivation at high levels using different approaches, according to the types of employees (Phillips and Gully 2011, p.10). Another perspective of employee motivation is revealed in the study of Berger and Berger (2008). The above researchers note that employee motivation can highly affect the productivity of employees, leading, at the next level, to the increase or the decrease of organizational productivity (Berger and Berger 2008). It is explained that the willingness of managers to promote employee motivation is based on their concerns on their organization’s productivity (Berger and Berger 2008). The increase of employee compensation seems to be the most popular method for keeping employee motivation, and organizational productivity, at high levels (Berger and Berger 2008, p.551). The above study relates employee motivation only to the employees’ financial needs, a view that cannot be considered as fully justified. Indeed, employee motivation can be related to a variety of factors, including the schedule of work (Pynes and Lombardi 2011) and the diversification of tasks assigned to employees (Pynes and Lombardi 2011). IIb. Analysis and evaluation of the need for and effectiveness of different approaches amongst individuals who display different levels of engagement and performance According to the issues discussed above, different approaches are required for different types of employees. In the same context, different strategies need to be introduced in regard to employees of different levels of engagement and performance. The specific issue is analyzed in the study of Linley and Harrington (2010). Reference is made to the use of ‘real-time feedback for informing employees on their behaviour, whether good or bad’ (Linley and Harrington 2010, p.330). Employees who are highly engaged to the organization would highly value the real-time feedback, since this scheme would inform them, with no delay, in regard to their performance (Linley and Harrington 2010, p.330). In opposition, employees who under-perform would not value the real-time feedback mostly because this scheme would reveal these employees’ inability to respond to the demands of their position (Linley and Harrington 2010). In 3M, a major competitor in the global technology industry, engagement has been used for keeping a balance ‘between creativity and efficiency’ (Galagan 2011, p.13). In the above company, different engagement approaches were used for employees with different performance levels (Galagan 2011, p.13). Finney (2008) explains that employees are likely to be engaged at different levels being influenced by their ‘experiences as employees’ (Finney 2008, p.105). Thus, when trying to promote engagement, managers should use different approaches, according to the characteristics and the needs of each employee (Finney 2008, p.105). In any case, when having to promote employee engagement managers should use a high range of strategies, instead of focusing on monetary rewards which cannot guarantee high employee engagement (Finney 2008, p.105). In order for managers to use different approaches for employees with different levels of engagement and performance the following term should be met: managers should be aware of employees’ criteria for keeping their engagement and performance at high levels (Cook 2008). In other words, managers should try to identify the different factors that are likely to influence employees’ performance (Cook 2008, p.47). Cook (2008) suggests the use of ‘follow – up focus groups’ (Cook 2008, p.47). These groups would help managers ‘to identify the key drivers of engagement’ (Cook 2008, p.47) and to promote appropriate policies for supporting employee engagement and performance. According to Pynes (2009) there are three different approaches appropriate for appraising the performance of employees: ‘absolute, comparative and goal setting’ (Pynes 2009, p.234). The first of the above techniques refers to the evaluation of an employee’s performance without referring to the performance of other employees (Pynes 2009, p.234). The comparative approach promotes the idea that the performance of an employee can be evaluated by ‘making the comparison between this employee’s performance and the performance of the other members of the group’ (Pynes 2009, p.234). Finally, the goal setting approach promotes the appraisal of performance by referring to the level at which the employee involved achieved the goal set by the organization, as related to the tasks assigned to the particular employee (Pynes 2009, p.234). Each of these approaches is used according to its appropriateness for the organizational environment and the employee’s characteristics, meaning especially his position and his level of engagement. Deb (2006) also highlights the power of HR managers to appraise the performance of employees using different criteria, after discussing the issue with each employee. In other words, HR managers can choose a method for appraising performance taking into consideration the views of each employee in regard to employee performance and engagement (Deb 2006, p.211). The Assessment Centre Technique is a process that can be used for identifying the reaction of employees to ‘real-life problems related to the organization’ (Deb 2006, p.212). Employees with different level of engagement will have a different performance when are tested through the above technique (Deb 2006, p.212). This fact verifies the relationship between employee engagement and the approaches used for promoting employee motivation. IIc. Comparison and evaluation of the approaches used by Nandos and Ginsters to enhance employee performance and engagement amongst the whole workforce In Ginsters, employee performance and engagement were enhanced through the Active Workplace programme (Hudson 2010, p.52). The specific programme incorporated a series of activities aiming to support the health of employees (Hudson 2010). These activities included sports, such as football and badminton, personal training through ‘a full time fitness coordinator’ (Hudson 2010, p.52) and the promotion of healthy eating, as achieved by replacing the meals in the company’s canteen with others, healthier ones (Hudson 2010, p.53). At the same time, free fruit was available for all the firm’s employees (Hudson 2010, p.53), a fact that increased the interest of employees for healthy diet (Hudson 2010, p.53). An empty building was used for housing the firm’s gym while bikes were available for borrowing by employees (Hudson 2010, p.53). The above activities were proved valuable for improving employee cooperation and enhancing employee motivation. In fact, before the introduction of this programme, ‘the firm’s advertising costs were reduced to £15000, from £55000 in, just, within three years’ (Hudson 2010, p.54). The programme has highly helped the organization to increase employee performance and engagement, a fact that highly benefited organizational performance. The success of the firm in regard to this initiative is reflected in the ‘2008 World Leisure Innovation Prize’ (Hudson 2010, p.52) awarded to the organization for the successful establishment and promotion of the Active Workplace programme. Nandos has followed a different approach for increasing employee performance and engagement. Two have been the key aspects of the firm’s efforts in regard to the above targets: ‘the development of a detailed business plan and the use of a 360 degree feedback’ (Smethurst 2005, p.34). Since its establishment, Nandos did not have a business plan (Smethurst 2005, p.34). The introduction of such plan was initiated by ‘the firm’s HR director, Julia Rosamond who entered Nandos in 1997’ (Smethurst 2005, p.34). Rosamond asked all employees to review the business plan on a daily basis so that the plan becomes part of the daily operations (Smethurst 2005, p.35). The 360 degree feedback has been another important feature of the firm’s strategy for increasing employee performance. Through this feedback, which could not be anonymous at managerial level, employees have become accountable not only to the employer but also to their colleagues (Smethurst 2005, p.36). The success of these strategies in regard to the increase of employee performance is reflected in the firm’s expansion in the period during which these strategies were initiated: the firm’s outlets were increased, reaching the 100, while employees were also increased, reaching the 2500 (Smethurst 2005, p.34). III. Conclusion The ability of organisations to measure and evaluate the performance of their employees is of critical value for the stabilization of organizational performance. In fact, the literature reviewed on this paper indicates that employee performance is quite important for the success of organizational plans. For this reason, employee performance and engagement have become key criteria for establishing organizational strategies. Nandos and Ginsters have used employee performance and engagement for standardizing their market position. It should be noted that each of the above businesses used different approaches for promoting employee performance and engagement. This practice is considered as fully justified under the fact that the criteria used by employees for increasing their performance and engagement are not standardized, being volatile to market pressures. In regard to the above, it is noted that ‘the competencies of individuals in the workplace can be fully independent from their behaviour’ (Williams 2002, p.106). On the other hand, the policies for increasing employee performance and engagement may not be welcomed by all employees (Armstrong and Murlis 2007, p.284). For this reason, when trying to promote employee performance and engagement HR managers should take into consideration two facts: employee performance and engagement may not be related to each employee’s behaviour; also, the involvement of individuals in the decision making process should be highly supported as it could result to the identification of individuals who are more likely to resist in the promotion of innovative techniques for measuring performance (Armstrong and Murlis 2007). References Armstrong, M., and Murlis, H. (2007). Reward Management: A Handbook of Remuneration Strategy and Practice. London: Kogan Page Publishers. Berger, L., and Berger, D. (2008). The Compensation Handbook. Oxford: McGraw-Hill Professional. Cook, S. (2008). The Essential Guide to Employee Engagement: Better Business Performance through Staff Satisfaction. London: Kogan Page Publishers. Deb, T. (2006). Strategic Approach to Human Resource Management. New Delhi: Atlantic Publishers & Distributors. Finney, M. (2008). Building High-Performance People and Organizations. Westport: Greenwood Publishing Group. Galagan, P. (2011). The Executive Guide to Integrated Talent Management. Danvers: American Society for Training and Development. Griffin, R., and Moorhead, G. (2011). Organizational Behavior: Managing People and Organizations. Belmont: Cengage Learning. Griffin, R. (2010). Management. Belmont: Cengage Learning. Linley, A., and Harrington, S. (2010). Oxford Handbook of Positive Psychology and Work. Oxford: Oxford University Press. Marchington, M., and Wilkinson, A. (2005). Human Resource Management at Work: People Management and Development. London: CIPD Publishing. Phillips, J., and Gully, S. (2011). Organizational Behavior: Tools for Success. Belmont: Cengage Learning. Pynes, J., and Lombardi, D. (2011). Human Resources Management for Health Care Organizations: A Strategic Approach. Hoboken: John Wiley & Sons. Pynes, J. (2009). Human Resources Management for Public and Nonprofit Organizations: A Strategic Approach. Hoboken: John Wiley & Sons. Williams, R. (2002). Managing Employee Performance: Design and Implementation in Organizations. Belmont: Cengage Learning EMEA. Articles: 1. Case study of Ginsters: Hudson, K. (2010) ‘Play together, stay together’ Leisure Management, Issue 1, 2010: p52-54 2. Case study of Nandos restaurant chain: Smethurst, S. (2005) ‘Chicken Coup’ People Management, 13 Jan 2005: p34-36 Task 3 – Personal Reflection One of the most important challenges that all individuals have to face when entering the workplace is the alignment of their skills with the culture and the goals of the organization involved. My skills and attributes can be described as multi-dimensional, being able to fit organizational environments of different characteristics. Reference is made in particular to my communication and cooperation capabilities. In modern firms, exceptional communication skills are of high importance for most job positions. Communication, either direct or indirect, can help an employee to complete successfully the tasks assigned to him and to gain the trust of his colleagues. As for my cooperation skills, these could be made clear through the following fact: I would be able to cooperate effectively with people at different levels of the organizational hierarchy, saving valuable time for the completion of organizational tasks. In addition, I tend to pay particular attention on detail, a characteristic that could help me to perform well in tasks that require an eye for detail. Moreover, I try to keep peace in the workplace, avoiding conflicts. This attribute is extremely valuable in demanding positions where the development of conflicts and oppositions can harm the firm’s image in the market and can delay the achievement of organizational goals. Reference should be also made to my ability to respond quickly in emergent situations. This characteristic allows the quick evaluation of cases of emergency and the suggestion of solutions for avoiding major crisis. My weaknesses, as related to the workplace, should not be ignored. However, I consider these weaknesses as a challenge for improving my performance, as an employee and for acquiring qualities and skills that are valuable in the workplace. In this context, I should refer to my inability to handle many tasks simultaneously. My emphasis on detail, as explained earlier, has probably affected my ability to deal simultaneously with many tasks even if these tasks are related. At this point, I should also mention my inability to take initiatives, especially in regard to demanding tasks. In general, I consider that each employee needs to follow strictly the guidelines related to his role. However, under certain terms it is important for an employee to be able to take decisions even for matters outside his authority, a problem common in cases of unexpected problems. I assume that after a few years of work, such ability is developed. In this context, this weakness would be addressed gradually, as my work experience is growing. From a similar point of view, I would refer to my leadership skills, which are rather limited. In fact, I would prefer roles that are related to specific guidelines, i.e. to tasks clearly defined. In the long term, it would be necessary for me to develop my leadership skills, so that I’m able to achieve a higher position in the workplace. This issue also, as my inability to take initiatives, could be effectively faced through the years. Still, it would be necessary for me to choose roles that could help me to manage the weaknesses described above. Read More