Performance Management and Reward Systems - Best Practices - Case Study Example

Performance Management & Reward Systems Case Analysis Student’s Name Institutional Affiliation 1.0 Introduction Research indicates that an effective business strategy will likely to result to an efficient competitive advantage. To achieve this, a business is expected to ensure that there is an integration between an organisation’s business strategy and its underlying internal processes which then translates to organisational effectiveness and high level of performance. Certainly, a close relationship between human resource and business strategies acts to assist with retaining and motivating of employees in different forms. Motivation may likely be in the form of financial and non-financial benefits and since employees form the major form of human capital, organisations possess the capacity to reward them in these distinctive ways. Notably, for purposes of ensuring that an organisation is likely to recruit, retain and motivate its overall employees, it is proper that it seeks to implement efficient and workable reward systems. This paper further seeks to analyse the aspect related to performance management where it is ascertained that activities related to achieving a high performance levels; the aspect of performance management should be focused on being incorporated with other management and human resource strategies for purposes of formulating a fairly-integrated system of high performances. For a long period now, conventional performance measurement systems have focused more on the formulation of indicators that relate to economical inputs and efficiency costs as a result of restricted capacity to measure effectiveness or end results within specific govern-based organisations. In this regards, this paper focuses on examining human resource aspects related to performance management in HR public area; reward systems and HR strategies that can be adopted to attain competitive advantage within a firm’s immediate operations. 2.0 Discussion 2.1 Performance Management in HR Practice Blackman et al (2013) argues that for the purpose of achieving a high level of performance, there is a direct need for organisations to emphasise on performance management as a fundamental activity that is incorporated within all areas of management functionalities. To attain an element of effectiveness, performance management should likely be incorporated with other forms of management and human resource practices for purposes of formulating a fairly-integrated system that is able to pose high performances. In this regards, it can be effectively noted that performance management is indeed a crucial issue that is able to affect each and every aspect of an organisation’s overall underlying operations; ranging from performance of individual employees as well as immediate implementation of organisational results that fit with underlying organisation’s expectations. As with the case of large public sector organisations as the Department of Employment, it is noted that the aspect related to performance management facilitates organisational-based goals and objectives in a free and clear manner hence allowing an effective set of communication within a myriad number of hierarchical level. The role that performance management plays within organisations’ helps to achieve well laid-out employee relations and behaviours. For instance, it is ascertained that performance management seeks to align employees to specific organisation requirements; provides a framework for deliberating on future career aspirations; articulates and manages high-level of expectations as well as monitoring and reviewing performance frameworks. Notably, the authors identify a great number of factors that can be adopted for purposes of ensuring that performance management relates to high performances. These aspects are identifies as; clarity and purposes aspect; that focuses on providing a platform for elaborating on high performances within organisations; alignment and integration, which are aspects related to emphasising on high-level and individualised-based goals that are a necessity for high performance; mutuality and motivation aspects that ascertain that management should be mutually accountable for efficient employee performances and provide a platform for enhancing a timely and constructive feedback systems (Blackman et al, 2013). 2.2 Reward Systems & Business Strategies Indeed, according to Hsieh and Chen (2011), reward systems for a given organisation should be customised in a way that would fit with the business strategies in place. They argue that by effectively formulating and sustaining a close connection among business competitive strategies; human resource strategy and reward systems, management can effectively design and implement a proper reward system under the numerous levels of business competitive strategies that can assist organisations to develop competitive advantage efficiently. It is further noted that an efficient reward system should focus solely on driving the component related to performance by way of motivating existing personnel into accomplishing a given set of new degree of performance structures that is connected to the attraction, retention and motivates all to engage in doing their best (Hsieh & Chen, 2011). In fact, it is determined that a reward system should avail an effective and efficient means of implementing an organisation’s immediate competitive strategy. Of particular interest to note, the authors note that an effective and efficient human resource strategy is one that is able to coordinate a great number of personal-based human resource systems and later implement them for purposes of influencing employee’s attitudes and behaviours in a manner that would foster an organisation attain its underlying competitive strategy (Hsieh & Chen, 2011). In this sense, a reward system is then supposed to be intentionally formulated in a way that fully supports the underlying business strategy. It thus goes without saying that organisations have come to the understanding that they are not allowed, at least intentionally, to emulate reward practices of their rivals since they are supposed to determine whatever that fits with their way of operations; leadership and business approach. A successful strategy thus requires that there is a development of a customised approach that would facilitate a linkage between external dependencies and internal capacities. As a result of this development, it is argued that different sets of strategies should focus on priorities their goals and objectives much more objectively (Hsieh & Chen, 2011). For instance, in the case of focus business strategy, an effective commitment-oriented human resource reward strategy is proposed since the organisation practicing it enjoys a great number of aspects that include; customer loyalty that has the capability to discourage other entities from competing in a more direct manner. 2.3 Design Choices for Performance Management & Reward Systems It is important to note that implementation of a well-designed performance management and reward systems are paramount to the success of an organisation. From an individual employee perspective, a well-integrated system improves motivation and self-esteem, which then translates to increased and quality performance, clarification of work duties and tasks and provides supervisors’ clarifications (Gerrish, 2016). From the perspective or management, these good-designed systems facilitate them to acquire immediate insight related to employees; provide a much proper personnel actions and, also allows them to provide effective communication to organisational goals and objectives. Subsequently, from an HR function, the system will ensure that it protects an organisation from possible litigations (Gerrish, 2016). In the course of setting up their performance systems and reward management systems, an organisation should focus on a design that allows for; first, congruence with the strategies in place, which basically means that there should be a clear and concise connection between existing individual employees, units and organisational-based goals and objectives (Martin & Whiting, 2013). Second, the design should be thorough so that they are allowed to be inclusive of all relevant and efficient performance dimensions (Martin & Whiting, 2013). Third, the design should be practical in the sense that it should not involve surplus time and resources. Consequently, it should be inclusive so that it can include inputs from a great number of sources within an on-going basis. In addition to this, the design is expected to be ethical so that it complies with existing ethical standards and stipulations. 2.4 Application of Learned Concepts to Case Study It is noted that currently, the Department of Employment is in the process of embedding a performance culture. In fact, it is ascertained that all of the existing staffing personnel, as a part of their performance management plan, are subjected to a yearly Individual Performance and Development Plan (IPD) initiative that has been formulated with the planning cycle of the organisation. Despite the fact that the Secretary having determined and implemented a performance expectations, there are still are challenges in the course of executing IPD. There is a lack of consistency in the application of tools for individual capability development. In this regards, the concepts learned from the material indicate that in such a situation, then the organisation should come up with a well-designed performance management and reward systems that are fairly customised to fit in with the underlying business strategy of the Department as a whole. In setting up an effective performance management system, it is important that the Department of Employment ensure to note that it aligns employees to specific organisation requirements; provides a framework for deliberating on future career aspirations; articulates and manages high-level of expectations as well as monitoring and reviewing performance frameworks. Conclusion To sum up the discussion above, the report has successfully emphasised that organisations should focus on formulating business strategies that are customised to well-designed reward systems. This is attributed to the fact that each and every organisation is unique in how it engages its overall business operations and meeting their –day-to-day needs. Thus, it is suggested that the Department of Employment should make efforts to come up with a unique business strategy that fits with its reward and performance management systems to ensure high performance amongst individuals and the organisational as a whole. References APSC. (2015).Department of Employment: Capability Review, Print Blackman, D et al (2013). Strengthening the Performance Framework; Towards a High Performing Australian Public Service. Australian Public Commission, Canberra-Australia Gerrish, E. (2016). The Impact of Performance Management on Performance in Public Organizations: A Meta‐Analysis. Public Administration Review, 76(1), 48-66. Hsieh, H, Y & Chen, M, H. (2011), Strategic Fit among Business Competitive Strategy, Human Resource Strategy and Reward System. Academy of Strategic Management Journal, 10(2), 11-32 Martin M. & Whiting, F. (2013), Chapter 6, and Chapter 7.Print Read More