Employee Performance and Organizational Effectiveness

Running head: Strategic HRM
Strategic HRM

Strategic HRM
Table of Contents
Introduction................................................................................................................ 4
High employee’s performance.................................................................................... 4
Relationship between employee performance and organizational performance........5
Conclusion.................................................................................................................. 8
References............................................................................................................... 10
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Strategic HRM
Introduction
The report talks about the high employees’ performance in the organization. It explains that how
an employee high performance affects the organizational performance. It describes the
relationship between employee performance and growth and success of the company. It explains
the significance and role of the management and employees performance in an organization to
meet the long-term as well as short-term goals and objectives. The success and growth of the
company depend upon the performance of the employees. Human resource department plays a
significant role to increase and enhance the performance and efficiency the employees. It
explains that how the organization can increase and achieve the high employee's performance
and efficiency.
High employee’s performance
The high employee performance plays a significant role in the organization. It influences
the productivity and efficiency of the company. According to Paauwe, (2009), it includes the
strong employee performance thus, HR managers conduct performance appraisals, training and
development programs. Human resource professional enhances and increases the performance of
employees by providing the compensation and remuneration to them. The company checks and
evaluates the performance of the workers to increase the productivity and revenue of the
organization. The performance appraisal plays a significant role to enhance the performance of
employees. According to Kehoe & Wright (2013), the performance appraisal is also called
annual reviews; it evaluates and analyzes the worker's skills, growth, and achievements. It is the
systematic evaluation of workers performance and skills in order to meet the organizational
mission and vision. In other words, it is the process of analyzing and measuring the efficiency,
productivity, and effectiveness. Performance evaluation plays a vital role to evaluate and
measure the performance of workers. Generally, supervisors and senior managers measure the
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Strategic HRM
employees’ performance and guide them to achieve the goals and objectives. The managers are
in the position to guide and direct the employees for better performance in the company. The
company identifies the strengths and weaknesses of workers with the help of performance
appraisal. It helps to maintain the growth and development of the firm (Franco-Santos,
Lucianetti & Bourne, 2012).
According to Hancock, Allen, Bosco, McDaniel & Pierce (2013), the performance
appraisal provides various advantages to the employees. It helps to the managers to chalk out the
promotion programs and plans for effective and efficient employees. On the other hand,
inefficient employees can be terminated and dismissed from the employment. It provides the
compensation and remuneration to potential employees. The compensation and remuneration
include high salary, bonus, allowances, extra benefits, and incentives. The systematic
performance appraisal helps the managers to frame and conduct the training programs and
policies. It also helps the top management to understand the selection procedure. The
organization maintains the effective communication system between employers and employees
through performance appraisal. It is an effective motivational tool to enhance and increase the
efficiency and productivity of the employees (Hicks, 2012).
Relationship between employee performance and
organizational performance
There is a close relationship between employee’s performance and organizational
performance. The organization can achieve the productivity and efficiency through the excellent
and effective performance of the employees. It maintains a favorable working environment in the
company. A study has been conducted by Kehoe & Wright (2013), where he analyzed that there
is a favorable relationship between employee performance and organizational performance.
Another research has been conducted by the Granacher, Gollhofer, Hortobágyi, Kressig &
Muehlbauer (2013), where he also found a positive and favorable connection between employees
performance and factors like job involvement, motivation, job performance. Another meta-
analysis has been conducted by the Parris & Peachey (2013), it was found there is a close
relationship between employee satisfaction and profit, productivity, turnover and consumer
satisfaction. After the various researches, it has been analyzed that there is a close connection
between the overall employee performance and organizational market and financial performance.
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