Importance of Performance Management, Recruitment and Diversity Management in Human Resource Management

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This report discusses the importance of performance management, recruitment, and diversity management in human resource management. It covers the importance of designing a proper performance management process for motivating and retaining employees, the role of selection and recruitment in developing a successful organization, and the role of diversity management when the organization wants to expand its operations across the globe. The report also discusses the benefits of performance management, such as offering clarity in the organization, increasing employee engagement, and promoting individual and team performance.

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HUMAN RESOURCE
MANAGEMENT

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TABLE OF CONTENT
INTRODUCTION ..........................................................................................................................3
Section – A ......................................................................................................................................3
Importance of performance management process to motivate and retain employees.................3
Section-B..........................................................................................................................................7
Critically evaluate the role of selection and recruitment in making successful organization......7
A brief of Diversity management, and critically analyse the role of diversity management
when company expand their operations.......................................................................................9
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12
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INTRODUCTION
Human Resource Management involves the operational activities in the companies that
are designed to improve the performance of the employee for meeting the strategic goals and
objectives of the employer. In precise, HRM emphasizes on the people management in the
company focusing on the systems and the policies. It is a kind of process of recruiting, selection
of the employees, offering proper orientation and induction, giving proper development and
training skills to the employees of the organization. The HRM also involves the assessment of
the employee like the performance appraisal, encouragement, keeping proper relations with the
labour and trade unions, providing proper compensation and benefits, taking care of the safety of
the employees, health and welfare by following the labour laws of the state government (Collins,
2021).
This report will discuss the importance of designing a proper performance management
process for motivating and retaining the employees, the function of recruitment and selection in
developing a successful organization and the role of diversity management when the
organization want to expand their operations across the globe.
Section – A
Importance of performance management process to motivate and retain employees.
Performance management is a kind of communication process in which the managers and the
employees work together for the purpose of planning, monitoring and reviewing the work
objectives of the employees and the complete contribution to the organization. Moreover, it is
also a continuous process of developing the objectives, assessment of the progress and offering
the continuous coaching and feedback to make sure that the employees are able to meet their
goals and career objectives.
Performance appraisals and the evaluations have just started to become trending that every
organization look forward to usually once in a year. It has become something which is important
for the business. The importance of performance management is not only evaluations,
promotions or raises but it is more than that.
It provides an insight into the future
By monitoring and managing the performance of the staff, the managers can see the problems of
the future. For example, if the organization notices that a particular employee is not a team

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player then they can shift that employee to that position where teamwork is not required and
offer training to the employee about the teamwork. So, before taking action on the potential
future problem the company can avoid the unimportant trouble before it becomes an actual
problem (Macke and Genari, 2019).
Assists in creating development and training strategies
One of the problem is that the employees do not know about the process to continue the work.
And if they don't know the know how of doing a certain task then that can lead to the
organisation to fall apart. Although, with the help of the performance management, this problem
could be solved and thus the organisation could develop and offer the training programmes to the
employees to alter the problem into an opportunity for the improvement.
Offers clarity in the organisation
Most of the employees are not sure about their role in the organisation, what are the expectations
from them, and to whom they should report to. With the help of performance management, the
organisation can bring clarity into this matter. Also, if there is no understanding then that will
lead to the lack of productivity which is why, offering clarity to the employees the outcome will
be enhanced and increased productivity and confidence (Carnevale and Hatak, 2020).
Offering opportunities for exchanging feedback
If there is any lack of communication then it will ultimately lead to trouble which also involves
working relationships. The management talk to the employees about their performance but those
employees do not get the opportunity to stand for themselves by voicing concerns or frustrations.
An efficient and effective performance management offers a path through which both the leader
and the employee is able to exchange the feedback. Moreover, the employees feel much more
appreciated and valued when their opinions are being acknowledged and heard.
Increases the retention of employees
The performance management also motivates the organisation to offer reward and a sense of
recognition to their employees. If there is any lack of recognition then the employee would leave
the jobs and go for another. They want to feel appreciated for their efforts. Moreover, Rewards
and retention can play a necessary role in the retention of the employees by the ability to share
feedback and additional training (Anwar and Abdullah, 2021).
Increases Employee Engagement
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When the employees are included in the performance management then it will foster the
engagement of the employees. When there is no connection between the employees and the
management, then it is not worth for them. Performance management has the power to engage
the employees completely by making them feel valued, appreciated and invested in the company
which leads to the satisfaction of the job and the loyalty of the employees which will increase the
productivity.
It motivates the recognition of employee and reward
Most of the organisation tend to ignore the importance of the recognition and the rewarding to
the employees which can prove out to be harmful for the organisation. Efficient and effective
recognition and the reward systems can only be implemented in the business when there is
proper process of the feedback of the performance and the discussions. With the continuos
performance management, the organisation's management can recognise the efforts and the
activities that are worthy of the motivation and the reward. As a result, this leads to the increased
development of the mindset among the team members in the organisation.
It fosters the employee productivity and engagement
When the staff of the organisation is involved then they tend to live longer and then contribute
their part to the company in an active manner. Increasing the levels of the workforce engagement
are important for maximising the ROI and increasing the productivity. Better performance
management is an important tool for the engaged staff. The process of performance management
develops a continuous interaction and an environment of encouragement, acknowledgement,
trust and support. It also helps in creating a healthy relationship between the employee and the
employer (Mousa and Othman, 2020).
Assists in enforcing the achievement and goal setting
A proper performance management system assist in helping the employees to comprehend the
objectives and goals of the company and their expectations to achieve the goals. This also means
that they comprehend their contributions creates an influence on the complete growth of the
organisation. That is why, the performance management will assist the business in executing the
goal setting. Being in tune with the teams with the higher organisational objectives, it helps to set
the priorities and the direction making sure that the individuals have the an advantage of
ownership in the organisation via personal goals.
It offers examining for the increased performance
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The main objective of the performance management is to enhance the performance. It will assist
the managers to make ways through which they can help to increase the performance while also
offering the opportunity to talk about the career potential and direction (Michael, 2019).
It develops a morale boosting common purpose
The people feel motivated when they contribute to something bigger and important. That is why
it is important for the managers to convey the goal and set targets of the company that are in tune
with the goal of the company. It it is not the case then the employees just feel that they are just
chasing the ego of the boss. While particular targets will be different in various levels of the
company then they will encourage the targets of the above level and develop on the tergets of the
levels that are below them which also means that when the managers set the objectives then it
becomes important that they keep this particular flow in their minds and convey it to their teams
where these goals could easily fit into the big picture (Rana and Sharma, 2019).
Promotion of individual and team performance
To make the employees feel invested is by letting them to take their own individual goals to
assist them to reach their target. A manager can help the employees in guiding them to set their
objectives that they will motivated of accomplishing and then also provide them some
opportunities of development for the growth of their skills. Likewise the performance reviews
should acknowledge the performance of the individual and also the way in which their actions
creates an impact on the performance of the team (Gigauri, 2020).
A proper performance management system helps in actively including the employees in
the process of goal setting but also making sure that all those goals are in tune with the taget of
the company. It also includes continuous feedback that permits the managers to spot and
acknowledge the problems fastly while also keeping everyone encourages and on the track.
By enhancing the engagement of the employee and the productivity of the company, the
performance management assists in increasing the profitability of the company but also keeping
the employees happy. Along with this the performance management should also focus on the
increased focus on driving the results of the business, engaging and empowering the workforce
and keep a foundational knowledge of the talent (Chams and García-Blandón, 2019).

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Section-B
Critically evaluate the role of selection and recruitment in making successful organization
Recruitment is the process of identifying, screening, shorting and hiring candidates for a
vacant position in an organization. This is a basic step in creating a company's human capital, at
the top-level management they have to identify and recruit the best potential candidates on right
time and on budget (Acikgoz., 2019). It depends on the size of the organization, as larger
company required team of recruiters while in small company recruitment can be done by single
recruiter. Sources of recruitment are promotions, transfer, advertisement, placement agencies,
Camus placement etc. by such way a recruiter get more application. Recruitment process is start
from identify the need of hiring, then prepare job description, then screening and shorting of
application, schedule interview, offer letter to employees then final step is induction and
introduction of new staff in the organization. There are many factors which affect recruitment
process such as labour market, size of organization, HR planning, supply and demand,
recruitment policy etc.
The role of recruitment is very important in an organization it helps in bringing the best
candidates in without any increasing cost so it beneficial for business. It also helps in meeting the
legal and social obligation of the company and make successful organization (Hamza, and et.al.,
2021). The main role of recruitment is to identify the need of hiring so if the position is vacant
then company don't wait for new employee, so by the recruitment process they get the best
candidate for a particular position. But if organization fail in identify the need of hiring then it
may cause decrease the productivity and other employees of same position get more work load
which result in low job satisfaction. By selecting potential candidates with good attitudes, skills
and capabilities helps organization to grow. For example, Tesco company recruiter is more focus
on communication skills, punctual, motivational, quick learner so if a candidate have such skill
then company will select them. By the recruitment process company get new employee it means
organization get fresh talent which increase productivity, innovation, and they are more engage
in work which helps in archiving long term success (Kaplan, and et.al., 2018). For example,
ASDA recruiter is select candidates who have excellent communication, inter-personal skill etc.
Recruitment helps in identify suitable candidates for a vacant position with efficient way. New
talent helps in more innovation, which helps organization to get success.
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Selection is a process of selecting the right candidate for a vacant position in a company.
Effective selection means hiring and finding the right people for company and putting them on
the job which is suitable for them (Lee, and Mao., 2020). If organization select the right person
on the job profile then it will improve productive which gives a positive impact on organization
success. For selection company performs the process which includes step such as :
Initial screening
Completing application form
Employment test (this helps in identify qualified candidates from the pool of application)
Interview (know candidates personally their communication skill, knowledge etc. to
identify that an individual suitable for job profile or not)
Offer letter of joining
Background investigation
Medical test (to determine their physical fitness for job performance)
Job offer
Manager should carefully select candidates because if they select wrong individual on job
position or select candidates which is not suitable of the vacant position then it gives negative
impact on success of the organization. Whereas if company select right people for the position
then it enhances productivity which helps organization to get more success. If person have skill
which suit for the position then it improves quality products or services and generate high
performance. Selection plays a major role on an organization such as it reduce lot of effort and
time, eliminate the person who have less ability, proficiency and knowledge. This also helps in
comparing many candidates in terms of their skill, work attitude, capabilities, experience etc. so
company easily select best from application(Abbasi, and et.al., 2020). Recruiting and selection is
a main operation of human resources' management, if both are done in the right way then it helps
company to grow in the market. Effective selection and recruiting process show a better
organization result.
A brief of Diversity management, and critically analyse the role of diversity management when
company expand their operations
Diversity management is a process which is used for inclusive and diversity the working
environment. Process includes implementation strategies and policies in management, hiring,
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training etc. Diversity management is business action that purpose is to promote better inclusion
of people from various backgrounds into a business structure by specific programs and policies.
Company adopting this strategies to grow diversity of the employees around the world like they
treat equally, transparency in work etc. (Hussain, and Farooquie.,). There are many ways to
promote diversity management in workplace such as manager focus on mitigate conflict among
employees from different culture, groups etc. For managing diversity, company need to establish
an effective communication between employees. For promoting diversity company should focus
on effective communication because it is very important in an organization so company should
focus on reduce the barrier of communication such as language barriers, culture barriers etc. By
designing strategic training and development programmes, employees understand about
organization culture and know how to work in a team. By training employee feel motivated and
improve their skills and working styles and help them in achieving organization goal.
Diversity management give tangible benefits to the company such as it tap the potential
of employees and provide competitive advantages in the industries. A diverse employee enables
the business to serve client or customers from all over the world as diverse workforce can
understand client need better and full-fill their requirement. In an organization there should be
same agenda for recruiting and selecting the best candidates for a position. Diversity improve
employee morale and produce a desire to work more efficiently and effectively. If an
organization have good diversity in the workforce then it leads more innovation, improve profits,
good employee performance etc. But if organization not have diversity management then they
face issue such as there are conflicts between employees due to their culture differences,
communication gap, language barriers, discrimination etc. then it stops the growth of the
organization and give negative impact on brand image. There should be diversity management
in organization culture so every employee feel motivated towards work and give their 100%
which lead business to expand globally. As organization are expanded their business worldwide
so its very important to focus on equality, fair wages etc. a diverse working environment helps
business to understand their target demographics. It improves customer satisfaction by enhance
employees interaction with a diverse public.
Diversity management encourage the employees of different culture to work in
organization structure (Misganu, and Zewdie., 2018). Company give same incentive plan and
appraisals to everyone such as manager, office boy, general manager, executive etc. there are

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five common areas of diversity that organization identify such as physical disability, racial
diversity, culture diversity, racial diversity, diversity in interest and gender diversity.
Organization need to establish transparency at all level of management, this is the best method of
effective manage diversity in an organization. Diverse teams or group will perform well and
come with great ideas. The importance of diversity management in organization growth are:
Variety of perspectives: In a global organization there are many employees, and they have
difference perspectives that means employees have different background, skills, characteristics
and experience so it highly beneficial for company to make plan and business strategies. So
proper manage there perspectives and motivate them in achieving common goal.
Increase creativity: As people have different perspectives so there is a great chance of creativity,
innovation etc. every people have different way of thinking so company get many ideas which
improve creativity of employees. Diversity in workplace give high innovation, employees with
multiple world view and perspectives so company can combine this and open doors for
innovation.
High employee engagement: If every employee feel that they treat equally and organization
have effective communication so employee feel motivated and give there 100% which enhance
their performance and reduce staff turnover. It also improves company reputation and customer
satisfaction which helps organization to grow worldwide.
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CONCLUSION
The above report discuss the concept of human resource management and performance
management along with the importance of performance management such as it helps in
forecasting future performance, retaining employees, improve employees engagement, reward
system, improve productivity, enhance performance, boost morale of workforce, and employees
feel motivate towards work in a team etc. Moreover, it includes the meaning of recruitment and
selection, their process and role of selection and recruitment in order to make successful
organization and by this company get potential individual which is the best suitable for a
particular role in an organization. There are some factors which affect recruitment and selection
process are size of business, policy, image of company, labour market, job profile and resources
etc. Also discuss the concept of diversity management and critically analysis the role of diversity
management when company look for expand their business operation globally. Diversity
management is a process of managing workforce effective by treating them equal, no cultural
difference and with effective communication.
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REFERENCES
Books and Journals
Abbasi, and et.al., 2020. Examining the relationship between recruitment & selection practices
and business growth: An exploratory study. Journal of Public Affairs, p.e2438.
Acikgoz, Y., 2019. Employee recruitment and job search: Towards a multi-level
integration. Human resource management review, 29(1), pp.1-13.
Anwar, G. and Abdullah, N.N., 2021. The impact of Human resource management practice on
Organizational performance. International journal of Engineering, Business and
Management (IJEBM), 5.
Carnevale, J.B. and Hatak, I., 2020. Employee adjustment and well-being in the era of COVID-
19: Implications for human resource management. Journal of Business Research, 116,
pp.183-187.
Chams, N. and García-Blandón, J., 2019. On the importance of sustainable human resource
management for the adoption of sustainable development goals. Resources, Conservation
and Recycling, 141, pp.109-122.
Collins, C.J., 2021. Expanding the resource based view model of strategic human resource
management. The International Journal of Human Resource Management, 32(2), pp.331-
358.
Gigauri, I., 2020. Influence of Covid-19 crisis on human resource management and companies’
response: the expert study. International Journal of Management Science and Business
Administration, 6(6), pp.15-24.
Hamza, and et.al., 2021. Recruitment and Selection: The Relationship between Recruitment and
Selection with Organizational Performance. International Journal of Engineering,
Business and Management, 5(3), pp.1-13.
Hussain, A. and Farooquie, J.A., A critical review on Workforce Diversity Management.
Kaplan, and et.al., 2018. Recruitment, selection and staffing. In Teaching Human Resource
Management. Edward Elgar Publishing.
Lee, S.W. and Mao, X., 2020. Recruitment and selection of principals: A systematic
review. Educational Management Administration & Leadership, p.1741143220969694.
Macke, J. and Genari, D., 2019. Systematic literature review on sustainable human resource
management. Journal of cleaner production, 208, pp.806-815.
Michael, A., 2019. A handbook of human resource management practice. bookboon. Com.
Misganu, G. and Zewdie, S., 2018. Workforce Diversity Management as a Key to Improve
Productivity: A review article.
Mousa, S.K. and Othman, M., 2020. The impact of green human resource management practices
on sustainable performance in healthcare organisations: A conceptual framework. Journal
of Cleaner Production, 243, p.118595.
Rana, G. and Sharma, R., 2019. Emerging human resource management practices in Industry
4.0. Strategic HR Review.
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