Introduction
Performance management is an important aspect of organizational function. It encompasses all the activities that concern the adherence to corporate goals. Performance management is an integral step towards the achievement of company objectives through sustainability (Roos, 1997, p.416). This is done in ways that promote organizational efficiency and consistency. Performance management can be streamlined to concern particular organizational units. Concerning this, it may regard to the activities of an organization’s departments or its employees. Through the creation of performance management strategies. Performance management has been cited in the field of corporate strategy (Youndt, 1996, p.840). Organizations use this function to streamline their resources towards the achievement of priorities. Proponents of performance management point out the correlation between the applications of management programs to the generation of desired profits. Concerning this report, the occurrence of employee underperformance can be corrected through sensible strategies.
Record of events
Regarding this report, the newly hired financial business partner expresses the attributes of an underperformer. Underperformance has presented itself in many ways. Many assumptions may be made due to this problem. First, the financial business partner has performed unsatisfactorily. This is regarding his service delivery according to the company standards that define the policies of this organization. Additionally, his behavior typifies that of an underperformer. He has failed to show strict conformance to company policies. This concerns the particular rules and regulations that govern employee operations. On the other hand, this employee has been of negative influence to his co-workers. The inefficiency in his work has developed impacts on the performance of other company employees.
How the case study organization’s reward management strategy might fit into the solution you offer and why?
Analysis and application of theory
Particular practices guide efficient performance management systems. This involves a combination of paradigms that go a long way in ensuring the sustainability of organizational function. These functional forms are applied in the assessment of employee performance. Several elements characterize ideal performance management systems. First, job descriptions are fundamental to any system. Accurate job descriptions establish a clear understanding of job duties. This allows employees to be aware of their expected roles in the achievement of organizational goals (Draganidis, 2006, p.56). Without this element, a company suffers from the adverse effects of employee confusion. Job descriptions provide outlines that are aligned with individual professional competencies.
Training is also a key element that defines proper performance management systems. This aspect is usually reserved for individuals holding supervisory roles in a company. These employees are responsible for exercising oversight over organizational operations with a particular role in evaluating employees. Training can be approached diversely (Argote, 2000, p.7). Nevertheless, this element is comprised of various techniques that compliment individual skills with the aim of obtaining feedback about organizational performance. Additionally, it is critical in the determination of corporate policies. Senior members of management can get clear overviews about the need to create the disciplinary initiative. It is this element that disciplinary actions are also reviewed accordingly. Training promotes supervisor objectivity. Furthermore, managers are equipped with skills that enable them to partake their duties appropriately.
Timeliness determines the effectiveness of performance management systems. Critically, performance appraisals must take place in a timely fashion (Longenecker, 1987, p.190). This regards to the particular timeframes that constitute a company’s lifetime. An example is the annual assessment of employee performance with a bearing on achievements and limitations. The inability to value the time-conscious aspect of performance management systems may lead to the emergence of organizational malpractice and underperformance. The timeliness in performance appraisal is important for the detection of organizational issues. Through this, deficiencies are corrected before they escalate into unmanageable problems. An example of timely performance appraisal concerns the rewards system. Concerning this, commendable individuals should be immediately acknowledged to promote positivity in the company.
Compensation should be taken seriously. Workers are usually conscious about the value of their efforts. They are interested in the correlation that exists between their work input and the final pay that they would bag. Issues surrounding compensation are mostly presented during job interviews. Employees with rich working histories consider the seriousness of set-off. Good performance management systems possess mechanisms that ensure that worker compensation is done judiciously. This means that employees’ roles must correspond to their salaries. By doing this, an organization would mobilize individual energies successfully.
How the human resource development (HRD) function should integrate with the performance management function?
The integration of human resource development in performance management frameworks is necessary for corporate success. For an efficient system, human resource roles should be included in the design and execution of performance management systems (Bowen, 2004, p.209). First, the philosophy of performance management systems should be vested in the fundamental provisions of sustainable human resource management. Companies must acknowledge the significance of employee effort in the execution of business plans. This is done through the actual definition of employee standards in the realization of organizational goals. Workers should be examined concerning their particular relevance to organizational business models.
Simply, human resource development is critical to the implementation of plans concerning performance management systems. This is about the individual components that underlie the design and execution of corporate plans. The integration of human resource development into performance management systems begets many benefits to a company, a factor that spurs growth.
What the specific issues surrounding the management of ‘underperformers’ or the management of ‘high performers’ are that need to be taken into account in an effective performance management system and HRD function in the case study organization?
Organizations must understand the fundamental principles of employee behavior to address matters in performance management. Concerning underperformance, many reasons can be cited. First, a worker may lack a clear impression about their employer’s expectations. This aspect may happen because of communication deficiencies in a company. The policies and operational standards of a company may not be well clarified in the context of a functional working environment. Additionally, the consequences of underperformance may not be spelled out clearly. This may create appropriate grounds for the emergence of worker underperformance. Interpersonal differences may also affect the performance capabilities of employees. An abrasive working environment may breed conflict among employees and lead individuals to underperformance. Some origins of underperformance are rooted in the allocation of tasks to employees. Regarding this, an employee may be assigned duties that do not match their capabilities (Nankervis, 2014, p.372). This may be blamed on a skill deficiency or the absence of explicit instruction concerning the execution of a task. In some cases, employees underperform due to the lack of feedback concerning the quality of their performance (Levy, 2012, p.180). They become unaware of their contribution towards the implementation of organizational plans. Underperformance may also be caused by low levels of motivation in an organization’s working environment. This may be due to poor environmental characterization that impedes the absorption of the right thoughts and the emergence of self-driven attitudes. Personal issues may also drive employees to underperformance. Physical health and domestic issues are factors that may have a significant influence on the quality of service delivery by employees.
An organization must detect and solve issues regarding employee underperformance. This would ensure the restoration of performance management systems to normal functioning. Underperformance is a contributing factor to the occurrence of organizational loss that leads to failure (Beer, 2005, p.460). The best people to correct issues of underperformance are employers. This is due to the nature of underperforming individuals. Concerning this, such employees are usually unaware of their deteriorative organizational behavior. This makes them unlikely to change their behavior and adopt sustainable means of meeting organizational goals. Best practice employers understand the progressive nature of underperformance cases. A simple instance of incompetence may progress into a severe case of organizational malfunction. In the end, a company may cease to produce and end up failing.
What are the features of best practice in performance management?
Underperformance can be managed through the application of particular management strategies. A clear system is critical in mitigating the occurrence of this problem. Best practice employers understand the gravity of cases involving employee underperformance. The existence of underperforming workers may have a negative influence on the performance of other members of an organization. Good performers may lose their motivation and adopt attitudes that may cultivate further incompetence. On the other hand, identified underperformers may have the conviction to improve. They may understand the implications of their inefficiencies and hope to achieve the status of best practice employees. In performance management systems, overall indicators may be used to provide an overview of corporate health. In this context, employers may identify the emergence of negative attitudes. Furthermore, credibility issues may expose underlying organizational problems that typify underperformance.
The management of underperformance should be a stepwise approach. First, problem identification is an integral step towards finding solutions. This is done against critical knowledge about the key drivers of organizational performance (Batt, 2011, p.700). Understanding about underperformance allows an evaluator to differentiate current from desired states. The reasons for underperformance are thus outlined. Second, problem assessment is done to understand the extent of the damage done by a case of underperformance. After this, underperforming individuals are approached in a discussion. This meeting is important in educating the subject concerning the implications of their behavior at work. However, this exercise must not be done in an accusatory tone. The step that follows includes the generation of solutions to normalize an employee’s performance. Once this is done, monitoring is used to ensure that an individual restores their performance.
Conclusion
Concerning this subject evaluation, the financial business partner has not expressed any forms of organizational misconduct. It is important to understand the difference between underperformance and misconduct. Misconduct covers gross behavior such as theft and assault. The emergence of misconduct gives a substantial reason for employee dismissal. In this case, the situation can be normalized through the application of particular strategies and correctional initiatives. However, the individual’s underperformance is deleterious to organizational success and demands a thorough approach to performance restoration.
Recommendations
How in theory should the case study organization’s human resource management practices (HRD, performance and reward management) support the firm’s corporate strategies?
This case study’s reward management strategy can go a long way in solving the problem of organizational underperformance. This approach would restore employee motivation and instill a sense of belonging. This would have a positive influence on individual perception and create an opportunity for the pursuit of success. When workers are promised incentives, they tend to increase their energies in the execution of tasks. Concerning the company’s financial business partner, he may be encouraged through this manner. Another consideration to this case is the involvement of human resource practices in the execution of organizational strategies. Human resource development can be used to establish a measure of performance management. This will enable the management to understand the fundamental principles concerning corporate performance. Human resource development can be used to develop methodologies used in effecting performance management systems. This is achieved through the accurate identification of an organization’s needs and scope of operations thereby solving the current situation.
Bibliography
Argote, L., Ingram, P., Levine, J.M. and Moreland, R.L., 2000. Knowledge transfer in organizations: Learning from the experience of others.Organizational behavior and human decision processes, 82(1), pp.1-8.
Beer, M., Voelpel, S.C., Leibold, M. and Tekie, E.B., 2005. Strategic management as organizational learning: Developing fit and alignment through a disciplined process. Long Range Planning, 38(5), pp.445-465.
Bowen, D.E. and Ostroff, C., 2004. Understanding HRM–firm performance linkages: The role of the “strength” of the HRM system. Academy of management review, 29(2), pp.203-221.
Draganidis, F. and Mentzas, G., 2006. Competency based management: a review of systems and approaches. Information Management & Computer Security, 14(1), pp.51-64.
Levy, M., Poertner, J. and Lieberman, A., 2012. Work attitudes and intention to quit among workers in private child welfare agencies operating under performance-based contracts. Administration in Social Work, 36(2), pp.175-188.
Longenecker, C.O., Sims Jr, H.P. and Gioia, D.A., 1987. Behind the mask: The politics of employee appraisal. The Academy of Management Executive (1987-1989), pp.183-193.
Nankervis, A. R., Baird, M., Coffey, J., & Shields, J. (2014). Human resource management: strategy and practice. http://public.eblib.com/choice/publicfullrecord.aspx?p=1990992.
Roos, G. and Roos, J., 1997. Measuring your company's intellectual performance. Long range planning, 30(3), pp.413-426.
Youndt, M.A., Snell, S.A., Dean, J.W. and Lepak, D.P., 1996. Human resource management, manufacturing strategy, and firm performance.Academy of management Journal, 39(4), pp.836-866.
Batt, R. and Colvin, A.J., 2011. An employment systems approach to turnover: Human resources practices, quits, dismissals, and performance.Academy of management Journal, 54(4), pp.695-717.
