People Management and Human Resource Performance Report

This report provides a critical analysis of performance management within the field of Human Resource Management (HRM). It explores various concepts, including the performance management cycle, goal-setting theory, and expectancy theory, highlighting their impact on employee motivation and organizational performance. The report examines practical applications such as performance review meetings, objective setting, and the development of Personal Development Plans (PDPs). It also discusses challenges and strengths of incorporating performance management systems, emphasizing the importance of benchmarking and total quality management. The report draws on the work of key researchers like Boxall and Purcell, Bratton and Gold, and Tams, providing a comprehensive overview of the strategies and techniques used to enhance productivity and align employee actions with organizational goals. The report emphasizes the importance of aligning employee actions with organizational goals, the role of rewards, and the need for continuous improvement in performance management systems.

PEOPLE MANAGEMENT AND HUMAN
RESOURCE

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
Main Body...................................................................................................................................1
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11
Online........................................................................................................................................11

LIST OF FIGURES
Figure 1Performance Management and Reward Ssystem...............................................................2
Figure 2 Performance management system.....................................................................................3
Figure 3Performance Management Cycle.......................................................................................4
Figure 4Objectives of the performance management system..........................................................9

INTRODUCTION
Nowadays organizations are trying to adopting some of the best strategies through which
they are able to enhance their productivity. HRM is regarded as a best practice which played a
most important role in managing whole business operations more effectively. There are various
practices of human resource management such as training and development, recruitment and
selection, reward management, performance management etc. In all these factors the present
study gives appropriate critical assessment of the theoretical perspectives and practical
applications of Performance management system Boxall and Purcell (2011). This method is
receiving increased attention these days as organizations are seeking performance gains from
their workforce due to the increasing competitive advantage.
Main Body
Performance management is one of the best concepts within the field of human resource
management. It can be explained as a continuous process of identifying, measuring as well as
developing the performance of individual as per the set objectives and aligned goals.
Su and Wright (2012) suggested that some of the most common goals for adopting a
strong performance management system are as follows:
 Improving organizational performance with the help of promotion
 Driving continuous improvement
 Nurturing cultural change through empowering employees
Tams (2008) author suggested that performance management is goal oriented. With the help
of implementing this strategy company can effectively guide all its employees about the
organizational objectives. They also provide them several ways on the basis of which they feel
motivated and give their best towards their work.
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Figure 1Performance Management and Reward Ssystem
(Source: Bratton and Gold, 2012)
Bratton and Gold (2012) founded that performance management is one of the best and most
practical aspects of human resource management. It is highly related to keeping the right people
at right place. Through which overall productivity can be enhanced. Performance management is
a plan in which manager and employees work together to plan and review the employee’s work
objectives. It is a continuous process of setting objectives and assessing their progress and
providing on-going coaching. With the help of this coaching effective and appropriate
monitoring can be done. It helps in analysing the performance and progress of workers and
providing them appropriate feedbacks as per their setting targets and performance objectives.
Tams (2008) stated that an effective performance management system will:
 Be practical and easy to understand
 Be specific
 Align with the organizations strategic direction and goals
 Providing training and development opportunity just to improve the performance
 Incorporating both constructive feedback where improvement needed and positive
feedback for a job well done
 Ensuring that employee work plan supports the strategic direction of an organization
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 Setting clear communication between manager and employees
Figure 2 Performance management system
(Source: Performance Management - Meaning, System and Process, 2010)
Boxall and Purcell (2011) have presented the model of performance management in the
form of cycle. It clearly presents that there is mainly 5 elements of this model which suggests
that how performance system should be implemented within an organization. However, it is
becoming highly important as just to reduce the loopholes in the overall process and maintain
high end productivity. Mainly this cycle has 5 elements i.e.
 Setting of objectives
 Measuring the performance
 Feedback of performance results
 Reward system
 Amendments to objectives
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Figure 3Performance Management Cycle
(Source: Gannon and Boguszak, 2013)
The above cycle clearly represents the whole processing on the basis of which company
can easily produce high quality product. By setting objectives for each individual they are able to
attain their objective on the basis of given time period. On the other hand Gannon and Boguszak
(2013) have presented their theories underlying the concept of performance management such as: The goal-setting theory: In the year of 1968 this theory has been proposed by Edwin
Locke. This theory determines that the individual goals set by an employee play a most
important role in motivation. It is the best source through which they feels motivated and
perform all their tasks more appropriately. One of the main reasons behind this superior
performance is that they keep following their goals and objectives. In case of not
achieving these objectives and goals they require improving their performance by making
their goals more realistic. Expectancy theory: In the year of 1964, Victor Vroom has presented Vroom’s
Expectancy theory. It states that individual adjust their behaviour within an organization
on the basis of expected satisfaction of goals set by them (Teare and et.al, 2011). He
defines that individuals are likely to modify their behaviour in a way through which they
can effectively attain their objectives. Further, it has been identified that this theory
underlies that performance is influenced by the expectations concerning future events.
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 Organisational theory: This theory has been presented by Eisenhardt in the year of 1985
which consider this theory to be rational, efficiency oriented as well as concerned with
several determinants of control strategy. This theory mainly compares the ability in order
to measure the behaviours as well as outcomes with the same. He suggested that
organizations can use various controls as a measurement and evaluation process. In order
to enhance the performance of workers and raise their confidence level reward is implicit.
It is the best way to produce high quality products and keep all the consumers satisfied.
According to Guest (2011) performance management is a way through which an organization
can ensures that workers are performing their tasks more appropriately in order to contribute
towards the specific strategic goals. On the other hand Tams (2008) argues that this concept
clearly focuses on the effective management of people in line with the goals of organization.
There are several theories and models associated with the implementation of performance
management system. These models clearly illustrate the ways through which workers within an
organization can effectively enhance their performance. This also guarantees the creation of
working environment that will allow people to fulfil all their responsibilities more appropriately.
Business performance is many widely used concepts by scholars as it helps them in exploring
more and reasonable facts about the total performance system as well as ways of motivation.
Gannon and Boguszak (2013) argue that much of the research on performance has come from
the organization theory and strategic management. However, there are various concepts which
relate direct concern with the rewards as well as motivation ways for all the workers.
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According to Su and Wright (2012) in order to attain set objectives and goals of company it
is highly essential to motivate all the workers so that they can adequately participate within all
the business operations. Tam (2008) argues that employees should be treated in a manner that
will make them improve their willingness to perfect his work. The whole performance of any
organization depends on three factors in which the first factor is related to the skills, knowledge
and competence of workers. In addition to this, the second factor relates to the human resource
that have role of transforming the inputs into several outputs. The last factors cover the output
which can be assessed by the performance of workers.
Moreover, from the past several findings it is being identified that company can easily
maintain its performance by the way of keeping their workers motivate. In order to do so they
must provide them appropriate rewards, incentives as well as promotions. These are the best way
and sources to motivate individuals to give their best at the level.
According to Su and Wright (2012) there are various ways through which company can
maintain its workers performance. For the same, it is important to use wide variety of
performance management techniques. Through this, firm can regularly review and measure the
performance of their team. Some of the most common ways are as follows:
Performance review meetings: This meeting plays a most important role in the whole
performance management cycle. It is regarded as a best way to identify the loopholes in the
overall process as well as expectations of customers. With the help of this technique, they can
consider individual team members performance on regular basis and let them know about how
they can improve their performance. Boxall and Purcell (2011) stated that before conducting
such meetings it is highly essential to reflect upon the each member’s performance previously.
They also require considering the progress towards previous performance objectives. Further, it
can be stated that it is the best and most effective way to measure the performance of each
individual and suggest them various ways for future improvements.
Performance Objectives: It is another most effective way and best technique through which
individual can mark their performance. Setting performance objective is a two way process in
which discussion and agreement takes place. For the same, it is highly essential to ensure that all
the objectives have been attained by each team member (Keeping the Right People, 2015). In
addition to this, all these objectives should be reviewed regularly so that employees can attain
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departmental goals by working within wider teams. Moreover, setting performance objectives
should be a two way process of discussion and agreement with each and every individual team
member. Further, setting such objectives are another best way to measure the performance and
make future improvements accordingly.
Developing PDPs: It is known as a personal development plan which helps in identifying the
individuals development needs. This plan is particularly related to the achievement of
performance objectives as well as specific actions that an individual requires to take for further
improvement in their performance. Moreover, it is considered as a best way to measuring
individual’s performance and identifying all those areas where improvement is strictly needed.
According to Guha (2010) performance management can be define as a systematic approach
on the basis of which any organization can effectively attain their set up goals. However, there
are several challenges as well as strengths companies might face at the time of incorporating
performance management system into their business operation. In this regards, it is being
identified that performance management is a goal oriented technique which guide all the workers
towards the goal of company and set up the objective as well.
However, company must set their specific goals and it should be measurable and attainable.
At the time of attaining these goals several challenges which company might face such as timely
achievement of these goals, quality etc. They can easily maintain their work quality by the way
of incorporating best working practices. Gannon and Boguszak (2013) stated that organization
should evaluate the achievement of goals that is previously established. Employees need to
participate highly at the time of setting any new expectation. Whole performance of workers is
directly related to their produced quality as well as consumer expectations.
According to Guest (2011) measuring workers performance is highly essential to enhance the
product quality and maintain their firms positive brand image in the mind-set of customers.
Companies can measure their workers performance by the way of incorporating benchmarking as
well as total quality management system in their business organizations.
Benchmarking: With the help of this technique, firm can easily set their performance target.
Tams (2008) stated that benchmarking is one of the most effective techniques which is used to
measure the performance. However, this technique is highly related with the overall performance
of the company and it might leads to hamper their brand image as well. Most of the business
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leaders are struggling for maintaining high competitive advantage. For the same, they must set
their performance target and try to achieve them on the required timing. One of the most
common objectives for the management people is just to identify that benchmarking is in
alignment with the company's management objectives. Under benchmarking performance
management system firm can also decide its key performance indicator.
According to Boxall and Purcell (2011) benchmarking is just a process for obtaining a
measure or setting a benchmark. However, at the time of using this tool company should not
limit the scope to its own industry. The Global Benchmarking Network, a network of
benchmarking centres has taken a comprehensive survey. As per their results it is being
identified that Informal Benchmarking process is being followed by 68% of respondents as well
as Performance Benchmarking management system was used by 49% and Best Practice
Benchmarking by 39%. Further, it can be determined that this is the best technique as it sets the
basic of performance improvement in order enhance their competitiveness. Employees can do
well under this technique. However, the major challenge of using this approach is that workers
might feel dissatisfied as benchmark of performance will make employees limited to the same
stage of performance.
In order to keep their workers more productive organization requires changing the level of
benchmark and encourages all the workers to keep improving. By changing this level in a short
period of time employee will keep changing and becoming more productive (Teare and et.al,
2011). In case of maintaining high performance company may set some targets for their workers.
By this, it will help workers to accomplish their tasks timely and becoming more productive as
well. There is some of the most common objective associated with the implementation of
performance management system such as:
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Figure 4Objectives of the performance management system
(Source: Performance Management - Meaning, System and Process, 2010)
From the above diagram it has been clearly identified that some of the most common
objectives of performance management system is its relation to the human resource planning.
Stated that for appropriate HR planning it is a most important part of their policy to set the
objectives of their target standards and measure the overall work quality of an individual. By
having better and most effective performance management system management team can easily
develop better employee relations. Their motivation level can also be enhanced which gives
positive resultant towards the high productivity of firm.
Further, it is being identified that firms are essentially working nowadays with framing most
suitable performance management system for their firm (Teare and et.al, 2011). It is the best way
to grab the attention of more customers and enhance their business growth as well. With the help
of this, they can easily achieve their set targets and maintain their workers can also accomplish
their set objectives for the betterment of firm. However, it is the responsibility of manager and
supervisor to timely review their workers performance. They require setting their list of
accomplishment and promoting continuous employee development as well.
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CONCLUSION
From the above research it has been articulated that among all the HR practices of any
business firms performance management is regarded as their most important way. It is the best
process to attain set organizational goals and objectives. It has been concluded that by the way of
incorporating best performance management system and techniques within any organization
company can easily produce high quality products. It helps them in raising their customer’s
satisfaction level and maintaining positive brand identity in their mind-set.
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REFERENCES
Boxall, P. and Purcell, J., 2011. Strategy and human resource management. Palgrave Macmillan.
Bratton, J. and Gold, J., 2012. Human resource management: theory and practice. Palgrave
Macmillan.
Gannon, D. and Boguszak, A., 2013. Douglas Mcgregor’S Theory X And Theory Y. CRIS-
Bulletin of the Centre for Research and Interdisciplinary Study. 2013(2). pp.85-93.
Gruman, J.A. and Saks, A.M., 2011. Performance management and employee
engagement. Human Resource Management Review. 21(2). pp.123-136.
Guest, D. E., 2011. Human resource management and performance: still searching for some
answers. Human Resource Management Journal. 21(1). pp. 3-13.
Guha, A. B., 2010. Motivators and Hygiene Factors of Generation X and Generation Y-The Test
of Two-Factor Theory. Vilakshan: The XIMB Journal Of Management. 7(2).
Su, Z.X. and Wright, P.M., 2012. The effective human resource management system in
transitional China: a hybrid of commitment and control practices. The International
Journal of Human Resource Management. 23(10). pp.2065-2086.
Tams, S., 2008. Self-directed social learning: the role of individual differences. Journal of
Management Development. 27(2). pp.196 – 213.
Teare, R. and et.al., 2011. The role of action learning in personal, professional and business
development. Worldwide Hospitality and Tourism Themes. 3(1). pp. 60–65.
Online
Keeping the Right People. 2015. [Online]. Available through: <
http://hrcouncil.ca/hr-toolkit/keeping-people-performance-management.cfm>. [Accessed
on 16th April 2015].
Performance Management - Meaning, System and Process. 2010. [Online]. Available through: <
http://www.managementstudyguide.com/performance-management.htm>. [Accessed on
16th April 2015].
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