Strategic HRM: Performance Management at Prestea Mine, Analysis Report

This report delves into strategic human resource management (SHRM), focusing on a case study of Prestea Mine, a company facing challenges due to declining gold prices. The analysis highlights the importance of integrating HRM with strategic planning to align employee efforts with organizational goals. The report examines issues like declining gold prices impacting wages, the closure of a plant, and the need for a performance management system. It explores the implementation of an attendance management software, such as biometric machines, to improve record-keeping and address absenteeism. The report emphasizes the role of performance management in identifying employee needs and organizational growth, including the development of job descriptions, training programs, and reward policies. The report also addresses the need for clear job descriptions, performance standards, feedback mechanisms, and training programs to enhance employee performance and reduce turnover. It provides a comprehensive overview of performance management cycles, including planning, monitoring, and review processes, and discusses the importance of aligning employee contributions with organizational objectives. The report highlights how performance management can improve employee engagement, promote transparency, and align professional development with business goals. It also addresses challenges in managing attendance and emphasizes the impact of employee absence on productivity. This report provides valuable insights into the application of SHRM principles and strategies to improve organizational performance and employee engagement.

Strategic Human Resource
Management
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TABLE OF CONTENTS
Introduction......................................................................................................................................3
Main body .......................................................................................................................................4
CONCLUSION..............................................................................................................................11
References......................................................................................................................................13
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INTRODUCTION
Strategic management is the process of formulating, implementing and evaluating the
business strategies in order to achieve organization strategic advantage. It establishes the
purposes and pursues that purpose towards the set strategic objective of an organization through
the co-alignment of organizational resources with the environmental opportunities and
constraints. Strategic human resource management is a type of proactive management of
company employees. It ensure that human resource management is fully integrated with strategic
planning and policies. Strategic human resource management is the practice of attracting,
developing, rewarding and retaining the employees for the benefit of employees as well as
organization (Beadles, Aston, Lowery, and Johns, 2015). It interacts with the other department
within an organization in order to understand each individual departmental goal and their
strategies that align with the whole organization objective and their strategic goal. The current
case study is based on Prestea mine cooperation limited, where it faces the issues regarding to
declination the prices of gold. It makes negative impact on the employee staff because lower
prices are always tends to the less wages for the employees.
One of the step are chosen by the Presta is to close down the refractory the plant due to
the operating cost at lower gold price (Storey, 2014). Company does not contains non refectory
deposits and provides comparatively low operating with higher gold grade per ton in ore body.
Prestea mines wants to establish the strategic human resource department for the better
engagement of employees towards the organizational goal so that company chooses the
performance management system creates and maintenance the work force environment, policies
and strategies in enabled the people towards the organizational goal that perform their work
according to best of their abilities (Cooke, Saini, and Wang, 2014). Strategic human resource
management supports the long term business goal and outcomes with strategic framework.
Prestea basically focuses on the long term resourcing issues within the context of an organization
goal an promote the diversified nature of work in order to reduce the employee turnover ratio and
monotonously in work environment because employees bored for doing same kind of work for a
longer time period and it also reduces the employee working efficiency. Performance
management are also concerned about the reward policy and other policies all are effectively
integrated towards the overall business strategy. Performance management also responsible for
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preparing the job description according to type of job characteristics and responsibility (Walk,
Schinnenburg, and Handy, 2014). It also concerned about the effective orientation and training
program for attracting the employees. Coaching and performance management are be concerned
under this department. Two major key issues are faces by the Prestea mines organization is
improve attendance management and high degree of absenteeism so that it provides improper
data about the employees and it creates the conflicts during the performance appraisal program.
Prestea management system are not efficient to manage records and to implement it (Beadles,
Aston, Lowery, and Johns, 2015). It can be improved by the use attendance software which one
instrument is called as bio metric machine, it tracks the employee fingerprint in order to mark the
attendance of individual an employee, It reduces the proximity of attendance because no one
other employee can mark the present of any employee. This software also helps in to record the
attendance of each and every individual and their related characteristics. It also provides the
leave track and tools for measuring the performance of an individual.
MAIN BODY
The contains the detailed frame work of performance management plan, it helps in to
identify the needs of employees as well as organization. Performance management system are
the efficient system to identify the key aspects of an organization with respect to growth and
development of an organization (Purce, 2014). Prestea is a mining organization It rectifies the
gold inefficiency in turns to provide high grade gold. In recent days it faces many issues like
declining in the prices of gold it makes negative impact on the company operational department.
Because gold rectification operating cost is high so that company wants to down close the mines,
it makes a major impact on the employee turnover ratio. Attendance management and record
management is one of the another issue are faced by the Prestea. According to this company
wants to establish attendance management software in order to record employee presentably.
One of the most using software for attendance management is bio metric machine, it is fully
automated and linked with the computer software. Machine has sensors to track the employee
fingerprints and shows his availability on the computer screen. This software be handle by the
technological friendly employee. it have an ability to keep the employees records in an accurate
manner with a longer time period. Performance management system also considered the
attendance and other management system like payroll, rewards and incentives under
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consideration of performance appraisal system. Performance management system is also a useful
tool for managing the whole organizational policies, strategies and other criteria towards the
organizational objectives. Performance management system is a process by which managers and
employees work together to plan, monitors and review of an employees work all these activities
makes contribution towards the organization objective. Performance management monitors all
these activities and ensure that all the activities are effectively meet the organization set
objectives in an effective and efficient manner. It majorly focuses on the performance of an
individual employee, department and organization (Walk, Schinnenburg, and Handy, 2014).
It is consider as a set of processes in which organization aligns their resources, system
and employees to strategic objectives and priorities. Managing employees performance or system
performance are align towards the effective delivery of strategic and operational goals.
Performance management system is the integration of whole employee’s performance with
respect to using software that improves the business and organizational results. Traditional
method of performance system is to record employee’s performance on spread sheet it creates
complexity to understand about the employee characteristics and their performance. In now a
day’s integrated software are to be used for measuring the employee performance and provides
various analytical tools in order to evaluate overall employee performance. Improper
management system creates large amount of employee turnover ratio and leads complexity
among them. It helps in to prepare optimize incentives plans according to the two employees
achievements.
Performance management system improves the employee engagement ratio because
everyone makes direct contribution to the organizational goals (Cooke, Saini, and Wang, 2014).
It promotes transparency between the different modes of channels, it also follows in fair
remuneration program among the employees according to their achievements and their level of
competency. It also aligns the professional development program for the employees towards
achieving business level goals. Performance management system basically monitors the
performance of an individual employees and gives proper feedback towards the improvement in
performance level. It reduces the error and increases the competency level of an employees. This
system helps in reduction of employee turnover ratio because it provides fair policies and
strategies in order to encourage the employees for better work performance because it provides
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fair measurement tools. Whole system is subdivided in to various sub system and they provides
distinctive performance towards the alignment of organizational goal. It encourages the
employees towards the monetary benefit programs like incentives plan, bonus and performance
appraisal that measures the performance of employees. Promotion decision are taken by the
managers after the evaluation of employee performance (Jabbour, and de Sousa Jabbour, 2016).
The process of performance management starts with the joining of new incumbent in a system
and ends with an employee quits the organization. Performance management can be regarded as
systematic process by which the overall performance of an organization can be improved by
improving the performance of individual within a team. It promotes the superior performance by
communicating expectations, roles and duties of an individual within a required competence
framework and establishing achievable benchmarks. Performance management is both strategic
and integrated approach to delivering successful results in organizations by improving the
performance and developing the capabilities of teams and individuals. Performance management
is related to total quality management program in order to achieve superior standards and quality
of performance. It is an ongoing communication process that is carried out between the
supervisors and the employees throughout the time period. Performance management system
includes various functions and characteristics towards the improvement in whole organization
performance.
 It develops clear job description and employee performance plan that is aligned towards
the organizational goal.
 It also helps in selection where it provides right selection tools and techniques for
selecting people.
 It also provides performance standards for the measurement of reliable outcome and
overall productivity against the predetermined bench mark.
 It also provides continuous coaching and feedback program during the period of delivery
of performance.
 It identifies the training and development program after measuring the performance
outcome against the set standards then implements the effective development program
towards the improvement in required performance.
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 Performance related decisions are to made quarterly or half yearly basis on the basis of
performance plans.
 It also designs the effective compensation and reward system for recognizing those
employees whose performance are exceed above the set standard plans.
 It provides promotional or career development guidance to employees.
In addition to this, it can be stated that businesses also faces challenges in regard to managing
attendance. It has been noticed that managing attendance is one of key issue which might affect
the overall outcome. Employee absence from work impacts the performance in term to
productivity. By having an advanced focus on diverse aspects the business firm can deal with
diverse issues.
A performance management process sets the reward and excellence platform for analyzing the
employee performance in order to align individual employee contribution towards the
organization’s mission and objectives and it makes the importance for a specific job in realizing
outcome. It establishes the clear performance expectations which includes results, actions and
behavior for a particular job task, it helps the employees in understanding what exactly is
expected from their job out of the jobs and setting the standards that helps in eliminating of
unnecessary the specific job task which is unnecessary to use for a longer time period. Regular
feedback and coaching, it provides an advantage of diagnosing the problems at an early stage and
can take corrective actions. Effective performance management system requires time and
resources along with the support of executive director and other senior managers. Management
always supports the outcome of performance management process to ensure that good, recognize
and inadequate performance results in to provide support or training to improve performance and
consistently performance results in a change of responsibilities or termination.
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Performance management cycle consist of the various elements all are independent to each other.
Plan
 It reviews the employee job description it reflects the work that the employee is currently
going. If employees has taken new responsibilities or the job has changed significantly
that time job description will be updated (Armstrong, and Taylor, 2014).
 Identify and reviews the link between the employees job description with his or her work
plan and with the organization goal, objective and strategic plan.
 It develops a work plan that outlines for the tasks or deliverables to be completed,
expected results or standards are to be used for evaluating the performance.
 It identifies three to five areas which are the key performance objective for a year. It can
be determined by the organization strategic plan or by the employee desirableness to
improve the outcome in the certain part of an organization.
 These objectives are very critical towards the success of an organization. If the employee
does not meet his or her critical objectives it evaluates the overall performance are
unsatisfactory.
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Training program objectives helps the employees towards the improvement in his\her skills,
knowledge and competency related to desired job task.
It identifies the career development objectives it may be a part of longer term career planning.
Monitor
Performance management system needs to be effective and helps in employee progress
and performance because it continuously monitors the day to day performance of employees it
does not mean that to observe all aspects how employees carry out assigned activities and tasks.
Managers does not observe the micro employee performance they are result oriented and take
attentions towards the result as well as individual behaviours and team dynamics affecting the
work environment. During this phase, the employee and manager regularly meet to each other
(Armstrong, and Taylor,2014).
 Assessing the progress in order to effective meet the performance objective.
 It identifies the barriers that prevents the employee towards the successful of
organizational goal and identify the needs that overcomes it.
 It shares the employees for the relative progress towards the goals accomplishment.
 It also identifies the changes in the work plan in that case activities are shifted to their
priorities or if the employees is required to take new responsibility.
 It determines the extra support from the managers, they assist employees towards
achieving his/ her objective.
Coaching- Performance management includes coaching to employees to address the
issues and concern related to performance so that ity provides a positive contribution to the
organization. Coaching provides direction, guidance, and support according to assigned activities
and tasks. As a coach, managers need to recognize strengths and weaknesses of employees and
work with employees to identify opportunities and determines the methods through which
strength are maximize and improvement in the weaker areas. The role of the coach is to
demonstrate skills and to give the employee feedback.
Providing feedback- Positive feedback shows the good performance of an employees.
This type of feedback are provided timely, specific and frequent. It recognize the performance of
asn individual. It also act as powerful motivator if performance are good. Constructive feedback
shows the weaker area where performance needs to be improve. It is a type of descriptive
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evaluation where only directs the action not a person. The main purpose of constructive feedback
is to understand their performance with respect to set standards and they can analyse their
performance in order to they stand in relation to expected or productive job behaviour.
Prepare- Be clear about the issue and determines the fact of the performance issue and make sure
about what was happened or happening.
Plan to meet the objective without and minimal interpretation, it shows the unity during the
discussion about the performance issue (Cooke, Saini, and Wang, 2014.).
Be calm that helps in to effectively approach the objectively with clarity.
Review
`Performance appraisal and assessment gives an opportunity to review, summarize and
highlights the employee performance over the course of review time period.
Self-assessment review being a part of the most of an organization. By using assessment and
performance plan guides the employee to assess the employee performance. In this strategy
issues are already discussed with the employees they are only a part of assessment not
improvement.
In the performance assessment meeting managers and employees will:
 Summarize the work which one was accomplished during the previous year relating to set
goals that was set at the beginning of the performance period. From the study it captures
the key results, accomplishments and shortfalls for each of the objectives
 Document challenges encountered during the year and identify areas for training and/or
development
 Identify and discuss about the unforeseen barriers towards the achievement of the
business objectives (Renz, 2016).
Prestea gold refinery organization faces many environmental issues which may be related
to internal; and external environment because external environment influence the internal factors
like employees that are much more influence by the down fall in the prices which makes
negative impact on the organizational productivity and operations. Gold refinery organization
operating cost is very high due to the high labor cost and other resources. If gold prices are down
due to the certain environmental circumstances that reduces the wages rate of employee it is the
big factor for the high turnover ratio. On the improper management system also influence the
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employee productivity so that effective and efficient management system are to be used for
maintaining the retention level of employees. Management system are the integration of the
employee’s activities with the software which provides the employee performance measurement
criteria and gives proper direction towards the improvement in the certain performance of an
employees with respect to organization goal. Software consist of various measurement tools and
recording tools that helps to record accurate and efficient employee data. It also provides rating
scale of performance measurement in order to solve the manager problem regarding to take
decisions about the firing and promoting the employees. It also offers various policies and
strategies framework with regards to provide some monetary benefits to employees in order to
encourage towards the better performance with accordance the set organizational objectives.
Training and development activities are aid increasing their performance level and working
efficiency. Training and development session is provided by the company if there is need of any
development.
Record management
Record management considered as set of activities which is essential for systematic
controlling and creation. With an application of this, distribution of activities can be taken into
account for sustainable development. By having a consideration of record management the entity
can have better collection of information which is significant for sustainable development.
Moreover, known as records and information management or RIM, is an organizational function
devoted to the management of information in an organization throughout its life cycle. With an
assistance of this, performance and transaction management can be advanced effectively with en
application of standards or evidences. Application of system also impacts the level of
performance in diverse manner.
CONCLUSION
To conclude, performance management can be regarded as a proactive system of
managing employee performance for driving the individuals and the organizations towards
desired performance and results (Tyson, 2014). It’s about striking a harmonious alignment
between individual and organizational objectives for accomplishment of excellence in
performance. Certain tools and techniques are to be used for improvement in the performance of
an employees. Prestea organization needs to establish performance management system in order
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to mainatin retention level of employees. Better employees performance may be achieve if
proper management system are to be used. It provides various performance measurement criteria
like performance appraisal system and tools. Performance management system improves the
employee engagement ratio because every one make sure to make direct contribution in to the
organizational goals. A performance management process sets the reward and excellence
platform for analyzing the employee performance in order to align individual employee
contribution towards the organization’s mission and objectives and it makes the importance for a
specific job in realizing outcome. Prestea mines wants to establish the strategic human resource
department for the better engagement of employees towards the organizational goal so that
company chooses the performance management system creates and maintenance the work force
environment, policies and strategies in enabled the people towards the organizational goal that
perform their work according to best of their abilities (Morschett, Schramm-Klein, and Zentes,
2015). Prestea basically focuses on the long term resourcing issues within the context of an
organization goal an promote the diversified nature of work in order to reduce the employee turn
over ratio and monotonously in work environment because employees bored for doing same kind
of work for a longer time period and it also reduces the employee working efficiency. Presta is a
one of the leading refinery organization that provides the grade quality of gold to customer at
low cost. It is the strategy which one is adopted by the organization in order to maintaining the
retention level of customers. A performance management process sets the reward and excellence
platform for analyzing the employee performance in order to align individual employee
contribution towards the organization’s mission and objectives and it makes the importance for a
specific job in realizing outcome. It establishes the clear performance expectations which
includes results, actions and behavior for a particular job task, it helps the employees in
understanding what exactly is expected from their job out of the jobs and setting the standards
that helps in eliminating of unnecessary the specific job task which is unnecessary to use for a
longer time period.From the above stated report, it can be concluded that human resource
management plays an important in the success of an organization. It drives various functions and
processes in an organization like recruitment, selection, training and development and employee
appraisal along with the certain awards and rewards that helps in towards the improvement in
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