Managing Human Resources: Performance Management Report and Analysis

This report provides a comprehensive analysis of performance management within the human resources context. It begins by exploring various performance management models, such as Management by Objectives, 360-degree appraisal, and psychological appraisals, detailing their advantages and disadvantages for both employees and employers. The report then delves into the theories, practices, and approaches used to effectively manage employee performance, emphasizing the importance of aligning individual goals with organizational objectives. Furthermore, it includes an example of an organization's approach to managing and preparing for work-from-home scenarios. The report aims to provide insights into building a motivated and efficient workforce.

MANAGING HUMAN
RESOURCES

TABLE OF CONTENTS
INTRODUCTION.....................................................................................................................................3
MAIN BODY.............................................................................................................................................3
1. Performance management models, their advantages and disadvantages for employees and employers
.................................................................................................................................................................3
2. Theories, practices and approaches used to manage the performance of the employees......................4
3. Example of specific organization and their approaches to manage and prepare for work from home. 4
CONCLUSION..........................................................................................................................................4
REFERENCES..........................................................................................................................................4

INTRODUCTION
Performance management is the practice that is undertaken by the HR department of the
company and the line managers so that the efficient and effective performance of the company
could be achieved. It is concerned with developing the work environment in a manner that the
staff of the company is highly motivated to perform to the best of their abilities and capacities so
that the organizational objectives of the business could be attained by the company. The project
shall be highlighting the various performance management models that can be used by the
company so that the employee performance can be monitored and evaluated to build the
efficiency further. It shall also present the advantages and the disadvantages that are caused to
the employees and the employers of the business. Apart from that the report shall be
demonstrating the theories, practices and the approaches that can be applied to manage the
performance of the employees in a manner that goals are being effectively achieved. Lastly it
shall be reflecting an example of the organization that has applied effective approaches to
manage and prepare the staff for working from home and yet not affect the profitability of the
business.
MAIN BODY
1. Performance management models, their advantages and disadvantages for employees and
employers
In order to manage the performance of the employees and aligning them with the
organizational objectives of the business the company has to use different models designed for
its incorporation. There are several performance management models that are designed so that
the employees stay motivated and their performance in the organizations is boosted. Some highly
effective performance management models are:-
1. Management by Objectives
The management by objectives id one of the most significant models that are used to
monitor the employee performance. It is widely used model where the top level management and
the employees combine to formulate the objectives of the business and based on that govern the
performance that the employees are able to generate. The process starts with the planning in the
company amongst the employees and the managers. They define the goals and aim of the
business that is to be attained within a specified timeline and the availability of the resources
(Nawaz Khan, Khan and Soomro, 2020). Once the planning stage is completed, then the
management shall be monitoring the operations on a continuous basis where the progress shall be
checked, goals shall be reassessed and feedback will be obtained. Post the results have been
achieved the performance shall be reviewed and if it is above the expectations then rewards in
terms of promotion and hikes will be provided. Whereas if the performance is low then trainings
can be provided to improve it.

In this manner the defining and attainment of the objectives in the business is one manner
to manage the performance of the employees and motivate them to work to the best of their
abilities.
Advantages:-
To employees
 It shall facilitate the employee engagement which shall further motivate them to give
better performances.
 If the targets are efficiently achieved then the rewards are provided and if not then the
company shall be providing with the training and developmental activities.
To employers
 Since the objectives are well defined and quantifiable in nature so the employees shall be
focused to achieve it. Also since it is defined by planning with the employees they shall
be highly motivated to achieve it.
 Continuous monitoring and control procedure shall be generating efficiencies and shall
be contributing to the organizational performance with the improvement in the deviations
(Khandelwal and Upadhyay, 2021).
Disadvantages:-
To employees
 Involvement of the employees in the planning process shall affect the objectives through
their personal biases.
 Also the objectives shall be impacted by the inexperience of the employees
To employers
 The control, power and the opportunities of the top level managers shall be affected and
shared among the subordinates.
2. 360 degree appraisal
The 360 degree feedback or the appraisal method is popularly used by many companies
as the practices that can efficiently manage the employee performances. This the all-round
evaluation and the development of the employees in the manner that they self-analyze and also
the people around them get to know about their competencies in the business (6 Practical
Performance Appraisal Methods for the Modern Workforce, 2021). Also it can be ascertained
that this the method where there are no biases that affects the feedback communication as it is
taken from a 360 degree and the actual point of view of the employees is disclosed. It can also be
assessed that the improvements that are made on the basis of feedback shall be motivating and
satisfying the employees such that they can contribute to the performance and develop the future
growth prospects of the business.

The major integral components that have been able to successfully execute the model in
the company are first is the self-appraisal. This means that the employees tend to analyze their
own past performances and the contribution to the business such that they can boost the
knowledge regarding their current competencies. Also this shall assist in building the future
competencies through the training and developmental activities. They can know their strengths
and weaknesses so that they can capitalize on the opportunities that are presented in the market.
Another major way is through the colleagues of the employees who can best know about
their work performance and the achievement of the target objectives. This can be done by
moving out of the hierarchical chain and knowing the information through the means of informal
communication. This can help the management to directly get the feedback and accordingly
conduct the employee appraisal in the business. The other way could be that the management
themselves interact with the employees so that they can know about their progress in the work
based on which the ratings and rewards can be provided. This also works two way where these
subordinates judge the performance of the management in terms of employee relations and the
participation in the organization.
Advantages:-
To employees
 They are able to provide the feedback based on which the management makes the
improvements and take the corrective action so that the employee satisfaction can be
boosted.
 The self-analysis shall be helping in the all-round development of the personality through
which the work can be executed in the business (Oelberger, Fechter and McWha-
Hermann, 2017).
To employers
 The employers also get the review on their performances that they are providing to the
employees and builds better relations with the subordinates.
 The feedbacks shall assist in the better formulation of the policies and practices so that
enhancement of the business takes place.
Disadvantages:-
To employees
 The employees get demotivated if their performance is poor in case of self-appraisal
system.
To employers
 The informal communication between the employees and the other colleagues can lead to
the inefficiencies and formation of the labor unions. This can build the conflicts in the
operations of the management.
3. Psychological Appraisals:-

This is the other technique that is used by the business as the performance appraisal
model in which the company shall be considering the future performance that can be delivered
by the employees and not the past performance that has already occurred. This process helps in
knowing the psychological aspects of the individual that can accordingly determine the
behavioral aspects and the conduct in the organization. In this model of managing the
performances of the employees the qualified executives are hired by the organization who can
test and know the capabilities and traits of the individual. They conduct the interviews, in-depth
discussions, tests that ought to explain about the leadership qualities, cognitive abilities,
interpersonal skills, emotional quotient and the personality traits of the individuals in the
company (Luturlean and et.al., 2020). Based on these skills and capacities of the workforce that
is employed in the company it can be assessed that what shall be the future operations and
performance in the industry. The goals and objectives are also derived based on the
competencies that are there in the employees of the organizations. This can help them in
generating competitive advantage in the industry and boost the profitability of the business.
The leadership qualities can be used to take initiatives in the business in respect of the
opportunities in the market. The interpersonal skills can help in building effective relations and
coordinating the efforts in the company. Apart from that they help in building the formal lines of
communication in the hierarchical organizational culture.
Advantages :-
To employees
 They get to know about the skills and abilities that are possessed and can be capitalized
so that to meet the opportunities that are provided by the market.
 The employees can use the leadership qualities to take initiatives in the business and
influence the subordinates in the right direction leading to the path of the organizational
goals.
To employers
 The employers are also benefited by the model as they use it in developing the future
course of action in the business. Based on these capacities the objectives of the business
can be planned or the expansion activities are being planned.
Disadvantages:-
To employees
 The psychological tests and interviews are difficult and complex procedure for the
business to be undertaken.
To employers
 The disadvantage is that they have to hire the qualified personnel’s in the business in
order to conduct these type of interviews and in-depth analysis.

2. Theories, practices and approaches used to manage the performance of the employees
There are several theories, practices and approaches that are used by the businesses so
that the performance management can be effectively undertaken to develop competencies and
achieve the organizational objectives. The performance management refers to the technique of
monitoring and evaluation of the operations that are conducted by the workforce determining the
success of the organization. The management also ensures that these activities are aligned to the
goals of the business and are not determined by the personal biases.
There can be effective practices that contribute to the motivation level as possessed by
the employees which further is reflected in the performance that is driven by them (11
Performance management best practices, 2017). The practices employee engagement in the
decision making process, performance appraisal based on the results achieved, rewards and
recognition in the high contributions, trainings and development in the case of non-achievement
of the target objectives and taking feedbacks and making the corrective action in respect of
employee opinion.
There are various positive and negative approaches the are used by the management in
order to derive the highest level of performance to the best of the abilities of the workers. The
positive approaches that can be used are providing good working environment, formal line of
communications, employee relations, legal compliances, health and safety regulations, ethical
code of conduct, corporate governance, fulfillment of the corporate social responsibilities etc.
These all will pose a positive impact on the minds of employees and shall boost their moral to
perform better and develop future growth prospects for the business. On the contrary iot ca also
be done using the negative approaches like punishment, penalties, discriminatory policies,
charges, downgrading the ratings, demotion etc. These can either motivate the employee to
improve the performance or it can lead to adverse effect where they resist change and leave the
organization increasing the labor turnover.
There are certain theories that are developed in respect of occurring the performance in
the company such that the efficiency and the effectiveness in the operations can be derived in the
business. One of the theory is the goal setting theory which means that the employees are
engaged and motivated to plan and formulate the goals of the business that the company need to
fulfill in the coming year (Agnihotri and Agnihotri, 2018). This will help in better achievement
of these objectives because the employees work harder as they have developed these objectives
for the company. Another theory the expectancy theory which works in support of the goal
setting theory. This happens because the objectives which are framed by the employees under the
goal setting theory are then build up as expectations that are to be achieved in the proposed time
and resource utilization. These goals are then valued such that the behavior or the conduct of the
employee in accordance with those objectives. This ultimately determines management of high
level performance in the organization leading to the success in the market.
Performance management is crucial activity that determines consistency in the business
performance and builds the abilities of the employees in a way that they are capable of meeting
the uncertainties and risks that are pertaining to the business. This is important to determine the
organizational objectives and future success of the business (Rezwan, 2021).

3. Example of specific organization and their approaches to manage and prepare for work from
home
Due to the outbreak of the corona pandemic the concept of the remote working or the
work from home has established. This is due to the lockdown and social distancing norms of the
government that is leading to the closure of the official sites of the company. This has posed
several challenges on the management of the company on how they should manage the work
from home procedures of the company (Sothy, 2019). This can be executed by the assistance of
the HR department in deriving the policies that can help in the operations of the business in the
company. Proper coordination and cooperation is to be there among the employees of the
different departments so that the objectives of the business can be fulfilled timely and efficiently
and the customer satisfaction can be derived.
There are many companies in UK who have designed their practices and approaches in a
manner that the work from home can be facilitated and prepared for such that he organizational
performance is not impacted. Unilever is one of these companies who have been working
significantly hard so that the remote functioning of the business executives can be smoothly
undertaken. The HR department of the company is trying to develop policies so that the work
environment and the organizational culture is flexibly developed that can incorporate the digital
practices of working from home by the employees of the company. The flexible working hours
in the business are one of the major strategies that the company has initiated to provide flexibility
in the working conditions to their staff.
The various modes of technology like the laptops, printers, office communication
devices etc. are provided to the employees so that the unavailability of the resources does not
hamper the performance of the company. Proper modes for the video conferencing, live events
etc. have been developed so that the employees stay in touch and are able to maintain the
connectivity among them in the business. These modes are also necessary so that the
coordination in the activities are managed and the resources can be used in the optimum manner.
The access to the necessary databases, the company website, portal etc. are duly provided so that
the efficiency level is being highly maintained thereby arriving on the target results.
Apart from that the line managers and the human resource department of the company
has also made sure that the employees’ health and safety at their places are also maintained with
due care. Especially in the covid times the health is the major determinant for the person and it is
the responsibility of the management that the due care is taken (Dangmei, 2017). They have
provided the vaccine facility, regular checkups, and flexibility in the operations keeping the
health as the first priority.
In order to manage the operations in these corona situations the completely new policies
and strategic formulation has to be done by the company officials so that the work is managed in
sync even from the personal places and remote living of the staff. Also before any of the
operations the demand forecast is to be made by the company so that it can be evaluated that at
what capacity the operations are to be undertaken. There are certain travel that are done for the
purposes of business and because of that the company has to plan so that the foreign meeting and
collaborations of the business does not get affected. They make special arrangements for the

employees so that they can attend the business meetings in foreign as per their timings and can
maintain the global footprint of the business.
It can be assessed that the company has made a lot of arrangements so that the work from
home can be smoothly and efficiently undertaken in the business. And it can be made sure that
the organizational objectives of the business are attained.
CONCLUSION
It can be summarized from the above project that performance management in the
company is an essential activity that needs to be undertaken so that the employees can operate to
the best of their capabilities in order to achieve the organizational objectives of the business.
Apart from that there are several models that are used to monitor and manage the performance of
the employees like the 360 degree feedback and the management by objectives. Such models
pose some of the advantages and some disadvantages to both the employers and the employees
in the business. This can also be assessed in the manner that these models motivate and satisfy
the human resource in the organization by the various appraisal techniques of the business. Also
the project has discussed some practices and approaches that are used by the HR and line
managers so that the performance are managed and efficiently contributing to the success of the
business. Also the example of the organization are employing the best practices and preparation
so that the work from home is facilitated such that the employees are able to govern the
profitability of the business. Unilever has been successful in this capacity and managing the
success of the organization.

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Online
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appraisal-method/ >
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