Human Resource Development Function of Commonwealth Bank of Australia - Case Study Example

Underperforming Employee and Performance Management Name Professor Institution Course Date Underperforming Employee and Performance management Introduction Business Development Manager is one key position in an organization. People holding such position are expected to create efficient business plans which can raise brand loyalty, improve customer satisfaction and generate more revenue. However, in the recent past Commonwealth Bank of Australia has struggled to compete in the market due to what is considered to be underperformance of the Business Development Manager. In such situation, management theorists have recommended for the integration of performance management system as an effective tool for improving performance of staffs (Verbeeten 2008, p.428). In this essay, the paper will review literatures and analyze features of best practice in performance management that would help the organization better manage their underperforming business development manager. The essay will also analyze how human resource development (HRD) function of Commonwealth Bank of Australia integrate with the organization's performance management function in order to assist in the better management of the business development manager. In addition the paper will discuss specific issues surrounding the management of 'underperformers' that need to be taken into account generally in an effective performance management system and HRD function in Commonwealth Bank of Australia. The features of best practice in performance management that would help Commonwealth Bank of Australia better manage their business development manager According to Varma, Budwhar and DeNisi (2008, p.76), performance management is defined as a practice in which organization creates objectives, determine standards, allocate and evaluate tasks, and give rewards. This strategy is used in enhancing individual, organizational and team development and performance as well as activities created to make sure that objectives are time and again being attained in an effective manner. Performance management has features that can help an organization effectively manage their employees. Some of the features of best practice are job description, system buy-in, training, timeliness, performance feedback, performance objectives connected to corporate strategies and performance is connected to the remuneration (Appraisal Smart 2017). An appropriate job description is an essential feature of best practice in performance management (Mayhew 2017). Management experts claim that with no precise understanding tasks, it is impractical to recognize what the staff is required to do. Mayhew (2017) argued that the job description is important because it contains vital functions for every position and the prerequisite needed to carry them out. It means that Commonwealth Bank of Australia need to clarify job description to business development manager to make the holder of the position focus on his duties and avoid a situation of task overlapping and conflicts. Another ideal feature for best practice in performance if the buy in of the system. A performance management system is considered appropriate if management and employee agree to use it in management (Mayhew 2017). In Commonwealth Bank of Australia perspective, when the job holder and performance evaluator buy into a performance management system, conflict is reduced even if the underperformance is posted. Training is a perfect attribute of best practice in performance management (Appraisal Smart 2017). Performance management must have a provision of training, particularly when a holder of a position has underperformed. Cokins (2005, p.51) asserted that training improves the performance, but also save the company a situation of recruitment now and then. At the moment, business manager is underperforming and it shows that he lacks some knowledge and skills to do his task. The training gives employees an opportunity to learn and improve their performance better in future (Appraisal Smart 2017). Performance management has a characteristic of timely as a best practice (Mayhew 2017). Performance management approaches such as performance evaluation requires having times such as after every three months, six months or yearly. Appraisal Smart (2017) posited that such practice allows employees have time to adjust and perform better. Underperformance such as one witnessed by business development manager at Commonwealth Bank of Australia can sometimes be due to lack of timeliness in evaluation. Sometimes the performance is low especially when the people are adjusting to their task and that does not mean staff is underperformer (Cokins 2005, p.112). Effective performance management is one which links performance objectives and the business strategies (Appraisal Smart 2017). This practice creates a clear direction on what the company expects at every performance evaluation period. Commonwealth Bank of Australia might have not linked performance goals to corporate goals. According to Robinson, Pearce and Mital (2008, p.65), corporate goals is aimed at gaining competitive advantage; this means the company is better in terms of growth and management of environmental factors. Hence, if business goals are not linked to performance management, underperformance is registered. Characteristic of best practice in management is performance feedback (Appraisal Smart 2017). Staff must be told the result of performance evaluation to enable them improve when underperforming as the case of business development manager at Commonwealth Bank of Australia. Appraisal Smart (2017) claimed that, not giving feedback of the performance makes the staff to know they are not good enough and need work hard. How Commonwealth Bank of Australia’s human resource development (HRD) function should integrate with the organization's performance management function in order to assist in the better management of the employee in business development management Adhikari (2009, p. 306) argued that competitiveness of an organization relies heavily on its ability in managing performance and enhancing the skill and competence development of the staff. This competitiveness can be achieved by integrating an organization and its human resource development function with performance management. Human Resource Development entails training and development, mentoring and coaching, and staff career development in an organization (Garavan 2007, p.12). Therefore, for the company to better manage business development manager who has been underperforming, it has to integrate training and development, career development, and mentoring and coaching in its human resource management (Adhikari, 2009, p. 319). Training and development of the development business development will Commonwealth Bank of Australia ensure that it impact new knowledge, skills and strategies needed to compete in the banking sector. Career development on the other hand helps a staff’s progress through a sequence of phases by assigning and guiding them in performing different tasks. As such, integrating HRD functions with performance management helps in setting a learning environment which enhances individual behavior and performance and the organizational results (Adhikari 2009, p. 319). Specific issues surrounding the management of 'underperformers' which that need to be taken into account generally in an effective performance management system and HRD function in the case study organization Some of the issues of surrounding the management of underperformers include knowledge, skills, motivation, role and cultural changes, attitude, and career development (Wang, Hutchins & Garavan 2009, p.23). When employees are underperforming some of the concerns of the top management executive and customers are whether job holders have the knowledge, competence and skills needed to perform the job. Wang, Hutchins & Garavan (2009, p.23) argued that these issues are seen as the driving force behind the success of an organization. Thus, knowledge and skills need to be considered in performance and HRD function in Commonwealth Bank of Australia. Furthermore, management professionals have argued that for a firm to become competitive in the global arena, it is crucial for them to recruit adequately knowledgeable and skilled staffs (Islam & Rasad 2006, p.165). However, if the manager is not competent enough due to changing market needs, the organization ought to present a platform for lifelong learning. Similarly, when staff or a manager is underperforming, his motivation level and attitude are questioned. According to Bruke and Cooper (2005, p.17), management literatures show that motivation and attitude level of an employee determines his individual performance and that of an organization. In addition, cultural change and career development are critical issues in working in global markets. Commonwealth Bank of Australia as a financial institution which operates in other markets such as New Zealand, Fiji, USA, United Kingdom and Asia means that its employees are affected by cultural changes and career development challenges (Commonwealth Bank of Australia 2017). Most organization take into consideration these issues by setting up training and development to enable them overcomes the challenges (Wang, Hutchins & Garavan 2009, p.23). Commonwealth Bank of Australia can try to fit the reward management strategy based on the value business development adds to the institution. How the case study organization's reward management strategy might fit into the solution offered to the case study organization's management in relation to the key business development manager Armstrong (2007, p. 13) described reward management as the formulation or creation and adoption of policies and strategies which aspire to reward employees fairly, consistently and equitably in line with their benefit to the company. Reward management is an important aspect of human resource management with regards to motivating employees (Armstrong 2007, p. 13). However, reward management differs across organizations and in most cases, the management try to fit different positions in the organization. The reward management strategy at Commonwealth Bank of Australia can be fitted after integration of the performance evaluation. Performance appraisal is created so as set rewards based on performance. If the performance is perceived as high the reward is increased while if the performance is inadequate the reward is reduced (Armstrong & Stephens 2005, p.92). This kind of rewards is common with monetary rewards such as bonuses. The organization rewards system can also be integrated into the company’s management through job analysis. It is important to understand and identify a job's order of importance. Varma, Budwhar and DeNisi (2008, p.32) claimed that through the job evaluation, an organization assesses the job and defines the value and worth of the job to make sure there is equal payment for the work. When the reward is equal to the task, the holder of the job gets satisfied and performs better. How in theory the case study organization's human resource management function (HRD, performance management, reward management) should support the organization's corporate strategies with respect to both underperforming The human resource function supports organization corporate strategies through adoption of strategic human resource management. This implies to linking human resource management function such HRD, performance management and reward management to the business strategies of the organization (Werber & DeMarie 2005, p.33). An alignment of the HRM Functions and business strategy aims at improving organizational competitiveness and performance. Therefore, human resource development supports corporate strategies by training and developing the employees based on corporate goals rather than the traditional one with no specific focus (Teena & Sanjay, 2014). By embracing the strategic perspective to training and development the exercise becomes targeted, effective and measurable. Conventional performance management is known not support corporate strategies because communication from top management often fails to be clearer hence underperformance (Teena and Sanjay 2014). This can be corrected when strategic performance management is adopted. Strategic performance management means formulating and communicating the targets to be met and on time. The target is set based on corporate strategies and goals. Teena and Sanjay (2014) contended that strategic reward management supports corporate strategies by aligning reward strategy with business. This can be done by using a data-driven strategy in order that benefits are awarded to only employees and position which generates the greatest value. The best practice is adopting variable rewards based employees performance to enable attainment of corporate goals. Such rewards will motivate underperformers to work hard so as to get the greatest reward. Conclusion The report has established that performance measurement is one of the most significant tools for improving not just individual performance but also that of an organization. Organizations which are underperforming are now implementing performance management in key positions to evaluate their position holder and try to improve individual performance. The paper therefore has recommended Commonwealth Bank of Australia to adopt performance management to help improve the performance of their underperforming Business Development Manager. The report also recommends that the organization integrates human resource development (HRD) function organization's performance management. This means embracing of training and development, and reward management to enhance the skills, knowledge and competence, and also motivating the employee to attain strategic goals. References Adhikari, D. R 2010, Human Resource Development (HRD) For Performance Management: The case of Nepalese organizations. 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Human Resource Review, vol.15, pp.247-267. Varma, A, Budwhar, P & DeNisi, A 2008, Performance Management Systems: A Global Perspective, Routledge, London and New York. Read More