Human Resource Management, Performance Appraisal - Essay Example

Human Resource Management; performance appraisal Name Course Tutor Date Introduction The changing business environment requires organizations to come up with effective strategies to drive organizational growth and sustainable creation of wealth. Human resource management has been identified as one of the vital factors that enhance competitive advantage and profitability. Depending on how effective an organizational structure is, the working relationships are facilitated and this can lead to improved efficiency in working and delivery of services (Killam, 2000). In this regard, organizations need to come up with integrated approaches that promote employee performance. In addition, employee performance evaluation and appraisal has taken the centre stage in human resource management. This paper responds to a letter to the editor on the use of standardized job description to capture employees every day work experiences. In addition, the paper analyses the appropriate human resource theories and approaches and gives examples and evidences to support these theories. The theories of human resource management Human resource management serves a critical function in enhancing organizational growth and continuity. It is imperative that most organizations have put in place strategies that shape employee policies and guidelines. These strategies focus on attracting and recruiting talented workforce, developing employee skills and knowledge, training, motivation, employee retention and work/life balancing. Of particular significance is the use of appropriate strategies and approaches to shape recruitment procedures, determine remuneration and compensation, set motivational tactics and reward systems as well as comply with labor and personnel regulations (Madill and Gough 2008). Talent management One of the most recent strategies applied in organizations is a dedicated attention to the need to attract, develop and retain talented employees. Talent management has therefore taken a central position in most organization as one of the primary ways of promoting innovation and creativity. This has been fuelled by a business environment characterized by stiff competition based on economical use of resources and an enhanced leverage on technology to enhance competitive advantage. In the light of the increasing attention to talent development, some organizations have put in place talent management strategies that reflect their business operations and potential opportunities. Such talent management strategies give a clear procedure on how to attract that talented staff, a sound hiring and recruitment criteria, elaborate tactics for employee development and retention as well as an efficient system for promotion and motivation. Experts agree that talent management strategies help to enhance company’s growth and development. Some of the positive contributions cited include a growth in organizational revenue base, increased customer satisfaction and loyalty as well as increased productivity. In addition, talent management has been associated with increased innovation leading to better utilization of resources, decreased organizational costs and general expansion (Taylor, 2009). One of the critical areas in talent management is concerned with the issues of employee performance. This has led researchers and human management experts to seek effective mechanism for measuring and evaluating employee performance and employee potential. Employee performance Employee performance and potential, refers to the ability of employees to handle the tasks assigned to them. Employee performance is based on the technical competence of the employees and the specific tasks that the employees must accomplish. Some organizations insist on a standard procedure for employee appraisal while others adopt different performance evaluation criteria. Nevertheless, there are several methods used to evaluate and appraise employee performance. Employee performance measurement criteria The criteria for employee performance are based on several human resource bench-marks. These benchmarks include the cognitive abilities test that derives several parameters. On of these parameters is the quality and quantity of work. The second is how the employees keeps time and accomplishes tasks within the given time. Thirdly, employee performance is measured by examining the cost- benefit analysis. In addition to these parameters, employee measurement is based on creativity, absenteeism and adherence to set policies. The need for employee performance evaluation Employee performance is a critical issue when it comes to enabling the organization to identify gaps and business opportunities. Most importantly, employee performance evaluations help to define responsibilities, tasks and objectives. The process creates an opportunity to for the organization to take stock and plan for employee development based on organizational goals and objectives. In addition, management experts claim that employee performance evaluation helps organizations in developing an improvement plan that promotes organizational competitiveness. The principles of employee performance and evaluation Employee performance and evaluation is a critical step in ensuring that the organization has the technical capacity to achieve its objectives. Employee performance and evaluation is not only applicable to big corporations but also to small and medium enterprises. Performance rating serves the purpose of providing leadership in achieving organizational goals and objectives. It is therefore imperative that performance rating determines individual and group motivational and award systems, determines the system for training and skill development. Traditionally, performance rating starts with developing a dedicated plan for individual employee appraisal. This plan requires regular reviews to capture organizational requirements. One of the main functions for the human resource manager is to ensure that employee performance and evaluations meet the selected criteria. The primary steps in employee performance and evaluation is identifying the performance elements, determining the application of such performance elements in measuring employee performance and reviewing the performance standers. Approaches to employee performance appraisal Employee evaluation is necessitated by several factors that have an impact on the organization. Changes in business environment, industrial trends, and government regulations pertaining to professionalism, technological upgrade and organizational restructuring may force organizations to carry out a performance appraisal on the employees (Kochanski, 2007). However it is notable that performance appraisal is a regular exercise that is carried out occasionally to determine organizational capacity, weaknesses, strengths and the general position of the organization. Employee evaluation serves the purpose of identifying training needs, determining the best employee motivation and reward and getting a direct response fro the staff relevant to performance. Moreover, employee performance helps in planning human resource issue ranging from the criteria for promotion, remuneration, disciplinary actions and labor policies. It is also important to note that employee performance facilitates the interactions between the employees and the management and provides a platform for analyzing the capacity of the organization. In this regard, several methods are used to carry out employee evaluations. Management by objectives Management by objective is one of the methods used to evaluate performance. This method emphasizes on the goals and objectives of the organization. Management by objectives is one of the management and leader4ship approaches propagated by early researchers and managers. This method of evaluation is based on a management approach to shaping organizational goals, missions and objectives, and providing an effective leadership by planning and setting procedures and course of action to achieve these goals and objectives (Gary, 2009). More significantly, the management by objectives approach encourages employee participation in involvement in decision making process. As such, the employees feel ownership of the processes hence promoting employee loyalty and retention rates. This method leverages on effective organizational communication and feedback mechanism that influences corporate culture and a sense of duty and responsibility. Understandably, this kind on evaluation helps the employees to identify what is required of them, their responsibilities and the overall targets. Evidently, each individual employee has clear sense of duty and responsibility. However, there also other goals and functions that are based on collective responsibility. Critics of this method of evaluation point out that the management by objectives method overemphasizes on achieving goal to the extend of neglecting important managerial functions like responding to immediate circumstances affecting the organization. Critics argue that this approach puts unfair comparison between ideal performance and the actual performance. Similarly, this method ignores other factors that may have an effect on employee performance like technical endowment and other external factors. Behavior anchored rating scales The behavior anchored rating scales or BARS are social behaviorism parameters used to evaluate employee performance. Under this method of evaluation, the supervisor develops a numerical rating tool to compare the performance of the employee against the numerical scale. The BARS is frequently used as a tool to aid the management in decision making processes. The BARS system of evaluation helps the management to identify high performers, design an effective reward scheme, benefits and a compensation system. More importantly, the BARS system of evaluation enables the organization to identify organizational gaps pertaining to skill development, training and empowering the employee (Banks and Murphy, 2006). One of the strengths of the behavioral approach to evaluation is that it emphasizes on the social and behavioral aspects of individuals. Apart from the social and psychological aspects of employees, the BARS system of evaluation focuses on skill development to meet task requirements. The multi-source employee assessment This method of employee evaluation is also referred to as the 360- degree feedback and describes a strategy that emphasizes on feedback processes as the most efficient tool for appraising employees. This method uses supervisors and fellow employees sometimes encompassing a self assessment. In addition, the multi-source strategy of evaluation uses information responses from other stakeholders including suppliers and customers. Experts agree that the multi-source feedback mechanism helps to provide an accurate and reliable indicator for employee performance. Day-to-day employee performance management One of the most effective ways of enhancing employee performance is a day-to-day approach to employee management. This employee management strategy is based on the need to have clear goals and an effective communication and feedback process that enhances performance. The challenges of employee performance Performance appraisal is not a straight and easy task given its potential ramifications on the employees and the organization in general. It is a process that requires regular update to ensure that the organization remains focused in achieving its missions and objectives. Some of the main challenges include standards evaluation criteria, the challenges of creating a rating system and resistance from employees. The challenges of selecting an evaluation criterion Organizational management faces difficulties in selecting evaluation criteria that meets organizational objectives. This has been established as one of the main challenges in implementing performance measurement. The challenges of creating a rating system Apart from the challenges of determining the selection of evaluation criteria, most organizations have difficulties in developing an appropriate rating system. Competence and ability of the persons carrying out the evaluation In most circumstances, the management undertakes this responsibility. However, it is notable that most evaluators lack the technical competence to carry out a credible employee evaluation. In this regard, the person to carry out the evaluation must have a clear understanding of the organizational internal and external environment, corporate culture and structure as well as a good rapport with the employees (Edelman, 2004). Employee’s resistance to evaluation One of the greatest challenges to employee performance evaluation is the resistance to the entire process. In most circumstances, this involves the trade union which spearheads such resistances. Nevertheless, effective communication plays a critical role in involving employees and all other stakeholders into the evaluation process. Performance consulting and its effect in the future of human resource management Performance evaluation has taken another direction in the last few years with the introduction of performance experts who offer consulting services. Due to increasing competition in the business environment, some organizations are turning to performance experts to help in evaluating employees. Performance consulting has been strengthened by the need for organizations to strike a balance between organizational needs and employee welfare, motivation for employees as well as the measurement of the actual contribution of the employees in the attainment of organizational goals. One of the advantages of performance consulting is that the consultant retains control over the process and hence his report is usually an independent masterpiece that gives unbiased position on employee performance. However, there are possibilities that the performance consultant may give an inaccurate representation. The employees may fail to contribute to the evaluation process hence creating unnecessary tension between the management and the employees. Personal opinion on the issues raised in the letter to the editor Performance rating is a vital exercise that helps the management to identify gaps in the workforce. The organization uses such evaluations and appraisals to identify weaknesses and areas of strength. One of the greatest challenges raised in the letter to the editor is a question on whether bureaucratic approach to jobs is still appropriate and to what extend can outsiders understand the complexities of a job by observing employees for a short time. My reaction to this letter is based on the increasing trend for organizations to hire performance consultants to perform employee appraisals on behalf of the management. Some organizations have done this successfully and I believe that such a process requires full cooperation and communication between the management, employees and the performance consultants. Conclusion With the increased competition in the business environment most organizations continue to focus in employee performance and assessment to enhance profitability. Work division and design forms the main success factor in evaluations. With a divisional structure, all these functions can be handled under one division and therefore provide for coordination and increased service efficiency (Karen and White, 2001). Some of the human resource strategies applied includes talent and performance management. However, performance management has taken a new twist in recent years with most organizations seeking the help of external performance consultants to guide in the measurement and evaluation of their employees. Due to the sigficance of the process, it has created mistrust between the employees, the management and the consultants. It is therefore imperative that organizational management must focus on an employee evaluation process that is fully backed all the stakeholders. References Banks, C. & Murphy, K 2006, "Toward narrowing the research-practice gap in performance appraisal", Personnel Psychology, Vol.38, pp 335-45. Edelman, L 2004, "Legal environment and organizational governance: the expansion of due process in the American workplace", American Journal of Sociology, Vol.95, pp 26-45 Gary, C 2009. Performance Management - Integrating Strategy Execution, Methodologies, Risk, and Analytics, New York: John Wiley & Sons, Inc. Killam, D 2000 “Organization structure: What is right for your group?” Accessed from http://www.umext.maine.edu/onlinepubs/PDFpubs/6108.pdf Karen R & White, P, 2001 The functional to matrix transition. Accessed from http://www.pmsolutions.com/uploads/pdfs/function_matrix.pdf. [April 7, 2010] Kochanski, J 2007, "Four key steps to performance management", Workspan, No. February, pp 33-6. Madill, A. & Gough, B 2008, "Qualitative research and its place in psychological science", Psychological Methods, Vol.13, No. 3, pp 254-71 Taylor, F 2009, Journal of Organizational Behavior Management, London: Routledge Group. Read More