Process Of Effectively Utilizing The Human Resource

HUMAN
RESOURCE
MANAGEMENT

1
The essay reflects on the concept of ‘International human resource management’. It is a
process of effectively utilizing the human resource at the global level to achieve
organizational activities and competitive advantage over its competitors (Harzing &
Pinnington, 2010). Focusing on the essay structure, the initial section includes information
based on Performance management System (PMS). The second section focuses on strategies
for gaining effectiveness in performance management practices throughout the global
subsidiaries of a firm. It involves the application of relevant theories. The following section
includes ‘India’ and ‘USA’ as an example to critically demonstrate the differences in HR
practices while implementing PMS. The key purpose of the essay is to emphasize on
variation in performance management activities by considering two specific countries.
Performance management
Performance management is the process of developing a healthy work environment or setting
in which employees are able to perform to the best of their abilities (Gruman & Saks,
2011).
Activities
Goal setting is the foundation of good performance management. It refers to providing clear
instructions to employee about performance expected from them. Organization expected
performance is determined in terms of ‘key result area’. It assists the employee in performing
work as per the given instructions. It allows employees to focus on the requirement. Thereby,
it improves the employee performance by minimizing confusions.
Performance appraisal is the regular review of employee performance and contribution to the
company. It is also referred as annual review. It involves assessing employee performance on
specific pre-established criteria. 360 degree appraisal is a form of employee performance
review. It refers to gaining feedback from all the possible sources. In the workplace, it
involves gaining employee feedback through customer reviews, peer groups and superiors. It
aims at determining how the employee is functioning in the organization (Lawler, 2015). A
regular review is one of the significant forms of performance management activity. It
involves providing regular feedback to the employee. It provides an opportunity to the
employee to seek his/her areas of improvement. Additionally, it contributes to developing
better interpersonal relation between employee and respected authority (Cappelli & Tavis,
2016).

2
‘Linkage to reward system’ involves offering incentives (monetary and non-monetary) and
other benefits. This practice is highly beneficial in gaining quality performance from the
employees. It motivates the employee to yield best possible outcome. This practice is proved
to be highly favourable in performance management.
Employee development plan is referred as ‘employee growth plan’. It is a process to help the
employee to improve skills and gain additional knowledge to fulfil the responsibility towards
the organization. It is a form of training to assist the employee to deliver best outcome (Patel
, 2019). Developing the use of all these practices will aid the organization in improving the
employee performance in the workplace. A higher attention should be laid in regularly
discussing the outcomes and results of the performance with the employee (Aguinis et al.,
2012).
Strategies for effectiveness
To gain effectiveness in performance management arrangements, the Human resource
manager has to be transparent and fair with employees. They should avoid discussing the
problems associated with performance at the end of the year. Therefore, problems should be
discussed as when they arise. Example: An employee is showing consistently low
performance. It develops the duty of the respected authority to communicate with the
employee to ensure the reasons for low performance. It will allow the authority a chance to
assist the employee in improving performance. This develops more chances of gaining better
performance. Therefore, the authority should address the problem at the correct and suitable
time. Failure in complying with this may yield negative results based on performance
(Boyne, 2010).
The authority should avoid favouritism. This develops a sense of self-doubt in one employee
against the other employee (Pollock, 2018). Example: ‘Employee A’ (low performer)
performance should not compared with ‘Employee B’ (high performer) performance. Rather
authority should assess employee performance based on set criteria of performance. It will
not contribute to any forms of unfairness with employee. Additionally, it will not hinder the
interpersonal relation between Employee A and B.
The authority should try to develop positive and fine interpersonal relation with its human
resource. It will motivate the employee’s to easily and freely share their concerns for delay,