Improving Employee Performance in Steel Industry

This assignment examines the challenges faced by a steel company experiencing declining performance for over a year. It delves into the various methods and systems implemented by managers to enhance employee performance and engagement, ultimately seeking solutions to boost both morale and productivity within the organization.

Talent
Management
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TABLE OF CONTENTS
INTRODUCTION 3
TASK 5 4
5.1 Evaluating the past performance system and purposes to improve the performance 4
5.2 Evaluating performance objectives as a team and individual both 5
5.3 Barriers in performance system and ways to overcome it 6
CONCLUSION 8
REFERENCES 9
Books and journals 9
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INTRODUCTION
The report is based on the case study of the steel company and its working and how poor
management system affected the performance and morale of the employees working for the
organisation. It will provide the learning about how the performance could be improved by what
techniques. What measures could be taken for setting the measures for allocating bonuses and
rewards to the employees. His will also provide an insight about the evaluation of the past year
performance and what changes occurred after doing the implications into the steel company by
both manager and divisional head.
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TASK 5
5.1 Evaluating the past performance system and purposes to improve the performance
Keeping the steel company case in focus the past performance of the company was poor as the
given evidences will justify the answer.
Current PMS-
In the recent years when the study was done on the performance n the growth of the company it
was found that in the face of increased an high competition in the market and difficult trading
conditions the financial conditions of the company was analysed as poor and it was found that
the company earned very little amount of profit from the same. Where if we talk about the
performance management system the manager or could say the owner of the company imposed a
pay freeze for the last three years also the overall conditions of the employees was very poor and
bad. For an instance the sick pay scheme is one of the examples of the poor performance of the
employees. Due to which the employees have shown their discontent towards the organisation
conditions and performance management system.
Then in the past performance management system the employees were divided into two sections
the first one was the sales team which included around eight employees and the second one was
manufacturing team where the remaining employees were involved and other than these the
remaining employees work in the work and quality assurance roles. The employees were divided
into various sections just to enhance the performance of every individual as well the overall
development of the organisation on the whole. He manager was entirely concern with the profit
and was least concerned about the satisfaction of the employees. He adopted the autocratic style
where he believes that the work could be done by giving orders to the employees and assumed
the employees as the tools of the company. And invested very little in them. And this is how the
manger was working upon the performance management system for the past 12 months. Now the
divisional manger also applied some performance management system where he divided the
employees into four groups each team with a team leader who could lead their team effectively
and then these leaders were suppose to report to the divisional manager. There he identified that
the employees were lacking behind in the satisfaction level, in commitment and were making the
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minimum contribution to the firm. The divisional director focused a lot on improving the
performance of the employees on the whole and their personal development as well. This was the
entire system which was adopted by the both the managers but could not find any such
improvement at the end of the evaluation
Proposed PMS-
New system to improve the performance of the employees into the company.
 Communicate the clear goals and expectations to your employees - The first and the
foremost important thing I would do is, involve the employees into the counselling future
goals so that the employee may also know what is good and what is not good for the
growth of the origination. The employees get to know what is important and what is not
important for them as well as for the organisation. For achieving the targets it is
important for the employees must be motivated to work effectively for the company.
 Share information with the employees- I would inform employees about every activity
that is happening into the organisation also they must know whatever contribution they
are making for the organisation what value does it add to their job as well to the
company’s development. I would not be afraid to share the bad news in fact just be very
specific and find a better way to deliver the news to the employees. I would try to be
transparent with the employees to enhance the performance system of the company.
 Encourages open communication – I would encourage open communication from each
employee of the company so that they may be able to express their ideas to know the
views and suggestions of the employee’s one can take the surveys to know the feedback
and views from them. I will be open-minded to encourage their perception. Also I would
like to address their concern in the best possible way I can.
5.2 Evaluating performance objectives as a team and individual both
For team-
 Involve the team member in setting the objectives- the first thing which has to be done
is to involve the team members in identifying the objectives, motivate them to be
proactive in identifying what their objectives should be and how they will work on them
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because if the members will be involved in the objectives they will have a clear vision of
what they are suppose to do and how their contribution is helping the organisation and
their job.
 Explain the objectives clearly with the team - Try to explain the objectives to each
employee in the organisation so that they may also have a clear vision for the same. Make
sure you deliver the message depending on the person and situation and accordingly
communicate the same to the employees without making it awkward and offensive to
them.
 Agree the standard of performance required with the team - Must explain the
employees about what is expected from them, which includes the quality of work,
performance etc. set a level to evaluate the performance so that the employees may get
the tentative idea about where they have to reach and how they could improve their
performance.
For individuals-
 Set the clear objectives with the individuals - Only identifying the objectives is not
important it is also important to make the specific objectives which must be logical, smart
and practical. That is to be precise what you are suppose to achieve, the objectives must
be measurable in terms of how it is to be achieved, the objectives which are made must
be in the favour of both the individual and organisation it must be made mutually an
agreed by both. Also the objectives must be realistic an may be able convert them into
reality. The most important factor which comes under objective is to do the time
management that is the objectives must have a specified time bound n must b completed
within that specified time range.
 Identify resources and support required with the team– Try to bring out new
technologies for the employees and new tools and systems fro them. Also the employees
must be agreeing upon the resources they are required for doing the work.
 Identify the skills and knowledge required – The another important thing is to seek
what type of knowledge and skills are required by the employees and in what area they
are suppose to be developed and trained at. Giving the right knowledge and skills to them
is one of the important factors of the company to attain the desired goals objectives of the
company.
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 Decide to work methods with individuals - The another important at thing is to decide
with the employees that what method they are going to use to complete work or the task
being assigned to them or what methods they are suppose to use to compile the same
work so that it could be understood by all the employees what how the work has to be
done.
These are some of the major objectives which must be followed b y the company for enhancing
the performance of the employees as well improving the growth o the company as a whole.
5.3 Barriers in performance system and ways to overcome it
Barriers for Employees
Employee performance system is one of the difficult way to judge the performances as it
includes various limitations along with it while doing the final evaluation of the performances. It
sometimes is very much far from the satisfactory system as employees get motivated with the
judgement and also get the negative impact on their behaviour. Various barriers which comes in
the effective performance systems are faulty assumptions, psychological blocks and technical
pitfalls because of the faulty assumptions of the person who judges the appraisal because the
person perception could be different and he might get confused as this is the complex
phenomenon there could be many detractions which might affect the performance of the
individual like the sitting arrangement, the infrastructure of the company. Also it also effects due
to the poor communication between the employee and the subordinates in the organisation. as
some of the employees are very good at communication and some might not who lacks behind in
expressing their views. Barriers may come due to the poor direction by the leaders or by the
subordinates to their member as the employees are new to work they may need the right direction
and the guidance so that it becomes easy for them to understand the work and the method of
performing it for which they might need the effective training for the same. This also affect
badly on the performance of the employees. There is another reason dui to which the
performance is effected is the biasness which is done by the person who judge the performance
of the employees. It could also be affected through the halo effect, central tendency affect, raters
liking and disliking
How to overcome the barriers
Firstly the managers must avoid the biasness while making the judgement or while evaluating
the performance appraised system they may treat everyone equally and may appraise them
according to the work or task being performed by them. The managers must stop comparing
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them with others and with their performance the managers must see both the good and bad sides
of the employees so that correct decisions could be taken for the same. Also they must do the
lenient marking while appraising the performance of the employees. The employees must be
judged on the bases of their recent behaviour and performance instead of their past records or
rewards so that the fair judgement could be made and the most effective employee could be
appreciated instead of the one who is not deserving.
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CONCLUSION
The entire report was based on the case study of the steel company which was
showing poor performance since some 12 months and more. Various, methods and
systems were applied by the managers to improve the performance system of the
employees so that excessive participation of the employees could be seen and it
may result in the effective growth but nothing could happen. So this report will
provide the insight about which system could be imposed to improve the
performance as well as to raise the morale high of the employees.
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REFERENCES
Books and journals
Barakat,R.S., and et. al., 2016. The influence of corporate social responsibility on employee
satisfaction. Management Decision. 54 (9). pp.2325 – 2339.
Elorza ,U., and et. al., 2016. The effect of management and employee perspectives of high-
performance work systems on employees’ discretionary behaviour. Personnel Review. 45(1).
pp.121 – 141.
J,A., 2014. Determinants of employee engagement and their impact on employee
performance. International Journal of Productivity and Performance Management. 63 (3).
pp.308 – 323.
Jeon, H., and Choi,B., 2012 The relationship between employee satisfaction and customer
satisfaction. Journal of Services Marketing. 25 (5). pp.332 – 341.
Johnson,M., 2004. The New Rules of Engagement: Life-work Balance and Employee
Commitment. CIPD Publishing.
Kirkpatrick,L.D., 2006. Improving Employee Performance Through Appraisal and Coaching.
AMACOM Div American Mgmt Assn.
Kundu, C.S., and Gahlawat ,N., 2016 .High performance work systems and employees’
intention to leave: Exploring the mediating role of employee outcomes . Management
Research Review. 39 (12). pp.1587 – 1615.
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Meyer,P.J., 2016. Handbook of Employee Commitment. Edward Elgar Publishing.
Nazir,O., Islam,U.J., 2017 . Enhancing organizational commitment and employee
performance through employee engagement: An empirical check. South Asian Journal of
Business Studies. 6(1). pp.98 – 114.
Sharma,P., Kong,C.T., and Kingshott, J.P., 2016. Internal service quality as a driver of
employee satisfaction, commitment and performance: Exploring the focal role of employee
well-being. Journal of Service Management. 27 (5). pp.773 – 797.
Sun,L., and Yu ,R.T., 2015 . Impact of corporate social responsibility on employee
performance and cost. Review of Accounting and Finance. 14 (3). pp.262 – 284.
Tallman,J.R., and Bruning,S.N., 2008. Relating employees' psychological contracts to their
personality. Journal of Managerial Psychology. 23 (6). pp.688 – 712.
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