HRM Report: Strategies for Managing Underperformers in Organizations

This report delves into the critical aspects of human resource management, specifically addressing the challenges of managing underperforming employees. It explores best practices in performance management, emphasizing goal setting, clarifying work expectations, conducting regular coaching and reviews, identifying performance issues, and recognizing achievements. The report also examines the integration of human resource development with performance management, including training, career development, organizational development, and effective recruitment. Furthermore, it addresses common issues in managing underperformers, such as timing, factual feedback, employee retention, and individual problem-solving approaches. The report outlines an organization's reward management strategy, highlighting its role in motivating employees and aligning with business objectives. Finally, it discusses how human resource management theories, such as reinforcement, motivational, and goal-setting theories, support corporate strategies related to employee performance, development, and reward systems. The conclusion summarizes the key findings and emphasizes the importance of HRM in achieving organizational goals and fostering a competitive advantage.

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Human resource management
System04116
4/20/2019

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Contents
Introduction......................................................................................................................................2
Human resource development.........................................................................................................2
Features of best practice in performance management....................................................................2
Integration of human resource development function with the performance management function
.........................................................................................................................................................3
Issues surrounding the management of “underperformers”:...........................................................4
Organization’s reward management strategy and how it fit to solutions and why?........................5
How theory of organization’s human resource management support the firm’s corporate
strategies?........................................................................................................................................5
Conclusion.......................................................................................................................................6
References........................................................................................................................................7

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Introduction
The report discusses about the best practices in human resource management in the area of
managing underperformers with particular focuses on performance management, human resource
development and reward management. In this report, the main features of best practices in
performance management will be discussed. The integration of human resource management
with the performance management function is discussed. The issues which are surrounding the
underperformer’s management will be discussed. The organization’s reward management
strategy will be set and describe how it will fit into the solutions and in what manner the theories
of organization’s human resource management support the firm’s corporate strategies will
discussed in this report.
Human resource development
Human resource development is an integrated use of organization, efforts for training and career
development to improve individual, organizational and effectiveness of group. Human resource
develops the main competencies that enable individuals in an organization to do present and
future jobs through strategic learning activities (Wermer, et al, 2012).
Features of best practice in performance management
Setting of goals: the best practice in performance management is setting of goals for employees
so that they can be aware of what is expected from them and what they need to achieve and what
they can do to achieve goals so that underperformer employee can understand the goals and its
importance of achievement of goals (Axson, 2010).
Identify the aim of managing performance: to identifying the aim of performance management is
a practice which covered in performance management. It is to find out whether employee is
doing it for the compensation purposes. The purpose of managing performance is identified to
know the administrative reasons and to uncover development opportunities or simply to measure
overall performance.

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Clarify the work to be done: the firm needs to clarify the work which is to be done by the
employee so that the performance of underperformer can be measured in an efficient and
effective manner.
Conduct regular and frequent coaching: in every company it is mandatory to conduct daily and
frequent coaching for underperformers to develop their performance skills and can be able to
achieve the goals of the company and performance can be managed effectively.
Conduct a formal review of performance: formal reviews are about the development not
evaluation. The useful feedback about the performance in job is provided which facilitates the
better working relationships. This practice also provides a historical performance record which
contributes to professional development in underperformers (Adolphus, 2019).
Pinpoint the sources of ineffective performance: the personal problems, external factors, job
concern or even issues with organizational policies and practices are all pinpoint sources of
ineffective performance. The practice is to identify the sources of ineffective performance and
find solutions to decrease or eliminate its negative effects.
Recognize and reward performance: the practice in performance management involves
recognizing the person who is performing well or not and rewarding them according to the
performance. Rewards motivate underperformers to perform for best results and get rewards.
Comply with the law: the laws are created to protect the people. So it is mandatory for every
organization to comply with the law or review local labor laws relating to the management of
performance before setting up anything (Sawalha, 2019).
Integration of human resource development function with the performance management
function
1. Training and development: the company provides employees with the tools that are
necessary for their performance management. In many cases, it means giving extensive
orientation training to employees to help them transition into a new organizational
culture. Proper training and development leads to management of performance and
achieve goals in a definite period (Shield, 2016).

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2. Career development: it involves training on fresh skills and moving to higher
responsibilities of job. These skills and higher responsibilities improve the performance
management in the organization.
3. Organizational development: it is deliberate effort for the organization which is managed
through leadership and supported by the employees with the aim to increase the
effectiveness of organization through strategic change in systems and process as it
manage the performance effectively.
4. Recruiting the right individual for the right job: the good performing person will
positively influence the other employees in the organization they are around can drive up
the sales and can cost a business minimum of necessary expenditures. By recruiting the
right individual, the company will move in a positive way and will turn out to be more
successful in the future (John, et al, 2011).
5. Compensation and benefits: the compensation and benefits refers to the pay or other non-
monetary and monetary benefits offers by the company to their employee for enhancing
the level of performance and manage those performance at best level as it motivate the
workforce.
Issues surrounding the management of “underperformers”:
1. Timings: the timings is the main issue which surrounding the management of
underperformers. Two way conversations are mandatory to allow their employee to
explain his or her side of the situation. The meeting should not be held when employer is
not likely to say something. It should be set when he/she have given time to cool off.
2. No focus on facts: the negative feedbacks are not easy and the employee is likely to take
these personally. To prevent that from occurring, focus must be on facts. There is no clear
example of time when employee failed to meet the expectations of the job. It should be
explained how these affect the employee own future with the organization.
3. Retention of good employees: the retention of good employee is a major task for the
company as they face many issues to retain full time employee for achieving the goals set
for the organization. As they have to offer timely rewards or benefits to employees for
their performance (Debi, 2013).

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4. Working on solution individually: the employees in the organization work individually
for the solution of any problem it gives an employee a chance to take ownership of the
problem or situation which empowers and provides extra motivation to employees for
improvement but they face certain issues if there is no outline of the clear objectives, no
extra trainings or resources (Freifeld, 2019).
Organization’s reward management strategy and how it fit to solutions and why?
Reward management strategy is the design and implementation of policies and strategies, the aim
of which are to reward the individuals equitably, consistently and fairly in accordance with their
value to the company and helps the company to achieve its planned objectives or goals (Rose,
2014). It deals with design, implementation and maintenance of system of reward which purpose
to meet the requirement of both the company and its stakeholders. Reward management consists
of analyzing and controlling individual remuneration and all other benefits for the individuals. It
aims to make and efficiently operate a structure of reward for the company. Reward management
is just not about pay and benefits of employee it is in the same way concerned with non-financial
rewards such as learning and development opportunities, recognition and increased job
responsibility. It best fit to the solution as solution explains the reward strategies for
underperformers to improve their performance the various training and development programs
are arranged and compensation and benefits are given to those underperformers as rewards so
that they can perform to higher level and take higher responsibilities in the workplace (Duncan,
2014).
How theory of organization’s human resource management support the firm’s corporate
strategies?
The human resource management is a strategic approach to the effective management of
individuals in a company, so that they assist the business to gain a competitive advantage. There
are various theories approaches or models of human resource management which supports the
firm’s corporate strategies related to the underperformers in the organization. The theories which
support the corporate strategies of firm are reinforcement theory, motivational theory, and goal
setting theory. The reinforcement theory focuses on the relationship between behavior and its
consequences (Gold, et al, 2012). This theory emphasis on modifying the job behavior of

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employees by the suitable use of techniques. The techniques that needed to be used are such as
positive reinforcement, avoidance, extinction and punishment. Furthermore, the motivational
theory seeks to clarify why employees are encouraged by and satisfied with one type of work
than other. It is important that managers have a simple understanding of work motivation as
highly motivated workforces are more expected to produce a higher quality product or service
than employee who lacks motivation. The goal setting theory motivates the employee to work
towards the common goals of the organization or firm. The Goals tells the employees what
requires to be done and how much work should be extended. all these theories of human resource
management support the firm’s corporate strategy by setting goals for an employee, developing
relationship between the employees and other staffs or senior managers which likely to support
the corporate strategies. These also develops the relationship between the behaviors and its
consequences which basically provide support in making the firm’s corporate strategies such as
human resource development, the performance of the workforces who are underperformers and
management of rewards for the performance. All these theories support the firm corporate
strategies which involves the performance, reward management and human resource
development (Bruce, 2010)
Conclusion
From the above analysis it is concluded that human resource management is an effective
approach to manage people in an organization who are underperformers so that it can help to
company to take a competitive advantage. The best practices in the workplace increases the
performance of the underperformers by providing them proper training and guidance towards the
achievement of goals. The management faced various issues to manage the performance of the
employees as well as organization. The above analysis shows integration of human resource
management functions with the performance management which improves the performance of
underperformers. The organizational reward strategies are developed which best fit to the
solutions provided in the report. The various theories are applied which results in better
corporate strategies for firms.

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References
Adolphus, M. (2019) Performance management and human resource development. [Online].
Available from: http://www.emeraldgrouppublishing.com/librarians/management/viewpoints/
hrissues_2.htm [Accessed: 21/04/2019]
Axson, D. (2010) Best practices in planning and performance management: radically rethinking
management for a volatile world. 3rd ed. New jersey: John wiley & sons.
Bruce, E. (2010) A theory of the firm’s demand for HRM practices. Human resource
management. 21(5), pp. 615-636.
Debi, S. (2013) Human resource management. Business perspective. 17(1), pp. 98-98.
Duncan, B. (2014) The future of reward management: from total reward strategies to smart
rewards. Compensation & benefits review. 46(3), pp. 147-151.
Freifeld, L. (2019) How to manage an underperformer. [Online]. Available from:
https://trainingmag.com/content/how-manage-underperformer/ [Accessed: 21/04/2019]
Gold, J. and Bratton, J. (2012) Human resource management: theory and practice. 5th ed.
London: Palgrave Macmillan.
John, D., Steven, A. and Roger, A. (2011) Defining and measuring alignment in performance
management. Operations & production management. 31(10), pp. 1089-1114.
Rose, M. (2014) Reward management. USA: Kogan page.
Sawalha, L. (2019) Performance management best practices. [Online]. Available from:
https://atmanco.com/blog/hcm/11-performance-management-best-practices/ [Accessed:
21/04/2019]
Shield, J. (2016) Managing employee performance and reward: concept, practices, strategies.
2nd ed. Melbourne: Cambridge university.

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Wermer, J. and DeSimone, R. (2012) Human resource development. 6th ed. USA: South-western
Cengage learning.