Performance Management and Employee Engagement at ABC Company Report

This report examines the human resource management practices, specifically performance management, within ABC Company, a UK-based business. It analyzes the company's current work culture, highlighting the need for modern performance management concepts to overcome traditional, autocratic management styles. The report explores the impact of performance management on organizational goals, employee engagement, and involvement, emphasizing the importance of clear job descriptions, effective training, and reward systems. It discusses organizational and employee concerns, focusing on the significance of employee engagement and the impact on overall performance. The report also provides insights into how the company can improve performance through participative leadership, improved communication, and employee development programs, all designed to improve employee satisfaction and boost the overall performance of the organization. The analysis covers key aspects of HRM, including recruitment, training, and strategic alignment to achieve sustainable development and a competitive advantage.

Human Resource
Management
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TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
CASE OVERVIEW.........................................................................................................................3
PERFORMANCE MANAGEMENT .............................................................................................4
IMPACT OF PERFORMANCE MANAGEMENT........................................................................5
ORGANISATIONAL AND EMPLOYEE CONCERNS................................................................7
EMPLOYEE ENGAGEMENT AND EMPLOYEE INVOLVEMENT.........................................7
ISSUES AND WAYS TO OVERCOME........................................................................................9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................12
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INTRODUCTION
Human resource management is considered as critical process that helps in effective
management of workforce so that goals and objectives can be accomplished in appropriate
manner. It is also referred as process that allows management to focus on diverse activities such
as recruitment, selection, offering induction, training and development program, organisational
policies design, motivation, employee relation, etc (Dowling, Festing and Engle, 2008). It has
been noticed that human resource management allows to have maximum utilization of available
limited skilled workforce so that business can attain benefits in appropriate manner. However,
performance management is also considered as vital section of human resource management.
With an assistance of this, management can have advancement in skills of senior managers so
that issues can also be resolved in desired way (Edenborough, 2007). Performance management
also allows to improve skills so that organisation can perform in effective manner as compared to
its competitors. It is also beneficial to attain competitive advantage.
In order to have better understanding about topic, learning will focus on work culture of
ABC company that operates its business in UK. Present report will focus role of performance
management in human resource management so that overall performance can be improved. It
will also provide information about significance of employee engagement so that better support
can be provided to performance management.
CASE OVERVIEW
As per the detailed study, it can be said that learning is focused on work culture of ABC
company. Human resource manager (HR manager) is focused towards establishment of long
term methods that helps in meeting performance standards effectively. It has been noticed that
1500 employees are having operation in the organisation so that goals and objectives can be
accomplished in appropriate manner. Company is mainly controlled by family members who are
more focused towards traditional methods. Moreover, autocratic management style is being
adopted by firm that impacts the morale of employees in negative manner. In order to gain
competitive advantage the business firm need to focus on application of modern performance
management concepts and practices. Recently owner of ABC company has attended conference
regarding performance management so she is looking forward to bring changes. It is beneficial to
improve the skills among members and lead business to various advantages.
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PERFORMANCE MANAGEMENT
Performance management is considered as combination of diverse activities that helps in
make sure that goals are being accomplished in effective and efficient manner. With an
assistance of performance management system the business organisation can focus on
performance of department and employee. It is a process that enhances morale of HRD to align
resources and systems in such manner that the priorities and objectives can be meet effectively
(Kearns, 2010). In addition to this, human resource management of ABC company is looking for
change in its functional strategies which allows management to have successful implementation
of diverse development strategies. The process of performance management starts with the
joining of a new incumbent in a system and ends when an employee quits the organization
(Maley, 2011). Performance management can be regarded as process that allows to have
systematic working so that overall performance within organisation can be improved in
appropriate manner. With an assistance of this, the promotion of diverse work activities can also
be accomplished in desired manner. It also allows management to have better communication so
that expectations of employees can be meet effectively (Mathis & Jackson, 2008).
Moreover, formation of competence framework is also beneficial because it helps in
improving overall performance. Performance management is also considered as strategic and
integrated approach so that delivery of outcomes can be improved in order to lead business to
impressive level of success (Joe, 2008). Overall quality of operational activities can also be
improved by having assistance of performance management system because it has direct impact
on the employees skills. In this, it is significant for management of ABC company to focus on
effective designing of job roles and leadership style so that issues can be overcome in desired
manner (Lucio, 2013). Training and development program allows to have improvement in skills
of employees so that work activities can be accomplished in more optimistic manner. Moreover,
reward system enhances the morale of employees and make sure that the workforce is
performing in efficient way to meet goals and objectives.
It is significant for HRD to make sure that they are developing clear job descriptions so
that understanding among workforce about work activities can be improved. With an improved
level of understanding about job activities the employees can have efforts in optimistic manner
so that issues can be resolved effectively. It also impacts the key result areas and performance
indicators which is beneficial to have advancement in overall performance (Ruysseveldt, 2014).
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Selection process frameworks also need to be improved so that right people can be selected for
the job. If selection of person is appropriate as per standards then it is possible that the activities
can be accomplished in appropriate manner. It also has direct impact on the performance of
organisation and lead business to impressive level of success (Werner, 2008). Along with this,
the changes in strategies as per performance standards and employees needs is also beneficial to
improve productivity so that performance can be advanced. It is also necessary for management
to make sure that the benchmarks are being designed in appropriate manner so that issues can be
overcome effectively (Marler, 2012).
Continuous monitoring is also one of key benefit that business firm can have by
implementation performance management system. It also helps in make sure that the
developments programs are being followed effectively so that employees skills can also be
advanced in order to lead business to sustainable development. Changes in management style
and leadership style frameworks also need to be consider effectively so that business entity can
have improvement in performance (Miriam and Londregan, 2013). It is significant for HRD of
ABC company to make sure that the employees' satisfaction and improvement is key motive of
designed activities. It will improve the workforce performance which will have direct positive
impact on the overall performance of organisation.
IMPACT OF PERFORMANCE MANAGEMENT
As per the detailed study, it can be stated that the application of performance
management system has great impact on the performance of organisation. With an assistance of
this, the parameters of performance can be designed in appropriate manner so that overall
performance can be improved (Othman and Poon, 2010). Management can also set out
performance standards in desired way in order to make sure that the goals and objectives are
being accomplished effectively. Moreover, the planning process can also be advanced by having
assistance of participative aspects.
In addition to this, it can be said that the management of ABC company can have better
relationship with employees because it allows to have better communication. It is advantageous
for employee as well as management to have frequent communication so that changes in
objectives can be shared effectively (Dowling, Festing and Engle, 2008). It is beneficial to have
improvement in performance because without understanding of objectives the activities can not
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be completed in appropriate manner that might be critical issue. Application of performance
management is inclusive and collaborative process that make sure that the efforts of employees
has provided benefits to organisation (Edenborough, 2007). In order to improve communication
the management need to focus on participative aspects. For example, the belief in regard to
management and leadership style need to be changed as per employees needs. In this respect,
participative leadership style and management style can be adopted by management of ABC
company (Kearns, 2010). It allows employees to participate in decision making process so that
strategies can be designed to meet their expectations. If employees needs are accomplished in
appropriate manner then it will also have direct positive impact on the performance.
Performance management system also provides systematic learning about rules and
policies that are being applied within organisation. Participative factors and communication
allows employees to understand process in appropriate manner which allows them to have efforts
in appropriate manner so that issues can be overcome. It also improves the performance and lead
business to better success (Maley, 2011). Moreover, the performance management system also
has involvement in planning so objectives need to designed in such manner that they can clarify
the individual responsibility and duty. If employees are well known of objectives and duties then
they can perform activities as per key standards so that performance can be improved. For
example, the ABC company is looking forward to increase market share but employees are not
clear about objective and they are having efforts to improve sales (Mathis & Jackson, 2008). It
means the objective of organisation can not be accomplished which also impacts the overall
performance so understanding between management and employees is significant to improve
performance.
It has been witnessed that the performance management also provides support to
employee development program. There are number of employees who demands improvement in
performance so that their weakness can be overcome (Joe, 2008). With an assistance of
performance management system the strength of workforce can be accessed to overcome
weakness. Improvement in strength allows to have performance advancement and lead business
to impressive level of success.
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ORGANISATIONAL AND EMPLOYEE CONCERNS
It is significant for human resource management to have effective participation in
employee development activities so that overall performance can be improved. With an
assistance of this, the issues regarding employee concerns can be overcome in appropriate
manner. Organisation also need to ensure that the performance management cycle steps are
properly followed so that outcomes of changes can be attained in positive manner (Lucio, 2013).
In initial stage company need to show concern about planning so that expectations can be
identified in appropriate manner. If results are not being measured as per expectations of
employees and organisation then issues can not be determined effectively (Ruysseveldt, 2014).
Organisation is also concerned about monitoring of activities so that actual development can be
determined. If monitoring of activities is not appropriate then business may face critical issue in
respect to performance so management need to make sure about it.
Employees concern can be improvement in environmental aspects so that performance
can be improved. Policies must be designed as per UK frameworks so that effectiveness of
performance management can be accomplished in desired way. In addition to this, health and
safety policies' application need to be improved so that overall performance can be improved
(Marler, 2012). Motivation aspects also need to be concerned so that better benefits can be
provided to employees in order to improve the overall performance.
EMPLOYEE ENGAGEMENT AND EMPLOYEE INVOLVEMENT
Employee engagement is considered as degree of employee participation in operational
activities. It has been noticed that it is significant for organization to make sure that the
employees are taking participation in diverse activities so that objectives can be accomplished
effectively. In addition to this, it is extent to which employees feel passionate about their jobs. It
also indicates the commitment of employees towards organisation so that strategies can be
designed in appropriate manner (Werner, 2008). It has been identified that if employee
engagement within ABC company is not appropriate then performance can not be improved. For
example, the company is looking forward to accomplishing goals of 10 percent sales in next 6
months but employees are not committed towards work activities then it might affect the overall
development (Miriam and Londregan, 2013). It means in order to have improvement in
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performance of organisation, it is significant for business entity to make sure that the employee
satisfaction is high so that workforce commitment can be improved.
On the other side, the employee involvement is considered as direct participation of staff
members in order to meet the organisational goals and objectives. It is referred as combination of
activities that allows employees to take part in diverse operational activities. It has been noticed
that if employee involvement in operational activities is not appropriate then overall performance
of organisation may get impact (Othman and Poon, 2010). It is also beneficial to resolve the
problems so that decisions can be taken into account in appropriate manner. In addition to this, it
can be stated that the employee involvement also related with the workforce motivation.
Increased level of employee involvement also enhances the morale of employees that allows
workforce to effort in more optimistic way (Boxall and Purcell, 2011). It is also significant to
have advancement in performance which provide support to performance management system.
Performance management process can be an important tool for aligning workforce and driving
employee high performance. It means to strengthen the performance management system it is
significant for business entity to focus on employee engagement and involvement (Chen and
Huang, 2009).
In this respect, the management can take feedbacks from employees in regard to
performance. As per the analysis of views presented by employees the performance management
system standards can be designed. It will lead business to impressive level of success and
improve overall performance. Training can also be provided to improve employee engagement
so that workforce commitment can also be enhanced (CHUANG and Liao, 2010). Employee
commitment advancement is also beneficial to have improvement in performance and
accomplish organisational goals. If employee engagement and involvement is appropriate then
members can easily discuss job duties with supervisor. Improved knowledge about job duties
assist in accomplishment of task so that overall performance can also be improved (Datta,
Guthrie and Wright, 2013). Employees must be allowed to provide suggestions so that
performance standards and indicators can be enhanced it will also lead business to impressive
level of success.
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ISSUES AND WAYS TO OVERCOME
As per the detailed study, there are number of issues that management of ABC company
may face while implementing the performance management system. It has been noticed that the
employee performance rate is dependent upon goals that are set out by organisations. However,
the goals are being changed on rapid basis so it is one of critical task to have effective
measurement of employee performance (Engle, Festing and Dowling, 2008). In addition to this,
it can be said that the people also take more time to provide performance feedback. It means the
company may face issue in taking feedback from employees which might affect the effectiveness
of overall performance management system (Ruysseveldt, 2014).
However, the overall year performance is being evaluated that also affects the morale of
workforce. For example, the company is focused towards performance management system and
management has evaluated that employee has made mistake before nine months. But nowadays
the employee is optimistically committed towards work (Finegold and Frenkel, 2010). In this
case, the overall performance is considered as bad scale. It means the organisation need to ensure
that the performance management system standards are well designed so that issues can be
overcome effectively (Marler, 2012). Measurement of performance must be dependent upon
recent actions performed by employee. It has also been noticed that the ranking provided in
performance management system may cut down the employment engagement because it impacts
directly on motivation aspects. For example, the employee is rated down in performance
management system then his/her motivation level will be influenced. Low level of motivation
may decrease the employee engagement and commitment which might be critical issue that may
affect overall performance of organisation (Werner, 2008).
In order to overcome issues, it is necessary for management of ABC company to focus on
number of activities that may cut down the issues and lead business to impressive level of
success. It has been noticed that the management need to focus on activities that might improve
employee participation. With an improved focus on employee participation the issues can be
discussed in appropriate manner so that the strategies can be designed effectively (Miriam and
Londregan, 2013). It enhances the morale of employees so that performance can be improved
and lead business to impressive level of success. It can be recommended that the management
need to focus on communication aspects so that understanding about goals and expectations can
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be improved. It also enhances the morale of workforce and ensure that the goals and objectives
are being accomplished effectively (Othman and Poon, 2010).
Open communication techniques also need to be concerned so that issues can be
overcome and lead business to better success. With an assistance of open communication
techniques the business entity may share information about policies and duties so that employees
can perform task in appropriate manner (Boxall and Purcell, 2011). It has been noticed that the
open minded communication enhances the potential to express ideas and views which is
beneficial to improve overall performance. If workforce is sharing issues in appropriate manner
then better strategies can be designed to improve overall performance (Chen and Huang, 2009).
In addition to this, it can be asserted that the work culture also need to be consider
effectively from the management of ABC company. With an assistance of employees needs the
services can be transformed so that work culture can be improved. Basic facilities and other
supportive facilities can be improved to enhance the morale of employees (CHUANG and Liao,
2010). It also enhances the productivity of workforce that has direct positive impact on the
organisation performance. Innovation must be considered as key aspect so that better relationship
between management and employees can be build. It also provides better opportunity to have
advancement in performance management system (Datta, Guthrie and Wright, 2013). Team
building and collaborative activities need to be framed so that employee engagement and
involvement can be improved which is advantageous for performance management system
application.
CONCLUSION
As per the above study, it can be concluded that the performance management system is
designing of activities that ensure that the employees are showing their best commitment so that
goals and objectives can be accomplished. It also focuses on improvement in skills and provide
befits to employees as well as organisation. With an assistance of this, issues can be overcome
and lead business to impressive level of success. Moreover, the employee engagement and
participation is also considered as key aspect that allows businesses to strengthen the
performance management system. Participative factors and communication allows employees to
understand process in appropriate manner which allows them to have efforts in appropriate
manner so that issues can be overcome. It also improves the performance and lead business to
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better success. Performance management system also has involvement in planning so objectives
need to designed in such manner that they can clarify the individual responsibility and duty.
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REFERENCES
Books and Journals
Boxall, P. and Purcell, J., 2011. Strategy and human resource management. Palgrave
Macmillan.
Chen, C.J. and Huang, J.W., 2009. Strategic human resource practices and innovation
performance—The mediating role of knowledge management capacity. Journal of business
research. 62(1). pp.104-114.
CHUANG, C.H. and Liao, H.U.I., 2010. Strategic human resource management in service
context: Taking care of business by taking care of employees and customers. Personnel
Psychology. 63(1). pp.153-196.
Datta, D.K., Guthrie, J.P. and Wright, P.M., 2013. Human resource management and labor
productivity: does industry matter?. Academy of management Journal. 48(1). pp.135-145.
Dowling, P.J., Festing, M. and Engle, E.D., 2008. International Human Resource Management:
Managing People in a Multinational Context. Cengage Learning EMEA.
Edenborough, R. 2007. Assessment methods in recruitment, selection and performance: a
manager’s guide to psychometric testing, interviews and selection. London: Kogan Page.
Engle, D. A., Festing, M. and Dowling, P., 2008. International Human Resource Management:
Managing People in a Multinational Context. Cengage Learning.
Finegold, D. and Frenkel, S., 2010. Managing People where People Really Matter: The
Management of Human Resources in Biotech Companies. International Joutrnal of Human
Resource Management. 17(1). Pp.1-24.
Joe, M., 2008. Strategic Compensation: A Human Resource Management Approach. Pearson
Education India.
Kearns, P., 2010. HR Strategy. Routledge.Kumar, R., 2010. Human Resource Management:
Strategic Analysis Text and Cases. I. K. International Pvt Ltd.
Lucio, M., 2013. International Human Resource Management: An Employment Relations
Perspective. SAGE.
Maley, F. J., 2011. The influence of various human resource management strategies on the
performance management of subsidiary managers. Asia-Pacific Journal of Business
Administration. 3 (1). pp.28 – 46.
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