Managing People: Performance, Development, and Financial Rewards

This report examines people management strategies for Steel Co., a small manufacturing company. It provides recommendations for structuring individual performance targets to maximize firm performance, emphasizing clarity, alignment with organizational goals, and team-based approaches. The report suggests improvements to employee development and communication through performance management systems, including planning, training, and open communication channels. It also highlights the importance of integrating performance management with other HR processes like selection, training, and promotion. Furthermore, the report assesses the effectiveness of linking performance to financial rewards, advocating for incentive schemes to attract, retain, and motivate employees. The conclusion emphasizes the significance of performance management across all departments and its impact on overall company success.

MANAGING
PEOPLE

TABLE OF CONTENTS
INTRODUCTION ..........................................................................................................................3
TASK 1............................................................................................................................................3
Structuring individual performance targets so as to maximize the firm's performance..............3
Task 2...............................................................................................................................................4
Using performance management system for bringing improvement in employee development
and communication......................................................................................................................4
Task 3...............................................................................................................................................5
Need of integrating performance management systems with other human resource processes. .5
Task 4...............................................................................................................................................5
The effectiveness of linking performance to financial reward....................................................5
CONCLUSION................................................................................................................................6
REFERENCES ...............................................................................................................................7
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INTRODUCTION
Managing people refers to make sure that all the employees in the organization are
comfortable enough, coordinating themselves efficiently and are working to there best (Clifford,
2016). It mainly includes the role of the manager in training the freshers, developing and to
motivate the employees so that they can perform well (Bush and Middlewood, 2013).
Management of people can be done using various management style like authoritative style,
participative etc. The Steel Co. is a small manufacturing company which is run by an owner-
manager and a staff around 65 people. The report includes the case study of Steel Co. and covers
the advice for structuring individual performance targets so as to maximize the firm's
performance. Also, the report provides suggestions to improve the employee development and
communication, integration with human resource management. Lastly, advice has been provided
regarding the effectiveness of linking performance to financial reward.
TASK 1
Structuring individual performance targets so as to maximize the firm's performance
To improve the performance targets the Steel Co. should express the actions and
decisions in such a manner that it is clear and understood by all. The targets should be consistent
and traceable with the determined organizational goals which would enable the degree of
achievement to be measured with the stakeholders satisfaction level (Thomson and Thomson,
2012). Company should maintain different teams so that the targets are comparable within those
teams and measures of improvement are taken. Targets should be set in such a way that process
outputs are achieved rather than setting for individual performance. This will increase the team
spirit and would avoid the isolation of an individual. Targets defined must be mainly focused on
the purpose rather than the activity. The most important thing is that there should be a sound
relationship between targets, measures, objectives of the company and the process involved
(Martin and Siebert, 2016). The divisional director should also adopt the bonus and incentives
scheme. This will help Steel Company to increase the morale of the employees and they would
do the work with full dedication in urge to get good incentives. There should be regular training
and development programs to increase the knowledge of the employees.
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TASK 2
Using performance management system for bringing improvement in employee development and
communication
A performance management system can be used fir improving employee development as well as
communication in various ways.
Planning performance
The divisional director of Steel Company should adopt the planning performance for
employee development. It includes the in defining clear job descriptions to the employees and
also telling them about the key result areas and the performance indicators which would help the
employees to achieve the targets (Morphet and et.al., 2012). It also defines the selection of right
people at right place so everyone is comfortable with the work and do it efficiently.
Training and development programs
Their should be proper training and development programs so that the employees can
implement effective development programs for achieving the set targets. Steel Company should
encourage open communication system which will include every person to be an active
performer in the organization. This can be done using surveys, team meetings and providing with
suggestion box (Kamoche, and Pinnington, 2012.). This help every person to tell their queries
and suggestions to the organization.
Performance appraisal and reviewing
Performance management system can be implemented by Steel Company by using
performance appraisal and reviewing. This should be done twice a year to review the
performance of all employees. The employees directly tell about their achievements to the
appraisals. This help to develop the employees in every aspect which directly help the
organization to grow (Hutchinson, and Purcell, 2010). Incentive schemes also help to develop
the employees. With the urge to earn bonus and get good incentives make an employee work
efficiently and effectively for the organization.
Collaboration process
Steel Company should also adopt the collaboration process to set the goals of the
organization. In order to review the performance, it should follow the two way communication
system which is between the employee and the manager. The company should include both
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positive feedback for the employees who are doing well and also the constructive feedback when
employees need improvement to grow.
TASK 3
Need of integrating performance management systems with other human resource processes
There is a need to integrate other human resource processes with performance
management system at Steel Company. The human resource process of selecting the employees
should be based on the performance management system. The divisional director should select
the new employees according to the performance of them in the test and the way he present in
the interview. It should not be biased to something rather it should directly based on the
performance. This is needed because it will help the organization to grow as company would
have efficient employees with them to work. Training and development process of human
resource should be practiced twice in a year so that employees become efficient in doing their
work (Gander, 2011). Training help the employees to be up to date with the latest working style,
working with latest technology and to overcome with the setbacks of the employees.
The performance appraisal of the employees is very important for the growth of the
employees at Steel Company. It increases the morale of the employees and help them to work
efficiently for the organization. The appraisal should be done on the performance of the
employees. They should be awarded only for the performance they do in their work. The
promotion of the employees also needs to be based on the performance of the employees. They
should be promoted or demoted according to the work they do in the specified time. This will
help to increase their speed to do their work and the quality of doing the work (Hutchinson, and
Purcell, 2010).
TASK 4
The effectiveness of linking performance to financial reward
Linking performance to financial reward will be effective for Steel company. The
divisional director should commit towards the enforcement of reward practices to the
organization. This will be effective for the organization in attracting, retaining and motivating
the employees to do the work efficiently. Reward practices help in attracting the professionals
who are result driven and succeed in performance based organization (Rimmer, Chen and Hsieh,
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2011). Reasonable incentives should be given for short term performances and higher incentives
should be given for long term performances (Fisher, 2011). It the most crucial thing to motivate
the employees for the enhancement of the productivity. Performance system should be linked
with the reward system which directly focuses on the performance based pay and the also offers
the employees for learning the opportunities with the healthy working environment. It should
include different forms of rewards like bonuses, team based incentives, etc. This will benefit
Steel Company in the long run in many ways. It will instill a sense of ownership amongst all the
employees. As a result of this, they will focus on the long term for continuous improvements
(Rasula, Vuksic, and Stemberger, 2012). Further, it will reduce the service operating cost,
minimize the employee dissatisfaction towards the organization and also enhance the interest of
the employees in financial growth of company. Link between performance and financial reward
will make the employees motivated and dedicated towards work. This motivation and dedication
for work is the key to success.
CONCLUSION
From this report it can be concluded that Steel Company structure the individual
performance to increase the firm's performance. Along with this it can be inferred that using the
performance management tools help to improve the development of the employees. The open
communication adopted by the company will increase the involvement of the employees in the
decisions taken. Human resource processes should also be integrated with the performance
management to get good returns. All over it can be said that performance management is
important for every department of the company.
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REFERENCES
Journals
Fisher, E., 2011. What practitioners consider to be the skills and behaviours of an effective
people project manager. International Journal of Project Management.. 29(8). pp.994-
1002.
Gander, M. J., 2011. Managing People In A Lean Environment: The Power Of Informal Controls
And Effective Management Of Company Culture. Journal of Business Case Studies
(JBCS), 5(6). pp.105-110.
Hutchinson, S. and Purcell, J., 2010. Managing ward managers for roles in HRM in the NHS:
overworked and under‐resourced. Human Resource Management Journal. 20(4). pp.357-
374.
Kamoche, K. and Pinnington, A. H., 2012. Managing people ‘spiritually’: a Bourdieusian
critique. Work, Employment & Society. 26(3) pp.497-513.
Morphet, J. and et.al., 2012. Managing people with mental health presentations in emergency
departments—A service exploration of the issues surrounding responsiveness from a
mental health care consumer and carer perspective. Australasian Emergency Nursing
Journal. 15(3). pp.148-155.
Rasula, J., Vuksic, V. B. and Stemberger, M. I., 2012. The impact of knowledge management on
organisational performance. Economic and Business Review for Central and South-
Eastern Europe. 14(2). p.147.
Rimmer, J. H., Chen, M. D. and Hsieh, K., 2011. A conceptual model for identifying, preventing,
and managing secondary conditions in people with disabilities. Physical therapy. 91(12).
pp.1728-1739.
Books
Bush, T. and Middlewood, D., 2013. Leading and managing people in education. Sage.
Martin, G. and Siebert, S., 2016. Managing people and organizations in changing contexts.
Routledge.
Thomson, R. and Thomson, A., 2012. Managing people. Routledge.
Online
Clifford, C., 2016. Managing People Is an Art: 32 Ways to Do it Right. [Online]. Available
through: <https://www.entrepreneur.com/author/catherine-clifford>. [Accessed on 25
July 2016].
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