Human Resource Management at Coles Company - Case Study Example

UNDЕRРЕRFОRMЕR STОRЕ MАNАGЕR IN СОLЕS by Student’s Name Code + Course Name Professor’s Name University Name City, State Date UNDЕRРЕRFОRMЕR STОRЕ MАNАGЕR IN СОLЕS 1 Introduction 3 Performance Management 4 Best-practice performance management 4 A). Strong support by the executive 4 b). Setting up clear Performance goals in advance. 4 c).The set performance management system should be informative 5 d). Getting the priorities right first 5 Integration of Human Resource Development Function with Performance Management Functions 5 A). Learning Management and Performance Management 6 b) Performance Management and Compensation Management 6 c) Reporting 7 d). Employee Development and Succession Planning 7 e). Employee Development and Management Learning 8 Underperformance 8 I. Failure to acknowledge that one is underperforming 8 ii. Contempt of work task 9 iii. Absenteeism 9 iv. Failure to perform task as required 9 v. Employee apathy and laziness 10 Reward Management 10 Human Resource Management Practices 11 I. Employment of competent persons 11 ii. Training and development. 11 iii. Carrying out employee performance appraisal 11 iv. Rewarding, retaining and motivating top performers. 11 Conclusion 12 Reference 12 Introduction 2 Performance Management 3 Best-practice performance management 3 A). Strong support by the executive 3 b). Setting up clear Performance goals in advance. 3 c).The set performance management system should be informative 4 d). Getting the priorities right first 4 Integration of Human Resource Development Function with Performance Management Functions 4 A). Learning Management and Performance Management 5 b) Performance Management and Compensation Management 5 c) Reporting 6 d). Employee Development and Succession Planning 6 e). Employee Development and Management Learning 7 Underperformance 7 i. Failure to acknowledge that one is underperforming 7 ii. Contempt of work task 8 iii. Absenteeism 8 iv. Failure to perform task as required 8 v. Employee apathy and laziness 9 Reward Management 9 Human Resource Management Practices 10 i. Employment of competent persons 10 ii. Training and development. 10 iii. Carrying out employee performance appraisal 10 iv. Rewarding, retaining and motivating top performers. 10 Conclusion 10 Reference 11 Introduction Underperformance is the failure to carry out the duties allocated to the required standards. It may include poor work quality, low productivity and work standards that are unacceptable (PlusHR 2017). This paper will investigate best practice in human resource management in the areas of managing under performers and will focus particularly on performance management, reward management and human resource development to give recommendations about the sales manager. Performance Management It refers to the process where, by working together, managers and employees plan and review work objectives of the employee and their contribution to the organization (hr council 2010) Best-practice performance management Best-practice performance management program has the following features in place: A). Strong support by the executive Role modeling which is an important part of strategic management process of in any organization like Coles needs to begin and demonstrated from the top level of the administration whereas appraisals are to all members of the Company. Performance management policy should specify WHY, WHO, WHEN and HOW of the performance management in the organization, coupled with a well-designed communication plan to get management and employees buy-in at all levels. Moreover, thorough training of HR, line, and staff in all aspects of the system application. Where the line managers should ensure employees have sufficient resources and tools to get the job done, and that systems, processes, and policies facilitate optimal performance (Appraisal Smart 2004). b). Setting up clear Performance goals in advance. It is one of the important determinants of the effectiveness of the performance management system. It is evident that most individuals are motivated to perform well by goals especially those with reward tied to them (Madan 2010). Furthermore, linking performance to remuneration in a way that sends a clear message to both good and poor performers and making sufficient reward differentiation such that top performers are lifted out materially and psychologically for their efforts. c).The set performance management system should be informative The goal of the performance management system should not focus on making everyone happy but should motivate and inform everyone. Also, personal development plans should base on current competency shortfalls as well as new role challenges and employees career goals. The employee thus should experience the entire process as positive, motivating and career-enhancing (Derly, 1996). d). Getting the priorities right first Discussions should take place after and separately from feedback about performance and discussions about training and development. For instance, performance consultation should not combine with those concerning pay decision. The individual will only pay attention to pay decision and won't process issues concerning development, they won’t remember nor feel committed to development and growth activities discussed, and this will totally affect the efficient communication system an important aspect in organizational development (Nankervis 2017). Integration of Human Resource Development Function with Performance Management Functions Performance management is the practice that drives decisions about production, promotion, remuneration, disciplinary procedures, terminations, transfers and development needs within an organization. For any performance system to work sufficiently, it has to be encouraged and supported by the management and an organizational culture that values improvement. Therefore, human resource activities need close supervision, since they have a direct impact on the performance management process and its success and vice versa. The benefits of this integration include: Better internal talent mobility, decreased voluntary turnover, better workforce alignment to overall business strategy, and improved workforce productivity. Enumerated below is how HRD functions should integrate the performance management function: A). Learning Management and Performance Management The alignment between workforce activities and overall business strategies and objectives in any organization results from performance management and goals. The goals are established by the top management or are cascaded down to the workforce. In either case, employees will need specific training to achieve these targets. It will even be fatal if the employees are not provided with proper learning platform to meet these goals, as it will result to the Organization not be able to achieve its strategic goals from inadequate training of the employees who are likely to underperform. b) Performance Management and Compensation Management Pay for performance criteria which build top performance culture align employees compensation to their respective performance has proven effective in driving performance. It's where we align goals, reward, and performance throughout the whole organization. Evidently, that retaining, motivating and rewarding top performers is essential in ensuring that a company not only maintains but also exceeds growth expectation as the employees would be motivated to work even harder and committed to the goals. c) Reporting Improving Human resource reporting and analytics is vital to both human resource and other business leaders in decision making and planning. Therefore, accurate measuring of the impact of the programs of talent management and Human Resource are essential in any business organization. Analysis on strategic workforce provides meaningful ways for measuring overall Human Resource effectively and efficiently. One of the prerequisites for strategic analytics of workforce is central talent management platform since data is readily available and accessible. Single platforms are used reporting and analysis of data as one in any organization will quickly focus on insight, analysis, and action on data rather than on collecting and manipulating it. Thus, it saves a lot of time thereby, improving performance (Armstrong 2009). d). Employee Development and Succession Planning The survey shows that high performer flight has increased with economies gradually shifting from recession to growth, thus reducing high performer flight has become a top priority for many Human Resource leaders. If this situation is not well addressed would lead to a potential incalculable economic tragedy. Therefore, steps such as providing advancement career opportunities to employees by the organization are necessary to address this issue. Also, efforts should be made to bridge staff succession and development planning, and by empowering them with some level control over careers alongside future path they are not only motivated but also clearly more engaged. The leadership in Human resource should, therefore, focus on empowering employees and encouraging them to have control over their future and by doing so, they will tend to reduce high performer flight while at the same time promoting engagement and growth. e). Employee Development and Management Learning There should be plans in an organization to improve the current state of employees, which will prepare them for future responsibilities especially in succession planning. Identifying employee skill, behavior gaps, and competency is mostly during performance assessment process the employee skill, behavioral deficiencies and competency are recognized, and when to close these, It improves their contribution in current or future roles they will be assigned. Aligning the employee development and learning process to changing technological trend to ensure flexibility. Linking employee development and learning lead to improved ability to respond quickly to changing business needs, Ensuring better workforce alignment to the company strategy, and better internal mobility among many others (Bedford 2009). Underperformance Any Company has various issues that may lead to the underperformance of the employees. By tracing and investigating the origin these problems possible solution or actions suggested for an effective performance management system is established. Some of these issues are; I. Failure to acknowledge that one is underperforming The sales manager, if confronted about underperformance, may tend to deny it and become defensive. It is a problem because if one does not acknowledge their shortcomings, they may not be willing to improve themselves. The sales manager will deny underperforming if clear performance targets are not set for him. Therefore, he may not know what exactly is expected regarding performance. The remedy to these is to set clear performance targets and to make sure that they are clear to him, and he may have to sign performance contracts. ii. Contempt of work task The sales manager may have a low regard of the duties allocated to him. The employee, therefore, handles this task with less care so as to be done with it, thus, compromising the quality of the assignment. Contempt of work may be brought about by low compensation of the employee, failure to match employee’s qualifications with the task allocated by assigning him work that is below his qualification and overworking him. The management should ensure that they reward the employee enough for the tasks he performs. They should also ensure that the job to the employee match his qualification and adhering to working hours and overtime should be paid accordingly (Armstrong 2009). iii. Absenteeism Performance is mostly affected if the employee is regularly absent from work or workstation (where an employee is at work, but he is not where he is supposed to be). It may be due to lack of an effective supervisory system which the management may remedy by introducing an oversight system where an employee needs to regularly log in at their workstations and also work through supervision where his manager walk around regularly to check if he is at his stations. iv. Failure to perform task as required It is where the employee does not carry out the instructions as given. It may result from lack of understanding of what is needed, inability to perform the task or personal issues (Fair Work, 2013). Performance improvement can be through discussions about requirements of the position. Training and development are also crucial where skills may be deficient. v. Employee apathy and laziness The sales manager may lack interest in the job he has or is just lazy, and therefore his performance will no doubt be miserable. Lack of interest results from being in an inappropriate job or poor job design and content which does not bring any excitement (Fair Work, 2013). The remedy will be when the employee’s preferences and interests are examined to see if the job fits him. Reward Management It involves coming up with and implementing policies and strategies for the purpose of rewarding employees fairly and equitably and also according to the value they bring to the organization. They help to attract, motivate and retain competent employees. These policies must be in-line with the organizations' goals and corporate strategies. Coles reward strategies involve proper compensations of employees with bonuses and other benefits (Coles 2017). Inadequate compensation for work done is one of the leading cause of underperformance in any organization. Rewarding the employee efforts will motivate him to give their best. Coles reward management strategy should ensure that the employee is always motivated to work and this reduces contempt of task allocated. Appropriate payment of Overtime will keep the employee motivated even under stressful job situations. Human Resource Management Practices Coles employees over 100,000 people throughout its store. With such a massive workforce, rewarding is one of the largest expense of the organization. The HRD should, therefore, make sure that performance and reward management strategies are in-line with Coles corporate strategies. It can be achieved by: I. Employment of competent persons It ensures quality performance of the task, therefore, the bottom line of the organization is improved. ii. Training and development. The HRD should make sure that employee’s goals and development are in line with the corporate strategies of the organization through training which improves performance. iii. Carrying out employee performance appraisal It is paramount as it gives an indication of the value that every employ brings to the organization and after that the rewards for the employee. iv. Rewarding, retaining and motivating top performers. This is essential to the success of any organization since top performers lead to the growth of the business (Banadio, 2010). Conclusion This paper has given the features of best practice in performance management, the specific issues surrounding management of underperformance and it has recommended solutions to this issues regarding the sales manager. It has provided recommendations of how reward management of Coles can improve the performance of the sales manager. The paper has also given suggestions of how Cole’s human resource management practices should support the firm’s corporate strategies. Reference Coles, (2017). Coles.com [online] https://www.colescareers.com.au/retail-stores/store-management/supermarket-store-management viewed 23 April 2017. Armstrong M., 2009 4th edition, Armstrong’s Handbook of performance management. An evidence basis guide to delivering high performance, Kogan Page Armstrong M., 2009, 11th edition, Armstrong’s Handbook of Human resources management practice, Kogan Page Delery, J.E., 1996. Modes of Theorizing in Strategic Human Resource Management: Tests of Universalistic, Contingency, and Configurational Performance Predictions. Academy of Management Journal, 36(4), p.802-835. Fair Work Ombudsman, D 2013, Best Practice Guide Managing underperformance. [Online] Available at http://www.fairwork.gov.au/termination /small-business-fair-dismissal-code [April 23, 2017] Nankervis, A., Baird, M., Coffey, J., and Shields, J. (2017). Human Resource Management: Strategy and Practice. 9th ed. Cengage Learning, p.244. 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