Introduction
In Human Resource Management (HRM), establishing an effective performance review program, which is reliable, accepted, and valid at all levels, is one the main challenges that HR professionals face (Nankervis et al., 2013, p.334). The report will analysis the best practices in Human Resource Management that involve functional activities and strategic plans. In the Department of Defense, the HRM is a vital element in the department that entrust a vital role to entice top talent employees, improves their service and ensures there are reference actions that are successful for desired results in the newly employees. Putting in mind, the disciplines of best practice in human resource management incorporate good recruitment and selection, employee compensation, relations, and benefits that reap the best return on the department. Putting in consideration that the Department of Defense hired a 31-year-old employee with one month after he/she was appointed means that new employee does not have the required competencies and qualities to perform at the required level. Therefore, the HRM needs to be cautious, ensure that they have built a high-performance culture and maximize the benefits of a diverse workforce to retain high performers and assures quality when it comes to staffing. As the case study suggests that, "it is important to recognize that the success of the entire HRM program depends on knowing how the performance of employees compares with the goals established for them" (Nankervis et al., 2013, p.334).
The features of best practice in performance management
Performance management is a way of ensuring that the employees are meeting their career goals and aims. It is not just an annual review of the performance but a continuous process which involve managers and employees working together more so in planning (Pollitt, 2006, p.26). Moreover, it entails reviewing the employee's work and their overall contribution to the organization. The three common features of performance management are; performance management is a cycle. It is a continuous cycle of setting the objectives and expectation, performing the tasks, training and providing feedbacks, and evaluating. It entails reviewing the performance against the specific set goals that occurs between employees and managers. Secondly, performance management is systematic and cultural (Pollitt, 2006, p.26). In other words, performance management not only include performance evaluation and improvement plans but also it is a system of integrated activities, programs, and tools developed by the high performance of an organization that is consistently carried out. Finally, performance management is viewed as a strategic business process, which is important in achieving the organization performance.
Employee Performance Management System should include features like allowing goals to be linked to the overall business strategy and by doing so; the employee can easily understand how his goals and objectives contribute to the company growth. The system also allows effective goal management, which means that employee and managers should keep on reviewing the goals from time to time and not just at the beginning or end of the year. Another feature of performance management system is the use of policies and procedures that limit the subordinate behavior scope in a non-invasive way. Finally, the system should focus on the talent growth of the employee by comparing the employee potential with his current performance.
How to integrate the Human Resource Development (HRD) function with the Performance Management function
The Human Resource Development have a vital role in human resource management of dealing with training and development of the employees (Nankervis et al., 2013, p.334). After hiring the employees, HRD ensures that the employee is highly trained and provide with opportunities to learn new skills. In addition, HRD ensures that the employees receive well-distributed resources that are beneficial and important for the employee's tasks as well as other developmental activities (Armstrong and Baron, 2000 p.68). Therefore, development of human resources is crucial for the Department of Defense in enhancing dynamic and growth-oriented. On the other hand, effective performance management ensures an intensive achievement in department's objectives.
Performance management also helps to preserve the competitive advantage in the department and helps to evaluate and measure the performance level of the distinct employees (Delahaye, 2015, p.25). Integrate the Human Resource Development functions with the Performance Management functions helps the Department of Defense to create a firm competitiveness that enhances wide capacity to manage performance and improve the development of competencies and skills of employees. Performance management is a key role in human resource department. Human Resource Development is closely linked to performance management to ensure that the employees are evaluated on relevant output performance such as productivity and quality.
Integrating functions of HRD with that of performance management plays a strategic role in developing attitude and capabilities that enhance and initiate a quality performance (Werner and DeSimone, 2011, p.34). In addition, the integration of these two departments helps line managers to retain employees and hence, assists the Department of Defense in improving its productivity and efficiency (Armstrong and Baron, 2000 p.76). Integrating the Human Resource Development function with the Performance Management function helps in linking performance measures and evaluation with employee development and rewards that aid in motivating the individuals (Delahaye, 2015, p.25). Moreover, the integration helps in improving guidance and assistance in developing potential and capabilities of staff members. HRD uses performance management to ensure that all the employees are aware of the level of performance anticipated from them.
How effective performance management system and HRD function manage underperformers
Unfocused, disengaged and underperforming employees can lower the performance culture and minimize the benefits of a diverse workforce. It is clear that the new employee does not have the important competencies and/or qualities to perform at the required level, and this leads to underperforming in the Department of Defense. Therefore, if employees are managed correctly, they can become the greatest startup asset of the department. The DOD should understand that employee behavior is not the sole responsibility of the individual manager, but rather something that both performance management and HRD need to work on together (Werner and DeSimone, 2011, p.166). An effective performance management system should give clear feedback before reproaching an employee for his/her effort. For instance, if the quality of the work has dropped, an effective performance management system help the manager to speak to the employee since performance management helps in improving communication and relationships between managers and employees.
Another issue surrounding the management is inappropriate job fit to the employees, whereby the employee do not understand the job directions or requirements or the employee might show signs of laziness and apathy. In this case, performance management system and HRD should start with informal performance discussion. The HRD should offer a solution of focusing on an interest in work tasks and the way of improving them (Armstrong and Baron, 2000 p.70). If the situation of the underperformer deteriorate and start impacting performance, performance management should refer the employee to the counseling service.
Another issue surrounding the management of underperformers that should be taken into concern is the failure of the employee to recognize that they are underperforming. Performance issues that have not been adequately explained and employee failing to accept management assessments might cause the issue of managing underperformer. The best solution for the issues is to re-established anticipated outcomes. The HRD is should use evidence of looking how the performance had deteriorated and failed to meet the excepted standards. Also, performance management should if commence formal performance management process.
How the case study organization's reward management strategy might fit into the solution you offer and why?
For the DOD to effectively improve the performance of the employees, the Reward Department requires formulating effective strategies such as building employee recognition and reward system. Such system works effectively on motivating the underperformer employees to change their working behavior and perceptions to focus on the objectives of the working environment. According to Vucetic, employees usually respond well to the rewards such as recognition and incentives (2008, p.498). The recognitions are defined as the rewards that are based on the efforts of an employee. On the other hand, incentives include the rewards that are promised to the employees if they achieve a certain goal either as a team or individually. However, the Reward Management should ensure that the rewards address the unique needs of the employees if they are to discourage underperformance effectively in the future (MacLean and Redman, 2006, p.173).
A specific form of the reward and recognition team in the work environment is the provision of thank-you-card that significantly improves the efforts of the workers. The thank-you card affects the plausible behavior mechanism in three ways. First, the employees consider these cards as the gift from their employees and hence feel inclined to increase efforts to achieve the set goals (Bradle et al. 2011, p.2). Another reason is that the thank-you cards defines the nature of employers and in turn induce the workers to care more about their employers by increasing their efforts. Finally, the presence of the thank-you cards especially for the best performers may result in preferences for conformity and hence induce behavior responses. Such situation results in motivating the employees who do not receive the thank-you cards and hence mitigate the problem of under-performance (Bradle et al. 2011, p.2-3). As a result, the Reward Management plays a significant role in motivating the employees and consequently improving their performance.
How Human Resource Management practices (HRD, Performance, and Reward Management) support the firm's corporate strategies
The impact of HRM policies and practices is intensive on productivity, turnover and corporate financial performance (Huselid, 1995, p.635). Through HRD, Performance, and Reward Management, HRM can influence employee skills through the development and acquisition of a business human capital (Huselid, 1995 p.637). HRD uses performance management to ensure that all the employees are aware of the level of performance anticipated from them and create organizational capabilities that are requires supporting the strategy directions. Performance management helps to maintain the competitive advantage in the department and thus, helps to evaluate and measure the performance level of the distinct employees. However, the manager must clarify the responsibilities for underperformers because they tend not to understand exactly what is expected of them (Nankervis et al., 2013, p.372).Through these practices, the HRM can offer a firm and solid support of the firm's corporate strategies. The relationship between strategic HRD and HRM helps in influencing corporate culture and enhances on employee productivity as well as participation.
The reward management through Reward and Recognition Strategy ensure the organization maintains its position as an effective employer in a highly competitive employment environment. Consequently, the Reward and Recognition Strategy improves the employees' performance and consequently improve the organizational performance. Therefore, the reward and recognition provide guiding principles that align the employees to the business strategy and help them to achieve the organizational goals and hence align to the corporate strategy. For instance, Kerr and Slocum argue that reward system plays a critical role in providing substantial means for enhancing organization culture because it controls the attitudes and behaviors of the employees in an organization (2005, p.130-131).
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