Evaluating HRM and Performance Management Strategies and Theories

This report delves into the critical relationship between Human Resource Management (HRM) and organizational performance. It begins by evaluating the linkages between HRM practices and overall business success, emphasizing the importance of aligning HR strategies with business objectives. The report then explores various performance management strategies, including effective communication, performance management software, feedback mechanisms, peer reviews, and recognition programs, highlighting their impact on employee motivation and development. A significant portion is dedicated to evaluating key performance management theories, such as goal-setting and expectancy theories, providing insights into employee behavior and motivation. Furthermore, the report addresses the management of underperforming employees and the essential skills required for HR professionals to excel in performance management. The conclusion synthesizes the key findings, underscoring the continuous and evolving nature of performance management in achieving organizational goals.

PM Module
HRM and
Performance
Management

Contents
INTRODUCTION.......................................................................................................................................3
MAIN BODY..............................................................................................................................................3
Evaluation of linkages between HRM and Organizational performance.................................................3
Performance Management Strategies......................................................................................................5
Evaluation of theories of Performance management...............................................................................7
Approaches/ interventions used to obtain effective employees performance...........................................8
Managing Under-performance in the organization..................................................................................9
Effective HR professional skills in performance management..............................................................10
CONCLUSION.........................................................................................................................................11
REFERENCES..........................................................................................................................................12
Books and Journals................................................................................................................................12
Online....................................................................................................................................................12

INTRODUCTION
Performance Management is a continuous and ongoing process in the organization.
Considering it in the context of Human resource Management, this task is one of the most vital
tasks. This involves measuring, developing and retaining the performance levels of employees.
Due to various frequent developments in the business environment, regarding technology or
business processes and operations as well, employees are required to learn and develop new
skills and knowledge (Stewart and Brown, 2019). And, HRM in a business organization helps
employees in improving their levels of performance.
In this report a discussion in this context is made, while discussing several other
associated issues as well. The report starts discussion with linking role of HRM and the
organizational performance. At second not, it discusses about performance management, its
importance and various strategies through which performance of employees can be developed by
HRM. Also, a discussion and critical evaluation of various theories related with Performance
management are helped in the report. And, at last strategies to handle underperforming
employees is also made.
MAIN BODY
Evaluation of linkages between HRM and Organizational performance
It is believed that Human Resource Management in an organization, a dedicated
department in the organization as well as a specialized management role, is responsible for
framing such polices and strategies in the organization, which involves several functions related
to human resources in that organization. Therefore, the role of HRM can be examined critically
important for an organization (Brewster, 2017). The roles here also include training and
development of existing and available human resources with organization. For, evaluating
vitality of role of HRM and its relation with the overall performance in the organization itself,
report have conducted assessment through following points:
Human resources and Business strategies- Business strategies are the basis of any
planning and the direction of fulfillment of any particular objective in the organization. These

strategies are many of the times these strategies are seen dedicated over fulfilling particular
objective and specific goals in the organization. Hence, in order to fulfill these objectives,
manpower or workforce, as mentioned in words of Management, are required. Also, there is a
requirement that these workforces must possess specific skills and talents that are in accordance
with the objectives of organization, and this is taken care by Human resource department. HRM
make it sure that all the employees are in possession with desirable skills and talents that fits to
the strategies. In case there are insufficient skills, than HRM is responsible to either imparts
those skills in existing employees or make new recruitments.
Recruitment and selection- As discussed, HRM make it sure that all the employees in
the organization have sufficient skills and knowledge and talents that are in alignment in goals
and objectives of organization. For this purpose, HRM has to make new recruitments many of
the times as well. Also, new recruitments become important, when organization is in deficit with
the workforce. While making recruitments, HRM specifically takes care of two things. One, that
new employees must have desirable skills and talents that must be in alignment with objectives
of task for which they are being recruited. This means that they must be able to fulfill their
respective duties (Maley, Marina and Moeller, 2020). Secondly, HRM take note that, skills of
new recruited people, and their personal qualities as well, should be helpful in making
organization achieve its vision. Mainly, on the basis of these two reasons, HRM is seen making
necessary selection decisions.
Training and development- This is another important role or duty of HRM, which is
necessitated by dynamics and frequent developments seen occurring in business environment in
modern times. This can be understood as business environment has become very complex and is
full of frequent developments that are visible in many terms, like economic and technological
developments. Therefore, employees in the organization are also required to work in accordance
with skills that these developments require. HRM make sure that employees in the organization
have those skills and knowledge, so that they can carry out their performance in best efficient
manner. HRM is responsible to analyze particularity of these developments and the knowledge
that is required to cope up with these developments and then take necessary steps in this regard
for imparting useful knowledge to employees. It is not necessary that employees would be
possessing such skills, as they are not that aware of changes posed by business environment,

however they are dedicated to goals and objectives of organization. Therefore, HRM analyzes
requirements of these changes and then impart necessary skills to these employees, so that
efficiency of performance and growth of organization is continued to be achieved.
Overall organizational performance- However, many studies in the area of business
environment and management field has shown that there are no any steadfast approaches and
techniques through which it can be said that HRM is particularly helpful in this way for
achieving desirable goals and objectives in the organization. But, there are many complex
processes and techniques that together define role of HRM in achieving performance objectives.
For example, a major function of HRM, regarding job satisfaction and reward management, may
not be seeming directly linked with achievement of performance objectives, but that plays a
major role in this regard (Stacho, Stachová and Raišienė, 2019). This can be explained as, if
employees will not be satisfied with their job roles and recognition that they are receiving from
management, then they will not be putting their best in performance. Even in the presence and
possession of all the required skills, employees will start making deficiencies in performance, as
they are unable to gather internal zeal and motivation to work. This will be affecting morale of
employees and they will not remain dedicated towards goals and objectives of organization. In
this manner overall performance in organization will be obviously affected, and required results
will not be met.
Performance Management Strategies
Performance management is that tool in corporate, where employer intend to manage
performance of employees, the human resources in organization, so that the development in
performance of employees can be made, along with achieving organizational goals and
objectives. Therefore, performance management can be regarded as two way task. In corporate,
this tool has major significance, which can be listed as follows:
Importance of Performance management
 Through Performance management, an employer can ensure that goals of organization
gets best embedded in the minds of employees. This is tool that is helpful for revising of
goals in minds of employees. A Human resource manager here ensures that, behavior of

employees and their direction of performance are well in line with organizational goals
and objectives.
 This tool is helpful in planning development of employees’ performance. Employees are
in requirement of frequent feedbacks about their performance and appropriate behavior
that channelizes there quality of performance, and mandate it to become even more
strong. Through this employees are giver clear insight about their performances and
desirable attitude in the organization, that all in the alignment with organizational goals
and objectives. However, facilitation of this through efficient employer or Human
resource manager is necessary.
 An empower and engaged workforce with high motivation is decided for organization by
performance management.
Performance Management strategies
Effective communication- Establishment of effective communication channels between
Human Resource manager and the employees is foremost step towards managing employees’
performance in the organization. An employer is required to communicate company goals and
objectives to the employees from time to time. Employees have a tendency to engage in personal
benefits and forget organizational goals. Therefore, they have to be frequently reminded about
those goals and objectives (Randhawa, 2017).
Performance management software- These are technical devices, software, specially
developed in context measuring performance levels in the organization. A good performance
management software is one that has dedicated 360-degree approach, and has easy dashboard
facilities as well. The software is useful in quick measurement of performance levels of
employees, and has integrated system of providing frequent feedbacks for employees. Thus,
employees performance can be well fostered.
Performance feedbacks- Performance feedbacks are useful in providing check over
deviating performances. Performances of employees have a very complex system. They are
inclusive of particular specialized work that they do, in the alignment of organizational goals and
objectives and having element of personal gains as well. Therefore, understanding the deviation
levels in these performances is also a very complex process and requires different skills and

techniques. However, this is important because the feedbacks that are provided then, after
analyzing the performance, has to be well integrated with all such requirements that makes a
performance complete.
Peer review- Peer review is another important tool. This tool have a different
understanding, where it is seen forming the part of 360-degree analysis and also is an example of
360-degree analysis. Under this review coworkers in the organization are seen appraising the
performance of their coworkers (Sitko-Lutek and Jakubiak, 2020). Coworkers in this concern
highlight the efforts of other employees, and also discuses useful improvements that can be made
by them.
Preemptive management and recognition- This strategy has a understanding, that is
similar to one function of Human resource management of Rewards and Recognition to
employees. Comprehending this tool as part of the performance management strategies, this is
not a direct strategy but helps in indirect way. Through effective reward and recognition,
programs employees’ motivation is boosted. Employees are made feel that they have importance
in organization and their efforts are being recognized. Hence, employees themselves can be seen
adopting useful methods to improve performance and adopt appropriate behavior.
Regular meetings- Conducting regular meetings are the most important strategy and has
much useful and meaningful outcomes. In this strategy, employer get chance to communicate
with employees face to face, communicate about employer expectations, understand grievances
of employees and use motivational tools to foster their performance. Thus it is an important
strategy and most appropriate strategy in right direction.
Evaluation of theories of Performance management
The theories of performance management are helpful in getting much clear insight about
several topics that can be associated with performance management, these topics includes
understanding of reasons of performance management, situations of employees and expectations
of employer. For this purpose, report has made evaluation of two theories (Models and theories
of performance management system, 2011).
Goal setting theory- This theory was propounded by Edwin Locke in year 1968. The
theory mentions that employees must have some individual goals that they want to achieve

through overall performance management. Locke was of the opinion that individual goals are
much helpful for employees in motivating them for performance management, then
organizational goals. Therefore, they must set up some individual or personal goals inn
alignment with their job performance or organizational goals if possible. Through this,
employees could be seen gaining emotional satisfaction and therefore their zeal to make
improvements in performance will be much higher.
Expectancy theory- This theory was propounded by Victor Vroom in 1964. The theory
revolves around the behavior of employees in the organization. It mentions that, employees must
develop appropriate behavior in regards of behavior that is required in organization. In this
theory behavioral approach for employees is focused more because it is believed by the author
that this best way of channelizing overall performance of employees. Behavior forms the basis of
any action of employees and if it is driven in that desirable direction, than useful outcomes will
be eventually prevailing (Garg and et. al., 2021).
However, these theories are not only ones in the field of performance management of
employees, and there are several others as well. But as these theories are discussed, one thing can
be clearly highlighted that, they follow a specific criteria and does not go beyond that limit. Both
of the theories have discussed one side of performance development, that is employees and have
no mention of other sides of this function, which includes employers. The theories do not
discussed about behavior and responsibilities of employers, and their importance in improving
performance of employees. Therefore, the limitations of these theories are clearly evident.
Approaches/ interventions used to obtain effective employees performance
There are various approaches and intervention that are used by organisation to achieve
effective employee performance some of which are provided and discussed as below:
Regular training and development session- It has been evaluated that many business
organisation like Aston Martian, Bentley and other firms were having a strategic approach of
providing regular training and development session to their employees to have improved
performance and efficiency level. A training program allows these organisation to strengthen
those skills that each employee needs to improve (Cheng and Hackett, 2021). Beside this, a
development program and session is effective to bring all employees to a higher level so they all

have similar skills and knowledge which helps to reduce any weak links within the company and
ensure effective employee performance.
Performance based appraisal and in incentives- The another vital intervention and
approach used by the organisation like Tesco, Sainsbury and many other to boot the morale and
performance level of their employees is comprises of providing them performance based
appraisal and incentives which direct them towards higher performance level. Use of
performance based incentives and appraisal is effective way to obtain higher employee
performance as it serves as a basis for modifying or changing behavior toward more effective
working habits and also provide data to managers with which they may judge future job
assignment to achieve higher efficiency level. Beside this, it has been also analysis that within
Tesco and Sainsbury, performance based appraisal and in incentives is taken as a vital approach
which allows to provide positive feedback as well as identifying areas for improvement to create
a developmental (training) plan with the manager so he can improve skills and could effectively
motivates employees through support by a good merit-based compensation system (Gambi and
et. al., 2021).
Managing Under-performance in the organization
Performance management of employees is one of the most challenging tasks for the
Human resource manager. There are two reasons of managing and developing performance of
employees. Firstly, when employees are needed to be imparted new skills and knowledge that are
bought by requirements of changing business environment. Secondly, when particular employees
in the organization are under-performing. In such cases, employees who are not performing well
are not directly terminated and their grievances are redressed by Human Resource manager.
HRM should try its best in bringing these employees up, to the level of other employees and
sometimes even better than them (Jangbahadur and Sharma, 2018). Hence, managing
performance of these employees becomes more complicated and challenging, and requires some
specific approaches. The report has discussed few strategies, that can be adopted by Human
resource manager, while managing under-performing employees.
Don’t delay- Human resource manager should not wait for to longer in making necessary moves
towards developing performance levels of these employees. HRM should quickly identify these
employees and make measurement of performance levels of these employees. After, identifying

deviations with the desirable level or at least up to minimum permissible levels shall go on
developing performance of these employees.
Have tough conversation- Although, it is necessary for HRM to understand the problems that
these employees are having related to work, or the working environment in organization. But, at
the same time, it is important that HRM must adopt some tough and hard communications with
these employees. This is important because, polite nature can sometimes be misunderstood and
taken for granted by employees. However, there are chances that relations between employer and
employee can also be affected. But, there are still requirements (Mone, London and Mone,
2018). The HRM manager while managing performance of employees plays the role of a coach,
together with the role of a leader.
Documentation- Documentation of various steps and necessary moves taken by HRM, while
managing the performance levels is necessary. Besides working as evidence before Directors or
other stakeholders, in case of disputes, this record can also work as guide of future actions for
HRM itself. For example, if HRM has witnessed any difficult case of managing the work
performance of any employee, and helped oneself in overcoming that situation. Then, in future
such cases could be easily handled by HRM and references from past records can also be taken.
Improving own performance- HRM have a very typical functions to perform in organization, that
are of specialized in nature as well. Therefore, HRM needs to have proven efficacy in this
regard, and especially at the time while working on performance management of employees. In
performance management, HRM not only try improving performance of others but also give
evidence of one’s own knowledge and efficacy. The evidences of performance can only be
positive when HRM would be having efficiency and sufficient knowledge about its role, duties
and responsibilities. Hence, there is a need for HRM to continuously work on improving own
performance as well (Yulianti and Margaretha, 2019).
Effective HR professional skills in performance management
Various effective HR professional skills are required in an individual to perform the job
role of human resource management which they required to effectively coordinate and direct all
employees towards better performance. A discussion about some of these effective HR

professional skills which are vital for better performance management within an organisation are
provided as below:
Communication skill- In order to boost a higher level of productivity and enhance
workplace morale and employee engagement in a corporation's overall goals, human resources
personnel need to foster an environment of open communication and active listening (Yu, Baird
and Tung, 2021). Thus, communication skill is vital so that staff members feel their concerns and
ideas are really being heard which makes them more motivated and satisfied to perform their job
role in effective member.
Leadership skill- It is also a vital skill that is required within HR professional to
effectively guide and motivate employees towards improved performance and higher
productivity. Apart from this, it has been also evaluated that effective leadership makes a HR
professional able to bring out the best abilities in the team members and employees along with
motivate them to work together in achieving a shared goal in more coordinate and effective
manner (Audenaert, Decramer and George, 2021). Beside this, effective leadership also reduce
the chances of conflicts and organized performance of all employees to keep the team on track
and focused to avoid delays.
CONCLUSION
From the above discussion in the report it can be concluded that, Performance
management is a very vital task for any business entity. Employees are the people performing all
necessary tasks in the organization. Even most beneficial technical equipments cannot be
operated without help of technical know-how that is bought in the organization by employees.
With the growing changes and frequent occurring developments in the organization, employees
are required to make necessary developments, they are not available with sufficient knowledge to
make these developments and therefore role of Human Resource manager becomes important to
work as coach, mentor and leader.

REFERENCES
Books and Journals
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theory, and practice. Human Resource Management Review, 31(1), p.100698.
Gambi, L.D.N. and et. al., 2021. The effects of HRM approach on quality management
techniques and performance. Total Quality Management & Business Excellence, pp.1-29.
Garg, S. and et. al., 2021. A review of machine learning applications in human resource
management. International Journal of Productivity and Performance Management.
Jangbahadur, U. and Sharma, V., 2018. Measuring employee development. Global Business
Review. 19(2). pp.455-476.
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the field from 1998 to 2018. International Journal of Manpower.
Mone, E. M., London, M. and Mone, E. M., 2018. Employee engagement through effective
performance management: A practical guide for managers. Routledge.
Randhawa, N., 2017. Performance evaluation system–key to employee development. IMPACT:
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Stacho, Z., Stachová, K. and Raišienė, A. G., 2019. Changes in approach to employee
development in organizations on a regional scale. Journal of international Studies. 12(2).
Stewart, G. L. and Brown, K.G., 2019. Human resource management. John Wiley & Sons.
Yu, Y., Baird, K.M. and Tung, A., 2021. Human resource management in Australian hospitals:
the role of controls in influencing the effectiveness of performance management
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Yulianti, P. and Margaretha, C., 2019. A paradox: employee development and intention to
turnover. Journal of Economics, Business, and Accountancy Ventura. 22(1). pp.9-20.