Performance and Reward Management - the College of Asia and Pacific - Case Study Example

Performance and Reward Management (Name) (Institution Affiliation) (Date) Introduction Organizations that incorporate best practice with regard to their human resource management often benefit from motivated employees as they are committed to performing at their best. Moreover, employers who involve best practice in performance management understand the issues revolving around underperformance and high performance of workers thus addressing them accordingly. Paauwe and Boselie (2005) argue that if underperforming and high performing employees are not managed appropriately and sensitively, the organization can suffer from unproductive as well as unhealthy outcomes thus affecting the entire workplace. In effect, this report aims to discuss issues that revolve around best practices in performance management. Consequently, the report will give a recommendation that would help in addressing the case of an underperforming new manager in charge of facilities services in the College of Asia and Pacific (CAP). Background A month ago, the College of Asia and Pacific (CAP), a Division of the Australian National University hired a thirty-one year old man as the college’s Manager in charge of facilities services. The new employee is charged with the planning, coordinating and directing the facilities activities of CAP. Moreover, the new manager provides operational supervision of the facilities function. However, since assuming the position, the manager’s performance has been below the expectation of the management. For instance, the manager is often over-reliant upon the counsel of the general manager as he cannot make a simple decision without requesting for instructions. Furthermore, the manager often refers issues related to the junior staff under him to the general manager and when reached by top management for clarification he also refers them to the general manager. Thus, with all the above-stated characteristics of incompetence, there has been underperformance in his department since he assumed office. The subsequent sections of this report will discuss issues associated with an underperforming employee as well as how they can be managed. Features of best practice in performance management Performance management is associated with the process of maintain as well as improving the job performance of workers. The process of performance management is often achieved through using the organizational performance planning performance along with providing continuous feedback, coaching and mentoring. As Pulakos, (2004) notes, many organizations today have implemented performance management processes, which are designed to focus typically on reviewing the worker’s performance by his or her supervisor or manager. Notably, best practice in performance management is characterized by various features. To begin, with best practices are associated with incorporating the developmental strategies for the future in the performance management. According to Pulakos, et al. (2012) the human resource manager cannot depend on feedback alone in order to put his or her employees at their best as far as individual productivity is concerned. Thus, the manager concerned with the management of employee’s performance must ensure that a developmental objective is identified for each employee. The second feature is that best practice performance management is a cycle. The best practices are not viewed as a one-time occurrence, as initiatives need to be implemented after every evaluation. It is often seen as an on-going cycle performance strategizing, which involves setting goals and expectations as well as implementing them. Third, the best practice is a strategic business process. Best practice in performance management is not just an administrative Human Resource process, but a planned business process that involves setting goals that are aligned with the strategic business priorities. The integration of the performance management function with the human resource development function The human resource development (HRD) function is associated largely with the development of workers’ personal as well as organizational skills. Moreover, the HRD function helps employees to develop their abilities and knowledge in order to be effective and more productive in their specializations or areas of work. According to Dessler, (2003) one of the main functions of performance management is the training of employees in order to improve their performance. As such, HRD professionals should work closely with the management performance practitioners by creating a conducive learning environment in order to achieve the organizational objectives. For instance, the HRD department should provide training to managers as they supervise and evaluate the performance of workers. With a continuous training from the HRD department, the managers will be in a position to realize as well as achieve excellent performance from their employees for many reasons. For instance, the trained managers will be a position to focus on each employee’s strengths as well as manage their weaknesses. Second, through the training, the managers will be in a position to work with each employee’s set of unique passions, patterns of behaviors and talents (Stone, 2002). Third, through the training they will be able to sculpt each worker’s job such that they can handle various challenges they may face in their career. Moreover, Cappeli and Singh (2002) asserts that the HRD function can integrate with the performance management by training managers and supervisors in order to equip them with coaching skills, listening and conflict skills. In effect, the HRD professionals in the College of Asia and Pacific should train its manager of how to give feedback, handle performance appraisals as well as equip him career management skills. Issues surrounding the management of underperforming employees Performance management often serves two comprehensive, but usually divergent objectives. The two objectives fall into two categories: developmental and administrative goals (Stone, 2002). Under the administrative goals, the managers attempt to enhance the workers’ motivation as well as their ability. Moreover, the developmental goals require the manager and supervisors to examine issues related to performance and consequently search out their causes and solutions. On the other hand, the administrative goals relate to the decisions that are made by the HR function such as promotions, transfers, salary increases as layoffs. Here, the employee is required to accentuate on the positive practices and limit disclosure of negatively oriented information (Andrews & Dehahaye, 2000). Accordingly, the two different objectives must be balanced for the performance management function to avoid underperformance issues. Thus, when the above mentioned divergent objectives are not put into consideration, the issue of underperformance comes into play. This can be seen in the case of the new manager in charge of facilities services in the College of Asia and Pacific. Due to incompetence, the manager fails to focus on his administrative and developmental goals thus leading to unacceptable work performance as he fails to perform the duties that come along with his managerial position. Moreover, failure to follow the developmental and administrative goals is the cause of the evidenced disruptive behavior that impacts on the general manager and those who work under him. As such, for underperformance to be managed effectively, specific issues must be addressed in the organization with regard to performance management. To begin with, most underperformance is often caused by the employee’s lack of experience and knowledge required of him or her in order to perform what is expected of him or her. Thus, as Mathis and Jackson (2010) recommend adding coaching as a key competency in the performance management can be effective to an underperforming employee. In light of this, the underperforming manager can benefit much from intensive coaching as he is new in the position thus needs to receive orientation. Coaching helps the underperforming manager to develop the employees working under him in a way that coincides with their career aspiration. As such, through coaching the employee will be in a position to think as well as solve problems for themselves. Further, lack of skills and competencies for the job often prevents the employee, in this case the manager of facilities services in CAP, from attaining the satisfactory standard of performance. Thus, as Abbot and Dahmus (2012) suggest, the performance improvement action strategy to be used in addressing underperformance must revolve around the initiation of a formal training. The formal training must incorporate the most appropriate training available and determine the earliest timeframe through which the training can be conducted. Therefore, training is an important aspect associated with the management of underperformance in the organization. Reward management strategy as a solution to underperformance. Reward management strategy involves motivating employees through developing as well as implementing policies and strategies related to rewarding employees equitably and justly. According to Adam’s Equity Theory (1963), employees often feel motivated when they are treated equitably in comparison to other employees in the organization. Thus, the case of the underperforming manager in CAP can benefit from the intrinsic rewarding strategy. Through the intrinsic reward system, the manager will receive internal and less tangible rewards that are highly subjective as they make an employee feel good about their work as well as their value. The intrinsic reward strategy will be appropriate for the new manager in CAP as he needs a considerable amount of confidence and motivation in order to acclimatize to the new working environment. Some of the intrinsic rewards that best suits his current underperforming status are healthy relationships, competence, and choice. Under healthy relationships, the general manager, the management as well as the staff will establish a close working relation with the manager thus motivating to create a sense of connection with other employees. Secondly, the competence reward is related to giving the employee continuous training as well a learning environment for them to develop their skills. With the choice reward, the manager is allowed to make his strategies of working in order to realize his full potential and achieve the organization’s objectives. As indicated earlier, these intrinsic values are important to the new Manager as he is slowly learning the culture of the organization and as such needs acceptance and support from the organization. How in theory CAP’s human resource management practices can support the firm’s corporate strategies Researchers have argued that human resource management practices are viewed as a source of competitive advantage for companies as a practice such as reward management result to a more productive workforce (Barney, 2001). Moreover, human resource management practices are often unique thus difficult for the competitors to imitate, which more often than not coincides with the firm’s business strategies. Therefore, the underperformance case being witnessed in CAP can be solved through initiating proper human resource management practices that support the firm’s business strategies. These practices include formal training systems, intrinsic rewarding systems as well as result-oriented appraisals as discussed in the previous sections. These practices are empirically related to the overall business strategies as they lead to an overall organizational performance. For example, CAP can ensure congruence between the various aspects of human resource management strategy such as motivation through reward and result-oriented appraisals in to support the institutions corporate strategies. As Becker and Gerhart (2006) notes the human resource best practices should shape an underperforming employee equipping him or her with personal and organizational skills. In turn, his or her attitudes and behaviors will be changed thus having the ability to undertake a wider range of tasks. Accordingly, the firm’s corporate strategy that relates to effective employee performance will be realized According to Lawler’s (1995) model of best practices in human resource management, a strategic reward management framework helps the organization to realize its business goals and objectives. In effect, the College of Asia and Pacific’s corporate strategies are associated with the need to develop the employee’s behavior in order to be productive thus moving the institution the right direction. Findings and Conclusions From this study, it is evident that best practices in human resource management play significant role in shaping and enhancing the performance of an employee. The report found out that a set of strategic human resource management practices such as formal training, coaching, and motivation through a rewarding management system are significant in managing underperformance. Moreover, the study found out that a manager often starts to show features of underperformance when he or she fails to follow the developmental as well as the administrative divergent goals. Lack of focus on the divergent developmental and administrative goals can often attested to the lack of competencies and skills thus preventing him or her from attaining a satisfactory standard of performance. The study found out that such an underperforming manager often needs a performance improvement action strategy in order to address that weakness. Therefore, it can be concluded that an underperforming manager or employee who is new to an organization should be accepted to the organization. Furthermore, such an individual needs an intrinsic reward such as healthy working environment, as he or she needs an orientation to his new job position. Recommendations The College of Asia and Pacific (CAP) should first organize a formal training for the manager among other line managers in order for them to acquire analytical skills that help in decision-making. In addition, the training will equip the underperforming manager with interpersonal, technical skills that are related to his job position. With these skills, the manager will be in a position to relate well with his junior staff as well as other line managers. Third, the manager should be given a series of coaching from the general manager as well as be equipped with a short workbook, which would guide him on how to address matters that fall under his department. The other significant solution to the management of his performance is related to intrinsic reward system. Since the Manager is new to the organization and to his job position, the underperformance might be because of the Manager lacks of proper orientation and an accommodating working environment. Thus, the management should give the underperforming manager intrinsic rewards such as great attention and healthy working relationship with the new incompetent manager to feel appreciated and part of the organization. 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