Analysis of Performance Management Systems in HRM

This assignment requires the analysis of different methods of performance management systems used by ABC company. The student is expected to understand how the company adapts to these various approaches. References from books and journals, such as Armstrong's Handbook of HRM Practice and Guest's Model of HRM, are provided for further research. The student must also explore online resources to gain a comprehensive understanding of the topic.

MANAGING HUMAN
RESOURCES

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK1.............................................................................................................................................1
1.1) Guest's model of human resource management...................................................................1
1.2)Difference between Storey's HRM definition, personnel and IR practices..........................2
1.3)Implications for line managers and employees in developing strategic approach................3
2.1)Application of model of flexibility in business practices.....................................................3
2.2)Types of flexibility................................................................................................................4
2.3) Usefulness of flexible working practices.............................................................................5
2.4)Impact of changes of labour market on flexible working practices......................................5
TASK2.............................................................................................................................................6
3.1)Different forms of discriminations.......................................................................................6
3.2)Practical implications of equal opportunities in firm............................................................6
3.3)Comparison of different approaches of managing equality and diversity............................7
4.1)Various performance management methods.........................................................................7
4.2) Managing employee welfare................................................................................................8
4.3) Implications of health and safety laws.................................................................................8
4.4)Impact of a topical issues on HR practices...........................................................................9
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Human resource is one of the major element in an organisation. It is very essential for the
management of a company to take in consideration about each and every aspects that are related
to the human asset of it. It has been realised that manpower are playing a very important role in
the development of a firm and they are also leading in enhancing the productivity and in
attaining organisation's growth and development (Alfes and et. al, 2013).
ABC is an IT company which is having employee of 200 in entire world. The company
is availing services to top 5 banks in United Kingdom. The banks to which ABC company is
serving is now willing to expand its business. With the support of the company these banks will
be performing and expanding its operations and functions in new market place.
In this assignment, several aspects of managing human resource management for the firm
will be studied. Models, theories related to manpower management and performance
management tools will be describing in this report that is to be drawn to the Board of directors of
ABC company.
TASK1
1.1) Guest's model of human resource management
Human resource management is one of the major aspects that has to be considered by
each and every organisation so that they can be able to enhance firm's productivity and overall
performances. This is because manpower is playing an essential role in the growth of the
company. There are several model that are used by company to manage the work force of it,
Guest model is one of the technique and most reliable method. This model is based on
prescriptive analysis as because it assumes that the human resource management is very different
from the traditional methods of personnel management system in a company. This is basically
the core elements of the HRM approaches. This model is adopted by ABC organisation to
develop new and innovative strategies sop that manpower of it can be able to engage in their
work and tasks that has been allotted to them (Kehoe and Wright, 2013). There are basic 6
dimensions of this model they are-
 HRM strategy- In this, the model is very helpful in drawing several strategies that is very
essential in a company. Making strategies for employees are very much required as
because this will lead in attaining effective outcomes.
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 HRM practices- Human resource management practices are to be done in every firm as
because this will lead in attaining organisational goals and objectives in most appropriate
and effective manner.
 HRM outcomes- The result of the human resource management activities can be planned
out with the help and support of the Guest model of HRM (Crook and et. al, 2011).
 Behavioural outcomes- This models will also help in understanding the behavioural
pattern of the employees working in an organisation and according to that company can
be able to make more plans and strategies.
 Performance outcomes- This will lead in effective and appropriate outcomes by the
employees in their performances as well this is very helpful in attaining organisation
productivity in a positive way.
 Financial outcomes- This model is very supportive in obtaining large shares of profit as
well because as employees are managed in appropriate way them outcome will also be in
positive perspective and at the end profit shares will be in a very high ratio that company
will be getting with use of this model.
1.2)Difference between Storey's HRM definition, personnel and IR practices
According to Storey human resource management is the strategy and an approach that is
used by the management of a company for their manpower. As per his views, personnel
management is the system through which the company is able to manage its manpower. This is
basically concerns upon the implementation of the employment laws, recruitment and payroll
methods (Buller and McEvoy, 2012).
John Storey's HRM model
Dimensions Personnel and IR HRM
Guide to management(Beliefs
and assumptions)
There are several procedures. It depends upon the needs of
business.
Behavioural referents(Beliefs
and assumptions)
Several norms and rules are
followed.
Whereas in HRM practices the
values and missions are
considered.
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Nature of the relations (Beliefs
and assumptions)
It is of pluralistic in nature. HRM is Unitarist in its nature.
Corporate plans (Strategic
aspects)
Corporate plans here are on
marginal basis.
In this plans are depended
upon the central basis.
Speed in decision (Strategic
aspects)
It is very slow. This is very fast.
Management role (Line
management)
Role of the management is as
transactional basis.
Here the transformational
leadership style is chosen.
Communication (Line
management)
Indirect process. Direct communication system
is adapted.
1.3)Implications for line managers and employees in developing strategic approach
There are different consequences for the two specialists and line heads at while making
key HRM approaches. Line directors need to consolidate such strategies with general various
levelled culture, activity style, business methodologies and destinations especially to the extent
creation (Guest and Woodrow, 2012). Thusly, HRM edges, for instance, levels of leadership in
senior organization and changing the expert style and rotate of occupations and division can
display diverse consequences since line executives need to refuse detailing approaches that will
strife with business operations likewise unfavourably impacting the qualities and brands is
known for. Many more work has to be performed by line managers in ABC company, they are
responsible for selection and availing training & development of the manpower in an
organisation. Making healthy and effective relationship with manpower working in the company
is the role that is very well played by the line managers in company.
In case of employees the proposal stretch out from proficient strength, change of pay and
rewards which will now be established on execution and sense of duty regarding the achievement
of the gathering and not on position held, and terms of possible dismissal when not leaving the
brand. Employees are very much responsible for attaining the goals and objectives that are set for
them by top level management. Assigned task has to be fulfilled on time with most effective and
appropriate way so that they can be able help in assisting the company in obtaining long term
objectives.
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2.1)Application of model of flexibility in business practices
In the 21st Century, versatility or flexibility at the present time in the workplace has
transformed into a key thing, most especially (Jackson, Schuler and Jiang, 2014). It is about
delegates and a business taking off changes to when, where and how a man will capacity to
better meet individual and business needs. This suggests there are assorted models of flexibility
that can be associated in the workplace like low upkeep working, work sharing, flexitime,
compacted hours, working from home, convenient working/teleworking etc. For a model like
compact working, this is a system whereby a business makes plan for a delegate to work all or
part of their working week at zone remote from the business' workplace. This can be associated
eventually agreeing with the agent to tackle a territory where they will be related with promoting
for the affiliation. This suggests accomplishing customers that are a long way from the business'
workplace with the after-effects of the affiliation (Pedersen and Lewis, 2012).
Work flexibility increases the entire effectiveness of the organisation it will lead
attaining organisation's productivity and satisfaction in the job. Flexibility is totally depended
upon the nature of the work that company is performing. It is very essential to take in
consideration about the organisational culture as well as the structure.
2.2)Types of flexibility
For every organisation it is essential for them to use flexibility model through which their
employees can work in a systematic and appropriate manner. ABC company can use this
approach because it is an essential element which help them in motivating their employees and
they can work in more appropriate manner. Thus it leads to enhance their productivity and
organisation can ascertain all of their targets in a systematic manner. Several number of
flexibility which can provide by reference company to their employees are as follow:
 Provide flexibility in working hours so as per their demand. By this, they can contribute
more and more in company success (Burnett and et. al, 2011). As this factor is helpful for
them in making and sustain at market for long term.
 Provide job rotation or provide rotational shift according to them. This aid them in
working in an effective manner. This is another flexible factor for an organisation as this
aid them in develop their skill and they become able to improve their skills.
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 Provide working from home through which work get done without any sort of pressure.
This help them in making their work easy and whole project get done in an appropriate
manner.
2.3) Usefulness of flexible working practices
Flexible working practise is helpful for both the employer and employee. As this help them in
improving their skill and attainment of targets become easy. For ABC company and its
employees flexible working practise is helpful as it enable them in:
 Provide equity and diversity legislation to ensure the rights of human and employees in
which management have to identify the needs and requirements of each and every
employee and work according to that.
 Provide time working to all the students which aid them in taking such number of
associates in less minimum wage.
 Developing the skills of each and every individual as they are going to learn everyday
new thing at work place (Alfes and et. al, 2013).
 All employees can work from home through which their cost of transport, equipments
etc. get safe and thus lead to incur less working at workplace.
As with the help of this, all targets get ascertain in minimum time period and objectives of an
organisation get achieve.
2.4)Impact of changes of labour market on flexible working practices
It is apparent that there have been changes in the overall market and these movements
over the work grandstand have affected versatile working practices at in various perspectives.
The movements are a result of factors like quick creating advancement, increase in student and
post graduates enlistment, measurement change/migration, etc. In some ways it is useful to
affiliations like . Such as, it is by and by demonstrating an example that support attainment of
best unique blessings instead of prior specialization designs. For instance, the execution of
flexibility sharpens that make sense of where and when workforce work is winding up
continuously sensible and more straightforward for bot agents and as spends less on staff and
still them to complete quality businesses as in their understanding that adds to up till now
remaining the best retail on the planet (Kehoe and Wright, 2013). Furthermore the movement
and measurement has influenced as they now have a growing get-together of individuals from
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different establishment and culture that will thought on throughout the day work and low upkeep
occupations in the wake of completing movements in their key jobs.
TASK2
3.1)Different forms of discriminations
Different discrimination take place in organisation and it is the duty of the company to
eliminate such so that it can not arise in future. It creates hurdles to the growth of the business.
Gender discrimination takes place. In this, organisation impose different rules and regulations on
male and female staff that are against their will. For example: female staff is bound to take make-
up, dress code etc.
Another discrimination that may arise at workplace is age discrimination. It can be seen
that global organisations like to employ young employees instead of older aged people. It may be
due to salary issue and as younger have more capacity to work in stressful situation. Generally,
young undergraduate and post graduate are employed by the company.
Discrimination is also based on disability. There are some of the companies that do not
want to employ people with disability. It affects the organisation. Sometime, managers of the
business do not treat disabled employees and normal equally. It affects the capacity of such
people.
The above Discrimination can be seen at workplace (Crook and et. al, 2011). It is
important for the organisation to consider it effectively so that there is effective flow of working
of the business. Many rules and regulations are formed by government that bound the company
to eliminate such practices.
3.2)Practical implications of equal opportunities in firm
There are various practical implications that need to be considered by ABC company as
because they are very necessary in an organisation to perform. Legal aspects has to be followed
by the company so that a proper management can be done in it. It is very essential as because this
will guide company to prevent itself from various fraudulent activities. Adapting legal element
will also avail employees and employer their rights in the firm where they are carrying out their
works.
It also need to implicate the financial resources in company as they are very necessary
element in company. As company is dealing with the IT practices there are several such norms
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where financial specifications and uses are drawn which need to be managed appropriately that
can only be attained with the help of proper implications of equal opportunities in ABC
company.
3.3)Comparison of different approaches of managing equality and diversity
Equality and diversity are two pillars that takes a company to a new level. Work places
have large diversity in terms of visible and non visible attributes that includes differences on the
basis of sex, age, race etc. Fully recognition of employee skills and its utilisation regardless of
discriminatory factors. There are various approaches through which these both can be promoted
one of the similar approach can be going hand in hand (Daley, 2012). In ABC many approaches
for managing and equal opportunity and diversity management have been implemented
simultaneously. In hiring process HR department places an advertisement in any of the medium
and it provides equal opportunity to all and any body can take part in it regardless from where
they belong to in a country. Another approach is that Gender discrimination is prohibited at ABC
company when any post have to fulfilled by any candidate. Anybody having the appropriate
talent and skill can take part in this recruitment and selection process. Another approach at ABC
company is that it provides a structured way in which every one can air their views. This helps to
empower employee and promote their welfare assets. Another approach at ABC is flexible
working arrangement. Part time, full time and temporary workers are hired so as to fulfil needs
of employee in off seasons and in times when the sales are maximum.
One of the key differences between managing diversity and equal opportunity is to
provide social justice and human rights while ensuring that every individual is unique and needs
are different and needs different kinds of assistance in to order to succeed (Armstrong and
Taylor, 2014). Managing diversity is about business and economy within an organisation while
equal opportunities is about the ethics that exist in a society to treat every individual equally.
4.1)Various performance management methods
Performance management refers to as the processes that involves monitoring and
scrutinizing performance of an workers. It helps to identify sectors or fields in which they are
providing excellent services and the areas in which improvement is required. Some of the
methods are as follows:
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 Talent spotting: Continuous monitoring of performance helps in spotting a talent that
can make valuable contributions for ABC company. This helps firm in finding that
whether correct people are at required places or not.
 Flatter in organisational structure: By the use of this method ABC can provide high
level of job satisfaction. This helps employee to have more opportunity in terms of taking
responsibility which was not possible earlier when their there was more hierarchy based
structure in ABC.
 Rewards for better performance: ABC gives rewards to those employee who have
performed well. This helps employee as it increases their motivational level (Guest,
2011). This method also helps to save talented employee to work for any other firm.
4.2) Managing employee welfare
Management of employee welfare at ABC is one of the roles of HRM department.
Employee relations team which is a part of HRM department has a responsibility of managing
several issues that includes general well being of a worker. This helps to ensure that no employee
is negatively affected by issues like Grievances, policies and redundancy. Pension one of the
oldest approaches of employee welfare scheme that is used in almost every company is applied
at ABC company also. There is a special pension team that has a role of evaluating the pension
that is to be given to every employee (Bratton and Gold, 2012). Pension scheme helps employee
to support their future. Another approach followed at ABC is that HRM conducts survey among
the employee so as to reduce workplace problems and work on reducing or eradicating it. Like
the issues of getting more nutritional food with high quality at the restaurant.
4.3) Implications of health and safety laws
Health and safety legislations has high impact on the practices of HRM. At ABC there
are various obligations that are not only for employee and customers but also for the general
public and it helps in maintaining individual well being. Health legislations like Health and
safety Act 1974 states that an organisation must have the programs that ensures acceptable health
standards for workers both at the time of recruitment and working lives. This legislation holds
firms responsibility on the health and safety issues of workers at the workplace. Any violations
to it may lead company to face stiff penalties.
Today companies are investing a lot on training of employee on health and safety related
issues. Companies are hiring experts of various field like fire, natural disasters and others so as to
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train their employees. ABC have hired uniformed security personnels and safety team. Time to
time mock trainings are conducted so as to make sure that everyone gets safe at the time when
actually any health or safety related situation arises.
4.4)Impact of a topical issues on HR practices
There are various topical issues that influences the HRM practices. These topical issues
has impact on almost every company throughout the globe. One of important topical issue that
impacted human resource practices at ABC is the organisational culture (Boxall, and Purcell,
2011). It shapes the pathway in which HRM does recruitment of workers. Recruitment process
includes series of interviews via application and CV screening, telephone interview then final
stage interview. This series of interview ensures that successful candidates will get adapted to the
working culture at ABC. Every employees have of speaking and giving feedback about the
working environment and culture at ABC. In order to hire perfect candidate company conducts
time to time selection processes so that company have a edge in terms of having best talented
employees over the other competitors (Wright and McMahan, 2011). Culture has impacted the
working and leadership style of HRM. This company focuses to have a democratic form of
organisational structure where the growth of company is directly related to individuals growth.
CONCLUSION
In this report, several management aspects of human resource has been understood.
Models of HRM system has been concluded in this assignment to better understand the
effectiveness of it in the organisation and its management. Effectiveness of flexibility model has
also been describe and its impact upon organisation work and on employees. Impact of changes
in labour market upon the flexible working practices in ABC company along with this different
methods of performance management system has been understood that company can adapt.
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REFERENCES
Books and journals
Alfes, K. and et. al., 2013. The link between perceived human resource management practices,
engagement and employee behaviour: a moderated mediation model.The international
journal of human resource management.24(2). pp.330-351.
Armstrong, M. and Taylor, S., 2014. Armstrong's handbook of human resource management
practice. Kogan Page Publishers.
Boxall, P. and Purcell, J., 2011. Strategy and human resource management. Palgrave Macmillan.
Bratton, J. and Gold, J., 2012. Human resource management: theory and practice. Palgrave
Macmillan.
Buller, P.F. and McEvoy, G.M., 2012. Strategy, human resource management and performance:
Sharpening line of sight.Human resource management review.22(1). pp.43-56.
Burnett, S. and et. al., 2011. Fatherhood and flexible working: a contradiction in terms?.
InCreating Balance?(pp. 157-171). Springer Berlin Heidelberg.
Crook, T.R., and et. al., 2011. Does human capital matter? A meta-analysis of the relationship
between human capital and firm performance.
Daley, D.M., 2012. Strategic human resources management. Public Personnel Management. pp.
120-125.
Guest, D.E. and Woodrow, C., 2012. Exploring the boundaries of human resource managers’
responsibilities.Journal of business ethics.111(1). pp.109-119.
Guest, D.E., 2011. Human resource management and performance: still searching for some
answers. Human resource management journal. 21(1). pp. 3-13.
Jackson, S.E., Schuler, R.S. and Jiang, K., 2014. An aspirational framework for strategic human
resource management.Academy of Management Annals.8(1). pp.1-56.
Kehoe, R.R. and Wright, P.M., 2013. The impact of high-performance human resource practices
on employees’ attitudes and behaviors.Journal of management.39(2). pp.366-391.
Pedersen, V.B. and Lewis, S., 2012. Flexible friends? Flexible working time arrangements,
blurred work-life boundaries and friendship.Work, employment and society.26(3).
pp.464-480.
Renwick, D.W., Redman, T. and Maguire, S., 2013. Green human resource management: A
review and research agenda. International Journal of Management Reviews. 15(1). pp.
1-14.
Wright, P.M. and McMahan, G.C., 2011. Exploring human capital: putting ‘human’back into
strategic human resource management. Human Resource Management Journal. 21(2).
pp. 93-104.
Online
Guest's model of HRM. 2017. [Online]. Available through:
<http://www.hrmguide.co.uk/introduction_to_hrm/guest-hrm.htm>. [Accessed on 8th
August 2017].
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