---------------------------------------------------------------------------------11 January 2009Capper Engineering Limited: Human Resource Management – Case StudyThe three most significant “Human Resource Management” problems in this organization which can also possibly rationalize the recently witnessed high staff turnover can be broadly outlined as (1) Lack of Effective Performance Management / Monitoring System leading to Performance based Remuneration, Rewards & Bonus Program, (2)Lack of Contemporary Employee Recruitment and Selection Process, (3)Requirement for an effective Employee Retention Strategy. Each one of them is dealt with in the order presented together with aptly suggested recommendations that the organization can actively consider towards effectively resolving the problems and realizing significant improvement in the respective areas only to be benefitted by an honest HR approach to it. Performance Management System: It is very difficult to formulate and setup an effective performance management system and placing it before managers making it work for the employees immediately.
There has to be a lot of planning and design effort spent on it. Basically it should extend to employees’ four fundamental benefits namely, (1) Clear understanding of job expectations, (2) Regular performance feedback, (3) Steps and advices required for performance improvement, (4) Recognition and acknowledgement of good performance.
Overall the goal of a good performance management system is to bolster the employee performance levels leading to increased business productivity. It is however critical for a performance management system to be effective to inherently constitute of some critical elements which are as described below. Up-to-date job descriptions should make a clear mention of job functions, required skills, expected employee relationships with peers and customers, performance expectations, deadlines and goals to be met etc and must be regularly kept updated according to changing scenarios in the organization such as following a downsizing effort or a merger when there is a radical shift in employee responsibilities and workloads.
Next are Performance Measures and Standards. There has to be a clear cut performance standard as to what is average performance, above average and below average performances. One has to weigh the best case and worst case scenarios before arriving at an optimal performance standard. Also the assessment of performance has to be both objective and subjective since though it is possible to quantitatively measure performances like employee productivity in terms of number of products assembled or customer accounts brought in, it is rather difficult to similarly assess customer service skills, or attitudes and coping skills of employees.
Also the evaluator has to avoid potential bias creeping into assessment of behavioral aspects being excellent or unacceptable. It is rather highly important that the performance evaluator is properly trained first in order to avoid his poor interpersonal or communication skills from hampering effective employee appraisals. Also under performing employees have to be given an opportunity to perform on par by proper mentoring or training and setting goals and deadlines for realizing their improvement.
This will lift the morale of such employees to perform better. Also it is only fair and modest to invite suggestions from employees towards bettering performance strategies and incorporating their valuables inputs into the system to achieve the set objectives. Finally no performance management system is successful if it does not recognize or acknowledge and compensate / reward the above average performers. This will not only boost employee morale, but retain his loyalty and generate improvement in productivity.
Although it is still debated in many organizations whether there has to be a closely knit performance related compensation program which might outcast and undermine the employees who are not over achievers, a consistent achiever should be rewarded and recognized. Capper Engineering also has to adopt such a consistent performance management system leading to a suitable compensation, rewards and bonus program coordinated effectively by the HR department instead of the operational managers deciding on the disbursement of bonus to teams based on their purely subjective observations over a period.
Also the support services manager of Capper Engineering has to focus on performance standards of employees too instead of solely relying on and trusting their educational qualifications and sponsoring educational progress and development schemes.