Performance and Reward Management - Essay Example

HUMAN RESOURCE DEVELOPMENT Unit: Performance and Reward Management Student’s Name: Student’s Identification No.: Date: 28/4/2015 Thesis Statement An organization should always strive to know its employees’ needs and address them effectively. Employees ought to know what is required of them to ensure organizational goals are met, which leads to customer satisfaction. Features of Best Practice in Performance Management There are a number of measures that can be put in place to ensure proper running of an organization while meeting employee and client needs concurrently. These include, but are not limited to: putting in place result- oriented measures and establishing proper structures for accountability within the organization. Implementing Result- Oriented Measures Definition of the measures that are most valued by clients, employees and all stakeholders involved is essential. This can be achieved by putting in place, specific measures that will provide a platform for concerns, complaints or grievances to be dealt with. (Best Practices in Performance Management, Pg. 3). Recognizing input by employees through appraisals is one such means. (Aileen Mac Millan, Pg. 2). It can also be achieved by encouraging collaboration of all concerned parties. An under- performing employee will thus be encouraged through this by knowing that the organization is concerned about its personnel and what is affecting their work performance. (Best Practices in Performance Management, Pg. 3) Commitment to different or new perspectives in approach of issues is another means of ensuring effective measures are achieved. This can be put in place by ensuring all the concerned parties are actively involved in new processes within the organisation. It entails the organization putting in use the expertise which they may have access to. The new system in the organization should not be imposed to employees; instead staff should be assured that the organization is concerned about their welfare, such as the involvement of unions in addressing employees’ concerns. Clear guidelines should be put in place so that employees know what is required of them In the case of an under- performing employee, it could be due to the lack of a proper work outline or job specification, which needs to be elaborated. (Best Practices in Performance Management, Pg. 3) Organizations should be flexible and embrace the fact that management is a continuous process which requires time for the effects to be realized. Flexibility plays a major role in the effectiveness of personnel management. Monitoring the performance of employees has to be spread over duration of time, for proper analysis and recommendations to be done. As such, one may assume that an employee is under- performing after observing for the duration of one month, yet other factors may be in play. For instance, it may be that the employee is yet to adapt to the organization’s culture or system and may not have gone through a proper induction. This may in turn result in the employee learning on the job which leads to poor performance in many cases. (Best Practices in Performance Management, Pg. 3), (Managing Underperformers, Pg. 2). Establishment of Accountability Structures Leadership through example Employees often look up to their team, group leader, supervisor or whoever they may be reporting to. It is easier for them to embrace a concept if their leader practices what is required of them as per the organization’s structure; rather than simply following instructions from the said leader. A new employee requires demonstration in order to grasp any hands- on work and if this is not conducted, the organization may deem such an employee to be an under- performer one month later, yet there was a need that was not properly addressed. (Best Practices in Performance Management, Pg. 3) Communication Constant communication between employees and management is another way to ensure performance management in an organization is effective. Communication provides a platform for both parties to be informed in case of any challenges or issues arising, in the day- to- day operations of the organization. As such, it will be possible for the management to know through dialogue, the exact cause why an employee is not performing as expected. It then becomes easier to address the core issues faced by such an employee. (Best Practices in Performance Management, Pg. 3) Integration of Human Resource Function with Performance Management The Human Resource Department plays a core function in any organization and as such it is essential, for it to be integrated with the existing performance management system. It is important to note that no one particular performance management system can be used in all organizations. The reason for using a particular system is dependent on the type of organization and its method of operation. The system used varies from one organization to the other. (Performance Management, Pg. 2-3) One of the ways in which the Human Resource function can be used by the organization in evaluation of performance, is the use of appraisals. An appraisal could be done in order for the Human Resource Department to know and recommend ways in which work performance can be improved, in the case of the employee who is an “under- performer”. (Performance Management, Pg. 3) An appraisal can be used to obtain information which can later be used in determining pay increases, transfers or even promotions within the organization. An appraisal can also be used in performance management, as a guide for conducting trainings. These trainings provide an opportunity for enhancement of employee skills as well as allow for mentorship within the organization. Considering it is a tool for evaluation, recommendations concerning employees can be made using information obtained from the appraisal, such as the decision the decision to reward hard- working and outstanding employees. (Performance Management, Pg. 3) Effective Performance Management Performance management is often used as a guide for decisions made by the Human Resource Department, as well as the pay structure for employees and increments as the need may arise. Performance planning and evaluation play a great role in determination of an organization’s objectives. (Performance Management, Pg. 4) An effective system for performance management has positive outcomes or implications, on both the employee and the organization. Some of these outcomes include: clarification of job expectations, development of employee skills, improvement of productivity and active involvement by supervisors. (Performance Management, Pg. 1) Job expectations are usually clarified during the induction process when the employees are new to the firm. This is significant in that the employee gets to know from the start what the organization expects in terms of work ethics and performance of various duties. The employee also gets introduced into the organization’s system in a proper way. In turn, the employee is motivated at work while carrying out various duties. There are several instances where an employee may be deemed to be an “underperformer” yet the organization may not have put proper structures in place to ensure induction is done for its new employees. This may result in such an employee not giving optimum results due to lack of knowledge as to what the job entails. The Human Resource Department in the organisation should as such ensure the management puts proper structures or mechanisms for induction of new employees. (Performance Management, Pg. 1) Employee skills can be enhanced by development of the same, through proper communication and training on the relevant areas, specifically linked to the employee’s task. Communication provides an avenue through which the management addresses its concerns to employees, especially in the case where an employee’s performance is sub- standard. In addition to that, employees also get an opportunity to air their views to the management of the organization, as far as their work is concerns and any challenges they may be experiencing. In some instances, an employee may be deemed to be an “under- performer” yet there may be unaddressed issues that are affecting work performance. Such issues include: poor working conditions, unrealistic high demands from the organization or other personal issues that may adversely affect performance at work. (Performance Management, Pg. 1) Active involvement by team leaders and supervisors in training of employees is essential, in order to equip them more on skills required for working effectively. This in turn results in employees being motivated and engaging in results’- driven activities. The overall effect will be an improvement of productivity from the employee as an individual and at group level. (Performance Management, Pg. 1) Reward Management in Improving Performance Integration of Human Resource functions into the organization’s performance management necessitates a link between rewards and employee performance. (Insala, 2006, Pg. 2) In order for reward management in the motivation of employees to be effective, it is essential to put in place a set of measures or guidelines which are result- oriented. (Balancing Measures, 1999, Pg.3) This ensures that a balance is created between the organization, client and employees. It can be achieved by putting in place specific measures which address concerns raised, especially by employees. The set of measures also ensures that all concerned parties to the organization are involved in the process. The organization should be flexible and open to change when laying down measures for the same. (Balancing Measures, 1999, Pg.3) The type of reward management system to be used by the organization ought to be clearly communicated to the employees. This is advantageous to the organization in that an “under- performing” employee will feel that the organization is concerned about employee welfare, as it will have made an effort to communicate strategies in place within the organization as far as rewarding employees is concerned. (Balancing Measures, 1999, Pg.4) A reward system put in place by the organization will be a major motivation factor to employees. An “under- performing” employee will in this case aim to improve on performance in order have their efforts recognized. Rewards can be monetary or non- monetary. (Balancing Measures, 1999, Pg.4) Human Resource Development Function and Corporate Strategies for Employees There are different types of employees in an organization. Some employees are self-motivated while others need to be directed on almost every single activity. Self- motivated employees tend to be “high performers”, as they already tend to know what the organization expects of them. These employees perform well and do not require much supervision, but only seek clarification from their supervisors as need be. They easily meet targets and adhere to the organization’s strategies or policies. As such, management tends to favor such employees. On the other hand, there is another category of employees who cannot be effective in their work unless under constant supervision. Such employees tend to be “under- performers” who do not meet targets or organizational goals. Alternatively, they may deliver but not as per the organization’s expectations. For instance, such an employee may be late in delivering a project or may not provide a service according to the organization’s standards. It is advisable for the organization to put in place mechanisms to reward employees, based on their performance record. This will motivate employees to put in extra effort in their work. For instance, the “high- performer” will always want to see positive recognition for their input into the organization and will as such constantly want to receive one reward or another. This may result in such an employee putting in extra hours just to ensure all deadlines are met, which in turn enhances the organization’s overall performance when there are several employees with such zeal. The “under- performer” will also be motivated in a reward system put in place by the organization. This is because such an employee will be motivated to put in more effort in their work, in order to achieve a reward. This generally makes the “under- performing” employee want to improve skills and output. (Best Practices in Performance Management, Pg. 3) (Balancing Measures, 1999, Pg.4) In conclusion, the report shows the importance of actively involving the Human Resource function of an organization, in management decisions that directly affect employees. Employees are the most valuable assets to an organization, as they have a direct impact on the overall organizational performance and client satisfaction. References Balancing Measures: Best Practices in Performance Management, August 1999- National Partnership for Reinventing Government Human Resource Management, Association of Modern Technologies Professionals, (Accessed on 28th April, 2015) Human Resource Management: Levels of Involvement. Richard W. Scholl, 2009 Importance of Performance Management Process and Best Practices to Optimize Monitoring Performance Work Reviews / Feedback and Goal Management, Aileen Mac Millan Performance Management - A roadmap for developing and evaluating performance management systems, Elaine D. Pulakos, Society for Human Resource Management, 2004 Performance Management: Current Trends, Insala, March, 2006. (Accessed on 28th April, 2015) Read More