Human Resource Management is the strategic and harmonised way of managing organisations most valued asset, people who individually and collectively work together for the sole aim of accomplishing a particular goal. Performance management has been defined as the process by which organizational performance is improved by developing the performance of individuals and teams. This is a way of getting better results from individuals and teams in the organization using the performance management framework (Mcmahon, 2010).
There are so many other views of what performance management is by other authors for instance Walters (1995) states that Performance management is a director and supporter of employees to work effectively and efficiently in line with the needs of the organization. Armstrong and Baron (1998) in their study of Performance management showed that the strategic and integrated approach towards delivering is sustained by success in organization when improvement of the performance people who work in the organization are developed and the capabilities of the team and individuals are also encouraged. Another definition is given by the Mohrmans (1995) that performance management is managing the business. While Lockett (1995) says that performance management has to do with the competency and commitment of individuals who work to achieve a common goal within an organization.
The sole aim of Performance management is to establish and build a culture in which individuals and teams take responsibility for the continuous improvement of business processes within a framework provided by effective leadership. This examines the links between people management practices and organizational performance. Human resource strategies draw importance to the culture and values of organizations John (2007).
This report examines organizational goals in relation with their employees and how through transparent people management procedures organization can maximise effectiveness of their human resources to provide and develop a continuous improvement on their culture and complete participation of employees.
Performance management is designed and supported by human resource and is largely delivered by managers that needs to deliver it effectively in order to achieve and maintain organizational performance.
In this modern day the need for structuring to conduct business activities effectively has increased (Ronen et al, 2010). Performance management is viewed in different perspective which appears to be a general level theory of human resource management (Pfeffer, 1995), and a lot more specific theories in areas of policy and practice which involves quality commitment and performance (Walton, 1985). Human resource management is considered as employee skills, motivation, empowerment, job security and political nature of an organization (Janssens and Steeyart, 2008). Research on human resource management by Paauwe (2005) deals on the relationship between human resource management and performance.
Structured processes allow additional navigation in the environment and occurrences of control. Theriou et al (2007) explore the relationship between human resource management practice and organizational learning. Through research and investigation it is observed that human resource management best practice leads to organizational effectiveness in order to strengthen the performances of human resource (Mintzberg, 1979). Organization and employee objectives are drawn with collaborative working to achieve positive outcomes. It is essential for organizations to continually improve. Clark et al (2000) argued that despite the pressure towards convergence pose by economic and political society, there are differences in the cultural and institutional contexts towards producing diverse employment relationships.
The national diversity of human resource management systems has been the same says Lipsig-Mumme (2001), despite the economic and political pressure from globalization especially between the developed and developing countries. This supported by Brewster (1991) that they might have to acknowledge existence of discrete models of human resource management that exist both between and within nations.
Performance management practices within an organization enables and encourages more focus on the strategic issues of connecting employee and organization performance (Schein, 1984). Nevertheless, a study Fletcher (1993) shows that it is because some firms spend time managing grievances and attendance issues rather than organizational development and employee empowerment.
This report demonstrates how human resource processes can be structured in an organization to enhance employee creativity in the work place. Structuring of the human resource management processes is a major tool for cultivating individual creativity at work according to Anthony et al. (2012). This is connected with uncertainty and indirect associated with stress. Hence, structuring of human resource management processes reduces individual sense of stress.
Human Resource Structure:
This is the system through which Human Resource management operate to achieve its goals. This includes; philosophies, strategies, policies, processes, practices and programmes. Fombrun et al (1984) states that human resource systems and the structure of the organization should be managed in a way that is corresponding with organizational strategy which brought about the name “matching model”. The strategies of human resource are concerned with the development of continuous improvement and customer relations policies (Armstrong and Baron, 2004). Strategy in this context is referred to the long term strategy is focused on those decisions which have a major and long term effect on the behaviour of the organization (Dessler, 2008).
Development and implementation of a sound strategy for human resource management is a specific area for improvement in any organization (Purcell, 2001). Dave (1996) in this study the functions of human resources is that it must be placed a correct position of human resource and business strategy, as well as re-arranging the organization processes, employers doing well to listen and respond to employees in well manner, and manage transformations and changes implemented. According to the discussion of Tichy et al (1982) and Wright et al. (2001) it can be considered in these models of Armstrong and Purcell that the Human resource management system can be divided in to the following areas namely; employment relations, learning and development, performance appraisal and compensation. This enables the system to be able to link to the organization’s strategy and also influence the environmental context (Delery & Doty, 1996). Attempts have been made to develop different categories of orientations of the Human resource management system. Fombrun et al (1984) and Miles & Snow (1984) assessed how generic strategic typologies could lead to certain patterns of human resource management practices.
It is the responsibility of the human resource to take care of employees experience during employment (Fletcher, 1993). Knowing the right employee, then selection through recruitment process. Human resource oversees the training and development of employees during their occupancy with the organization. A study Walters (1995) shows that Human Resource assesses individual talents through performance appraisal and rewards them accordingly. While Purcell (2004) stated that provision of employee benefits is a strategic role of human resource and human resource must also involve in employee termination, resignations, dismissals and redundancies. Human resource is responsible for organizational leadership and culture at the macro level (Barney and Mackey, 2005). However, it ensures cooperation with employment and labour laws and oversees health, safety and security of employees (Anthony et al., 2012). However, this is supported by Tough (1978) it was showed that Human resource is generally seen as a support function to the business, helping to minimize costs and reduce risk.
This depends on how individuals are treated to improve the organization (Arthur, 1999). Different individuals have work environment that fits their personalities where there is performance and high job satisfaction (Robert & Donald, 1980). According to Walsh (1995) government are moving away from activity based control to result based control because activity based control relies mostly on budget, and does not satisfy performance expectations of the public. This is because to achieve targets (Bouckaert & Peters, 2002) it is seen as a form of objective evidence that provider is worth its licence to operate. A research by Lynch et al (2000) shows that different experts within the same area of work will demonstrate different goals of professional specialities in the structure of knowledge even among experts.
Tough (1978) Individual development is dependent on deliberate activities such as reading of articles, attending seminars, not formally required by the organization that an employee undertakes to gain and retain job skills. This is supported by Blau et al (2008) that self-development is associated with positive outcomes such as job satisfaction which an employee wants. There are different dimension of individual capability (Tough, 1978). These could be Mental or cognitive, physical, personality, knowledge etc. Individuals are born to learn, acquiring new skills, mastering new situations and improving one’s competence are desires of individual reflection to develop his or herself (VandeWalle, 2001, p. 165). Inadequate skills pose a significant problem especially now that new technologies have being introduced in the system today (Lynch et al., 2000).
Wright et al (2001) Human resource management system influences employee knowledge, skills and abilities and behaviours to aid companies achieve their goals. Employee productivity and retention is enhanced with organization’s mission for example employee training program, job enrichment program etc. (Combs et al., 2006), to reinforce desirable employee behaviours (Huselid, 1995). This is the same to organizations that wants to gain competition (Barney, 2001); employees’ behaviours are maximized when human resource management practices put in place (Lepak & Snell, 1999).
PERFORMANCE MANAGEMENT FRAMEWORK
The sole aim of every organization is to achieve profit according to Walsh (1995). This can be obtaining through performance management framework which involves planning and managing improvement (Brown, 2001). Performance management is the key to achieving high quality services and also aids to sustaining progressive improvement depending on how the performance management system processes are implemented (Bryman & Bell, 2003). Understanding individual role and is significance is very important to achieving organizational goals (Buchanan & Huczynski, 2004). Performance management framework is a very useful tool for organization to relate or communicate important message to employees, identify development issues, increase individual and team performance (Armstrong & Baron, 1998).
Performance management tools
Performance and development reviews: This is referred to appraisals individuals receive. This can be at an acceptable period of time scheduled by the manager and should be positive and of good understanding (Tough, 1978). Appraisal encourages learning and development for both appraisers and appraises to ensure success in organizations (Fletcher, 1993). The essence of individual appraisal is to recognise and record areas of good performance, to inform the capability process in areas of poor performance, to agree development to meet objectives and expectations of the role being performed by the individual as well as to review the expected level of performance against the career pathway skills capability and standards and specifics of the job description (Armstrong, 2004). This appraisal is informed by the particular job description of the individual, the individual and manager’s expectation, career pathway skills and capability standards, academic unit or professional services strategic aims and the priorities set for the period under review (Personal Performance Development Review, 2011).
Learning and development: A personal development review based on formal appraisal of review to align with the organization new policies, as organization re-define their performance management to correspond with the needs of customers (Armstrong, 2004). As stated in Delery et al. (1996) Training programmes reflects the needs of succession plans and demands leadership skills. However, according to Fombrun et al. (1984) talent management may cause damage to development. It is therefore necessary to ensure development is inclusive, accessible and focused on developing organizational capability (Purcell, 2001).
Coaching and Mentoring: This is a very important tool in learning and development because it involves a person’s skills and knowledge to improve job performance that will lead to achievement of organizational objectives (John, 2007). This is not a direct line management responsibility rather the responsibility of an internal senior manager. According to Arthur (1999) Coaching is best carried out by an external accredited coach that possesses the required leadership skill for the organization. Coaching allows employees to get support to enable them in their goals setting and the right methods to assess progress made in accordance to their set goals. This will enable the employees to develop individual and personal competencies to avoid unnecessary and unhealthy dependencies on the organization, it also helps to evaluate the possible outcomes of the process, It is wise to use objective measures where possible to ensure the relationship is successful and the employee is achieving their personal goals, to work within their area of personal competence, maintain unconditional positive regard for the his or herself in and outside the organization, which means that the coach is at all times supportive and non-judgemental of the employee, their views, lifestyle and aspirations as well as to manage the relationship to ensure the individual receives the appropriate level of service and that programmes are neither too short, nor too long (coaching network, 2010)
Setting objectives and performance standards:
Every organization is expected to have a standard on which to operate to achieve its goals and objectives which must be well defined and agreed (Tichy et al., 1982). These goals have to relate to the overall purpose of the job where targets can be se for individual performance arena. Objectives can be regarded as standards of improvements in performance for instance an employee meeting a designated performance measures (Brewster, 2001). The setting of Specific, Measurable, Achievable, realistic and Timely (SMART) objectives allows for appreciation of how the individual roles within an organization as well as the responsibility. SMART objectives focus on outcomes rather than activities allow for the individual to measure attained successes (Anonymous, 2002).
Competences and competencies: Human resource professionals have a clear distinction between competences and competencies. Competence (competences) points out what people need to do in order to perform their job with the effect of output rather than effort and input (Armstrong, 2004). While competency (competencies) refers to the behaviour that lays behind competent performance for example analytical skills, this describes what people introduce to the job (Tichy et al., 1982). However, it is clear that job performance involves a combination of behaviour, attitude and action and hence competences and competencies are regularly used interchangeably (Delery et al., 1996). According to Armstrong & Baron (1998) competences and competencies bring together demonstrable performance outputs as well as behaviour input which is joint to a system of standards required for effective performance at work. A good performer will have the ability to do a job at a competent level and have behaviour that reinforces those technical skills (John, 2007).
Irrespective of how the human resource function of an organization is organized, managers are accountable for the reasoning behind any structural changes made in working arrangement and explain the expected benefits and also point to relevant evidence to support the value of the changes (Miller, 2007).
Human resource management best practices are a driving factor for any organizational learning and it is essential to continually improve on it (Blau et al., 2008). Issues arise in so many organizations that performance management are met negatively and there are no understanding between managers and employees (Huselid, 1995). This most times arise where there is no adequate training, because most skills are being acquire on the job (John, 2007). Objective setting seem not to work well in most other cases because reviewing of the performance of employee is not frequent and the opportunity for feedback and motivation is often missed (Miller, 2007). Reviews are focused more on the output than input leading to the lack of setting developmental goals and conducting a developmental discussion (Walters, 1995).
Performance management processes should be design in such a way that it will accommodate all members of the organization both senior and junior staffs to encourage a trusting relationship among employee (Delery et al., 1996).
It is likely the HR professionals will needs to use an increasingly wide range of skills in the futures. The people that work in an organization and whom the success of the business depends is what are referred to as ‘human capital’ (Armstrong, 1998). Individuals are the organization’s key resource and organizational performance largely depends on them. If an appropriate range of HR policies and processes are developed and implemented effectively, then HR will make a substantial impact on firm performance (Brewster, 2001).
Having the business strategy and the HR strategy put together effectively into practice linked up with employee competency, commitment, and flexibility produces a good quality of work and productivity resulting into a good financial performance (Bryman and Bell, 2003). According to a study Barney and Mackey (2005) It is important to review the performance and development system of human resource management, training and communication to enhance performance for success to be achieved, giving appraisal to each and every individual employee for motivation purposes, it is highly recommended by Brown (2001).
Managers should set SMART objectives to allow employee know where their role fits within the organization because it focuses on the output rather than activities so that managers can measure the company’s success (Armstrong & Baron, 2004). Since SMART objective provides guidance on how to address any particular performance issue. It should be realistic and achievable, obtainable and a specific time limited and most importantly it should be well defined and clear to everyone who is familiar to the job ethics (Anonymous, 2002).
Job security should be put into consideration at all cost for high level of commitment to be obtained (Pfeffer, 1998)
Also in areas where communication is lacking between individuals staffs particularly in operative sections, there is need for high commitment of human resource management activities that requires further development. There should be more concentration on the employee resources in performance management because employees are the ones that contribute to the improvement of the organization both in input and output.
Organizations human resource management should try as much as possible to respond to changes brought about by knowledge based economy so that the Human resource will its credibility and try to improve on the organizational learning to succeed.
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