Human Resource Performance Management - Essay Example

Van Dooren, Bouckaert and Halligan (2015) say that performance management is the process by which employees and managers work together to plan, monitor and to review the workers’ objectives. Moreover, they assess whether the objectives are in tandem with the overall organization objectives and how they contribute to performance and productivity. It cannot be defined as an annual performance review but as a continuous process of setting objectives, monitoring progress and providing continuous coaching as well as proper feedback that ensures employees are meeting the set objectives and career goals. The premise of performance management is to improve and promote employee effectiveness. Moreover, it is a continuous process where the top management and low-level workers work together in planning, monitoring and reviewing the employees’ goals and work objectives and the role in the organization (Beardwell & Thompson, 2014). Scholars argue that performance management has a primary role in developing human capital. Performance improvement, as well as the characters attached to performance management, has an increased role in organizations today. As business pressures increase, organizations are required to seek more efficiency when executing business strategies.

Strategic Business Plan

The hospitality needs in New Zealand require a medium-term outlook strategy such that the stakeholders can set a proper marketing and advertising campaign that will attract more business. Moreover, to access the world and what the local market has in store, consumers need to adopt digital technologies available (Chelladurai & Kerwin, 2017). It is important to note that before planning any strategies for the hospitality industry, the planning process and the procedure itself are imperative in delivering what is required for performance management. Therefore, improved organizational performance involves better innovation, a better strategy for growth as well as enhanced execution. Notably, the plan should target growth strategies, improved innovation, and implementation. Performance management influences strategic planning in that each project has to be measured to ensure that the policy is working. In this case, the managers can plan and set work targets where they can also monitor and measure an employee’s effectiveness. The strategies can include annual appraisals and frequent reviews as well as constant coaching where an employee can be assessed and managed with an objective of invoking optimum performance. Markedly, the most efficient way to perform performance management is to implement it for the employee’s own development goals as well as driving business results. Moreover, one can ensure that the organizational objectives are met by aligning employee performance management with the business strategy. It is done by first setting business targets for the employees, which they are expected to be delivered within the set deadline. For instance, in New Zealand, the hotel department heads are entrusted with goals that align with the overall business plan. The commercial and sales director is expected to meet a set sales volume for hotel rooms or other facilities. The targets should be measurable and realistic. Other similar activities within this objective are to cascade the goals such that the tasks given to team members can align with the overall business strategy. The key stakeholders include the employees and the management working together to ensure set targets are met within the set deadline.

Human Resource Strategy

The tourism and hospitality industry is one of the most significant contributors to the New Zealand economy. Increased hospitality prices have been suggested unsuccessfully over the years to improve the financial performance of the hospitality in the country (Baum, 2015). However, strategic human resource management should be applied when an organization such as a hotel aims to improve performance which leads to successful growth. The human resource practices are linked with the overall performance and strategies of the group. Van Dooren, Bouckaert and Halligan (2015) asserts that managers in this industry in New Zealand are lacking in strategic thinking, communication, and people skills, networking and leadership as well as marketing and relationship development. It is worth noting that the human resource department is most in line with performance management system in every organization. The human resource team plans how to improve the employee morale, increase productivity and retain all employees. The HR department plays an imperative role in designing and implementing performance appraisals where it acts as the middle level between the employee and the reviewing authorities. The human resource ensures that there is a smooth implementation of the appraisal process (Buckingham and Goodall, 2015). The first role is to design the whole appraisal system making sure that it is simple, clear and concise. Therefore, an HR manager sits down with the hotel’s functional heads to ascertain the tasks assigned to all team members. Human Resource is responsible for designing a consistent and painless PMS in the hotels or the entire hospitality industry. Moreover, it is tasked with the duty to improve employee morale and make sure that their needs are addressed. In this case, the department has to be aware that human resource is the most crucial tool in improving performance. Once the needs of employees are addressed, there is a smooth flow of work which leads to improved overall performance.

Human Resource Plans and Policies

A recent survey conducted in the hospitality industry in New Zealand indicates that hotels adequately adopt HRM practices and that the top level management well acknowledges the strategic potential of the Human resource (Knies et. al, 2015). However, there is still a significant gap before full potential can be captured. The Human resource policies can be identified as the formal rules and guidelines that businesses adapt to train, hire and assess as well as to reward employees. Once the systems are well organized and administered, they can eliminate the misunderstanding between the employers and employees in matters of obligations and rights in the organization. Therefore, since the HR department is responsible for hiring and training employees, they need to adopt policies that ensure that there is the provision of an accurate picture of employee performance. Moreover, the systems must ensure that every employee has been assigned a specific task within the broad organization range of jobs. The policies should also enable measuring and monitoring of results as well as providing training and developmental opportunities set to improve overall performance. The systems in New Zealand are easy to understand and apply while ensuring that the worker's plans support the strategic organizational direction. Most importantly, when designing such policies, it is essential to ensure that identify and recognize each employee’s accomplishments while providing continuous and constructive feedback on employee performance. Once the HR policies are implemented consistently and intelligently, benefits can be realized in several areas such as communication with employees. A carefully thought human resource policy can give information about what employees expect from the employer regarding work performance and workplace behavior (Buckingham and Goodall, 2015. There is also improved communication with managers and a supervisor, saves time and eliminates litigation which might cost the organization a lot of revenue.

Performance Management Strategies and Processes

The most efficient method in which the hospitality industry in New Zealand can achieve success is to ensure a proper performance management process that measures and rewards the abilities of employees when meeting and exceeding the set goals. The management should provide that there is improved morale thereby creating loyalty and increasing the overall employee productivity. Notably, the process of aligning compensation with team or individual performance entails setting, measuring as well as rewarding achievable performance expectations. There is a myriad of ways to approach the task of creating. The most popular approach is as follows:

Firstly, defining individual objectives and company strategies and communicating them throughout the organization. Secondly, goal process is monitored while the management offers to coach on performance. After that, individual performance is evaluated with feedback and formal documentation. Finally, compensation is awarded based on performance. Once the production exceeds or meets the required standard, a reward can be issued, and if it fails to meet the set standard, a performance development plan is created to bridge the gap while a new date is scheduled for the same evaluation (Baum, 2015). For instance, a marketing director can be given a set target to ensure that the hotel is fully booked including the conference and ballrooms among other things in the hotel. By the end of the stipulated period, the director will have achieved the desired results and is rewarded for that. If forces make it impossible to achieve the desired results, a development plan will be designed to help meet the target, and the effects are evaluated at a later stage. The next processes include the monitoring of the goal, the appraisal process, and pay-for-performance compensation.

Performance Management

Performance review

The hospitality industry is synonymous with the last quarter of the year evaluation. It is necessary for determining merit increases, incentives, bonuses as well as to some degree, future performance. In return, it impacts positively on guest returns and overall satisfaction. It is critical to give a balanced and honest feedback in aspects of employee coaching and development necessary for the continued success of the organization (Seuring & Gold, 2013). Hotels in New Zealand perform evaluation reviews to avoid the surprises that might come with ill-preparedness or poor performance. Constant reviews determine loopholes for losses and curb them before they become a major setback. It is worth noting that poorly executed reviews can make employees less committed.

Employee Counseling

It can be referred to as a work based intervention that is developed with the primary objective of assisting employees to resolve personal issues that may affect the performance of that particular individual in the workplace (Buckingham and Goodall, 2015). Hotels in New Zealand can adopt an employee assistance program that will help employees to resolve personal matters such as family issues, substance abuse, and marital problems among others. In doing so, employees feel appreciated which translates into more productivity.

Employee discipline

The purpose of control is to amend employee behavior while ensuring company rules are well adhered to. The intended reason is not to embarrass or punish the employee. In many cases, a positive approach solves the problem without necessarily involving disciplinary measures. However, if there is persistence misconduct; the management results to using the necessary tactics to correct such behavior. Such misconduct can include being absent from work without notice, rude or aggressive behavior towards the customers or employees, insubordination, theft or dishonesty (DeNisi & Smith, 2014). Through proper investigation, the management can determine the best method to deal with such issues.

Absence management

The activity involves reducing employee absenteeism through procedures and policies. Hotels can do so by determining own processes of absence such as flexible working hours. The New Zealand hotel industry should cover pay arrangements even when the organization gives the statutory minimum or enhanced sick pay for a given period. Also, the policy should explain the events following disciplinary actions.

Termination

Through proper evaluation, the management can determine whether there is underperformance where an employee behaves in unacceptable ways leading to serious misconduct. In this case, the administration is left with only one choice to terminate the contract between the employee and the organization (Knox, 2014). In this case, the hotel management can consider drafting a policy that will outline how a plan describing how underperformance can be managed and the possible consequences. Such a system will prevent employees from thinking they are being victimized once such an issue comes up.

Setting New Performance Expectations

There is need to set new goals for the next quarter in the hospitality industry and any other organization. After the necessary steps in the performance management system, an active leader will set enhanced expectations that will lead the organization to better performance in the coming year. The set examples could be to increase the number of tourists who book hotels or ask for events management. In doing so, the sales volume is set to go higher which translates into added benefits (Knox, 2014). More importantly, the employees should always be notified about the new changes and expectations.

The performance development process is the hallmark of all successful businesses. It is apparent that each step in the performance model system aligns with the overall objectives and performance of the organization. The hospitality industry in New Zealand can borrow the tenets of the PMS model to improve its current state. The performance evaluation underscores that the human resource aspect is the most significant in the field and that employees need the proper motivation to improve productivity. In this case, the employee must objectively perform the laid out duties in an efficient manner while constant feedback from the management to the employee is essential at this stage. Performance deficits must be addressed appropriately to avoid lawsuits that could cost the organization.