Performance Management System And Human Resource Practices Commerce Essay

Performance management system and human resource practices have been considered as two practices which are interlinked and dependent on each other. Both the systems are different from each other but they are related in some way or the other. The management of performance in organizations has become importance recently mainly due to the expansion of organization and large scale functioning. Even the small scale organizations concentrate on their performance. They may not be able to adopt human resource practices on large scale but they still focus on their employees and orient the functioning of the organization in a manner that the comfort, needs and requirements of the organization are met in a proper manner. The article is concerned with understanding the relationship between the performance management and the different human resource practices. The relationship is variable and therefore the study has analyzed different relationships individually. In order to understand the study has taken into consideration Etisalat, ADNOC and Abu Dhabi Bank. The three organizations which have been taken are from different sectors and therefore they incorporate different human resource practices which have helped them in gaining the position in the market. The study then analyze a survey which has been done in order to get a proper understanding from the respondents and their exact response concerning the performance management and their different relationships with the human resource practices. In the UAE strategy human resource management has become the trend in alignment to which performance management systems are developed.

Introduction

When an organization is developed its functioning is oriented around a certain goal or target which has to be achieved by the organization in order to achieve a position in the market. As far as the organizations in the UAE are concerned they started functioning at the regional level initially and now the organizations function in the international market and have their operating centres in different countries around the world. The position of the organization in the global market is defined by its performance in comparison to the other companies which are in the market. The tools or a system which has been adopted by the organization in order to achieve its targets and in order to function in an efficient manner is better known as performance management. In an organization there are different resources which are available for the purpose of execution of different operations. Among the different resources the employees of the organization have an important role in the execution of the operations. For the purpose of management of the human resources in an organization there are different practices which can be adopted by the organization. The organization in the UAE has adopted human resource practices which would support the management of performance in their organization. The human resource practices contribute in the management of the human resources in an organization as well as the management of the tasks which they perform. The following section provides an overview of the study which has been done concerning certain practices of human resources in the UAE and their relationship with performance management. In the different studies which has been done it has been noticed that the performance of the organization has a direct relationship with the human resource practices which they have adopted.

Literature Review

UAE has been a developing region and with advancements in technology the organizations in UAE have been striving to develop the best and in the best possible manner. The development of different products and services incorporates practicing different HR related techniques. The human resource practices contribute in the development of the organization. When competing in the international market besides the delivery of quality product and services the HR practices in an organization play an important role in defining the success or failure of an organization(Armstrong and Baron 2005). In an organization different HR practices are interrelated. For instance the measurement of performance is dependent on the recruitment or the staffing practices. The degree of relationship may vary between two human resource practices but there does exist relationship. In the article we are primarily concerned with the relationship of performance management and other HR practices. As UAE is developing with time and in coordination with the developments in the rest of the world the human resource management and the practices related to have been an extensive topic for the purpose of study. This is because it has been found that the HR practices have a great influence on the management of performance and operations in an organization. Among the different resources in an organization the human resource has been considered to be the most important. However, difficulty has been seen in fully harnessing these resources in the organization. The different human resource practices which have been studied in order to develop a relationship are as follows:

Environment of work

Open Management

Incentives on the basis of performance

Feedback on the basis of performance

Evaluation of employees

Knowledge sharing

Employee motivation

The practices which have been mentioned above are concerned with the internal and external environment of the organization and the human resources working in an organization. The performance of an organization can be defined as the output which is produced by the organization after the execution of a process. In the UAE there are different organizations which have been taken into consideration for the purpose of understanding the relationship between performance management and other human resource practices. Etisalat which is a leading organization in telecommunication sector has been considered for understanding the relationship between performance of the organization and the environment of work which has been developed in the organization. Besides Etisalat also performs the evaluation of employees in the organization. Etisalat is an international organization and in different operating centres the work culture is uniform. The employees work in team and the leaders work along with them(Smither and London 2009). The leadership style which has been adopted by Etisalat encourages the participation of the leaders along with the employees. Such type of work environment has given equal participation to the employees in the working of the organization. The motivation of the employees which is an important concern of every organization is then balanced with the help of this type of work environment. The performance of Etisalat on a global scale is high. In 2011 the profit of Etisalat has been announced to be AED 3.41 billion which is a huge amount of market share. In the international competition the company operates as 15th largest operator of telecommunication services. The performance management in Etisalat is dependent on the performance of the employees which is supported by the environment of work in the organization. On a periodic basis the company evaluates the performance of the employees in the organization. The analysis is done based on different parameters such as team performance, flexibility, role in a particular operation, physical and mental skills of the employee. The relationship between performance management, work environment and evaluation of the performance of employees is that they all contribute to the management of the goals of an organization (or in this case Etisalat) in an efficient manner. Another organization from a completely different domain of working is ADNOC which is an oil company in Abu Dhabi. The organization is efficient in managing its performance based on the work compensation which it offers to the employees of the organization. The work compensation which is offered by ADNOC to its employees is under two different scenarios. Firstly, work compensation is offered to the employees during difficult times. ADNOC has reported some of the cases in which the employees got hurt and were injured. The company supported the employees by providing them with work compensation. Secondly, work compensation is offered by ADNOC when an employee displays extraordinary performance and shows result in a certain operation. This gives motivation to the employees to perform in a similar manner in future operations as well. The work compensation then becomes a driving force for other employees as well. The revenue of $75billion in 2011 clearly reflects the high performance of the organization in the market. The work compensation ability of the organization has given a competitive advantage to the company in the international market and has helped in keeping up the performance of the organization as well. It has been an important factor contributing to the performance of the organization. Abu Dhabi bank which is the largest lender bank in the UAE has adopted the practice of incentives and feedback on the basis of performance of the employees. As the banking sector is a market dependent sector and its performance fluctuates based on the market scenario the employees are given the share of the organization based on their performance. This has created fairness and equality in the organization and has levelled up all the employees to a same level at which they can communicate with each other. Besides the market scenario the decision making of the employees and the efforts which the employees put in a certain operation also play an important role in the performance of the organization in the market. The management of the performance of the bank is done by different strategies which also include the strategy including which the organization offers incentives to the employees. The scenario with other organizations in the UAE is also the same(Pulakos 2009). The performance management has been properly interlinked with different human resource practices in the organization. The performance management system is crucial to every organization. Further the formation of the performance management system is done in such a manner that it includes different practices of the human resources and they contribute in the organizational management of the performance in the organization.

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Methodology

In order to conduct survey a questionnaire consisting of 10 questions which were about the human resource practices and their importance in the organization was distributed among 100 respondents in the UAE. These 100 respondents were from five different organizations. The organizations to which the respondents belonged are:

Etisalat Telecommunication

EMAAR properties

Abu Dhabi Commercial Bank

Emirate Airlines

Dubai Islamic Bank

In order to conduct the analysis frequency distribution was calculated for different responses and the statistical tool which was used for the purpose of calculation was MS excel. Using the statistical tool and frequency distribution the pie charts were prepared which explains the percentage of respondents in favour of a particular response concerning the particular question.

Survey Analysis

Staffing practice is an important human resource practice in an organization. The recruitment of the individuals supports the operations of the organization. The different operations in an organization need the support of the staff members. However, an organization may suffer from lack of workforce. Therefore the question was aimed to question if the requirement of personnel should be done on periodic basis. As per the evaluation of the responses it is clear that majority of the respondents strongly agree. This clearly states that the respondents believe that periodic evaluation of the employees should be done. This helps in understanding that in cases when so that in some scenarios when a position is vacant the recruited work force could be used in order to get the work done. This would support the performance of the organization.

During recruitment the HR manager looks for different skills in an employee. However, the question was aimed to understand if besides the quoted skills physical skills are important and the manager considers them for recruitment. As per the response of respondents it seems that majority of the people agree that physical skills should be taken into account when recruiting an individual in an organization.

Among the different motivational practices incentive practice is an important practice in which the organization pays incentives to the employees if the target of a particular operation is achieved by the employee. However, the question is aimed at understanding the success of such a practice in the organization. As per the response majority of respondents agreed to the importance of incentive practice in motivating the employees in an organization. The incentive practices motivate the employees and further are a fair practice of rewarding the deserving employees who have worked to achieve a goal.

Employee participation has always been a question of importance. Working for improvements is an important concern in an organization which needs to be done in a proper manner. The question aims in understanding if the respondents agreed to the participation of the employees and employees presenting their views for the purpose of improvement of organization. As per the response it is reflected that the respondents are in favour of the participation of employees and their participation would improve the performance of the organization.

Open communication refers to unhindered communication between employees and supervisors due to the difference in their position or any other organizational aspect. The question was aimed at understanding if the respondents would prefer an organization with open communication in an organization. As the response reflects open communication has been supported in different organizations as it would be a contributing factor in the increase in performance and stability in the performance of the organization.

We can clearly see from the analysis that all the four skills are almost equally important for the cost, flexibility and delivery of the product. However, technical skills are a bit less preferred.

Performance management as discussed above is a system which primarily focuses on the targets and goals of the organization. However, it is important to understand the role of company personnel in the performance management. The management team plays an important role in performance management. However, it is important to understand the role of employees in performance management. As per the response of the respondents it is reflected that employees do not play any role in performance management. The employees need to complete their respective tasks; the management of performance is the upkeep of management team and other executives.

Decision making ability in an organization ensures the proper execution of operations. An organization may have proactive approach and reactive approach is general approaches which decide the manner in which the organization functions. In case of proactive approach the organization has already taken measures or has a plan already for a particular scenario. On the other hand in case of reactive approach the organization reacts after a particular instance has taken place. The aim of the question is to understand if the approaches have influence on the ability to make decisions by the company. As per the response given by the respondents it is understandable that the approaches have an influence on the decision making capabilities of the organization .Decision making would be done on the basis of the approach which has been adopted. Either a prior decision would be taken for different situations or the decisions would be made later. The strategy formulation for decision process would be done accordingly. Hence the entire model of decision making would be influenced due to the proactive or reactive approach which is taken by the organization.

In an organization at every level the employees share certain kind of relationship among each other. Even in an organizational relationship it is important that the employees have a bond and have understanding in the relationship. The employees who work as a team share employee relationship and the employees and the senior share a relationship. The question was aimed at understanding which relationship had more understanding between each other. As per the response of the respondents it is reflected that the understanding between the employees as compared to the employee and supervisor. This implies that the position in the organization has influence on the relationship between employees at that level and at the senior level. If there exists such differences in an organization it influences the performance of an operation as an operation in an organization involves every individual to participate.

Product mix is an important aspect of an organization and it has very high influence on the performance management of the organization. Product mix allows the organization to find the most suitable methodology for the purpose of performing an operation which would help the organization in realizing its goals and targets. The question was aimed at understanding if flexibility corresponds to easily adopting changes in the product mix for an organization. As per the response of the respondents if an organization is able to adopt changes it corresponds to the flexible functioning of the organization. If the organization is flexible this would enhance the management of performance in an organization. Performance would be achieved even during critical times in an organization as it would be flexible and therefore the company can easily adopt to the changes.

Conclusion

The relationship between performance and other human resource practices is variable and depends on a number of factors. Every organization has a different perception of working and depending on that the organization takes up the human resource practices which suits the working of the organization and is in best interest of the employees of the organization. The different human practices benefit the employees of the organization and make their working in the organization a good experience. The good experience of the employees is a driving force for them and functions as motivation for the employees. As a result of the motivation the employees tend to provide their best to the organization. The best of the employees eventually lead to the performance management in the organization. The management of performance hence becomes an easy task with the different relationships which the human resource practices share with the performance system model. The survey analysis provides the employees in different scenarios. They also enable the decision making processes in an organization. The survey helped in the analysis of the degree to which the human resource practices influence the functioning of the organization and performance management. The performance management system in an organization allows the functioning of organization in a strategic manner. In the UAE the organizations are developing and as a part of their development the organizations integration has been done among different human resource practices and performance system model in organizations. The employees are given importance in the organization and they are provided by the working environment in the organizations which further enables the improvement of functioning of the organization.

Bibliography

Armstrong, Michael, and Angela Baron. Managing Performance: Performance Management in Action. CIPD Publishing, 2005.

Pulakos, Elaine D. Performance Management: A New Approach for Driving Business Results. John Wiley & Sons, 2009.

Smither, James W., and Manuel London. Performance Management: Putting Research into Action. John Wiley & Sons, 2009.