Performance and Reward Management for Common Wealth Bank of Australia - Case Study Example

Performance and Reward Management-part 2 (Management of a BDM at CBA) By (Student) (Course) Instructor: Institution: Date: Introduction The human resource function is the most significant contributor of effectiveness and growth in an organization. This means that organizations should be deliberately concerned with training, development and motivation of its employees as an ongoing performance management process [Sah12]. According to Elorza, et al., (2016), performance management should be concerned with sustaining good performance and improving poor performance. Scientific methods proposed by theorists such as Frederick Taylor proved to be effective in improving poor performance [Jef12]. However, as noted by (Garg and Rastogi, 2006), such theories have not been as effective in managing the performance of high-performing, informed, ambitious and creative workers who dominate the 21st century workplace. This calls for use of different approaches to motivate and retain high-performing workers. This paper will analyze the best human resource management (HRM) practices that could be applied by the Common Wealth Bank of Australia (CBA) to better manage the performance of a newly hired 31-year old Business Development Manager (BDM). The report will highlight relevant performance management issues that relate to motivation and retention of productive employees working in such crucial positions of an organization. The report will further identify approaches that can be adopted by CBA to align its reward management strategy to the appropriate performance management to be adopted in the case of the BDM. In addition, the report will explore the relevance of supporting CBA’s corporate strategies with its HRM function in respect to managing employee performance. Case Background One month ago, a high-performing 31 y/o was hired for the position of a Business Development Manager by the Commonwealth Bank of Australia. This was after a rigorous recruitment process that identified him as the ideal candidate for the position. He has been a much focused employee and his immediate boss feels he will be an important asset towards the realization of CBA’s strategic goals. However, he is showing signs of boredom and lack of enthusiasm in the new role. He has even indicated that he might look for a new job with a different organization. In regards to this development, this report seeks to recommend the best HRM practices that could be employed in motivating and retaining the unmotivated high-performing employee working as a BDM with CBA. The report will recommend effective actions and strategies that could be adopted by the HRM function to tap the productivity of the high-performing employee towards achievement of the organizations strategic vision. Best practice in performance management that could be effective in motivating and retaining the newly-hired BDM at CBA. Aligning the CBA’s strategic plan with its Human Resource planning According to (Buchner, 2007), the process of strategy formulation, implementation and evaluation should involve all the departments in the organization. For instance, the organization cost planning should reflect strategies such as sustainable use of resources. Similarly, the recruitment, training, development and motivation initiatives in the HRM function should reflect organizational goals such as improved customer experience, increase in innovative products and more (Tabassi and Bakar, 2009). The strategic vision of the Commonwealth Bank of Australia is to excel at securing and enhancing the financial wellbeing of people, businesses and communities. In order to achieve this vision, the company has focused its efforts on building its strategic strength in the brand, scale and a diversified business mix [The17]. It is critically important that the position of the BDM is aligned with this strategic direction of CBA. Most importantly, the individual career and developmental aspirations of the BDM should be aligned with the vision of CBA. For example, the BDM should be allowed to come up with innovative and disruptive financial products that challenge his knowledge, creativity and persistence in pushing a new product in the market. Such a product will enhance the strategic strength of CBA in terms of diversifying its product portfolio. According to Boxall, and Macky, (2009), high-performance employees are likely to be significantly motivated by opportunities to contribute and experiment with ideas in an environment that accommodates innovation. Inclusive job design and planning process As noted by Kwon and Rupp, (2013), high-performing employees are particularly very concerned with the roles, responsibilities and expectations of their new positions. At the initial stages of their employment, such employees will always seek to directly or indirectly define their own interpretation of the relationship with the organization. This may at times put them in collision path with the organizational hierarchy, HRM plan and culture. According to Sahoo & Mishra (2012), high-performing employees are creative, enthusiastic, and ambitious and will always seek an opportunity to utilize these special abilities at the work place. They will thus seek to be involved in the design of their jobs. If they find structural or actual opposition to this aspiration, they may give indications of desire to leave the organization (Gruman and Saks, 2011). This means that it will be important to involve the newly-hired BDM at CBA to explore ways in which his creativity, intelligence and innovative abilities can be utilized. This will make the employee feel valued by the organization. It will also be a tool to retain him as he will be placed with the responsibility of ensuring that he achieves the goals of all the projects that he helped develop. How CBA human resource development (HRD) function should integrate with the performance management function in regards to the BDM position. As noted by Collings and Mellahi (2009), performance management and human resource development (HRD) plan should be complimentary efforts in the organizational setting as they collectively lead to improved performance and attainment of crucial goals. HRD is concerned with training and development of employees in line with the strategic vision of an organization. CBA should provide the BDM with relevant resources such as funds, experts, and any other tools that will enable him accomplish his tasks. Additionally, the BDM should be supported in his pursuit of knowledge or skills that will add value to the organization as it aspires to excel at securing and enhancing the financial wellbeing of people, businesses and communities. Specific issues surrounding the management the newly-hired BDM that need to be taken into account generally in an effective performance management system Job design As observed in Herzberg’s two-factor motivation theory identifies motivators such as salary and job security as mere expectations that may not necessarily motivate high-performing individuals (Greguras and Diefendorff, 2009). However, intrinsic factors such as achievement, responsibility, recognition and advancement are critical motivators for high-performing individuals (Güngör, 2011). This implies that the CBA administration should accommodate the idea that a person in the position of the BDM is motivated by higher needs as observed in Maslow’s hierarchy on needs theory. For instance, the BDM should be given autonomy to make critical decisions related to his department projects and initiatives. He should as well be recognised and given resources to implement his ideas for change and growth at their company. The BDM is likely to feel challenged by his new job position if there is presence on intrinsic motivators at CBA. Performance review High-performing employees always want to be involved in every decision that affects them in an organisation (Pool and Pool 2007). This means that it is prudent that the supervising manager involves the BDM at CBA in developing the targets that they are expected to achieve. This makes them have a sense of responsibility and worthiness in the organisation as they get to participate in determination of their goals and identify tools and resources that they require. In the end, the performance of high-performing employee such as the BDM at CBA should be involved in review of their performance in reference to the goals they participated in setting. As observed by Lee Whittington and Galpin (2010), this offers them an opportunity to be proud for good performance. They may also feel indebted to the organisation if their performance is not consistent with the targets they helped set. How the Commonwealth Bank of Australia reward management strategy fits into the solution proposed in this report Currently, CBA’s reward management strategy has a CEO award that is al recognition given to the very ‘best of the best’ performers [The171]. This fits into the proposal that the newly-hired BDM be motivated through intrinsic strategies such as recognition and opportunity to implement their ideas within the organisational framework. The reward system at CBA also includes a “Employee Share Acquisition Plan (ESAP)” whereby employees are rewarded up to $1000 worth of shares every year upon achievement of their targets [The171]. This fits into the proposal that the BDM is involved in setting targets and is given an opportunity to feel responsible for the success of the organization. The BDM is likely to make prudent decisions given the fact that the share acquisition plan makes him a shareholder of the company who will benefit from its growth and profitability. How the Commonwealth Bank of Australia human resource management practices (HRD, performance and reward management) should support the firm’s corporate strategy According to the contention of several management researchers including Zhang and Bartol (2010), a firm’s corporate strategy should have a direct relationship with the operational and strategic objectives of every function including the human resource department. This means that the recruitment, placement, training and development functions of the human resource department should be guided by the need to support the strategic goals of the firm [Elo16]. Similarly, the performance and reward management should enhance employees’ focus towards attainment of the firm’s strategic goals. CBA’s strategic vision is to excel at securing and enhancing the financial wellbeing of people, businesses and communities. CBA strives to build its strategic strength in the brand, scale and a diversified business mix. The company’s HRD practices should support the strategic vision through recruitment of highly creative and result-oriented individuals such as the newly-hired BDM, who can deliver impressive contribution in terms of growing sales and launching innovative product solutions in the market. The HRD department should focus on providing challenging and flexible job opportunities for such individuals in order to retain them in the long run. The firm’s performance and reward management should adopt a hybrid approach whereby high-performing employees can be motivated through enhanced autonomy in decision-making and recognition. Poor-performing employees can be enticed with monetary incentives. Most importantly, it is important to note that the HRD practices and performance & reward initiatives at CBA should be aligned with the strategic vision of the company. This means that employees should only be rewarded if their work contributed positively towards realization of the company’s strategic vision. Conclusion From the company analysis and relevant literature reviewed in this report, it is evident that motivation of high-performing employees is a critical requirement in a firm’s efforts towards achievement of its strategic vision. However, High-performing workers may not necessarily be motivated through traditional incentives such as good pay, job security or paid-for holidays. The Commonwealth Bank of Australia case of a bored, newly-hired Business Development Manager shows that such employees can only be motivated through challenging job designs, involvement in decisions that affect their work, autonomy and influence in relation to important matters in the company. In addition, such employees may need to be given opportunity to implement their ideas as long as they contribute positively towards realisation of CBA’s vision. They also thrive in an environment where they are recognised for their achievement through awards such as shares and accolades. Therefore, CBA should explore such HRD and performance & reward management efforts towards retaining the high-performing employee as he is likely to contribute immensely towards the firm’s vision and strategic goals. References Boxall, P. and Macky, K., 2009. Research and theory on high‐performance work systems: progressing the high‐involvement stream. Human Resource Management Journal, 19(1), pp.3-23. Buchner, T.W., 2007. Performance management theory: A look from the performer's perspective with implications for HRD. Human Resource Development International, 10(1), pp.59-73. Collings, D.G. and Mellahi, K., 2009. Strategic talent management: A review and research agenda. Human resource management review, 19(4), pp.304-313. Elorza, U., Harris, C., Aritzeta, A. & Balluerka, N., 2016. 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Sah12: , (Sahoo & Mishra, 2012), Jef12: , (Miles, 2012), The17: , (The Commonwealth Bank Group, 2017), The171: , (The Commonwealth Group, 2017), Elo16: , (Elorza, et al., 2016), Read More