Advising the Practical Aspects of Theories to Vesna - Case Study Example

Case Study II Student Name: Student ID: Table of Contents Assumptions 3 1. Advising the Practical Aspects of Theories to Vesna 3 1.1 360 Degree Feedback 3 1.2 Performance Management 3 1.3 Strategic Downsizing versus Redundancy 4 1.4 Equity Theory 4 1.5 Justice Theory 4 1.5.1 Distributive Justice 4 1.5.2 Procedural Justice 5 1.5.3 Interactional Justice 5 2. Implementation of Ideas with the Help of Illustrations 5 2.1 Steps before Embarking on Redundancies 8 3. One Page Summary 9 References 10 Assumptions In this case study, the first assumption is that Vesna has no previous experience of working on a position of communication manager. Second is that she is unaware of the methods and procedures, which are required to work as per the job description. The third is the overall performance of the Google, Atlanta branch, which is affecting because of Vesna’s inappropriate behavior. Moreover, Vesna has not studied the latest HRM courses, since she has done Masters in communication, and she has lesser information about the performance appraisal. By not evaluating the performance in a right way, she is unable to train the staff. Another assumption is that she wants to decrease the number of staff, because of redundancy, in which the staff has not reached the performance standards that were made in the last year. Lastly, there is a communication gap between Vesna and her staff and her HR manager. 1. Advising the Practical Aspects of Theories to Vesna This section will give advices to Vesna that will make her understand about the practical aspects of 360 degree feedback, downsizing and redundancy. 1.1 360 Degree Feedback To enhance the effectiveness of employee, Vesna is advised to use the High Performance Work Systems (HPWS). It is about a group of HR practices i.e., staffing, training and performance appraisal that are designed to enhance the employee’s effectiveness. This system can generate the superior performance output, which will be beneficial for the company [God04]. These HR practices affect the performance of the company by having an impact on the social and human capital [Bul12]. If Vesna learns about the HR practices, especially the performance appraisal and training, then she can quickly cope up with the desired job description. The performance appraisal is the annual review of the performance of an individual and 360 degree appraisal is one of its methods [Mur91]. Vesna can use 360 degree appraisal in which the individuals can receive the anonymous feedback from those people, who are working in the same workplace. She can gather data on the employee’s abilities, skills and behaviors from the other employees. This method must be used regularly and consistently to evaluate and reward the employees [Mil074]. 1.2 Performance Management To reduce the communication gaps between Vesna and HR manager and Vesna and Staff, she is advised to reinforce the organizational structure according to the concept of performance management. It will allocate the resources to attain the maximum efficiency [Dav12]. It will clarify the responsibilities to establish the reporting patterns. Like this, it will aid in coordination among workforce [Mil073]. Performance Management can play a vital role in reducing the problems that are created after the employment of Vesna. It can encourage the line managers and supervisors, when they are included as a part of a decision making process [Mil073]. Moreover, there is a reward structure in the performance management that can help Vesna in reviewing the performance of the workers in an appropriate way. 1.3 Strategic Downsizing versus Redundancy Vesna is required to have skills that can give her a sense of differentiating the redundancy from the downsizing. Downsizing is a cost driven strategy and it occurs due to the outsourcing, privatization, poor financial performance, new technology, bankruptcy, structural decline, decreased activity and re-organization and re-engineering [Mil076]. It demotivates the employee by lowering their morale [Cam94]. Since, Vesna has recommended the decrease in the staff by 10-15 workers. This will negatively effect on the performance of Google, because the downsizing impacts the business performance negatively. However, she is recommended to redesign the structure of the organization, because restructuring has a positive impact on the performance of the business [Far05]. Redundancy is associated with the Downsizing, but it gives the best results as compared to the other methods of Downsizing [Hol091]. That’s why, Vesna is advised to apply voluntary or compulsory redundancy rather than the other methods of Downsizing. 1.4 Equity Theory Equity theory is important for Vesna in the period of redundancy and evaluating the performance of the workers. The beliefs of fair reward in exchange of work are what Equity Theory is. If the employee is not satisfied with the reward system, then he seeks for justice. It is advised to Vesna to consider this theory in making her decisions, because its consequences are negative if the employee faces inequity. The worker can reduce the input, withdraw physically or emotionally, influence the manager and the co-workers as well [Nor13]. Vesna can take better decision and can suggest better views to HR manager, if she evaluates the perception of the employees correctly. It can reduce the negativity among the members about the management decisions. However, the positive and negative inequity encourages and discourages the employee, respectively[Mil076]. 1.5 Justice Theory Vesna can communicate and understand the perceptions of the employees by using this theory. It has three types that are discussed as below: 1.5.1 Distributive Justice In distributive justice, Vesna can analyze the perception of those employees who relate things with the outcomes and then think that it is a fair or not. Here, the employee compares each and every thing, which is distributed among them, for instance, wages or bonus, with others [Lin02]. Vesna has to maintain balance in keeping justice at the time of distributing things. 1.5.2 Procedural Justice At the time of making decisions, Vesna has to make sure that the process that she is working through is fair for every single member. In procedural justice, the employee’s perception is dependent upon the process of a certain thing. If the employees think that the procedure of that thing is fair, then it is fine for them [Lin02]. 1.5.3 Interactional Justice After making the decision, Vesna has to implement it by using fair means. She must use the best way of action and have to consider the Interactional Justice. At the implementation level, Interactional Justice can be applied, in which the fairness is determined on the way the employees are treated at the time of implementing a certain rule, policy or a decision [Lin02]. 2. Implementation of Ideas with the Help of Illustrations To make understand the redundancy and 360 degree feedback to Vesna, this section will use charts/ tables/ tables. Like this, she will understand quickly and she can figure out the loopholes as well. The concept of 360 degree can be understood by the following diagram: Figure 1: 360 Degree Feedback From the above illustration, it can be seen that the 360 degree feedback is a review that is done by the manager, subordinate, peer, self and other, such as clients or customers. An individual is evaluated by other individuals and the person itself in this method of performance appraisal [Pol96]. Vesna can understand the 360 degree feedback more by looking at the stages of this method, which are illustrated as below: Figure 2: 360 Degree Feedback Stages [Peo13] From the above figure, Vesna may get the idea about the stages of the 360 degree feedback. It is a process that starts from the self-assessment in which an individual along with the other staff members analyze and evaluate that individual. Then this progress is monitored and the manager generates the feedback. Afterwards, the shortcomings of an individual are cured with the development and training. Lastly, the individual is rewarded for his/her improvement[Shi07]. Since, Vesna has limited knowledge about the strategic HRM practices, she can take a look at the following diagram to understand the difference between the traditional HR and SHRM practices: Traditional Feedback 360 Degree Feedback In the above figure, Vesna can differentiate between the Strategic HRM and traditional HR performance appraisal methods. The former one takes the viewpoint of several relatable people, however the latter one is only dependent upon the boss and the employee [Bee01]. In order to know the redundancy process, the following illustration can aid Vesna: Figure 4: Redundancy Process [Dea13] The redundancy process is well defined by Corbridge & Pilbeam (1998), in which compulsory redundancy is measured from the first point. Then, if there is a need of redundancy, then staff is informed and the redundancy is announced. It is done to re-balance the workplace, structure and performance of the firm through training and re-designing. The assumption of decrease overall performance of Google, Atlanta Branch can be cured with this point. So, it is an advice to Vesna to use compulsory or voluntary redundancy instead of downsizing, because this way the organization will not be affected negatively. 2.1 Steps before Embarking on Redundancies It is advised to Vesna to consider the some steps before embarking on redundancies. She must seek those workers, who want to retire early or who want to be the part of redundancy on a volunteer basis. She must lay off the self-employed persons, freelancers and people who are working from outsourcing field. Before applying the redundancy, the casual labor must not be considered and the recruitment must be restricted. The vacancies must be filled with the existing workforce and overtime must be eliminated [Wil05]. Before redundancy, Vesna must communicate and consult those employees who will be affected by this action. It will be great if the employees are informed on time. During the consultation process, the employees who will be redundant must either act as a volunteer in the future or else they will be given a protective award if they are not asked for their services [Mac04]. It is recommended to Vesna that before taking the action, she must present the reasons of redundancy with the HR manager and staff as well. She must also disclose the number of employees who will be affected from this stance and the method of redundancy too. Another major step before redundancy is the calculation of the redundancy payments and the forecast of the firm’s performance [Doh93]. 3. One Page Summary Despite of the qualifications that Vesna had, the difference between the strategic HR and old functional HR is not known to her. It is advised to her to gather the strategic Human Resource Management policies and practices. They are inclusive of planning, analyzing, staffing, recruitment, appraisal and other significant issues [Mil075]. The SHRM does not cater to the internal clients, but to the external as well. It has a long-term goal, unlike the traditional HRM. It has line manager, who can communicate and interact with the staff at any time. The SHRM provides flexibility in offering the job divisions. The latest HRM policies and practices can explain the difference between the performance appraisal methods. Like this, Vesna can gain experience of her knowledge regarding her current job. Another advice to Vesna is to assess the staff by using the 360 degree feedback. It is one of the performance management system models [Mil073]. It links the employees to the organizational strategies with the help of activities that are integrated, which can appraise, assess, develop and reward the employees [Otl99]. By using this performance appraisal method, Vesna can assist every employee in knowing his/her strengths and weaknesses. Also, this method will apply the professional development in the workplace [DeN00]. With the help of this method, the discrimination on the basis of age, gender, race and other work related things can be minimized [Lon93]. While implementing the 360 degree, Vesna must ensure that it is consistent with the consistent with the expectations of employees and culture of the firm. The rating instruments must be reliable, relevant and valid [Ant96]. From the reviews, Vesna can train the employees, so that they can achieve the expected performance. Hence, this is the right way through which Vesna can review the performance of the employees and from her analysis, she can take further actions, which will be considered best and satisfactory to the staff. To bring the overall performance of the staff, Vesna must use the strategic HRM. This way she can build and enhance the worker’s skill, which is considered as a valuable resource for an organization. Along with these strategies, she must use the equity and justice theories in making the policies and decisions. The Equity theory can aid Vesna in monitoring the position of a labor with respect to the pay structure. Like this, the employees will know that how the pay systems are prepared in the presence of the referents [Wil131]. It is advised to Vesna to make the decisions regarding the employees under the light of Equity Theory and Justice Theory. These theories determine the perception of the employees in terms of fairness in the decisions at the workplace. Vesna must use the strategies of horizontal integration. The organizational redesign will configure the managerial structure and will induce the organizational performance. It is the basic part of the performance management. The purpose of these strategies is to close the communication gap that is present between Vesna and HR manager and Vesna and her staff/ subordinates. The interaction of Vesna with her subordinates and HR manager will produce the positive outcomes. The exchange of views between Vesna and HR manager will help her to acquire more knowledge and practices of the Google, Atlanta Branch. She can discuss the performance with the HR manager and can come to a decision in a best way. The HR manager can guide her in a number of aspects, because she is new to the company with no experience. By interacting with the staff, Vesna can communicate and observe the employees very well. She can understand their problems and can make decisions wisely. By knowing the employees, she can evaluate the performance reviews in a proper and reasonable way. Hence, things can be sorted out in a suitable manner, if the strategies of horizontal integration are applied. To cure the existing problems, Vesna must use the performance management strategies. She must set and clarify the goals of employees. She must support the employee development and career progression of the employee as well. She must assess the employee’s performance on a fair basis. In addition, the feedback that Vesna provides to the workers must be frequent, useful and candid. These are the performance management strategies for the manager that can enhance the organizational performance. It can generate change in the firm by integrating the HR policies to use the necessary skills, attitudes and behaviors of the employees [Mil073]. In this way, Vesna will use the performance management and will be dissatisfied with the traditional performance appraisal. Consequently, she will learn to evaluate the performance reviews in a right way. 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