The Best Practice Performance Management System Plan - Case Study Example

Performance Management: A Case Study Student’s Name Date Table of Contents Table of Contents 2 Abstract 3 Introduction 4 Authorization 4 Method of investigation 4 Background 4 Theoretical Perspective 5 Major HR Challenges 7 HR Strategic Performance Management Plan 8 Conclusion 12 Recommendations 13 Works Cited 15 Abstract Performance management is a critical tool for enhancing organizational performance. However, effective implementation of performance management often poses a challenge to most managers. This report has been based on the human resource challenges facing South Australian state department that have to do with performance management. In analyzing the case, the report began by providing a brief background of performance management as it pertain to South Australian government. The report proceeded to present the human resource challenges in the case study and a plan of how the challenges need to be addressed in the department. The report analyzed by providing the recommendations going forward. Introduction Purpose The objective of this report is to outlines the Best Practice” Performance Management System plan for implementation to address these human resource challenges facing the South Australian government agency highlighted in the case study Authorization This report has been authorized by the Director XYZ Department of State Government of South Australia and has been written by …………………, the Director of Human Resource Management Method of investigation This report has been prepared by reviewing literature on performance management as well as contacting the South Australia Public Sector Act 2009 as regards performance management. In addition, the research has been conducted by contacting the Best Practice performance management system guide recommended by experts. Background Performance management is seen as an important undertaking in the Australian public performance. As such, the government of South Australia has made performance development and management part of a requirement in all public sector departments as spelt out in Sec. 8 of the Public Sector Act 2009. Section 8 of the Act requires all government agencies to establish and implement effective performance management and development in the agency in respect of the workers. The Act also requires that the performance management be focused on advancing the goals of the Act and that the performance management and development form an integral part of the employment practices and form the basis for decision making in light of employees. Despite effective performance management being a requirement by the Act, the case indicates a situation where a South Australian Government Department is facing a number of challenges related to performance management and development. The issues include low staff morale, high levels of bullying lack of effective induction process, lack of seriousness in implementation of Performance Management Policy and Procedures, lack of investment on training and lack of performance reviews. These issues are having a negative effect on the performance of the agency and needs to be addressed to ensure improved performance. Theoretical Perspective The concept of performance management has received a lot of attention in the recent times as a result of the changing economic conditions. Presently, most firms, rather than waiting for external improvements are now looking at their internal capabilities as a means for productivity gains. Performance management refers to a systematic application of processes in an organization that are geared towards optimizing performance in an organization (Ugaddan, 2013). In other words, performance management is something that is done to the people to enhance their performance and productivity. Because of the increased recognition of the importance of performance management in enhancing productivity, a number of motivational theories have been advanced that can be used in enhancing performance management. Nevertheless, most managers are seen to prefer traditional theories such as the Maslow’s hierarchy of needs theory (Agarwal, 2013). Although Maslow’s hierarchy of needs theory and other traditional theories are useful in the improvement of performance management, there are a number of modern theories that are useful in explaining performance management in an organization. First is goal-setting theory that was coined in 1968 by Edwin Locke. The theory posits that the goals set by individual employees in a firm play a huge role in motivating them to increase their efforts (Buchnera, 2007). Locke attributes this to the fact that the worker keeps pursuing their goals until they achieve them. As such, the employee would work hard until such a time that the goal is achieved. Therefore, in the event that the performance improves, this results in the realization of the goals of performance management system. The other theory underlying performance management is the expectancy theory that was fronted in 1964 by Victor Vroom. Expectancy theory suggests that people modify their behavior in the workplace in line with the anticipated satisfaction of their valued goals (Buchnera, 2007). Vroom noted that employees adjust their behaviors in such a way that enables them to achieve their set goals. In other words, expectancy theory is based on belief that employees’ performance is influenced by the expectations about the future. The other is the social cognitive theory that holds that individuals who view themselves as high performers tend to be readily willing to embrace challenging goals and work hard to ensure their achievements (Ugaddan, 2013). The application of these theories in performance management implementation is critical because the theories helps in explaining where the employees derive their motivation for work from that manager can take advantage of to ensure improved job satisfaction and performance in an organization. Major HR Challenges The human resource department is charged with a huge role of managing the human capital in an organization. Employees are the key assets of any organization. For an organization to meet its objectives and compete effectively, it must invest adequately in its human resources to ensure the acquisition and development of high performing workforce (Ismajli et al., 2015). As such, the HR managers must ensure that an organization has the right talents with the right skills and that the needs and the welfare of the employees are taken good care of to motivate them to give their best and to minimize turnover. According to the case study, there are a number of HR challenges in the government department that needs to be addressed to ensure improved performance and the success of the agency. The first major challenge in the case study has to do with low employee morale and motivation. Employee motivation has been found to be directly related to the performance of a worker (Ismajli et al., 2015). As such, having demotivated employees is detrimental to the government agency as it can result in low job satisfaction, low productivity, high turnover and absenteeism. The second challenge presented in the case has to do with high incidences of employee bullying harassments. Harassments and bully is an issue that the government agency must address as quickly as possible if the department is to register good performance. When employees are bullied or harassed, this creates fear among them, thereby resulting in low job satisfaction, decreased productivity and high turnover (Fair Work, 2015). This implies that, if the agency allows bullying and harassments to continue unabated, them the department could soon be left without its workers because they would resign and seek employment in other agencies or private sector where they are secure and treated with respect. Thirdly, the case shows that the agency lacks an effective induction process in place as there is ambiguity with regards to how induction process is conducted and performance targets. Lack of an effective induction process is an HR challenge that must be addressed because it affects how employees are trained. Whenever there is a lack of an effective induction process, these results in a situation where new employees might not get the right training that matches their needs so as to ensure effective integration into the rest of the team (Ismajli et al., 2015). The other HR challenge in the case has to do with a lack of formal review and development plan for the workers. This is something that needs to be addressed by the HR because they not only affect the motivational level of the employees, but also deny them the opportunity to develop their skills and competencies in their areas of specialization (Ugaddan, 2013). Therefore, to meet the goals of the agency and its stakeholders, these issues need to be addressed by adopting an effective performance management and development in line with Sec. 8 of the Public Sector Act of 2009. HR Strategic Performance Management Plan Plan to Enhance Employee Morale and Motivation The case indicates that low employee morale and motivation is one of the major HR challenges that the Australian government agency experiences. Having employees with low morale and motivation is not a good thing for any organization because it affects the performance of the workers. Besides, low moral results low job satisfaction that might trigger high turnover and absenteeism in the agency (Nielsen 11). As such, it is very important for the HR manager of the agency to move with speed and address the Hr challenges for the success of the agency. The first thing that the HR will have to do is to find the best way of motivating its staff. According to Maslow’s hierarchy of needs theory, employees’ motivations occurs as a chain of event starting with the fulfillment of lower level needs after which the higher level needs are sought for fulfillment (Kumari and Malhotra, 2012). Using Maslow’s hierarchy of needs theory, the HR manager of the department will have to identify the individual needs of each employee that needs to be fulfilled to create a motivational effect on the workers. Because this is a government agency, there are a number of rewards that will have to be provided as a way of motivating the workers and increasing their morale. Firstly, the agency will have to consider motivating the employees by rewarding them with development and career opportunities (Chamorro-Premuzic, 2013). Analysis of the government agencies has found that most employees value development and career opportunities than aspects, such as financial rewards. As such, providing them with these highly valued rewards will go a long way in increasing their morale and motivational level. Additionally, the employees will also be provided with other non-tangible rewards, such as recognition as this will not only increase the motivational level of the workers, but also increase their commitment to the organizational goals, which result in enhanced performance and retention (Ismajli et al., 2015). Moreover, the employees’ moral and motivation will be boosted through acknowledging and encouraging exceptional performance while at the same time recognizing and providing support and improvement. Plan to Address Bullying and Harassments in the Department Bullying and harassments is a culture that should not be allowed to thrive in an organization because it affects the performance of employees. Bullying and harassments not only instill fear among workers, but also affects their productivity level (Nielsen, 2013). Unfortunately, the case indicates the government agency is marred by incidences of bullying and harassments. To address the issue, a number of steps will be taken. The first step will be develop an effective code of conduct that clearly informs the employees of the agency that bullying or harassing an employee in the workplace amount to a misconduct that is punishable. The creation of a code of conduct will ensure that every employee understand that the agency does not condone acts of bullying and harassments as any person found engaging in such conducts are punished. Secondly, the agency will have to promote cultural competency in the workplace (Nielsen, 2013). Most incidences of bullying and harassments emanates from cultural misunderstanding, prejudice and discrimination. Therefore, promoting a culture of low and teamwork in the agency will help address the problem. Plan to Improve Effectiveness of Induction Process Having an effective induction process is critical to enhancing the performance of the employees in the agency. Therefore, to address the induction challenges in the agency, the first thing that the HR managers will have to do is to ensure that the induction program is made part of the department’s strategic and operational plans, job descriptions and goals (Kumari and Malhotra, 2012). Secondly, because every employee is unique, so is their learning needs. Therefore, the HR managers will have to consider creating a learning motivation environment as soon as the induction program begins. At the same time, the HR managers will to ensure that the induction environment gives personalization tools to ensure the creation of a familiar environment. The HR managers will have to ensure that the entire team is involved. In this respect, the HR manager will have to ensure that the senior management team and workers representing other departments are involved in the induction program. The HR manager will also have to ensure that they welcome the new hires, provide useful tips, share opinions and insights, as well as develop an inclusive environment (Ismajli et al., 2015). Additionally, the HR manager will have to ensure that the new hires are allowed to have the induction training conducted at their own pace and repeated when need be to ensure that they understand what they are being taught. Besides, the HR manager will have to ensure that a reasonable induction timeframe is allowed for the training program to be completed. Above all, the department will have to set a reasonable performance targets for the inductees (Lin and Lee, 2011). Plan to Improve Performance Management Policy and Procedure Having an effective performance management policies and procedures is critical to the success of an organization. However, the case shows that this is a problem in the Australian government agency. The case indicates that the Australian state agency conducts performance management carelessly across all the departments while there are some that ignore the policy and procedures completely. However, this is disadvantageous to the agency since it makes it difficult for the department to understand where an improvement is needed to ensure enhanced performance by workers. Therefore, to address the problem, the department will have to ensure that the performance management policies and procedures are effectively implemented by all departments (Kateřina et al., 2013). All the departments will be required to ensure that employees are informed of what is expected from them; they are provided with feedback about how they are performing relative to expectations; single out development opportunities; address performance areas that are wanting and to ensure that workers are rewarded accordingly (Mughal, and Akram, 2014). This would help in ensuring improved performance to the standards expected by the department. Plan to Improve Personal Development and Career Needs The performance of employees depend on the skills they possess and each employee aspires to develop their careers to enable them achieve their full potential. However, the case indicates that the state agency has not provided its workers with personal and career development the attention that they so desires. This is because it takes as long as 18 months for the managers to conduct a formal review something that has left employees feeling undervalued and dis-empowered. Therefore, in addressing this HR issue, the first thing that the HR manager will have to do is to empower the employees by providing them with an enabling environment for personal and career development (Fernandez and Moldogaziev, 2012). The agency will also have to ensure that employees are trained so as to enable them acquire the skills needed for the job (Ferrazz par. 4). The training can be multifaceted to include on-the-job training, organizing workshops and training seminars for the employees. Additionally, the departmental HR managers will have to consider offering scholarship opportunities for its staff, as well as creating a flexible working schedule that allows employees willing to further their studies have time for study. Additionally, the manager of the department will be advised to ensure that formal review is conducted periodically, not more than one year to make the employees feel valued and empowered in the organization. Conclusion Performance management concept has received much attention in the recent time as organizations are increasing recognizing its importance in enhancing the productivity of workers. Government agencies, as South Australian government has made performance management a requirement for all its agencies through the enactment of the Public Sector Act 2009. However, as indicated in the case study, the Australian agency is facing a big challenging meeting the requirements of the Act as the department is facing numerous HR challenges, that include slow employee morale and motivation, lack of effective induction process, high levels of bullying and harassments, lack of seriousness in implementation of Performance Management Policy and Procedures, and failure to offer training and performance review. Nevertheless, the adoption of strategic performance management plans described above will help address the challenges. Recommendations Based on the review of the challenges facing the HR department, the following recommendations are made. To address low morale and motivation, the HR should consider motivating its staff by providing intangible rewards, such as recognition, development and career opportunities. To address bullying and harassment, the agency should create a policy and a code of conduct that makes it such acts punishable. The agency can introduce cultural competency program. To address induction process issues, the agency should consider creative an effective induction process that takes into consideration the needs of the employee, his learning speed and avoiding setting ambiguous targets. Additionally, the agency should conduct periodic performance reviews at least after three months to identify the needs of the employees so that they are addressed promptly. Schedule for HR Strategic Performance Management Plan Activity Activity Timeline Enhancing employee morale and motivation Week 1 & 2 Addressing bullying and harassments in the department Week 3 Improving effectiveness of induction process Week 4 Improving performance management policy and procedure Week 5 & 6 Improving personal development and career needs Week 7 Works Cited Agarwal, A. (2013). Models and theories of performance management system. Retrieved from https://www.projectguru.in/publications/models-and-theories-of-performance-management-system/ Buchnera, T. W. (2007). Performance management theory: A look from the performer's perspective with implications for HRD. Human Resource Development International 10(1), 59-73. http://www.tandfonline.com/doi/abs/10.1080/13678860601170294?journalCode=rhrd20 Chamorro-Premuzic, T. (2013). Does money really affect motivation? A review of the research. Harvard Business Review. Retrieved from https://hbr.org/2013/04/does-money-really-affect-motiv Fair Work. (2015). Bullying & harassment. Retrieved from https://www.fairwork.gov.au/employee-entitlements/bullying-and-harassment Fernandez, S., & Moldogaziev, T. (2012). Using Employee Empowerment to Encourage Innovative Behavior in the Public Sector. Journal of Public Adm Res Theory http://jpart.oxfordjournals.org/content/early/2012/05/23/jopart.mus008 Ismajli, N., Zekiri, J., Qosja, E., & Krasniqi, I. (2015). The Importance of Motivation Factors on Employee Performance in Kosovo Municipalities. Journal of Public Administration and Governance 5(1), 23-39. http://www.macrothink.org/journal/index.php/jpag/article/view/7082 Kateřina, V., Andrea, S., & Gabriela, K. (2013). Identification of employee performance appraisal methods in agricultural organizations. Journal of Competitiveness 5(2), 20-36. https://www.google.com/url?sa=t&rct=j&q=&esrc=s&source=web&cd=1&cad=rja&uact=8&ved=0ahUKEwiW9qrYybPMAhWIzRQKHb6YD98QFgggMAA&url=http%3A%2F%2Fwww.cjournal.cz%2Ffiles%2F131.pdf&usg=AFQjCNGLDcjYjP8t3NaGwvEl3Aq_4h_i6A&sig2=-jKLXunz2NbIYUBAeAujsQ Kumari, N., & Malhotra, R. (2012). Effective performance management system for enhancing growth. Global Management Journal http://globalmj.eu/2012/12/29/effective-performance-management-system-for-enhancing-growth/ Lin, J., & Lee, P. (2011). Performance management in public organizations: A complexity perspective. International Public Management Review 12(2), 81-96. https://www.google.com/url?sa=t&rct=j&q=&esrc=s&source=web&cd=7&ved=0ahUKEwjZ2vjZy7PMAhVEXBQKHT6-BzkQFgg-MAY&url=http%3A%2F%2Fjournals.sfu.ca%2Fipmr%2Findex.php%2Fipmr%2Farticle%2Fdownload%2F103%2F103&usg=AFQjCNEbpfhn0sfr8_gXy7hJ7wC4VO4duA&sig2=YCf4B2-BpP9Cq1syfxTgOQ&bvm=bv.120853415,d.d24&cad=rja Mughal, F., & Akram, F. (2014). Implementation and effectiveness of performance management system in Alfalah Bank. Journal of Public Administration and Governance 4(4), 111-122. https://www.google.com/url?sa=t&rct=j&q=&esrc=s&source=web&cd=1&cad=rja&uact=8&ved=0ahUKEwjlvqD5ybPMAhXC8RQKHXKHCHoQFggdMAA&url=http%3A%2F%2Fwww.macrothink.org%2Fjournal%2Findex.php%2Fjpag%2Farticle%2Fdownload%2F6869%2F_67&usg=AFQjCNFl0iE_aP3kf1R5LbCDFIiVlLTxtg&sig2=6aAOYjWI-SgPcBIyKO9hHg Nielsen, P. A. (2013). Performance management, managerial authority, and public service performance. J Public Adm Res Theory doi: 10.1093/jopart/mut025 Ugaddan, R. G. (2013). Performance management theory. Retrieved from http://regiethinks.blogspot.co.ke/2013/01/review-paper-on-hrd-this-is-concise.html Read More