Performance and Reward Management - Essay Example

RUNNING HEAD: Performance and Reward Management Name Institution Course Date Contents Contents 2 Introduction 2 Background 3 Features of Best Practice in Performance Management 4 How the Human Resource Development Function Integrates With the Performance Management Function 6 Issues Surrounding the Management of Underperformers 6 Reward management strategy fitting into the solution offered 8 How in theory should the case study organization’s human resource management practices support the firm’s corporate strategies 9 Findings and Conclusion 10 Recommendations 11 2.Motivation/Reward 11 References 12 Introduction Human resource management is one of the functions undertaken in an organization which are aimed at maximizing the performance of employees. This is usually in a bid to help the organization achieve its strategic objectives. Human resource management mainly delves in a number of areas. One of these areas is the performance management. Under this role the human resource managers plan, monitor and review the work of the employees so as to ensure that they continuously work towards the achievement of the goals of the employees in a consistent manner. The other role that human resource managers delve in is human resource development. This mainly involves training of the employees so as to advance their careers and in turn give good service to the employers. Reward management is another role of the human resource managers. This role involves the formulation of policies and strategies of rewarding people equitably and fairly based on their performance. All these roles undertaken by the human resource managers must be integrated so as to have a holistic approach towards managing employees. Human resource management is necessary in any organization. It is through this function that underperformers and over performers in an organization can be identified and appropriate action taken (Snell, Morris, & Bohlander, 2015, p. 22). Background This report is compiled due to the request made by a manager to an employee that was recently hired at IGA. The individual selected was 31 years of age and had both skills and academic qualifications for the job. Having worked for a long time for another organization in the same capacity made him the preferred choice for the job by the interviewing panel. However, one month into the job the manager is disappointed by the performance of this individual. The individual is an underperformer. The manager however feels that this individual has the potential to record better performance given the right push. As a result the manager has sought my advice as a senior member of the human resource management function on what to do about them. The report compiled involves a number of issues. One of them is the features of best practice in performance management. Secondly, will be an analysis of how the human resource development function integrates with the performance management function. Thirdly, will be the issues surrounding the management of underperformers. Fourthly, the findings and conclusion will be presented. Finally, the report will give recommendations on the actions the manager will take on the employee in question. Features of Best Practice in Performance Management All organizations have a performance management system. The issue however lies in the features of the systems (Mathis & Jackson, 2008, p. 8). There are features that define best practice in performance management as discussed below: 1. Clear Definition of Roles and Performance Expectations Human resource managers must establish a clear expectation of performance in order for the employees to achieve optimal performance. This is because the clearer the expectations the better the employees will be able to deliver (Otley, 2009). 2. Consistent Performance Reporting Managers must be able to review the performance of the employees on a continuous basis in relation to the set goals. This way good performance management is established. 3. Performance Coaching Performance coaching is very necessary in the concept of performance management. As such managers must provide frequent performance coaching sessions to the employees. This way the employees are able to receive consistent feedback regarding their performance. 4. All Rounded Feedback Approach to Performance Improvement This feature of performance management provides all employees with a holistic view of their performance in terms of their development in their jobs. This kind of feedback is crucial to employees as it enables them to understand their strengths and weaknesses and even help them to improve on their weak areas. 5. Performance Appraisal All organizations should have a formal process whereby the performance of all their employees is evaluated. The evaluation should be done after a fixed period of time such as yearly or monthly. Performance appraisal enables the management to get a feedback on their development efforts towards the employees. The management is able to know the impact of their training of the employees through their performance. 6. Performance Improvement Planning This practice is crucial for any performance management system. This is because the feature documents the goals and actions expected from both the managers and employers which can be used as a point of reference in the future. Performance improvement planning can also be used as a tool for helping to keep the development goals and objectives on track. How the Human Resource Development Function Integrates With the Performance Management Function As discussed earlier human resource development and performance management are functions performed by the human resource managers. It is important that these functions are integrated so as to achieve better results in the course of managing human resources (Gallo, 2012). Human resource development and performance management functions integrate in the sense that human resource managers provide training to employees in light of the performance they expect from the employees. The human resource managers therefore look into the weak areas that undermine the performance of the employees and then formulate training programs that will be aimed at alleviating such problems faced by the employees. Issues Surrounding the Management of Underperformers There are a number of issues that surround the management of underperformers. These are the issues that need to be taken into account in an effective performance management system and human resource development function. These issues are discussed as follows: 1. Identifying the Problem A manager working with an underperforming employee is bound to notice the problem of underperformance in the course of time. Such a manager should address this problem as soon as they notice it. This is because ignoring an underperformer is one of the worst ways to manage their performance issues. When the actions of an underperformer are ignored their poor performance becomes a habit which eventually leads to declined overall performance of the organization. When addressing the issue it is important that the manager arranges to meet with the underperforming employee preferably in a private place. The manager should gather their thoughts and have clear examples of scenarios where the employee has exhibited underperformance. This is necessary because it avoids the perception by the employee that they are being attacked with baseless accusations (Guest, 2007). 2. Setting of Clear Goals The other issue that surrounds the management of underperforming employees is the setting of clear goals. Once the manager has discussed the issues of underperformance with the employee the next step is to discuss the expectations for improvement required from the employee. This will require that both the manager and employee set the goals of performance that are expected from the employee. It is important that these expectations are documented. It is important that the manager sets clear goals in regard to what is expected of the employees. This way the employee can have a clear picture of how to perform their duties in order to reach the goals set. In the setting of clear goals it is important that the manager communicates to the employee the time within which improvement is expected to be realized. This should be immediately after the meeting between the manager and the employee. In case the change expected from the employee requires any form of training to be conducted then the manager should facilitate such training and set a timeline for the same. 3. Identifying Sources of Performance Problems Sometimes managing underperformance may go beyond the issues of communicating expectations and setting goals. The manager must understand that there may be other underlying problems that cause the employee’s performance not to meet the expected standards (Garavan, 2009). It is therefore important for the manager to initiate an interactive process with the employee in question so as to let them open up to issues that may be having a negative impact on their performance at the work place. More often than not the manager may find out the employee may be undergoing a difficult phase in their personal lives that may be limiting them from achieving their full potential in their work. 4. Morale/Motivation The level of morale of the workers plays a major role in determining the level of performance of the employee. The higher the level of morale of the workers the more they are motivated. This ensures that the level of performance of such workers is also high (Adhikari, 2012). The manager must therefore ensure that the employee is kept motivated so that they can be able to record high performance in the execution of their tasks. 5. Follow Up Management of underperformance is a process. This is a process that the manager must ensure that every step is followed. Once the problem of underperformance is identified, its causes established and goals set to alleviate the problem the manager must ensure that they follow up with the underperforming employee. The purpose of following up is to determine if the employee is improving on their performance. Follow up requires the manager to monitor the activities of the employee in question closely (Rajagopalan, 2010). Reward management strategy fitting into the solution offered Reward management involves the designing and implementation of policies and strategies with a focus of rewarding individuals equitably, fairly and consistently commensurate to the value of their efforts. The reward management strategy in any organization aims at developing and implementing the reward, practices, processes and policies needed to aid the attainment of the business goals of the organization. In this case, manager should employ reward strategy to motivate the underperforming employee from a combination of rewards that are both intrinsic and extrinsic. Employees improve productivity where managers offer incentives. External rewards that this manager should use are benefits, money, promotions, flexible schedules, positive feedback and being a good boss (Shanks, 2006 p. 30). Additionally, the manager can employ intrinsic rewards to improve the underperformance of this employee. They include healthy employees’ relationships, job satisfaction, improving competence and freedom in the workplace. The combination of these rewards will definitely motivate this employee and as a result, the performance will improve. How in theory should the case study organization’s human resource management practices support the firm’s corporate strategies It is paramount for the managers to understand that the manner in which employees are managed in a given organization requires to be in line with business strategy. IGA should employ performance management as a way of supporting its strategies and improving organisational performance. Performance system is a process of understanding and establishing what goal to be attained as well as the mean to developing and managing employees in a manner that boost the attainment of long-term and short-term goals (Brauns, 2013 p.1407). In this connection, performance system will assist managing the new underperforming employee to improve performance that will as a result support organisation strategies. On the other hand, reward has a direct impact on performance. Manager at IGA should appreciate that reward and performance are directly related because job can be highly rewarding where it offers employees what they want. Therefore, a person has higher probability of performing well if the job is rewarding. Corporate strategies of the organisation are well supported if employee productivity is high. Findings and Conclusion In the course of research I realized that there are a number of issues that surround the issue of managing underperformance. In order to effectively manage underperformance it is important that the manager establishes the cause of the underperformance of the employee. At the same time they must point out the problem of underperformance immediately they note it so as to avoid escalation of the problem. The manager should then take appropriate action towards alleviating the problem. Such actions involve setting of goals, using motivation strategy and establishing the expectations expected in the performance of the worker. In conclusion, the manager should take time in establishing the cause of the underperformance of the worker. The manager should also realize that underperformance by an employee may be the fault of either the manager or the worker. As a result, the manager should ensure that they give their employees a favourable environment as well as the right tools of trade to ensure that their work is not affected. At the same time they should establish an interactive process with the employees so that they can open up on their personal problems that could be the cause of their underperformance. Recommendations There are a number of recommendations I would give to the manager as the senior member of the human resource management function which are as follows: 1. Reassign The employee at IGA may be better suited for another role. In this case the manager can reassign them to such a role because they can make a better contribution there. 2. Motivation/Reward The manager should motivate this employee by employing reward systems. The manager should employ both intrinsic and extrinsic rewards in an attempt to boost performance of this employee. 3. Let Them Go The manager may find out that there is no way the performance of the employee can be improved. In such a case the manger should let them go and hire a new employee. References Adhikari, D, 2012, Human resource development (HRD) for performance management, International Journal of Productivity and Performance Management , 59 (4), 221-228. Brauns, M 2013, Aligning Strategic Human Resource Management To Human Resources, Performance And Reward. International Business & Economics Research Journal (IBER), 12(11), pp.1405-1410. Gallo, A, 2012, How to Help an Underperformer, Harvard Business Review , 12 (1), 26-32. Garavan, T, 2009, Strategic Human Resource Development, Journal of European Industrial Training , 15 (1), 41-53. Guest, D, 2007, Human resource management and performance: a review and research agenda, The International Journal of Human Resource Management , 8 (3), 263-276. Mathis, R, & Jackson, J, 2008, Human Resource Management: Essential Perspectives, Cengage Learning, Boston. Otley, D, 2009, Performance management: a framework for management control systems research, Management Accounting Research , 10 (4), 363-382. Rajagopalan, N, 2010, Effects of strategic orientation and environmental change on senior management reward systems, Strategic Management Journal , 13 (1), 13-36. Shanks, N, H 2006, Introduction to Health Care Management, Jones and Bartlett publishers, London. Snell, S, Morris, S, & Bohlander, G, 2015, Managing Human Resources, Cengage Learning, Boston. Read More